What is an Information System?

Input ofInput ofDataData

ResourcesResourcesProcessingProcessing

DataData

Control of System PerformanceControl of System Performance

Storage of Data ResourcesStorage of Data Resources

Output of Output of Information Information

ProductsProducts

Information Technologies

• Computer hardware technologies• Computer software technologies• Telecommunications network technologies• Data resource management technologies

An IS Framework for Business Professionals

• Include fundamental behavioral, technical, business, and managerial concepts about the components and roles of IS.

• Examples :– Basic IS concepts derived from general systems

theory.– Competitive strategy concepts used to develop e-

business applications of IT for competitive advantage.

An IS Framework for Business Professionals: (1) Foundation Concepts

• Major concepts, developments, and management issues in IT.

• Examples: hardware, software, networks, data resource management, and many Internet-based technologies.

An IS Framework for Business Professionals: (2) Information Technologies

• The major uses of IS for the operations, management, and competitive advantage of an e-business enterprise.

• Examples: Electronic business, commerce, collaboration and decision making using Internet, intranets, and extranets.

An IS Framework for Business Professionals: (3) Business Applications

• How business professionals and information specialists plan, develop, and implement IS to meet e-business opportunities using several application development approaches.

An IS Framework for Business Professionals: (4) Development Processes

• The challenges of effectively and ethically managing e-business technologies, strategies, and security at the end user

An IS Framework for Business Professionals: (5) Management Challenges

Major Roles of Information Systems

Support Strategies for

Competitive Advantage

SupportBusiness Decision Making

Support Business Processes and Operations

Fundamental Roles of IS in Business

• Support of its business processes and operations

• Support of decision making by its employees and managers

• Support of its strategies for competitive advantage

The e-Business Enterprise

Manufacturingand

ProductionEngineering &

ResearchAccounting,and Finance

Suppliers and Other Business Partners

Supply Chain ManagementProcurement, Distribution, and Logistics

Customer Relationship ManagementMarketing Sales Customer Service

Consumer and Business Customers

CompanyBoundary

Intranets

The Internet

Extranets

Extr

anet

s

History of the role of Information Systems

Data Processing

ManagementReporting

DecisionSupport

Strategic &End User

Electronic Commerce

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

ElectronicData Processing- TPS

ManagementInformationSystems- Mgt reports

DecisionSupportSystems- Ad hoc Reports

End UserComputingExec Info SysExpert SystemsSIS

Internet-based e-business and e-commerce systems

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

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Functional Business Systems

Strategic Information Systems

Cross-Functional Information Systems

The Information Systems Development Process

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

• Why information systems are important? IS 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

• 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)