1

Introduction to Information Systems

Essentials for the Internetworked E-Business Enterprise

Eleventh Edition

James A. O’Brien

Chapter
1
Foundations
of Information Systems
in Business
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 James A. O’Brien Introduction to Information Systems Eleventh Edition 2

Chapter Objectives
• Provide foundation of why information
systems are important
• Identify major types of information
systems
• Identify major types of information
systems

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 3

Chapter Objectives
• Define construct of an information
system – people, hardware, software,
data, and networks
• The above resources perform input,
processing, output, storage, and control
activities that transform data resources
into information products.
• Identify challenges and ethical issues
that a business manager might face

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 4

An IS Framework for Business Professionals

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 5

Components of an Information System

People

Information
Systems
Resources

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 6

What is a System?
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
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 James A. O’Brien Introduction to Information Systems Eleventh Edition 8

Components of an Information System

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 9

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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 James A. O’Brien Introduction to Information Systems Eleventh Edition 10

Attributes of Information Quality

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 11

Major Roles of Information Systems

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 12

IT Era’s
• Data Processing (DP)
• Micro Era
• Network Era
• WAN Network Environment
– Client-Server
– Thin Client
– Web
– WAP

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 13

History of the role of Information Systems

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

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 14

The e-Business Enterprise

The Internet
Suppliers and Other Business Partners Company
Boundary
Supply Chain Management
Procurement, Distribution, and Logistics
Extranets

Manufacturing
Engineering & Accounting,
and
Research and Finance
Production

Intranets
Customer Relationship Management
Marketing Sales Customer Service

Extranets

Consumer and Business Customers

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Types of Information Systems
Why Organizations need
Information Systems
 Meeting Global Challenges
 Capturing opportunities in the Market Place
 Supporting Corporate Strategy
 Linking Departments Whose Functions are
different
 Enhancing Worker Productivity
 Increasing Quality of Goods and Services

16
 James A. O’Brien Introduction to Information Systems Eleventh Edition 17

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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 Functional Business Systems
Manufacturing
Information
Systems
Human
Resources Quality Control
Systems Information
Systems

Customer

Geographic
Information Marketing
Systems Information
Systems
Financial
and Accounting
Systems
18
 James A. O’Brien Introduction to Information Systems Eleventh Edition 19

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 22

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems –

National Semiconductor – “faster & better” decisions

Global Information Systems- Levi’s

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 23

The Information Systems Development Process

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 24

Management Challenges of the E-business Enterprise

•Business Strategies
•Business Processes
•IS Human Resources •Business Needs
•IS Development

•Customer Relationships
•Business Partners
•IT Infrastructure
•Suppliers
•IS Performance
•Business Customers

•Organization Structure Ethical Considerations

•and Culture Potential Risks?
•User Acceptance Potential Laws?
Possible Responses?

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 26

Chapter Summary
• 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:
– Components (fundamentals) of IS
– Information Technologies
– Business Applications and processes
– Managerial Challenges

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 James A. O’Brien Introduction to Information Systems Eleventh Edition 27

Chapter Summary (cont)

• An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities. – Transform
organizational processes
• Information systems perform three vital roles in
business firms. They support:
– Business processes and operations,
– Business decision making; and
– Strategic competitive advantage

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