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Foundations
of Information Systems
in Business
An IS Framework for Business Professionals

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Why Study of Information Systems?

Pervasive in Business
Linked to Strategy

High-profile Successes
and Failures
Major Business
Functional Area

Leaders Face Difficult

IS Issues

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What is an Information System?

Control
Controlof
of System
System Performance
Performance

Input
Inputof
of Output
Outputof
of
Processing
Processing
Data
Data Information
Information
Data
Data
Resources
Resources Products
Products

Storage
Storageof
of Data
DataResources
Resources

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What is a System?
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
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Components of an Information System

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Data versus Information

Monthly Sales Report

for West Region
n n s
M a oe Sales Rep: Charles Mann
0 Sh
10 arles Emp No. 79154
200 Ch TM Item Qty Sold Price
1 st TM Shoes 1200 $100
We 154
79

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Attributes of Information Quality

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Logical Data Elements
Name
Field

Payroll
Record

Payroll
File

Personnel
Database

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Major Roles of Information Systems

Support of
Strategic
Advantage

Support of
Managerial
Decision Making

Support of
Business Operations

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 History of the role of Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce

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 The Internetworked -Business
The Internet
Suppliers and Other Business Partners Company
Boundary
Procurement, Distribution, and Logistics
Extranets

Manufacturing Accounting,
Engineering &
and Finance, and
Research
Production Management

Intranets

Advertising Sales Customer Service

Extranets

Consumer and Business Customers

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 Types of Information Systems
Information Systems

Support of Operations Management Support of

business Managerial
Support Support
operation Decision
Systems Systems
Making

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems

Processing Control of Team & Work Pre Interactive Information

Business Industrial Collaboration specified Decision Tailored for
Transaction Process system Reporting Support Executives
for Manager
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Other Categories of Information Systems

Expert
Expert Systems
Systems

Knowledge
KnowledgeManagement
Management Systems
Systems

Functional
FunctionalBusiness
BusinessSystems
Systems

Strategic
StrategicInformation
InformationSystems
Systems

Cross-Functional
Cross-FunctionalInformation
Information Systems
Systems

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The Information Systems Development Process

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