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Chapter-1 MIS

This document provides an overview of foundational concepts for information systems in business. It defines key terms like system, information system, and e-business. It describes the functions and types of information systems like transaction processing systems, management information systems, and expert systems. It also outlines the basic components and resources that make up information systems, including people, hardware, software, data, networks, and procedures.

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51 views

Chapter-1 MIS

This document provides an overview of foundational concepts for information systems in business. It defines key terms like system, information system, and e-business. It describes the functions and types of information systems like transaction processing systems, management information systems, and expert systems. It also outlines the basic components and resources that make up information systems, including people, hardware, software, data, networks, and procedures.

Uploaded by

Gamer nck
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 33

Chapter

1
Foundations of
Information Systems in Business

McGraw-Hill/Irwin Copyright © 2008


2008,The
TheMcGraw-Hill
McGraw-HillCompanies,
Companies,Inc.
Inc.All
Allrights
rightsreserved.
reserved.
Foundation Concepts

• Why study information systems and information


technology?
• Vital component of successful businesses
• Helps businesses expand and compete
• Improves efficiency and effectiveness of
business processes
• Facilitates managerial decision making and
workgroup collaboration

1-2
What is a System?

• A set of interrelated components


• With a clearly defined boundary
• Working together
• To achieve a common set of objectives

1-3
What is an Information System?

• An organized combination of…


• People
• Hardware and software
• Communication networks
• Data resources
• Policies and procedures
• This system…
• Stores, retrieves, transforms, and disseminates
information in an organization

1-4
WHAT DO THESE PICTURES HAVE
IN COMMON?

1-5
THE REAL WORLD OF
INFORMATION SYSTEMS

 An Information System (IS)may be computerized or


not
 Smoke signals for communication
 Card catalogs in a library
 Your book bag, day planner, notebooks, and file
folders
 The cash register at your
favorite fast-food shop/ restaurant
 A paper-based accounting
ledger
1-6
Information Technologies

• Information Systems
• All the components and resources necessary to
deliver information and functions to the
organization
• Could be paper based
• Information Technologies
• Hardware, software, networking, data
management
• Our focus will be on computer-based
information systems (CBIS)

1-7
Fundamental Roles of IS in Business

1-8
What is E-Business?

• Using Internet technologies to empower…


• Business processes
• Electronic commerce
• Collaboration within a company
• Collaboration with customers, suppliers, and
other business stakeholders
• In essence, an online exchange of value

1-9
How E-Business is Being Used

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E-Business Use

• Reengineering
• Internal business processes
• Enterprise collaboration systems
• Support communications, coordination and
coordination among teams and work groups
• Electronic commerce
• Buying, selling, marketing, and servicing of
products and services over networks

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Purposes of Information Systems

1-12
Types of Information Systems

• 1) Operations Support Systems


• Efficiently process business transactions
• Control industrial processes
• Support communication and collaboration
• Update corporate databases
• 2) Management Support Systems
• Provide information as reports and displays
• Give direct computer support to managers during
decision-making

1-13
Types of Operations Support Systems

• 1.1 Transaction Processing Systems


• Record and process business transactions
• Examples: sales processing, inventory systems,
accounting systems
• 1.2 Process Control Systems
• Monitor and control physical processes
• Example: using sensors to monitor chemical
processes in a petroleum refinery
• 1.3 Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing
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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

1-15
2) Management Support Systems

• What do they do?


• Provide information and support for effective
decision making by managers
• Management information systems
• Decision support systems
• Executive information systems

1-16
Types of Management Support Systems

• 2.1 Management Information Systems (MIS)


• Reports and displays
• Example: daily sales analysis reports
• 2.2 Decision Support Systems (DSS)
• Interactive and ad hoc support
• Example: a what-if analysis to determine where
to spend advertising dollars
• 2.3 Executive Information Systems (EIS)
• Critical information for executives and managers
• Example: easy access to actions of competitors

1-17
Types of Management Support Systems

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3) Other Information Systems

• 3.1 Expert Systems


• Provide expert advice
• Example: credit application advisor
• 3.2 Knowledge Management Systems
• Support creation, organization, and dissemination
of business knowledge throughout company
• Example: intranet access to best business
practices

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Other Information Systems

• 3.4 Strategic Information Systems


• Help get a strategic advantage over customer
• Examples: shipment tracking, e-commerce Web
systems
• 3.5 Functional Business Systems
• Focus on operational and managerial applications
of basic business functions
• Examples: accounting, finance, or marketing

1-20
Measuring IT Success

• Efficiency
• Minimize cost, time, and use of information
resources

• Effectiveness
• Support business strategies
• Enable business processes
• Enhance organizational structure and culture
• Increase customer and business value

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Developing IS Solutions

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The IS Function

• The IS function is…


• A major functional area of business equally as
important to business success as the functions of
accounting, finance, operations management,
marketing, and human resource management.
• An important contributor to operational efficiency,
employee productivity, morale, customer service and
satisfaction
• A recognized source of value to the firm.

1-23
The IS Function

• The IS function is…


• A major source of information and support for
decision making.
• A vital ingredient in developing competitive products
and services in the global marketplace.
• A dynamic and challenging career opportunity
• A key component of the resources, infrastructure, and
capabilities of today’s networked business
enterprises.
• A strategic resource.

1-24
System Concepts: A Foundation

• System concepts help us understand…


• Technology: Computer networks are systems of
information processing components that use a variety of
hardware, software, data management, and
telecommunications network technologies.
• Applications: E-business and e-commerce applications
involve interconnected business information systems.
• Development: Developing ways to use information
technology includes designing the basic components of
information systems
• Management: Managing information technology
emphasizes the quality, strategic business value, and
security of an organization’s information systems.
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What is a System?

• A system is…
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing outputs
• In an organized transformation process

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Basic Functions of a System

• Input
• Capturing and assembling elements that enter the
system to be processed
• Processing
• Transformation process that converts input into
output
• Output
• Transferring transformed elements to their
ultimate destination

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Components of an IS

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Information System Resources

1 People Resources
• Specialists
• End users
2 Hardware Resources: These include all the physical
devices and materials used in information processing,
including all machines and data media. Key components
include:
• Computer Systems: These are the CPUs and their related
peripherals, such as terminals and networked PCs.
• Computer Peripherals: These are input and output devices like
keyboards, monitors, and secondary storage.

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Information System Resources

• Telecommunications Networks: These are the computer


systems interconnected by various telecommunications media
such as modems.

3 Software Resources: These include all sets of


information processing instructions. Software resources
include:
• System Software: This controls the computer.
• Application Software: These are for a specific end user task,
such as word-processing.
• Procedures: These are the operating instructions for the people
who use the IS.

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Information System Resources

4 Data Resources
• Product descriptions, customer records, employee
files, inventory databases
5 Network Resources
• Communications media, communications
processors, network access and control software
6 Information Resources
• Management reports and business documents
using text and graphics displays, audio responses,
and paper forms

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Data Versus Information

• Data are raw facts about physical phenomena or


business transactions
• Information is data that has been converted
into meaningful and useful context for end users
• Examples:
• Sales data….. is names, quantities,
quantities and dollar
amounts
• Sales information ……is amount of sales by
product type, sales territory, or salesperson

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IS Activities

• Input of data resources


• Data entry activities
• Processing of data into information
• Calculations, comparisons, sorting, and so on
• Output of information products
• Messages, reports, forms, graphic images
• Storage of data resources
• Data elements and databases
• Control of system performance
• Monitoring and evaluating feedback

1-33

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