Fifth Edition

1
M a n a g e m e n t I n f o r m a t i o n S y s t e m s
M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E B u s i n e s s E n t e r p r i s e
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
C h a p t e r
James A. OBrien
1
Foundations
of Information Systems
in Business
Fifth Edition James A. OBrien
2 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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 E-
business, electronic commerce, or
enterprise collaboration systems could
support a firms business processes,
managerial decision making, and
strategies for competitive advantage.
Chapter Objectives
Fifth Edition James A. OBrien
3 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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.
Chapter Objectives
Fifth Edition James A. OBrien
4 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
An IS Framework for Business Professionals
Fifth Edition James A. OBrien
5 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
What is an Information System?
Input of
Data
Resources
Processing
Data
Output of
Information
Products
Control of System Performance
Storage of Data Resources
Fifth Edition James A. OBrien
6 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
What is a System?




Manufacturing
Process




Input of
Raw Materials




Output of
Finished Products
Environment
Other Systems




Control by
Management
Control
Signals
Control
Signals
Feedback
Signals
Feedback
Signals
System Boundary
Fifth Edition James A. OBrien
7 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Components of an Information System
Fifth Edition James A. OBrien
8 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100
Fifth Edition James A. OBrien
9 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Attributes of Information Quality
Fifth Edition James A. OBrien
10 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Name
Field
Payroll
Record
Payroll
File
Personnel
Database
Logical Data Elements
Fifth Edition James A. OBrien
11 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Major Roles of Information Systems
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
Fifth Edition James A. OBrien
12 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
History of the role of Information Systems
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
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
Fifth Edition James A. OBrien
13 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
The Internetworked -Business
Manufacturing
and
Production
Engineering &
Research
Accounting,
Finance, and
Management
Suppliers and Other Business Partners
Procurement, Distribution, and Logistics
Advertising Sales Customer Service
Consumer and Business Customers
Company
Boundary
Intranets
The Internet
Extranets
E
x
t
r
a
n
e
t
s

Fifth Edition James A. OBrien
14 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Types of Information Systems
Transaction
Processing
Systems
Process
Control
Systems
Enterprise
Collaboration
Systems
Operations
Support
Systems
Management
Information
Systems
Decision
Support
Systems
Executive
Information
Systems
Management
Support
Systems
Information Systems
Fifth Edition James A. OBrien
15 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Functional Business Systems
Strategic Information Systems
Cross-Functional Information Systems
Fifth Edition James A. OBrien
16 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
The Information Systems Development Process
Fifth Edition James A. OBrien
17 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Management Challenges of the E-Business Enterprise
Business Strategies
Business Processes
Business Needs
Customer Relationships
Business Partners
Suppliers
Business Customers
Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?
IS Human Resources
IS Development
IT Infrastructure
IS Performance
Organization Structure
and Culture
User Acceptance
Fifth Edition James A. OBrien
18 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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:
Foundations (fundamentals) of IS
Information Technologies
Business Applications
Development Processes; and
Managerial Challenges
Chapter Summary
Fifth Edition James A. OBrien
19 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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.
Fifth Edition James A. OBrien
20 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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



Chapter Summary (cont)
Fifth Edition James A. OBrien
21 M a n a g e m e n t I n f o r m a t i o n S y s t e m s
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.
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



Chapter Summary (cont)