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

(Figure 1.7)

Transaction Processing systems

Process Control Systems
Enterprise Collaboration Systems

Management Support Systems

(Figure 1.9)

Management Information Systems

Decision Support Systems
Executive Information Systems

Other Systems

(Figure 1.11)

Expert Systems
Knowledge Management Systems
Strategic Information Systems
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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

Business Analyst credentials

5-10 years experience

Technical undergraduate degree and MBA
Process driven through changes to finish
$45,000 to $100,000
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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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