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c1 Foundations of Is in Business
c1 Foundations of Is in Business
c1 Foundations of Is in Business
McGraw-Hill/Irwin Copyright2008
Copyright 2008,
by The
TheMcGraw-Hill
McGraw-HillCompanies,
Companies,Inc.
Inc.All
Allrights reserved.
rights reserved.
Chapter
1
Foundations of
Information Systems in Business
McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1-3
Learning Objectives
1-4
Learning Objectives
1-5
Foundation Concepts
1-6
What is a System?
1-7
What is an Information System?
An organized combination of
People
Hardware and software
Communication networks
Data resources
Policies and procedures
This system
Stores, retrieves, transforms, and disseminates
information in an organization
1-8
Information Technologies
Information Systems
All the components and resources necessary to
deliver information and functions to the
organization
Could be paper based
Information Technologies
Hardware, software, networking, data
management
Our focus will be on computer-based
information systems (CBIS)
1-9
What Should Business Professionals Know?
1-10
Fundamental Roles of IS in Business
1-11
Trends in Information Systems
1-12
What is E-Business?
1-13
How E-Business is Being Used
1-14
E-Business Use
Reengineering
Internal business processes
Enterprise collaboration systems
Support communications, coordination and
coordination among teams and work groups
Electronic commerce
Buying, selling, marketing, and servicing of
products and services over networks
1-15
Types of Information Systems
1-16
Purposes of Information Systems
1-17
Operations Support Systems
1-18
Types of Operations Support Systems
Batch Processing
Accumulate transactions over time and process
periodically
Example: a bank processes all checks received in
a batch at night
Online Processing
Process transactions immediately
Example: a bank processes an ATM withdrawal
immediately
1-20
Management Support Systems
1-21
Types of Management Support Systems
1-22
Other Information Systems
Expert Systems
Provide expert advice
Example: credit application advisor
Knowledge Management Systems
Support creation, organization, and dissemination
of business knowledge throughout company
Example: intranet access to best business
practices
1-23
Other Information Systems
1-24
IT Challenges and Opportunities
1-25
Measuring IT Success
Efficiency
Minimize cost, time, and use of information
resources
Effectiveness
Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase customer and business value
1-26
Developing IS Solutions
1-27
IT Careers
1-28
The IS Function
The IS function is
A major functional area of business
An important contributor to operational
efficiency, employee productivity, morale,
customer service and satisfaction
A major source of information and support for
decision making
A vital ingredient in developing competitive
products and services in the global marketplace
A dynamic and challenging career opportunity
A key component of todays networked business
1-29
System Concepts: A Foundation
A system is
A set of interrelated components
With a clearly defined boundary
Working together
To achieve a common set of objectives
By accepting inputs and producing outputs
In an organized transformation process
1-31
Basic Functions of a System
Input
Capturing and assembling elements that enter the
system to be processed
Processing
Transformation process that converts input into
output
Output
Transferring transformed elements to their
ultimate destination
1-32
A Business as a System
1-33
Other System Characteristics
1-34
Components of an IS
1-35
Information System Resources
People Resources
Specialists
End users
Hardware Resources
Machines
Media
Software Resources
Programs
Procedures
1-36
Information System Resources
Data Resources
Product descriptions, customer records, employee
files, inventory databases
Network Resources
Communications media, communications
processors, network access and control software
Information Resources
Management reports and business documents
using text and graphics displays, audio responses,
and paper forms
1-37
Data Versus Information
1-38
IS Activities
1-39
Recognizing Information Systems
1-40