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1. 1
Introduction to Information Systems
Essentials for the Internetworked E-Business Enterprise
C h a p t e r
Eleventh Edition
James A. O’Brien
1
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Foundations
of Information
Systems in
Business

2. Eleventh Edition
James A. O’Brien 2
Introduction to Information Systems
MANAGEMENT
INFORMATION
SYSTEM
INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEM
IMPORTANCE OF MIS
COMPONENTS OF MIS
HISTORY OF MIS
E-BUSINESS ENTERPRISE
TYPES OF MIS
MANAGEMENT CHALLENGES OF THE
E-BUSINESS ENTERPRISE
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

3. Eleventh Edition
James A. O’Brien 3
Introduction to Information Systems
Management
•The act, art, or manner of managing, handling,
controlling directing, etc.
•Origin: to train (a horse) in his paces; cause to do
exercises of the manage
•To control the movement or behavior of; handle;
manipulate
• To have charge of; direct; conduct; administer
• To get (a person) to do what one wishes
Webster’s Dictionary
3
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Irwin/McGraw-Hill

4. Eleventh Edition
James A. O’Brien 4
Introduction to Information Systems
Information
4
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Irwin/McGraw-Hill
•Derived from the Latin verb informo, meaning to
“give form to”
•Data that have been shaped by humans into a
meaningful and useful form.
Schoderbek, Schoderbek & Kefalas

5. Eleventh Edition
James A. O’Brien 5
Introduction to Information Systems
SYSTEM
5
Webster’s New World Dictionary
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
•A set or arrangement of things so related or
connected as to form a unity or organic whole
•A set of facts, principles, rules, etc. classified or
arranged in a regular, orderly form so as to show
a logical plan linking the various parts.
•A method or plan of classification or
arrangement

6. Eleventh Edition
James A. O’Brien 6
Introduction to Information Systems
What is a System?
Manufacturing
Process
Input of
Raw Materials
Output of
Finished Products
Environment
Control by
Management
Control
Signals
Control
Signals
Feedback
Signals
Feedback
Signals
System Boundary
Other Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

7. Eleventh Edition
James A. O’Brien 7
Introduction to Information Systems
Information Systems
• An information system is an organized
combination of people, hardware, software,
communications Networks and data resources that
collects, transforms, and disseminates information
in an organization.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
7

8. Eleventh Edition
James A. O’Brien 8
Introduction to Information Systems
8
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Why Organizations need Information Systems
• Meeting Global Challenges
• Capturing opportunities in the Market Place
• Supporting Corporate Strategy
• Linking Departments Whose Functions are different
• Enhancing Worker Productivity
• Increasing Quality of Goods and Services

9. Eleventh Edition
James A. O’Brien 9
Introduction to Information Systems
MANAGEMENT INFORMATION SYSTEM (MIS)
• The MIS is defined as a system based on the database of
an organization for the purpose of providing information
to the people in the organization.
• MIS is the ONLY major subject that focuses on
both business processes and information
technology.
9
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10. Eleventh Edition
James A. O’Brien 10
Introduction to Information Systems
Importance Of MIS
• The role of MIS in an organization can be compared
to the role of heart in the body.
• The information is the blood and MIS is the heart. In
the body the heart plays the role of supplying pure
blood to all the elements of the body including the
brain.
• The MIS plays exactly the same role in the
organization.
•The system ensures that an appropriate data is
collected from the various sources, processed, and
sent further to all the needy destinations.
10
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11. Eleventh Edition
James A. O’Brien 11
Introduction to Information Systems
• The system is expected to fulfill the information
needs of an individual, a group of individuals, the
management functionaries: the managers and the
top management.
• The MIS satisfies the diverse needs through a
variety of systems such as Query Systems,
Analysis Systems, Modeling Systems and
Decision Support Systems.
• The MIS helps in Strategic Planning,
Management Control, Operational Control and
Transaction Processing.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
11

12. Eleventh Edition
James A. O’Brien 12
Introduction to Information Systems
Major Roles of Information Systems
Support
Strategies for
Competitive Advantage
Support
Business Decision Making
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Support
Business Processes and Operations

13. Eleventh Edition
James A. O’Brien 13
Introduction to Information Systems
Components of an Information System
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

14. Eleventh Edition
James A. O’Brien 14
Introduction to Information Systems
Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100
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15. Eleventh Edition
James A. O’Brien 15
Introduction to Information Systems
Attributes of Information Quality
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

16. Eleventh Edition
James A. O’Brien 16
Introduction to Information Systems
History of the role of Information Systems
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Electronic
Data
Processing
- TPS
Management
Information
Systems
Decision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

17. Eleventh Edition
James A. O’Brien 17
Introduction to Information Systems
The e-Business Enterprise
Manufacturin
g
and
Production
Engineering
&
Research
Accounting,
and Finance
Suppliers and Other Business Partners
Customer Relationship Management
Marketing Sales Customer Service
Consumer and Business Customers
Company
Boundary
Supply Chain Management
Procurement, Distribution, and Logistics
Intranets
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
The Internet
Extranets
Extranets

18. Eleventh Edition
James A. O’Brien 18
Introduction to Information Systems
Types of Information Systems
Transactio
nProcessin
gSystem
s
Proces
sContro
Slystems
Enterpris
Ce
ollaboratio
n System
s
Operation
s Suppor
S
t
ystems
Management
Information
System
s
Decisio
n
Suppor
S
t
ystem
s
Executiv
In
eformation
Systems
Management
Suppor
S
tystem
s
Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

19. Eleventh Edition
James A. O’Brien 19
Introduction to Information Systems
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Cross-Functional Information
Systems
Strategic Information Systems
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

20. Eleventh Edition
James A. O’Brien 20
Introduction to Information Systems
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Cross-Functional Information
Systems
Strategic Information Systems –
National Semiconductor – “faster & better” decisions
Global Information Systems- Levi’s
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

21. Eleventh Edition
James A. O’Brien 21
Introduction to Information Systems
Management Challenges of the E-business Enterprise
• Business Strategies
• Business Processes
• Business Needs
• Customer Relationships
• Business Partners
• Suppliers
• Business Customers
Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?
• IS Human Resources
• IS Development
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
• IT Infrastructure
• IS Performance
• Organization Structure
• and Culture
• User Acceptance

22. Eleventh Edition
James A. O’Brien 22
Introduction to Information Systems
What jobs do MIS graduates go into?
• Business Analyst
• Business Application Developer
• IT Consultant
• Systems Analyst
• IT Project Leader
• Database Administrator
• Systems Developer
• Database Analyst
• Web Developer
• Network Administrator
• Technical Support Specialist
• Information Systems Manager
• IT User Liaison
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.