Lecture Management information systems - Chater 1: Foundations of information systems in business

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Chapter

1

Foundations of
Information Systems
in Business

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Learning Objectives
1. Explain why knowledge of information systems
is important for business professionals and
identify five areas of information systems
knowledge they need.
2. Give examples to illustrate how the business
applications of information systems can
support a firm’s business processes,
managerial decision making, and strategies
for competitive advantage.
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Learning Objectives
3. Provide examples of several major types
of information systems from your
experiences with business organizations
in the real world.
4. Identify several challenges that a
business manager might face in
managing the successful and ethical
development and use of information
technology in a business.
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Learning Objectives
5. 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.

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Why Study Information Systems?
• Information technology can help all kinds
of businesses improve the efficiency and
effectiveness of their business processes,
managerial decision making, and
workgroup collaboration, thus
strengthening their competitive positions
in a rapidly changing marketplace.

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Why Study Information Systems
• Internet-based systems have become a
necessary ingredient for business
success in today’s dynamic global
environment.
• Information technologies are playing an
expanding role in business.

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Case #1: Athens Olympics Network

• What makes the Olympic Games a
unique project is that the athletes aren’t
going to stop running just because the
server does.
• Major Components:
• Games Management System (GMS)
• Information Diffusion System (IDS)

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Case #1: Athens Olympics Network
GMS:
• Managed access accreditations for the games
IDS:
• Collected and distributed event results and
rankings to press agencies and certain websites
• Live feed for broadcasters commenting on
events
• Results, rankings, statistics and biographies
available to commentators .3 seconds after the
athletes crossed the line
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Case #1: Athens Olympics Network

Goals & Constraints:
• Reduce the amount of risk
• 100% availability
• Non-negotiable deadline

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Case #1: Athens Olympics Network
Fail-Safe Plan:
• Redundancy
• Constructed the network in such a way that
service could be provided even if one of the
routers was damaged.
• Stored data in two physically distant data
centers (in different earthquake zones).

• Test. Test. Test. “We wanted to be sure
that every stupid thing that can happen
was planned for.”
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Case #1: Athens Olympics Network
1. Could the 2004 Athens Olympics have been a
success without all of the networks and

backup technologies?
2. How would your 2004 Olympics experience
changed without the GMS and IDS systems?
3. The 2004 Olympics is a global business. Can
a business today succeed without information
technology? Why or why not?
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Case #1: Athens Olympics Network
4. Claude Philipps said dealing with the
“crazy scenarios of what might happen
in every area: a network problem, staff
stopped in a traffic jam, a security
attack… everything that might happen,”
was the reason for so much testing.
Can you think of other businesses that
would require “crazy scenario” testing?
Explain.
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Case #1: Athens Olympics Network
5. Are the redundancies and backup
systems in place limited to one-time
systems like those at the Olympics or

should they exist in other business
environments? Explain your position
and provide specific examples.

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What is an Information System?
Any organized combination of people,
hardware, software, communications
networks, and data resources that stores,
retrieves, transforms, and disseminates
information in an organization.

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Information Systems vs.
Information Technology
• Information Systems (IS) – all
components and resources necessary to
deliver information and information
processing functions to the organization
• Information Technology (IT) – various
hardware components necessary for the
system to operate

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Types of Information Technologies
• Computer Hardware Technologies
including microcomputers, midsize servers, and large
mainframe systems, and the input, output, and storage
devices that support them

• Computer Software Technologies
including operating system software, Web browsers,
software productivity suites, and software for business
applications like customer relationship management and
supply chain management

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Types of Information Technologies
• Telecommunications Network
Technologies
including the telecommunications media, processors,
and software needed to provide wire-based and wireless
access and support for the Internet and private Internetbased networks

• Data Resource Management

Technologies
including database management system software for
the development, access, and maintenance of the
databases of an organization
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Conceptual Framework of IS Knowledge

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Roles of IS in Business

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Trends in Information Systems

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What is E-Business?
Definition:
• The use of Internet technologies to work
and empower business processes,
electronic commerce, and enterprise
collaboration within a company and with
its customers, suppliers, and other
business stakeholders.
• An online exchange of value.
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E-Business Information Technology
Infrastructure

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Enterprise Collaboration Systems
Definition:
• Involve the use of software tools to
support communication, coordination, and
collaboration among the members of
networked teams and workgroups.

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What is E-Commerce?
Definition:
The buying and selling, and marketing
and servicing of products, services, and
information over a variety of computer
networks.

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