Students

The number in the lower left corner of each slide is the page number in the OBrien textbook to which the material refers. The slides in this presentation are only those containing key information from the chapter. Illustrative figures are not included as they can be seen as you review the material in the book.

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Chapter 1
Foundations of Information Systems in Business

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
Understand the concept of a system and how it relates to information systems. Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.

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Learning Objectives
Give examples to illustrate how business applications of information systems can support a firms business processes, managerial decision making, and strategies for competitive advantage. Provide examples of several major types of information systems from your experiences with business organizations in the real world.

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Learning Objectives
Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business. Provide examples of the components of real world information systems Demonstrate familiarity with the myriad of career opportunities in information systems.

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Competitive Advantage
Developing products, services, processes, or capabilities that give a company a superior business position relative to its competitors and other competitive forces.
Glossary, p. 637

Attributed to a firm that is leading an industry in some identifiable way, such as sales, revenues or new products. Ch. 2, p. 53 when a firm sustains profits that exceed the average for an industry
Ch. 2, p. 53

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What is E-Business?
An online exchange of value
Conducting business on the Internet

Using Internet technologies to empower

Business processes Electronic commerce Collaboration within a company Collaboration with customers, suppliers, and other business stakeholders

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E-Business Use
Reengineering
Internal business processes

Enterprise collaboration systems

Support teams and work groups

Electronic commerce
Buying, selling, marketing, and servicing of products and services over networks

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Information systems combine:

Operations Support Systems
Transaction Processing systems Process Control Systems Enterprise Collaboration Systems
(Figure 1.7)

Management Support Systems

Management Information Systems Decision Support Systems Executive Information Systems

(Figure 1.9)

Other Systems
Expert Systems Knowledge Management Systems Strategic Information Systems

(Figure 1.11)

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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 determine where to spend advertising dollars

Executive Information Systems (EIS)

Critical information for executives and managers Example: easy access to actions of competitors
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Other Information Systems

Expert Systems
Example: credit application advisor

Knowledge Management Systems

Support creation, organization, and dissemination of business knowledge Example: intranet access to best business practices

Strategic Information Systems

Help get a strategic advantage over customer Examples: shipment tracking, e-commerce Web systems

Functional Business Systems

Focus on operational and managerial applications Examples: accounting, finance, or marketing
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Responsibility and Accountability

IT plays an integral role in every facet of a business Failure is often pinned on IT Cultivate a culture that embraces change Break projects into pieces Set realistic expectations There will always be problems
Thats life in IT

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IT Careers
IT employment opportunities are strong Shortages of IT personnel are frequent Long-term job outlook is positive and exciting Starting salaries are high

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Business Analysts serve critical role

CIO broker between management and IT Business Analyst
In the trenches Analyzes business need and creates solution Communicates solution to technicians Balances IT resources with business needs 5-10 years experience Technical undergraduate degree and MBA Process driven through changes to finish $45,000 to $100,000

Business Analyst credentials

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The IS Function Major functional area of business Important contributor to

Efficiency, productivity, morale, customer service and satisfaction

Major source of information for decisions Vital ingredient in developing competitive products and services Dynamic and challenging career opportunity Key component of networked business

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IS Activities
Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance

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