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Introduction to
Information Systems
in Business
DSS and
General Systems
Jason C.H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258
[email protected]
Dr. Chen
 Dr. Chen.
©
1
Objectives
1. Explain why knowledge of information systems is important
for business end users and identify five areas of information
systems knowledge they need.
2. Give examples to illustrate how information systems can
help support a firm’s business operations, managerial
decision making, and strategic advantage.
3. Identify how businesses can use IT for strategic competitive
advantage through enterprise internetworking, globalization,
and business process reengineering.
4. Identify components and functions of the generic concept
of a system.
5. Illustrate that an information system uses people, hardware,
software, data, and networks as resources to perform input,
processing, output, storage, and control activities that
transform data resources into information products.
 Dr. Chen.
2
Components of an Information Systems
People
Data
Software
Hardware
Networks
 Dr. Chen.
3
Types of the Information Systems
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
(ESS,EIS,DSS)
SENIOR
MANAGERS
MANAGEMENT LEVEL
(DSS, MIS)
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
(KWS)
OPERATIONAL
LEVEL (TPS,OAS)
SALES &
MARKETING
OPERATIONAL
MANAGERS
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN
RESOURCES
Major Roles of Information Systems
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
 Dr. Chen.
5
Internetworked Enterprise
The Internet
Company
Extranets
Intranets
Intranets
Intranets
Customer
Supplier
Intranets
Other Organizations
 Dr. Chen.
6
Information Technology and Globalization
Drivers of
Change
Competitive
Environment
Competitive
Response
Implementation
Efficient
Global
Markets
Global Business
Operations and
Alliances
The Networked
Global
Corporation
Globalization
Technology
 Dr. Chen.
7
Porter’s FIVE COMPETITIVE FORCES MODEL
NEW
MARKET
ENTRANTS
SUBSTITUTE
PRODUCTS
& SERVICES
Threats
THE FIRM
SUPPLIERS
TRADITIONAL
COMPETITORS
Bargaining power
CUSTOMERS
N
Dr. Chen, The Trends of the Information Systems Technology
TM -8
Competitive Forces: Wal-Mart Example
Dr. Chen, The Trends of the Information Systems Technology
TM -9
Strategies for Competitive Advantage
Cost
Strategies
Differentiation
Strategies
 Dr. Chen.
Innovation
Strategies
10
Business Process Reengineering
Automates
Informates
 Dr. Chen.
Innovates/
Transforms
11
A Framework for Business End Users
Management of IS
Resources and Activities
Development of IS
Solutions to Business Problems
Applications of IS
To Operations, Management, and Strategic Advantage
Technology IS
Hardware, Software, Networks , and Data Management
Foundation Concepts of IS
Fundamental Behavioral and Technical Concepts
 Dr. Chen.
12
SYSTEM
INPUT
PROCESS
OUTPUT
FEEDBACK
Dr. Chen, Information Age
TM -13
System Concepts
Environment
Feedback
Signals
Feedback
Signals
Control
Signals
Control by
Management
Control
Signals
Input of
Raw Materials
Manufacturing
Process
Output of
Finished Products
System Boundary
Other Systems
 Dr. Chen.
14
FUNCTIONS OF AN INFORMATION SYSTEM
ENVIRONMENT
Customers
Suppliers
ORGANIZATION
INFORMATION SYSTEM
INPUT
PROCESS
OUTPUT
FEEDBACK
Regulatory
Agencies
Dr. Chen, Information Age
Stockholders
Competitors
TM -15
Attributes of Information Quality
Clarity
Detail
Order
Presentation
Media
 Dr. Chen.
16
Data
Elements
Personnel
Database
Payroll
File
Payroll
Record
Name
Field
 Dr. Chen.
17
Operations and Management Classifications
of Information Systems
Information
Systems
Operations
Support
Systems
Transaction
Processing
Systems
Process
Control
Systems
 Dr. Chen.
Management
Support
Systems
Enterprise
Collaboration
Systems
Database
Management
Systems
Decision
Support
Systems
Executive
Information
Systems
18
Figure: Components of the DSS
The DSS
Model
Base
Data
Base
DBMS
MBMS
Software
System
DGMS
Task
DBMS: DataBase Management Systems
Environment
User
MBMS: ModelBase Management Systems
DGMS: DialoGue Management Systems
 Dr. Chen.
19
Other Classifications of Information Systems
Expert
Systems
Integrated
Combination of
Systems
Business
Information
Systems
Strategic
Information
Systems
 Dr. Chen.
20
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