Foundations of Information Systems in Business
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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
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Foundation Concepts
Why study information systems and inform technology? \ue001 Vital component of successful businesses
\ue000
business processes Facilitates managerial decision making
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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
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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
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What is a System? A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives
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What is an Information System? An organized combination of… People
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Information Technologies
Information Systems All the components and resources necessa to deliver information and functions to the
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What Should Business Professionals Know?
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Fundamental Roles of IS in Business
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Trends in Information Systems
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Control industrial processes Support communications and collaboration Update corporate databases
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Decision support systems Executive information systems
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Enable business processes Enhance organizational structure and culture Increase customer and business value
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Human resources management Incentives Work stoppages Inaccurate information Government intervention Collusion Business intelligence Certification systems
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The long-term job outlook is positive and excitin Figure
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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
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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
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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
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What is a System? A system is… A set of interrelated components
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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
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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:
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A Business as a System
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Other System Characteristics If a system is one of the components of a system, it is a subsystem The larger system is an environment
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Components of an IS
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Information System Resources People Resources Specialists End users Hardware Resources Machines
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Data Versus Information
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Recognizing IS
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Case 3 Aviall, Inc.
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Case Study Questions
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Higher customer satisfaction Reduction of flight confirmation calls Cost savings in excess of $1 million
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classified as low value? Why do you think so ma customers are placing such calls?
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