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Foundation of Information system


Foundation Of Information Systems In Business 

What Is An Information System? 

An Information System can be any organized combination Of: 

- people, 

- hardware, 

- software, 

- communications networks, 

- policies. 

People rely on modern information systems to communicate using a variable: 

- physical devices (hardware). 

- information processing instruction and  

procedures (software). 

- communications channels (network). 

- stored data (data resources). 

Examples Of Information Systems: 

i.Smoke signals for communication 

ii.Card catalog in a library 

iii.The cash register

The Major Areas Of Information Systems Knowledge Needed By Business Professionals 

1. Foundation concepts. 

concept about the components and roles of information systems. 

2. Information technologies. 

hardware, software, networks, data management, many internet based technologies. 

3. Business applications. 

operations, management, competitive advantage of a business. 

4. Development processes. 

plan, develop, and implement information systems to meet business opportunities. 

5. Management challenges. 

the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business.

The Fundamental Roles Of Information System In Business 

There are three fundamental reasons: 

1. Support of its business processes and operations. 

2. Support of decision making by its employees and managers. 

3. Support of its strategies for competitive advantage.

Types Of Information Systems 

1.Operations support system 

2.Management Support System 

3.Decision Support System 

4. Executive Information System

1.Operations support systems: 

- Transaction processing systems 

-- process data resulting from business  

transactions, update operational  

databases, and produce business  


Examples: Sales and inventory,  

processing and accounting  


- Process control systems. 

-- minor and control industrial process. 

Examples: Petroleum refining, power  

generation, steel producing  


- Enterprise collaboration systems. 

-- support team, workgroup, and enterprise  

communications and collaboration. 

Examples: email, chat, video  

conferencing groupware  


2.Management support systems: 

- Management information systems 

-- provide information in the form of pre  

specified reports and displays to support  

business decision making.  

Examples: Sales analysis,  

production performance,  

cost trend reporting systems. 

- Decision support systems 

-- provide interactive ad hoc support for the  

decision making processes of managers  

and other business professionals.  

Examples: product pricing,  

profitability forecasting,  

risk analysis.

The IS (Information System) Functions: 

A major functional area of business equally as important to business success, as the function of: 

- accounting, 

- finance, 

- operations management, 

- marketing, 

- human resource management.

An important contributor to: 

- operational efficiency, 

- employee productivity, 

- customer service and satisfaction.

A major source of information and support needed to promote effective decision making by managers and business professionals.

A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global market place. 

Foundation Concepts: The Components Of Information Systems:


the computer network are systems of information processing component that use a variety of: hardware, software, data management, and telecommunication network technologies.


the electronic business and commerce applications involve interconnected business information systems.


that developing ways to use information technology in business includes designing the basic components of information system.

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