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Foundations of
Information Systems inBusiness
Chapter
1
Dr. Hj. Rosmaini bin Hj. TasminFaculty of Technology Management
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1. Understand the concept of a systemand how it relates to informationsystems
2. Explain why knowledge ofinformation systems is important forbusiness professionals
Identify five areas of informationsystems knowledge needed
Learning Objectives
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3. Give examples to illustrate how businessapplications of information systems cansupport a firms
Business processes
Managerial decision making
Strategies for competitive advantage
4. Provide examples of information systems
from your experiences with businessorganizations in the real world
Learning Objectives
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Learning Objectives
5. Identify challenges that a businessmanager might face in managing thesuccessful, ethical development and
use of information technology6. Provide examples of the components
of real world information systems
7. Become familiar with the myriad ofcareer opportunities in informationsystems
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Foundation Concepts
Why study information systems andinformation technology?
Vital component of successfulbusinesses
Helps businesses expand and compete
Improves efficiency and effectiveness of
business processes Facilitates managerial decision making
and workgroup collaboration
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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 disseminatesinformation in an organization
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Information Technologies
Information Systems
All the components and resourcesnecessary to deliver information and
functions to the organization
Could be paper based
Information Technologies
Hardware, software, networking, datamanagement
Our focus will be on computer-based
information systems (CBIS) 1-7
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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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What is E-Business?
Using Internet technologies toempower
Business processes Electronic commerce
Collaboration within a company
Collaboration with customers, suppliers,and other business stakeholders
In essence, an online exchange ofvalue
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How E-Business is Being Used
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E-Business Use
Reengineering
Internal business processes
Enterprise collaboration systems
Support communications, coordinationand coordination among teams andwork groups
Electronic commerce Buying, selling, marketing, and servicing
of products and services over networks
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Types of Information Systems
Operations Support Systems
Efficiently process business transactions
Control industrial processes
Support communication and collaboration Update corporate databases
Management Support Systems
Provide information as reports and displays
Give direct computer support to managersduring decision-making
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Chap001 Dr Ros
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Purposes of Information Systems
1-15
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Operations Support Systems
What do they do?
Efficiently process businesstransactions
Control industrial processes
Support communications andcollaboration
Update corporate databases
1-16
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www.hp.com/products1/solutioncenters/demoportal/&h=280&w=560&sz=134&tbnid=iBeaB131RjcI0M:&tbnh=67&tbnw=133&prev=/images%3Fq%3Dserver%2Broom%2Bpicture&hl=ms&usg=__VPCIDeD3GFEByK8SJliyA-0kIkw=&ei=MX1VSp_jD4r06gOKqKzPDw&sa=X&oi=image_result&resnum=4&ct=image8/3/2019 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Types of Operations Support Systems
Transaction Processing Systems
Record and process business transactions
Examples: sales processing, inventory
systems, accounting systems Process Control Systems
Monitor and control physical processes
Example: using sensors to monitor chemical
processes in a petroleum refinery
Enterprise Collaboration Systems
Enhance team and workgroup communication
Examples: email, video conferencing 1-17
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Chap001 Dr Ros
18/38
Two Ways to Process Transactions
Batch Processing
Accumulate transactions over time andprocess periodically
Example: a bank processes all checksreceived in a batch at night
Online Processing
Process transactions immediately
Example: a bank processes an ATMwithdrawal immediately
1-18
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Chap001 Dr Ros
19/38
Management Support Systems
What do they do?
Provide information and support foreffective decision making by managers
Management information systems
Decision support systems
Executive information systems
1-19
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Types of Management Support Systems
Management Information Systems (MIS) Reports and displays
Example: daily sales analysis reports
Decision Support Systems (DSS)
Interactive and ad hoc support
Example: a what-if analysis to determinewhere to spend advertising dollars
Executive Information Systems (EIS) Critical information for executives and
managers
Example: easy access to actions of
competitors 1-20
manager
executive
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Other Information Systems
Expert Systems
Provide expert advice
Example: credit application advisor
Knowledge Management Systems
Support creation, organization, anddissemination of business knowledgethroughout company
Example: intranet access to bestbusiness practices
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Other Information Systems
Strategic Information Systems
Help get a strategic advantage overcustomer
Examples: shipment tracking, e-commerce Web systems
Functional Business Systems
Focus on operational and managerialapplications of basic business functions
Examples: accounting, finance, or
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IT Challenges and Opportunities
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IT Careers
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The IS Function
The IS function is
A major functional area of business
An important contributor to operationalefficiency, employee productivity, morale,customer service and satisfaction
A major source of information and support fordecision making
A vital ingredient in developing competitiveproducts and services in the global marketplace
A dynamic and challenging career opportunity
A key component of todays networked business 1-25
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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 useinformation technology includes designing thebasic components of information systems
Management: emphasizes the quality, strategicbusiness value, and security of an organizations
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 producingoutputs
In an organized transformation process
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Basic Functions of a System
Input
Capturing and assembling elements thatenter the system to be processed
Processing
Transformation process that convertsinput into output
Output Transferring transformed elements to
their ultimate destination
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Cybernetic System
All systems have input, processing, andoutput
A cybernetic system, a self-monitoring,
self-regulating system, adds feedback andcontrol:
Feedback is data about the performance of asystem
Control involves monitoring and evaluatingfeedback to determine whether a system ismoving toward the achievement of its goal
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A Cybernetic System
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A Business as a System
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Other System Characteristics
If a system is one of the componentsof a larger system, it is a subsystem
The larger system is an environment
Several systems may share the sameenvironment
Some may be connected via a sharedboundary, or interface
Types of systems
Open
Adaptive1-32
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Components of an IS
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Information System Resources
People Resources
Specialists
End users
Hardware Resources
Machines
Media
Software Resources
Programs
Procedures 1-34
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Information System Resources
Data Resources Product descriptions, customer records,
employee files, inventory databases
Network Resources
Communications media, communicationsprocessors, network access and controlsoftware
Information Resources Management reports and business documents
using text and graphics displays, audioresponses, and paper forms
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Data Versus Information
Data are raw facts about physicalphenomena or business transactions
Information is data that has been
converted into meaningful and usefulcontext for end users
Examples:
Sales data is names, quantities, and dollaramounts
Sales information is amount of sales byproduct 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
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Recognizing Information Systems
Business professionals should beable to look at an information systemand identify
The people, hardware, software, data,and network resources they use
The type of information products they
produce
The way they perform input, processing,output, storage, and control activities
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