Foundations of Information Systems Chapter 1

Chapter 1: Foundations of Information Systems in Business

• Introduction to Information Systems, 16th Edition, by Marakas and O'Brien
• Copyright 2013 McGraw-Hill
• Learning Objectives covered in the chapter

Learning Objectives

• Understand systems and how they relate to information systems
• Explain the importance of information systems knowledge for business professionals
• Identify five areas of information systems knowledge needed by professionals
• Give examples of how business applications of information systems support firm's processes, managerial decision-making, and competitive advantage
• Provide examples of major types of information systems from real-world business organizations
• Identify challenges business managers face in managing successful and ethical information technology development and use
• Provide examples of components of real-world information systems, demonstrating how people use hardware, software, data, and networks to transform data into information products
• Demonstrate familiarity with career opportunities in information systems

Section 1: Foundation Concepts: Information Systems in Business

• Information systems are crucial in business administration and management
• Information technology (IT) and internet technologies play key roles in improving business process effectiveness and efficiency, decision-making, and collaboration

II. The Fundamental Roles of IS in Business

• Information systems support strategies for competitive advantage, decision-making, and business processes/operations

IV. The Role of E-Business in Business

• E-business uses internet technologies to enhance business processes, e-commerce, and enterprise collaboration with customers, suppliers, and stakeholders
• Enterprise collaboration systems support networked team communication, coordination, and collaboration
• E-commerce involves buying, selling, marketing, and servicing products/services over computer networks

VI. Managerial Challenges of Information Technology

• Information Systems (IS) are a major, vital business function
• IS contributes to operational efficiency, employee productivity/morale, customer service/satisfaction, and strategic resources

Section 2: Foundation Concepts: The Components of Information Systems

• This section explores the key components of information systems

I. System Concepts: The Foundation for Business Processes

• Systems have inputs (data to be processed), processing (transforming data into information), outputs (disseminating information to destinations), feedback (information about performance), and control (measuring feedback to ensure objectives are met)

III. Information System Resources

• People Resources: IS specialists and end-users
• Hardware Resources: Computing devices and storage media
• Software Resources: Programs and instructions that tell the computer what to do (system and application software), along with procedures for use.
• Data Resources: Unorganized facts and figures (data) that transform into useful information for the organization
• Network Resources: Communications media and network infrastructure (hardware, software, and technologies) for establishing communication networks.

IV. Information System Activities

• Input of data resources (capturing data)
• Processing of data into information (organizing, analyzing, and manipulating data)
• Output of information products (disseminating information to appropriate users)
• Storage of data resources
• Control of system resources (monitoring feedback to ensure performance standards are met)