1

Introduction to Information Systems

Essentials for the Internetworked E-Business Enterprise

Eleventh Edition

James A. OBrien

Chapter

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1
Foundations
of Information Systems
in Business

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Introduction to Information Systems

Eleventh Edition

Chapter Objectives
Provide foundation of why information
systems are important
Identify major types of information
systems

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Introduction to Information Systems

Eleventh Edition

Chapter Objectives
Define construct of an information
system people, hardware, software,
data, and networks
The above resources perform input,
processing, output, storage, and control
activities that transform data resources
into information products.
Identify challenges and ethical issues
that a business manager might face

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

An IS Framework for Business Professionals

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Introduction to Information Systems

James A. OBrien

Eleventh Edition

Components of an Information System

Information
Systems
Resources

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People

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Eleventh Edition

Introduction to Information Systems

James A. OBrien

What is a System?
Environment

Feedback
Signals

Feedback
Signals

Control
Signals

Control by
Management

Control
Signals

Input of
Raw Materials

Manufacturing
Process

Output of
Finished Products

System Boundary

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Other Systems

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

Components of an Information System

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

Data versus Information

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Monthly Sales Report

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

10

Attributes of Information Quality

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

11

Major Roles of Information Systems

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Support
Strategies for
Competitive Advantage
Support
Business Decision Making

Support
Business Processes and Operations

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

12

IT Eras

Data Processing (DP)

Micro Era
Network Era
WAN Network Environment

Client-Server
Thin Client
Web
WAP

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James A. OBrien

Eleventh Edition

Introduction to Information Systems

13

History of the role of Information Systems

1950-1960
Data
Processing

1960-1970
Management
Reporting

Electronic
Data
Management
Processing
Information
-TPS
Systems
(transactional processing system)

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1970-1980
Decision
Support

Decision
Support
Systems
- Ad hoc
Reports

1980-1990

1990-2000

Strategic &
End User

Electronic
Commerce

End User
Computing
Exec Info Sys
Expert Systems
SIS

Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce(amazon)

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

Eleventh Edition

Introduction to Information Systems

James A. OBrien

14

The e-Business Enterprise

The Internet(network of all network)
Company
Boundary

Suppliers and Other Business Partners

Extranets

Supply Chain Management

Procurement, Distribution, and Logistics

Engineering &
Research

Manufacturing
and
Production

Accounting,
and Finance

Intranets(whole companies computer

Customer Relationship Management
Marketing
Sales
Customer Service
Extranets(network among two r more org)

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Consumer and Business Customers

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Types of Information Systems

Why Organizations need

Information Systems
Meeting Global Challenges
Capturing opportunities in the Market Place
Supporting Corporate Strategy
Linking Departments Whose Functions are

different
Enhancing Worker Productivity(nadra,nts)
Increasing Quality of Goods and Services

16

Eleventh Edition

Introduction to Information Systems

James A. OBrien

17

Types of Information Systems

Information Systems

Operations

Management

Support

Support

Systems

Systems

Transaction

Process

Enterprise

Management

Decision

Executive

Processing

Control

Collaboration

Information

Support

Information

Systems

Systems

Systems

Systems

Systems

Systems

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Functional Business Systems

Human
Resources
Systems

Manufacturing
Information
Systems
Quality Control
Information
Systems
Customer

Geographic
Information
Systems
Financial
and Accounting
Systems

Marketing
Information
Systems

18

James A. OBrien

Introduction to Information Systems

Eleventh Edition

19

Other Categories of Information Systems

Expert
ExpertSystems
Systems
Knowledge
KnowledgeManagement
Management Systems
Systems
Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems

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Strategic
StrategicInformation
InformationSystems
Systems

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

22

Other Categories of Information Systems

Expert
ExpertSystems
Systems
Knowledge
KnowledgeManagement
Management Systems
Systems
Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems

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Strategic
StrategicInformation
InformationSystems
Systems

National
NationalSemiconductor
Semiconductorfaster
faster&&better
betterdecisions
decisions

Global
GlobalInformation
InformationSystemsSystems-Levis
Levis

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

23

The Information Systems Development Process

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

24

Investigate ( searching problem)

Analyze (analyze it)ro
cessing system)

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

25

Management Challenges of the E-business Enterprise

IS Human Resources
IS Development

IT Infrastructure
IS Performance

Organization Structure
and Culture
User Acceptance

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Business Strategies
Business Processes
Business Needs

Customer Relationships
Business Partners
Suppliers
Business Customers

Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

27

Chapter Summary
Information Systems play a vital role in the
efficient and effective operations of E-business,
E-commerce and enterprise collaboration.
The business professional must know:
Components (fundamentals) of IS
Information Technologies
Business Applications and processes
Managerial Challenges

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

28

Ethical Challenges of Implementing IT in

Business

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

29

Careers in Information Systems

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

30

Chapter Summary (cont)

An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities. Transform
organizational processes
Information systems perform three vital roles in
business firms. They support:
Business processes and operations,
Business decision making; and
Strategic competitive advantage

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