Foundations of Information Foundations of Information Systems in BusinessSystems in Business

MISWhy study information systems and

information technology?

• Information systems and technologies are a vital component of successful businesses and organizations.

• 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 positions in a rapidly changing marketplace.

• This is true whether information technology is used to support product development teams, customer support processes, electronic commerce transactions, or any other business activity. Internet-based information technologies and systems have become a necessary ingredient for business success in today's dynamic global environment.

Learning Objectives

• Explain why knowledge of information systems is important for business professionals and identify five areas of five areas of information systemsinformation systems knowledge they need.

• Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.

Learning Objectives

• 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 Outline

• Section ISection IFoundation Concepts: Information Systems and Technologies

• Why Information Systems Are Important• The Real World of Information Systems• Real World Case: BellSouth Corporation: The Business Payback of

Information Technology• What You Need to Know• An IS Framework for Business Professionals• System Concepts: A Foundation• Components of an Information System• Information System Resources• Information System Activities• Recognizing Information Systems

Chapter Outline

• Section IISection IIFoundation Concepts: Business Applications, Development, and Management

• The Fundamental Roles of IS Applications in Business• Real World Case: Royal Caribbean International: Renewing and Realigning

IT with Business• e-Business in Business• Trends in Information Systems• Types of Information Systems• Managerial Challenges of Information Technology• Success and Failure with IT• Developing Business/IT Solutions• Challanges of Ethics and IT• Challenges of IT Careers

Chapter overviewChapter overviewThere are three fundamental reasons for all

business applications of information technology. They are found in the three vital roles that information systems can perform for a business enterprise. I. Support of its business processes and operations.II. Support of decision making by its employees and

managers.III. Support of its strategies for competitive advantage.

Chapter overviewChapter overviewI. The strategic applications of information

systems for competitive advantage.II. Business applications of information

technology for electronic business operations, electronic commerce, enterprise collaboration, and decision making

GlossaryGlossaryGlossaryGlossary

• (1) A group of interrelated or interacting elements forming a unified whole.

• (2) A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.

• (3) An assembly of methods, procedures, or techniques unified by regulated interaction to form an organized whole.

• (4) An organized collection of people, machines, and methods required to accomplish a set of specific functions.

SYSTEMSYSTEM

GlossaryGlossaryGlossaryGlossary

An information system that uses computer hardware and software to perform its information processing activities.

Computer-Based Information Computer-Based Information SystemSystem

GlossaryGlossaryGlossaryGlossary

• Hardware, software, telecommunications, database management, and other information processing technologies used in computer-based information systems.

• Hardware, software, telecommunications, database management, and other information processing technologies used in computer-based information systems.

Information Technology (IT)Information Technology (IT)

GlossaryGlossaryGlossaryGlossary

(1) The systems component that evaluates feedback to determine whether the system is moving toward the achievement of its goal and then makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced.

(2) A management function that involves observing and measuring organizational performance and environmental activities and modifying the plans and activities of the organization when necessary.

(1) The systems component that evaluates feedback to determine whether the system is moving toward the achievement of its goal and then makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced.

(2) A management function that involves observing and measuring organizational performance and environmental activities and modifying the plans and activities of the organization when necessary.

ControlControl ControlControl

GlossaryGlossaryGlossaryGlossary

Facts or observations about physical phenomena or business transactions.

More specifically, data are objective measurements of the attributes (characteristics) of entities such as people, places, things, and events.

Facts or observations about physical phenomena or business transactions.

More specifically, data are objective measurements of the attributes (characteristics) of entities such as people, places, things, and events.

DataData DataData

GlossaryGlossaryGlossaryGlossary

• End User:-End User:- Anyone who uses an information system or the

information it produces.Information:-Information:- Information is data placed in a meaningful and

useful context for an end user.Feedback :-Feedback :-Data or information concerning the components

and operations of a system.

• End User:-End User:- Anyone who uses an information system or the

information it produces.Information:-Information:- Information is data placed in a meaningful and

useful context for an end user.Feedback :-Feedback :-Data or information concerning the components

and operations of a system.

End User/ Information/ FeedbackEnd User/ Information/ Feedback

GlossaryGlossaryGlossaryGlossary

• (1) A set of people, procedures, and resources that collects, transforms, and disseminates information in an organization.

• (2) A system that accepts data resources as input and processes them into information products as output.

Information SystemInformation System

GlossaryGlossaryGlossaryGlossary

• A conceptual framework that views an information system as a system that uses the resources of hardware (machines and media), software (programs and procedures), people (users and specialists), and networks (communications media and network support) to perform input, processing, output, storage, and control activities that transform data resources (databases and knowledge bases) into information products.

• A conceptual framework that views an information system as a system that uses the resources of hardware (machines and media), software (programs and procedures), people (users and specialists), and networks (communications media and network support) to perform input, processing, output, storage, and control activities that transform data resources (databases and knowledge bases) into information products.

Information System Model

GlossaryGlossaryGlossaryGlossary

• The use of groupware tools and the Internet, intranets, extranets, and other computer networks to support and enhance

• The use of groupware tools and the Internet, intranets, extranets, and other computer networks to support and enhance

Enterprise Collaboration Systems

Enterprise Collaboration Systems

GlossaryGlossaryGlossaryGlossary

Electronic Business (e-Business) :-• The use of Internet technologies to internetwork and

empower business.

Electronic Commerce (e-Commerce) :- • The buying and selling, marketing and servicing, and

delivery and payment of products, services, and information over the Internet, intranets, extranets, and other networks, between an internetworked enterprise and its prospects, customers, suppliers, and other business partners. Includes business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C) e-commerce.

Electronic Business (e-Business) :-• The use of Internet technologies to internetwork and

empower business.

Electronic Commerce (e-Commerce) :- • The buying and selling, marketing and servicing, and

delivery and payment of products, services, and information over the Internet, intranets, extranets, and other networks, between an internetworked enterprise and its prospects, customers, suppliers, and other business partners. Includes business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C) e-commerce.

GlossaryGlossaryGlossaryGlossary

• An Internet-like network within an organization. Web browser software provides easy access to internal websites established by business units, teams, and individuals, and other network resources and applications.

• An Internet-like network within an organization. Web browser software provides easy access to internal websites established by business units, teams, and individuals, and other network resources and applications.

IntranetIntranet IntranetIntranet

GlossaryGlossaryGlossaryGlossary

• A network that links selected resources of a company with its customers, suppliers, and other business partners, using the Internet or private networks to link the organizations’ intranets.

• A network that links selected resources of a company with its customers, suppliers, and other business partners, using the Internet or private networks to link the organizations’ intranets.

ExtranetExtranet

GlossaryGlossaryGlossaryGlossary

• People whose primary work activities include creating, using, and distributing information.

• People whose primary work activities include creating, using, and distributing information.

Knowledge Knowledge WorkersWorkers