Chapter 1 Foundations of Information Systems in Business PDF

Chapter 1 Foundations of Information Systems in Business McGraw-Hill/Irwin Copyright © 2013 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...

Chapter 1 Foundations of Information Systems in Business McGraw-Hill/Irwin Copyright © 2013 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 that they need. 1-2 Learning Objectives ❖ Give examples to illustrate how the business applications of information systems can support a firm’s 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. 1-3 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. Illustrate that in an information system, people use hardware, software, data, and networks as resources to perform input, processing, output, storage, and control activities that transform data resources into information products. ❖ Demonstrate familiarity with the myriad of career opportunities in information systems. 1-4  Section 1 Foundation Concepts: Information Systems in Business 1-5 I. The Real World of Information Systems ❖ Information Systems are an essential field in the study of business administration and management. ❖ IS and IT and Internet technologies play vital roles in business and improve the effectiveness and efficiency of business processes, managerial decision making, and workgroup collaboration. 1-6 II. The Fundamental Roles of IS in Business ❖ Support of Strategies for Competitive Advantage ❖ Support of Business Decision Making ❖ Support of Business Processes and Operations 1-7 IV. The Role of e-Business in Business ❖ E-Business – use of Internet technologies to empower business processes, e-commerce, and enterprise collaboration within a firm and its customers, suppliers, and stakeholders ❖ Enterprise Collaboration Systems – support communication, coordination, and collaboration among networked teams/workgroups ❖ E-Commerce – buying, selling, marketing, and servicing products, services, and information over computer networks 1-8 VI. Managerial Challenges of Information Technology ❖ The IS Function ❖ IS is a major functional area of business, just as important as any business function ❖ IS is an important contributor to operational efficiency, employee productivity and morale, and customer services and satisfaction ❖ IS is an important strategic resource 1-9  Section 2 Foundation Concepts: The Components of Information Systems 1-10 I. System Concepts: The Foundation for Business Processes ❖ What Is a System? ❖ Input – capture the data to be processed ❖ Processing – change the data into information ❖ Output – disseminate the information product to its destination ❖ Feedback and Control ❖ Feedback – data about the performance of the system ❖ Control – monitoring the feedback to determine if the system is meeting its objectives 1-11 III. Information System Resources ❖ People Resources ❖ IS Specialists ❖ End Users ❖ Hardware Resources ❖ Machines – the computing devices themselves ❖ Media – where data is stored 1-12 III. Information System Resources ❖ Software Resources ❖ Programs – instructions that tell the computer what to do ❖System Software – runs the computer ❖Application Software – a particular use by end users ❖ Procedures – instructions on how to use the system 1-13 III. Information System Resources ❖ Data Resources ❖ Data – unorganized facts and figures ❖ Information – data organized so that it has value to the organization ❖ Network Resources ❖ Communications Media- the physical pathways over which signals travel ❖ Network Infrastructure – hardware, software, and data technologies needed to support communications networks 1-14 IV. Information System Activities ❖ Input of Data Resources ❖ Processing of Data into Information – organize, analyze, and manipulate data ❖ Output of Information Products – dissemination of information products to appropriate end users ❖ Storage of Data Resources ❖ Control of System Resources – monitoring feedback to assure the system meets its performance standards 1-15