1
Management Information Systems
ManagIng Information Technology in the E–Business Enterprise
Fifth Edition
James A. O’Brien
Chapter
1
Foundations
of Information Systems
in Business
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
2
Chapter Objectives
• 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 Ebusiness, electronic commerce, or
enterprise collaboration systems could
support a firm’s business processes,
managerial decision making, and
strategies for competitive advantage.
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
3
Chapter Objectives
• Provide examples of real world
information systems, including the
people, hardware, software, data, and
network resources that compose them.
• 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.
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
4
An IS Framework for Business Professionals
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
5
What is an Information System?
Control of System Performance
Input of
Data
Resources
Processing
Data
Output of
Information
Products
Storage of Data Resources
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James A. O’Brien
Management Information Systems
Fifth Edition
6
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
Other Systems
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
7
Components of an Information System
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James A. O’Brien
Management Information Systems
Fifth Edition
8
Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
9
Attributes of Information Quality
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James A. O’Brien
Management Information Systems
Fifth Edition
10
Logical Data Elements
Name
Field
Payroll
Record
Payroll
File
Personnel
Database
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James A. O’Brien
Management Information Systems
Fifth Edition
11
Major Roles of Information Systems
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
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James A. O’Brien
Management Information Systems
Fifth Edition
12
History of the role of Information Systems
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
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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
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
13
The Internetworked -Business
The Internet
Suppliers and Other Business Partners
Company
Boundary
Extranets
Procurement, Distribution, and Logistics
Engineering &
Research
Manufacturing
and
Production
Accounting,
Finance, and
Management
Intranets
Advertising
Sales
Customer Service
Extranets
Consumer and Business Customers
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
14
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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James A. O’Brien
Management Information Systems
Fifth Edition
15
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Functional Business Systems
Strategic Information Systems
Cross-Functional Information Systems
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
16
The Information Systems Development Process
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James A. O’Brien
Management Information Systems
Fifth Edition
17
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?
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
18
Chapter Summary
• Information Systems play a vital role in the
efficient and effective operations of EBusiness, E-Commerce and enterprise
collaboration.
• The business professional must know:
–
–
–
–
Foundations (fundamentals) of IS
Information Technologies
Business Applications
Development Processes; and
– Managerial Challenges
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
19
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.
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
20
Chapter Summary (cont)
• 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
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
21
Chapter Summary (cont)
• 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
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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