Professional Documents
Culture Documents
1
Foundations of
Information Systems in
Business
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
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Learning Objectives
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Learning Objectives
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Case Study Questions
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Case Study Questions
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Case Study Questions
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Foundation Concepts
business processes
– Facilitates managerial decision making
and workgroup collaboration
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What is an Information System?
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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) 1-11
What Should Business Professionals Know?
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Fundamental Roles of IS in Business
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Trends in Information Systems
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What is E-Business?
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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
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Types of Information Systems
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Purposes of Information Systems
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Operations Support Systems
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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
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Management Support Systems
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Types of Management Support 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
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Other Information Systems
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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
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Developing IS Solutions
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Challenges and Ethics of IT
• Application of IT
– Customer relationship management
– Human resources management
– Business intelligence systems
• Potential Harm
– Infringements on privacy
– Inaccurate information
– Collusion
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Challenges and Ethics of IT
• Potential Risks
– Consumer boycotts
– Work stoppages
– Government intervention
• Possible Responses
– Codes of ethics
– Incentives
– Certification
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Ethical Responsibilities
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IT Careers
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IT Careers
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The IS Function
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System Concepts: A Foundation
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Real World Case: JetBlue and the Veterans
Administration
• Good IT processes are as important as hardware
and software when it comes to creating business
value through the use of technology.
• Even seemingly smaller and less critical processes
can have ramifications of a large magnitude in the
interconnected world in which we live.
• The information system, which was developed by
JetBlue in 24 hours and implemented in the middle
of crisis in 2007, has now been implemented as a
full-time system in the company.
• At Veterans Administration an unscheduled system
failure took down key applications in 17 (VA)
medical facilities for a day
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Case Study Questions
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Case Study Questions
• 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
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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
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Cybernetic System
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A Cybernetic System
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A Business as a System
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Other System Characteristics
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Information System Resources
• People Resources
– Specialists
– End users
• Hardware Resources
– Machines
– Media
• Software Resources
– Programs
– Procedures
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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
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Data Versus Information
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Recognizing Information Systems
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Case Study Questions
1. Why should manufacturing companies build smart
products and provide smart services? What business
benefits can they gain? Provide several examples
beyond those discussed in this case.
2. What information technologies are used by the
companies in this case to build smart products and
provide smart services? What other IT components
might be used? Give examples of the capabilities they
would provide.
3. What are some limitations of a smart products and
smart services strategy? Give several examples of
challenges that a business might encounter, and
explain how it might overcome them.
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Case 4: Lufthansa
• In 2001, Lufthansa launched the “Lufthansa Mobile
Initiative,” which aimed to provide all pilots with
notebook computers.
• It helps 3,500 highly mobile airline pilots plugged into
the corporate infrastructure, that informs them about
schedules, weather events, and other facts that affect
their jobs throughout the world.
• The Lufthansa Mobile Initiative is yielding significant
productivity and efficiency improvements, while
keeping costs manageable.
• Pilots use their notebook computers for computer-
based training whether they are learning about new
aircraft or things like specific hydraulic systems.
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Case Questions
1. Are many of Lufthansa’s challenges identified in
the case similar to those being experienced by
other businesses in today’s global economy?
Explain and provide some examples.
2. What other tangible and intangible benefits,
beyond those identified by Lufthansa, might a
mobile workforce enjoy as a result of deploying
mobile technologies? Explain.
3. Lufthansa was clearly taking a big risk with their
decision to deploy notebook computers to their
pilots. What steps did they take to manage that
risk, and what others might be needed in today’s
business environment? Provide some examples.
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