Chapter 1

Information Systems in Global Business Today

2009 Pearson Education Canada

1-1

Management Information Systems

Chapter 1 Information Systems in Global Business Today LEARNING OBJECTIVES

Explain why information systems are so essential in business today. Learn about information system from both a technical and a business perspective. Identify and describe the three dimensions of information systems. management, technology, organizations Enable effective decision making about information systems within organizations.
2009 Pearson Education Canada

1-2

Management Information Systems

Chapter 1 Information Systems in Global Business Today

Information Technology

Information Technology all of the computer-based information systems used by organizations and their underlying technologies

Management Information Systems

Chapter 1 Information Systems in Global Business Today WHY INFORMATION SYSTEMS?

Electronic business and electronic commerce in the emerging digital firm

Management Information Systems

Chapter 1 Information Systems in Global Business Today

Business Processes

Business Processes Logically related tasks and behaviours that organizations develop over time to produce specific business results

Management Information Systems

Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today

The interdependence between organizations and information technology

There is a growing interdependence between a firms information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.

Figure 1-2
2009 Pearson Education Canada

1-7

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

What is an information system?

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

2009 Pearson Education Canada

1-9

Management Information Systems

Chapter 1 Information Systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS

What Is an Information System? (continued)

Data: Raw facts representing events such as business transactions Information: Data shaped into a form that is meaningful and useful to human beings

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

Data and Information

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

Figure 1-4
2009 Pearson Education Canada

1-10

Management Information Systems

Chapter 1 Information Systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS

A Business Perspective on Information Systems Businesses invest in IS in order to create value and increase profitability Information systems are an organizational and management solution to business challenges that arise from the business environment

Management Information Systems

Chapter 1 Information Systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS

A Business Perspective on Information Systems (continued) Based on information technology but also require significant investment in organizational and management changes and innovations IS create value primarily by changing business processes and management decision making

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

2009 Pearson Education Canada

1-12

Management Information Systems

Chapter 1 Information Systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS

Dimensions of Information Systems Need to understand and balance the dimensions of information systems in order to create business value: Organizations Management Technology

Management Information Systems

Chapter 1 Information Systems in Global Business Today Contemporary Approaches to Information Systems

Figure 1-11 Sociotechnical Perspective on Information Systems

2009 Pearson Education Canada

1-19