INTRODUCTION

Why study information systems and information technology.

Information technologies, including Internet-

based information systems, are playing a vital and
expanding role in business. Information technology
can help all kinds of businesses improve the
efficiency and effectiveness of their business
processes, managerial decision making, and
workgroup collaboration, thus strengthening their
competitive psoitions in a rapidly changing
marketplace.
 WHAT IS AN
INFORMATION SYSTEM
An Information system (IS) can be any organized
combination of people, hardware, software,
communications networks, and data resources that
stores and retrieves, transforms, and disseminates
information is an organization. People have relied on
information systems to communicate with each other
using a variety of physical devices (hardware),
information processing instructions and procedures
(Software), communications channels (Networks), and
stored data (Data Resources) since the dawn of
civilization.
 INFORMATION
TECHNOLOGIES
While the terms information system and
information technology are sometimes used
interchangeably, they are two distinct concepts. As
defined above, the term information system
describes all of the components and resources
necessary to deliver its information and functions to
the organization. In contrast, the term information
technology refers to the various hardware
components necessary for the system to operate.
 THE FUNDAMENTAL ROLES
OF IS IN
BUSINESS
There are three fundamental reasons for all
business applications of information technology.

• Support of its business processes and operations.

• Support of decision making by its employees and
managers.
• Support of its strategies for competitive advantage.
TRENDS IN INFORMATION
SYSTEMS
 THE ROLE OF E-BUSINESS IN
BUSINESS
We define e-business as the use of Internet
technologies to work and empower business processes,
electronic commerce, and enterprise collaboration within
a company and with its customers, suppliers, and other
business stakeholders. In essence, e-business can be
more generally considered an online exchange of value.
These companies rely on e-business applications
to (1) reengineer internal business processess, (2)
implement electronic commerce systems with their
customers and suppliers, and (3) promote enterprise
collaboration among business terms and workgroups.
TYPES OF INFORMATION
SYSTEMS
 OPERATIONS
SUPPORT SYSTEMS
Transaction processing system – Process data
resulting from business transactions, update
operational databases, and produce business
documents. Examples; sales and inventory processing
and accounting systems.
Process control systems – Monitor and control
industrial processes. Examples: petroleum refining,
power generation, and steel production systems.
Enterprise collaboration systems – Support team,
workgroup, and enterprise communications and
collaboration. Examples: e-mail, chat and
videoconferencing groupware sysems.
 MANAGEMENT
SUPPORT SYSTEMS
Management Information systems – Provide information in
the form of prespecified reports and displays to support
business decision making. Examples : sales analysis,
production performance, and cost trend reporting systems.
Decision support systems – Provide interactive ad hoc
support for the decision-making processes of managers and
other business professionals. Examples: product pricing,
profitability forecasting, and risk analysis systems.
Executive Information Systems – Provide critical information
from Mis, DSS, and other sources tailored to the information
needs of executives. Examples : systems for easy access to
analyses of business performance, actions of competitors, and
econmoic developments to support strategic planning.
 OTHER CATEGORIES OF
INFORMATION SYSTEMS
Expert systems – Knowledge based systems that
provide expert advice and act as expert consultants to
users. Examples : credit application advisor, process
monitor, and diagnostic maintenance systems.
Knowledge management systems – Knowledge based
systems that support the creation, organization, and
dissemination of business knowledge within the
enterprise. Examples: Intranet access to best business
practices, sales proposal strategies, and customer
problem resolution systems.
Strategic information systems – Support operations
or management processes that provide a firm with
strategic, products, services, and capabilities for
competitive advantage. Examples : online stock
trading, shipment tracking, and e-commerce Web
systems.
Functional business systems – Support a variety of
operational and managerial applications of the basic
business functions of a company. Examples:
Information systems that support applications in
accounting, finance, marketing, operations
management, and human resource management.
 DEVELOPING IS
SOLUTIONS
Developing successful information system to
business problems is a major challenge for business
managers and professionals today. As a business
professional, you will be responsible for proposing or
developing new or improved uses of information
technologies for your company. As a business
manager, you will also frequently manage the
development efforts of information systems
specialists and other business end users.
 FOUNDATION CONCEPTS :
THE COMPONENTS
OF INFORMATION
SYSTEMS
What is a system? – A system is defined as a set of
interrelated components, with a clearly defined
boundaary, working together to achieve a common
set of objectives.
A system is a group of interrelated components, with a clearly
defined boundary, working together toward a common goal by
accepting inputs and producing outputs in an organized
transformation process.
Such a system (Sometimes called a dynamic system) has
three basic interacting components or functions :
Input – Involves capturing and assembling elements that enter
the system to be processed. For example, raw materials,
energy, data, and human effort must be secured and organized
for processing.
Processing – Invovles transformation processes that convert
input into output. Examples are a manufacturing process, the
human breathing process, or mathematical calculations.
Output – Involves transferring elements that have been
produced by a transformation process to their ultimate
destination. For example, finished products, human services,
and management information must be transmitted to their
human users.