Introduction to Chapter 1 C h a p t e r Introduction to Essentials for the Internetworked E-Business Enterprise 1 Eleventh Edition James A. O Brien Foundations of in Business 1 Eleventh Edition 2 Chapter Objectives Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need. Give examples to illustrate how electronic business, electronic commerce, or enterprise collaboration systems could support a firm s business processes, managerial decision making, and strategies for competitive advantage. Eleventh Edition 3 Chapter Objectives 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. Eleventh Edition 4 Chapter Objectives Provide examples of several major types of information systems from your experiences with business organizations in the real world. Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business. 2002 McGraw-Hill Companies 1
Introduction to Chapter 1 Eleventh Edition 5 An IS Framework for Business Professionals Eleventh Edition 6 Components of an System People Resources Eleventh Edition 7 What is an System? Eleventh Edition 8 What is a System? Environment Control of System Performance Input of Resources Output of Products Control Feedback Control by Feedback Control Storage of Resources Input of Raw Materials Manufacturing Process Output of Finished Products System Boundary Other 2002 McGraw-Hill Companies 2
Introduction to Chapter 1 Eleventh Edition 9 Components of an System Eleventh Edition 10 versus Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100 Eleventh Edition 11 Attributes of Quality Eleventh Edition 12 Logical Elements Name Field Payroll Record Payroll File Personnel base 2002 McGraw-Hill Companies 3
Introduction to Chapter 1 Eleventh Edition 13 Major Roles of Eleventh Edition 14 History of the role of 1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 Strategies for Competitive Advantage Business Decision Making Business Processes and Operations Electronic -TPS Reporting Decision Decision - Ad hoc Reports Strategic & End User End User Computing Exec Info Sys Expert SIS Electronic Commerce Electronic Business & Commerce -Internetworked E-Business & Commerce Eleventh Edition 15 The e-business Enterprise The Internet Suppliers and Other Business Partners Supply Chain Procurement, Distribution, and Logistics Company Boundary Eleventh Edition 16 Types of xtranets Ex Engineering & Research Manufacturing and Production Accounting, and Finance Operations Intranets Customer Relationship Marketing Sales Customer Service Extranets Transaction Process Control Enterprise Collaboration Decision Executive Consumer and Business Customers 2002 McGraw-Hill Companies 4
Introduction to Chapter 1 Eleventh Edition 17 Other Categories of Eleventh Edition 18 The Development Process Expert Knowledge Functional Business Strategic Cross-Functional Eleventh Edition 19 Challenges of the E-business Enterprise Eleventh Edition 20 Chapter Summary IS Human Resources IS Development IT Infrastructure IS Performance Organization Structure and Culture User Acceptance Business Strategies Business Processes Business Needs Customer Relationships Business Partners Suppliers Business Customers Ethical Considerations Potential Risks? Potential Laws? Possible Responses? play a vital role in the efficient and effective operations of E- business, E-commerce and enterprise collaboration. The business professional must know: Foundations (fundamentals) of IS Technologies Business Applications Development Processes; and Managerial Challenges 2002 McGraw-Hill Companies 5
Introduction to Chapter 1 Eleventh Edition 21 Chapter Summary (cont) A system is a group of interrelated components working toward the attainment of a common goal by accepting inputs and producing outputs in an organized transformation process. An information system uses the resources of people, hardware, software, data, and networks to perform input, processing, output, storage and control activities. Eleventh Edition 22 Chapter Summary (cont) IS Resources: Hardware Resources Software Resources People Resources Resources Network Resources Products: Paper Reports Visual Displays Multimedia Documents Electronic Messages Graphics images Audio Responses Eleventh Edition 23 Chapter Summary (cont) systems perform three vital roles in business firms. They support: Business processes and operations, Business decision making; and Strategic competitive advantage Major application categories of information systems include: Operations ; and 2002 McGraw-Hill Companies 6