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Eleventh Edition
1
Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
C h a p t e r
James A. O’Brien
1Foundations
of Information Systems
in Business
Eleventh EditionJames A. O’Brien 2Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.
• Give examples to illustrate how electronic business, electronic commerce, or enterprise collaboration systems could support a firm’s business processes, managerial decision making, and strategies for competitive advantage.
Chapter Objectives
Eleventh EditionJames A. O’Brien 3Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• Provide examples of the components of
real world information systems. Illustrate
that in an information system, people use
hardware, software, data, and networks
as resources to perform input,
processing, output, storage, and control
activities that transform data resources
into information products.
Chapter Objectives
Eleventh EditionJames A. O’Brien 4Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• Provide examples of several major types
of information systems from your
experiences with business organizations
in the real world.
• Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.
Chapter Objectives
Eleventh EditionJames A. O’Brien 5Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
An IS Framework for Business Professionals
Eleventh EditionJames A. O’Brien 6Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
InformationSystems
Resources
People
Components of an Information System
Eleventh EditionJames A. O’Brien 7Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
What is an Information System?
Input of
Data
Resources
Processing
Data
Output of
Information
Products
Control of System Performance
Storage of Data Resources
Eleventh EditionJames A. O’Brien 8Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
What is a System?
ManufacturingProcess
Input ofRaw Materials
Output ofFinished Products
Environment
Other Systems
Control byManagement
ControlSignals
ControlSignals
FeedbackSignals
FeedbackSignals
System Boundary
Eleventh EditionJames A. O’Brien 9Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Components of an Information System
Eleventh EditionJames A. O’Brien 10Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100
Eleventh EditionJames A. O’Brien 11Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Attributes of Information Quality
Eleventh EditionJames A. O’Brien 12Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
NameField
PayrollRecord
PayrollFile
PersonnelDatabase
Logical Data Elements
Eleventh EditionJames A. O’Brien 13Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Major Roles of Information Systems
Support Strategies for
Competitive Advantage
SupportBusiness Decision Making
Support Business Processes and Operations
Eleventh EditionJames A. O’Brien 14Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
History of the role of Information Systems
Data
Processing
Management
ReportingDecision
Support
Strategic &
End UserElectronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Electronic
Data
Processing
- TPS
Management
Information
SystemsDecision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
Eleventh EditionJames A. O’Brien 15Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
The e-Business Enterprise
Manufacturingand
Production
Engineering &Research
Accounting,and Finance
Suppliers and Other Business Partners
Supply Chain ManagementProcurement, Distribution, and Logistics
Customer Relationship ManagementMarketing Sales Customer Service
Consumer and Business Customers
Company
Boundary
Intranets
The Internet
Extranets
Extr
an
ets
Eleventh EditionJames A. O’Brien 16Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Types of Information Systems
Transaction
Processing
Systems
Process
Control
Systems
Enterprise
Collaboration
Systems
Operations
Support
Systems
Management
Information
Systems
Decision
Support
Systems
Executive
Information
Systems
Management
Support
Systems
Information Systems
Eleventh EditionJames A. O’Brien 17Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Functional Business Systems
Strategic Information Systems
Cross-Functional Information Systems
Eleventh EditionJames A. O’Brien 18Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
The Information Systems Development Process
Eleventh EditionJames A. O’Brien 19Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Management Challenges of the E-business Enterprise
•Business Strategies•Business Processes•Business Needs
•Customer Relationships•Business Partners•Suppliers•Business Customers
Ethical ConsiderationsPotential Risks?Potential Laws? Possible Responses?
•IS Human Resources•IS Development
•IT Infrastructure•IS Performance
•Organization Structure•and Culture•User Acceptance
Eleventh EditionJames A. O’Brien 20Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• 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:
– Foundations (fundamentals) of IS
– Information Technologies
– Business Applications
– Development Processes; and
– Managerial Challenges
Chapter Summary
Eleventh EditionJames A. O’Brien 21Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Summary (cont)
• A system is a group of interrelated components
working toward the attainment of a common
goal by accepting inputs and producing
outputs in an organized transformation
process.
• An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities.
Eleventh EditionJames A. O’Brien 22Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• IS Resources:
– Hardware Resources
– Software Resources
– People Resources
– Data Resources
– Network Resources
• Products:
– Paper Reports
– Visual Displays
– Multimedia Documents
– Electronic Messages
– Graphics images
– Audio Responses
Chapter Summary (cont)
Eleventh EditionJames A. O’Brien 23Introduction to Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• Information systems perform three vital roles in
business firms. They support:
– Business processes and operations,
– Business decision making; and
– Strategic competitive advantage
• Major application categories of information
systems include:
– Operations Support Systems; and
– Management Support Systems
Chapter Summary (cont)
