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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?
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
The IS Function
• 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
1-30
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
1-31
A Business as a System
1-32
Other System Characteristics
1-33
Components of an IS
1-34
Information System Resources
• People Resources
• Specialists
• End users
• Hardware Resources
• Machines
• Media
• Software Resources
• Programs
• Procedures
1-35
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
1-36
Data Versus Information
1-37
IS Activities
1-38