Foundations of Information Systems in Business

MIS
Chapter # 01
James A. O Brien
 Foundations of Information Systems in Business

What is a System?
A System is defined as a set of
interrelated components ‘with a
clearly defined boundary’
working together to achieve a
common set of objective
Input Process Output

Control Feedback
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 Foundations of Information Systems in Business

What is an Information System?

It can be regarded as a
combination of:
 People, Hardware, Software,
Communication networks & data
resources that stores, retrieves,
transform and disseminates
information in an organization
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 Foundations of Information Systems in Business

Why we study Information System?

It’s a vital component of
successful business &
organizations
It’s a major business
function
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 Foundations of Information Systems in Business

Information System Framework

Management
Challenges

Business Information
Applications Information Technologies
Systems

Development Foundation
Processes Concepts
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 Foundations of Information Systems in Business

Fundamental Roles of IS in Business:

 Support of its Business Process and
Operations
 Support of Decision Making by its
employees and managers
 Support of its Strategies for Competitive
Advantage
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 Foundations of Information Systems in Business
The expanding roles of Business Applications in Business
E-business & E-commerce: 1990s-2000s

The Expanding Participation of End user & Manager in IS


The Expanding Roles of IS in Business

 Use of web-enabled technologies

 Strategic & end user support: 1980s-1990s
 Use of SIS, ES & EIS
 Decision support: 1970s-1980s
 Interactive managerial decision making support
 Management reporting: 1960s-1970s
 Customized reports for management
 Data processing: 1950s-1960s
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 Foundations of Information Systems in Business
The Role of e-Business in Business
The Internet Suppliers & Business Partners
Extranets Company
Boundary
SCM
Procurement Distribution & Management
Intranet

Engineering Manufacturing Accounting

& Research & Production & Finance

Intranet
CRM
Marketing Sales Customers service

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 Foundations of Information Systems in Business
Types of Information System
Information
System

Operation Support System Management Support System

Transaction Process Enterprise MIS DSS EIS

Processing Control Collaboration
System System System
Prespecified Interactive Information
Reporting Decision Tailored for
Processing Control of Team & for Manager Support Executives
Business Industrial Workgroup
Transaction Process Collaboration

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 Foundations of Information Systems in Business
Components of Information System
 Technology: The use of hardware, software,
network communication technologies
 Applications: The e-Business, e-Commerce &
normal applications involved in business
 Development: The developing ways to use IT in
designing components of Information System
 Management: Controlling of basic IS function
involved in day to day affairs of any organization
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 Foundations of Information Systems in Business

Developing Successful IS

Investigate

Analyze
Developing
Maintain Information
System
Solution

Design

Implement

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 Foundations of Information Systems in Business
Managerial Challenges of IT
 Developing Correct IS solution
 Efficiency, in term of minimizing cost
 Effectiveness, in supporting or business functions
 Challenges of Ethics in IT
 Responsibilities posed by the use of IT on both users
& Managers
 Challenges of IT Careers
 Lucrative career opportunities but the obsolesce is
coming very fast
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 Foundations of Information Systems in Business

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 Foundations of Information Systems in Business

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 Foundations of Information Systems in Business

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 Foundations of Information Systems in Business

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 Foundations of Information Systems in Business
Components of Information System
So f
tw a
i st Pro re R
u rce ecial gra
m
eso
e so S p s & urce
le R
& IS System Activities Pr o
p s ced
Peo User ur e
d s
En
Control of System Performance
Da & K
Da
ta
ta

a
e di
n e ur c e
Re owle

Input Process Output

&M
so u d g

o
n

Ma e Res
rce e B

chi
r
Storage of Data Resources

wa
rd
as

Ha
es

Network Resource
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Communication & Network Support 17
 Thank you
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