James A.

O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

Chapter

1
Foundations

of Information Systems’

in Business

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

2
An IS Framework for Business Professionals

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

3
Foundation Concepts

• Fundamental behavior
• Technical, business and managerial concepts
about components and roles of IS.
• Example IS concept derived from general
concept
• For example hand written bills to e-bills

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4
Information technology

• Major concepts, developments and management

issues in information technology

• i.e hardware, software,networks,data

management and other internet based
technologies.

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

5
Business Application

• Major uses of IS for operations, management and

advantage of a business.
• Application of IS in functional areas such as
marketing, manufacturing and accounting.
• E-business apps

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

6
Development Processes

• How business professional and Information

specialists develop and implement IS

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

7
Management Challenges

• End user problems

• Enterprise and global problems
• Security challenges
• Security management issues

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

8
Roles of Information System

• 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. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

9
What is a System?
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
0 What is an Information System?

Control
Controlof
ofSystem
System Performance
Performance

Input
Inputof
of Output
Outputof
of
Processing
Processing
Data
Data Information
Information
Data
Data
Resources
Resources Products
Products

Storage
Storageof
of Data
DataResources
Resources

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
1 Components
Components of
of an
an Information
Information System
System

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
2 Data versus Information

Monthly Sales Report

for West Region

0 ann Sales Rep: Charles Mann

10 rles M
00 ha oe s Emp No. 79154
12 t C S h Item Qty Sold Price
s M
We 54 T TM Shoes 1200 $100
791

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
3 Attributes of Information Quality

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
4 Major Roles of Information Systems

Support of
Strategies for
Competitive
Advantage

Support of Managerial
Decision Making
store managers and business
professionals e.g adding things,
discounted

Support of
Business Processes and Operations
e.g Retail store data storage(customers+employees+inventory)
Different APPs

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
5 History of the role of Information Systems

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
Strategic Info Sys Commerce
(SIS) -Internetworked
E-Business &
Commerce

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
6 The Internetworked -Business
The Internet
Suppliers and Other Business Partners Company
Boundary
Procurement, Distribution, and Logistics
Extranets

Manufacturing Accounting,
Engineering &
and Finance, and
Research
Production Management

Intranets

Advertising Sales Customer Service

Extranets

Consumer and Business Customers

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
7 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
Inventory and petroleum refining, Email, video Sales analysis Risk analysis Business
account power generation conferencing Production performance
system Performance analysi
Cost trend reporting Product pricing Actions of competito

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
8 Other Categories of Information Systems

Expert
Expert Systems
Systems
Credit
Creditapplication
applicationadvisor,
advisor,Process
Processmonitor,
monitor,diagnostic
diagnosticmaintenance
maintenancesystem.
system.
Knowledge
KnowledgeManagement
ManagementSystems
Systems
Support
Supportthe
thecreation,
creation,organization
organizationand
anddissemination
dissemination
e.g
e.gsales
salesproposal,
proposal,customer
customerproblem
problemresolution
resolution

Functional
FunctionalBusiness
BusinessSystems
Systems
IS
ISthat
thatsupport
supportapplication
applicationininaccounting,
accounting,finance,marketing
finance,marketing
Operation
Operationmanagement
managementand andhr
hrmanagement
management
Strategic
StrategicInformation
InformationSystems
Systems
Online
Onlinestock
stocksystem,
system,shipment
shipmenttracking
tracking

Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

1
9 The Information Systems Development Process

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 James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition

2
0
Management Challenges of the E-Business Enterprise

•Business Strategies
•Business Processes
•IS Human Resources •Business Needs
•IS Development

•Customer Relationships
•Business Partners
•IT Infrastructure
•Suppliers
•IS Performance
•Business Customers

•Organization Structure Ethical Considerations

•and Culture Potential Risks?
•User Acceptance Potential Laws?
Possible Responses?

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