Foundations of Information Systems in Business

Chapter 1 Foundations of Information Systems in Business

James A. O'Brien, and George Marakas. Management Information Systems with MISourc 2007, 8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091

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Learning Objectives 1. 2. 3.

4. 5.

Understand the concept of a system and how it relates to Explain why knowledge of IS is important for business professionals; Identify five areas of Is knowledge needed Give examples to illustrate how business applications of

Provide examples of IS from your experiences with business organizations in the real world Identify challenges that a business manager might face i















Foundation Concepts

Why study information systems and inform technology? \ue001 Vital component of successful businesses

\ue000

business processes Facilitates managerial decision making















Case 1 Heidelberg, Honeywell, Eat Smart services, smart products Using information technology to monitor, intervene, assist Machines relay information via the Internet and wireless systems Optimized performance















Case Study Questions 1.

2.

Why should manufacturing companies build smart products and provide smart services? What business benefits can be gained? Provide examples beyond those discussed in this What information technologies are used

What other IT components might be used? Give examples of the capabilities they would pro















What is a System? A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives

















What is an Information System? An organized combination of… People















Information Technologies

Information Systems All the components and resources necessa to deliver information and functions to the















What Should Business Professionals Know?















Fundamental Roles of IS in Business















Trends in Information Systems























































































Control industrial processes Support communications and collaboration Update corporate databases





































Decision support systems Executive information systems













































Enable business processes Enhance organizational structure and culture Increase customer and business value





















Human resources management Incentives Work stoppages Inaccurate information Government intervention Collusion Business intelligence Certification systems



















The long-term job outlook is positive and excitin Figure



































System Concepts: A Foundation

System concepts help us understand… Technology: hardware, software, data management, telecommunications networks Applications: to support inter-connected information systems Development: developing ways to use information technology includes designing th















Real World Case: Lufthansa

Lufthansa wants to… Keep 3,500 pilots Trained on the latest technology and procedures Plugged into the corporate infrastructure Informed about schedules, weather even and other facts that affect their jobs















Case Study Questions Are many of Lufthansa’s challenges identified the case similar to those being experienced by other businesses in today’s global economy? What other tangible and intangible benefits, beyond those identified by Lufthansa, might a Lufthansa was clearly taking a big risk with















What is a System? A system is… A set of interrelated components















Basic Functions of a System Input Capturing and assembling elements that the system to be processed Processing Transformation process that converts input into output Output

















Cybernetic System All systems have input, p roc es sin g, and ou tput A cybernetic system, a self-monitoring, selfregulating system, adds feedback and control:















A Business as a System















Other System Characteristics If a system is one of the components of a system, it is a subsystem The larger system is an environment















Components of an IS















Information System Resources People Resources Specialists End users Hardware Resources Machines

















Data Versus Information





























Recognizing IS















Case 3 Aviall, Inc.















Case Study Questions















Higher customer satisfaction Reduction of flight confirmation calls Cost savings in excess of $1 million













classified as low value? Why do you think so ma customers are placing such calls?

Foundations of Information Systems in Business

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