1
Management Information Systems
ManagIng Information Technology in the EBusiness Enterprise
Fifth Edition
James A. OBrien
Chapter
win/McGraw-Hill
1
Foundations
of Information Systems
in Business
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
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 firms business processes,
managerial decision making, and
strategies for competitive advantage.
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
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.
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
An IS Framework for Business Professionals
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
What is an Information System?
Control
Controlof
of System
System Performance
Performance
Input
Inputof
of
Data
Data
Resources
Resources
win/McGraw-Hill
Processing
Processing
Data
Data
Output
Outputof
of
Information
Information
Products
Products
Storage
Storageof
of Data
DataResources
Resources
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
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
win/McGraw-Hill
Other Systems
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
Components of an Information System
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
Data versus Information
win/McGraw-Hill
Monthly Sales Report
for West Region
nn
a
0
10 rles M
s
a
e
0
h
o
0
C
h
12 t
S
s
M
We 54 T
791
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
Attributes of Information Quality
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
10
Logical Data Elements
win/McGraw-Hill
Name
Field
Payroll
Record
Payroll
File
Personnel
Database
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
11
Major Roles of Information Systems
win/McGraw-Hill
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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
win/McGraw-Hill
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 rig
James A. OBrien
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
win/McGraw-Hill
Consumer and Business Customers
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
15
Other Categories of Information Systems
Expert
ExpertSystems
Systems
Knowledge
KnowledgeManagement
Management Systems
Systems
win/McGraw-Hill
Functional
FunctionalBusiness
BusinessSystems
Systems
Strategic
StrategicInformation
InformationSystems
Systems
Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
Management Information Systems
Fifth Edition
16
The Information Systems Development Process
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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
win/McGraw-Hill
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 rig
James A. OBrien
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
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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.
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
James A. OBrien
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
win/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rig
