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Foundations of Information Systems in Business: Mcgraw-Hill/Irwin

Lintasbudaya

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Talia Yvone
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39 views28 pages

Foundations of Information Systems in Business: Mcgraw-Hill/Irwin

Lintasbudaya

Uploaded by

Talia Yvone
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 28

Chapter

1
Foundations of
Information Systems in Business

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Advantage

• “Developing products, services, processes,


or capabilities that give a company a
superior business position relative to its
competitors and other competitive forces.”
Glossary, p. 637

• Attributed to a firm that is … “leading an


industry in some identifiable way, such as
sales, revenues or new products.” Ch. 2, p. 53
• “…when a firm sustains profits that exceed
the average for an industry …”
Ch. 2, p. 53

1-2
Trends in Information Systems

1-3
What is E-Business?

• An online exchange of value


– Conducting business on the Internet
• Using Internet technologies to empower…
– Business processes
– Electronic commerce
– Collaboration within a company
– Collaboration with customers, suppliers, and
other business stakeholders

1-4
How E-Business is Being Used

1-5
E-Business Use

• Reengineering
– Internal business processes
• Enterprise collaboration systems
– Support teams and work groups
• Electronic commerce
– Buying, selling, marketing, and servicing of
products and services over networks

1-6
Types of Information Systems

1-7
Information systems combine:

• Operations Support Systems (Figure 1.7)


– Transaction Processing systems
– Process Control Systems
– Enterprise Collaboration Systems
• Management Support Systems (Figure 1.9)
– Management Information Systems
– Decision Support Systems
– Executive Information Systems
• Other Systems (Figure 1.11)
– Expert Systems
– Knowledge Management Systems
– Strategic Information Systems
1-8
Two Ways to Process Transactions

• Transaction Processing (batch)


– Accumulate transactions over time
– Process periodically
– Example: a bank receives checks during the day
and processes in a batch at night
• Online Processing (real-time)
– Process transactions immediately
– Example: a bank processes an ATM withdrawal
immediately

1-9
Types of Management Support Systems

• Management Information Systems (MIS)


– Reports and displays
– Example: daily sales analysis reports
• Decision Support Systems (DSS)
– Interactive and ad hoc support
– Example: a what-if analysis to determine
where to spend advertising dollars
• Executive Information Systems (EIS)
– Critical information for executives and
managers
– Example: easy access to actions of
competitors
1-10
Other Information Systems
• Expert Systems
– Example: credit application advisor
• Knowledge Management Systems
– Support creation, organization, and dissemination
of business knowledge Example: intranet access
to best business practices
• Strategic Information Systems
– Help get a strategic advantage over customer
– Examples: shipment tracking, e-commerce Web
systems
• Functional Business Systems
– Focus on operational and managerial applications
Examples: accounting, finance, or marketing
1-11
IT Challenges and Opportunities

1-12
Responsibility and Accountability

• IT plays an integral role in every facet of a


business
• Failure is often pinned on IT
• Cultivate a culture that embraces change
• Break projects into pieces
• Set realistic expectations
• There will always be problems
– “That’s life in IT”

1-13
Developing IS Solutions

1-14
Challenges and Ethics of IT

• What are the ethical responsibilities?


• What are the risks?
• How can you protect yourself and your
company from computer crime?

1-15
IT Careers

• IT employment opportunities are strong


• Shortages of IT personnel are frequent
• Long-term job outlook is positive and
exciting
• Starting salaries are high

1-16
IT Careers

• Job increases will be driven by…


– Rapid growth
– Backfilling positions
– Information sharing environments
– Need for problem-solving skills
– Falling hardware and software prices

1-17
IT Careers

1-18
Business Analysts serve critical role

• CIO – broker between management and IT


• Business Analyst
– In the trenches
– Analyzes business need and creates solution
– Communicates solution to technicians
– Balances IT resources with business needs
• Business Analyst credentials
– 5-10 years experience
– Technical undergraduate degree and MBA
– Process driven through changes to finish
– $45,000 to $100,000

1-19
The IS Function

• Major functional area of business


• Important contributor to
– Efficiency, productivity, morale, customer service
and satisfaction
• Major source of information for decisions
• Vital ingredient in developing competitive
products and services
• Dynamic and challenging career opportunity
• Key component of networked business

1-20
System Concepts help us understand…

• Technology
– Hardware, software, data management,
telecommunications networks
• Applications
– Programs to support inter-connected systems
• Development
– Developing ways to use information technology
• Management
– Emphasizes the quality, strategic business
value, and security of an organization’s
information systems

1-21
What is a System?

• Interrelated components
• Defined boundary
• Working together
• Common objectives
• Accepting inputs and producing outputs
• Organized transformation process

1-22
Basic Functions of a System

• Basic Functions
– Input
– Processing
– Output
• Cybernetic System
– Feedback
– Control

1-23
A Cybernetic System

What are the components for feedback and control?

1-24
A Business as a System

1-25
Information System Resources

• People Resources
– Specialists
– End users
• Hardware Resources
– Machines
– Media
• Software Resources
– Programs
– Procedures

1-26
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 Products
– Management reports and business documents
using text and graphics displays, audio
responses, and paper forms

1-27
IS Activities

• Input of data resources


• Processing of data into information
• Output of information products
• Storage of data resources
• Control of system performance

1-28

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