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Computer Applications in Business


Essentials for the Internetworked E-Business Enterprise

James A. OBrien

Chapter

1
Foundations
of Information Systems in Business

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James A. OBrien

Introduction to Information Systems

Introduction to the course Course Outline Marks Assignments Hourly Project

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James A. OBrien

Introduction to Information Systems

The Purpose as Core Course in School of Management

To help, introduce student


build up the mindset and thinking methodology on modern IT/IS. learn how to use and manage IT/IS to revitalize business process, to improve business decision making, and to gain competitive advantage.

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James A. OBrien

Introduction to Information Systems

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 electronic business, electronic commerce, or enterprise collaboration systems could support a firms business processes, managerial decision making, and strategies for competitive advantage.
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James A. OBrien

Introduction to Information Systems

Chapter Objectives Provide examples of the components of real world information systems. Illustrate that in an information system, people use hardware, software, data, and networks as resources to perform input, processing, output, storage, and control activities that transform data resources into information products.

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James A. OBrien

Introduction to Information Systems

Chapter Objectives 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.

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James A. OBrien

Introduction to Information Systems

Why Information Systems are Important?


Worldwide spending on information technology is now close to $1 trillion per year, and IT continues to transform the world of business. But approximately half of all large-scale funding IT and implementations fail. It's not the competence of the IT and IT department; it's the ability of business management to correctly identify opportunities, find appropriate technologies, and lead adoption efforts to success.

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James A. OBrien

Introduction to Information Systems

Why study Information Systems and Information Technology

Vital component of successful businesses and organization. Helps businesses expand and compete Businesses use IS and IT
To improve efficiency and effectiveness of business processes For managerial decision making For workgroup collaboration

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James A. OBrien

Introduction to Information Systems

What is an Information System?


An organized combination of
People Hardware Software Communications networks Data resources Policies and procedures

That stores, retrieves, transforms, and disseminates information in an organization


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James A. OBrien

Introduction to Information Systems

10

Components of an Information System


People

Information Systems Resources

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Introduction to Information Systems

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What is Information Technology


Business rely on many types of information systems that use a variety of information technologies Computer hardware Computer software Telecommunication network Data resource management IT is hardware, software, networking and data management

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James A. OBrien

Introduction to Information Systems

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An IS Framework for Business Professionals

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James A. OBrien

Introduction to Information Systems

13

What should a Business Professional know about IS?

Foundation Concepts: fundamental behavioral, technical, business and managerial concepts Information Technology: Hardware, software, networks, data management and Internet-based technology Business Applications: Major uses of the IS in the organization Development Processes: How to plan, develop and implement IS to meet business opportunities Management Challenges: The challenges of effectively and ethically managing IT
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James A. OBrien

Introduction to Information Systems

14

Major Roles of Information Systems

Support Strategies for Competitive Advantage Support Business Decision Making

Support Business Processes and Operations

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Introduction to Information Systems

15

Fundamental Roles of IS in Business Support of business processes and operations. Support of decision making by employees and managers. Support of strategies for competitive advantage.

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James A. OBrien

Introduction to Information Systems

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The e-Business Enterprise


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

Engineering & Research

Manufacturing and Production

Accounting, and Finance

Intranets Customer Relationship Management Marketing Sales Customer Service


Extranets Consumer and Business Customers
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James A. OBrien

Introduction to Information Systems

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What is E-business? The use of Internet technologies


to work and empower business processes, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.

An online exchange of value.

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Introduction to Information Systems

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E-business use Reengineer internal business processes Enterprise collaboration systems: support communications, coordination and collaboration among teams and work groups, e.g., virtual teams Electronic commerce: buying, selling, marketing and servicing of products and services over computer networks

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James A. OBrien

Introduction to Information Systems

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History of the role of Information Systems


1950-1960 Data Processing 1960-1970 Management Reporting 1970-1980 1980-1990 1990-2000 Electronic Commerce

Decision Support

Strategic & End User

Electronic Data Processing - TPS

Management Information Systems

Decision Support Systems - Ad hoc Reports

End User Computing Exec Info Sys Expert Systems SIS

Electronic Business & Commerce -Internetworked E-Business & Commerce

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James A. OBrien

Introduction to Information Systems

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Types of Information Systems


Information Systems

Operations Support

Management Support

Systems

Systems

Transaction

Process

Enterprise

Management

Decision

Executive

Processing
Systems

Control
Systems

Collaboration
Systems

Information
Systems

Support
Systems

Information
Systems

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James A. OBrien

Introduction to Information Systems

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Operations support systems What are they?


Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases

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James A. OBrien

Introduction to Information Systems

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Types of Operations Support Systems Transaction Processing Systems


Record and process data from business transactions Examples: sales processing, inventory systems, accounting systems

Process Control Systems


Monitor and control physical processes Example: in a petroleum refinery use sensors to monitor chemical processes

Enterprise Collaboration Systems


Enhance team and work group communications Examples: e-mail, videoconferencing
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James A. OBrien

Introduction to Information Systems

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Two ways to process transactions 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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