Foundations of Enterprise Information Systems
Sherif Kamel
Professor of MIS
Department of Management
Importance of IT/IS
 Information technology is reshaping the basics of businesses
and organizations
 Customer service, operations, product and marketing
strategies and distribution are heavily dependent on IT
 IT is becoming an everyday part of life at the personal,
organizational and societal levels
 We are truly living in a wired world (1.8 billion people
connected)
Businesses depend on IT to...
 Empower basic business processes including
 Back-office accounting systems
 Warehouse inventory systems
 Frontline sales and customer support applications
Roles of IT in Business Applications is to Support…
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Business processes and operations
Decision making made by employees and managers
Strategies for competitive advantage
Organizational development and growth
Global outreach (no boundaries time or distance)
Continental Airlines
What is an Information System?
 An information system is an organized combination of
people, hardware, software, communication networks and
data resources that collects, transforms and disseminates
information in an organization
Information Technologies
 Business and industry professionals rely on a variety of
information technologies for their daily operations and
management decisions including:
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Computer hardware technologies
Computer software technologies
Telecommunications network technologies
Data resource management technologies
IT Infrastructure Building Blocks
Business Ideas/Initiatives
 There is no specific distinction between a business venture
and a IT project
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Banking
Tourism
Coffee shop
Sports
Car manufacturing
Input-Processing-Output Cycle
Control of System Performance
Input of
Data
Resources
Processing
Data
Storage of Data Resources
Output of
Information
Products
Components of IS
Network Resources
Control of System Performance
Input
of
Data
Resources
Processing
Data
Into
Information
Output
of
Information
Products
Storage of Data Resources
Communications Media/Network Support
Information Systems Hierarchy
Support
Strategies for
Competitive Advantage
Strategic
Management
EIS-DSS
Support
Business Decision Making
Support
Business Processes and Operations
Tactical
Management
MIS
Operations
Management
TPS
Role of eBusiness in Business
 Using Internet technology to empower business processes
 Internetworking using enterprise communication and collaboration
systems (groupware) with a firm’s customers, suppliers, and other
stakeholders
 Buying and selling, marketing and servicing of products, services and
information over a variety of computer networks
 An infrastructure that includes…
 Internet websites
 Extranet access to inventory databases
 Use of corporate intranets
eBusiness Enterprise
Internet
Extranets
Suppliers and Other Business Partners
Supply Chain Management
Procurement, Distribution, and Logistics
Engineering
&
Research
Manufacturing
&
Production
Accounting,
Finance
& Management
Intranets
Customer Relationship Management
Advertising, Sales, and Customer Service
Extranets
Company
Boundary
Consumer and Business Customers
Time of Trends in IS/IT
1950-1960
1960-1970
1970-1980
1980-1990
1990-2000+
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
Electronic
Data
Processing
EDP/TPS
Management
Information
Systems (MIS)
Decision
Support
Systems
(DSS)
End User
Computing
EIS
Expert Systems
SIS
Internetworked
eBusiness &
Global Operations
Intranets
Extranets
Types of Information Systems
Information
Systems
Operations
Support Systems
Management
Support Systems
Producing a variety of information
products for internal and external use
not necessarily using the formats
preferred by managers and senior
executives
Providing information and
support services for effective
decision making
Operations Support Systems
Support of
Business
Operations
Transaction
Processing
Systems (TPS/EDP)
Processing data, updating
operational databases and
producing business documents
Example: accounting systems
Operations
Support
Systems
Process
Control
Systems
Monitoring and controlling
industrial processes
Example: power generation
and steel production
systems
Office
Automation
Systems
Supporting teams, workgroups and
enterprise communications and
collaboration
Example: email, chatting and
video conferencing
Management Support Systems
Support of
Managerial
Decision Making
Management
Support
Systems (MSS)
Management
Information
Systems (MIS)
Decision
Support
Systems (DSS/GDSS)
Providing information in report
forms and displays to
managers and business
professionals
Example: sales reporting to
management
Directing computer support to
management during the
decision making process
Example: forecasting and
what-if scenarios
Executive
Information
Systems (EIS/ESS)
Providing critical information from a
diversified variety of internal and
external sources in a simple, fancy and
colorful format
Example: Summary reports for
executives
An Integrated Environment
Organization
Business Strategies
Business Processes
Structure and Culture
IT Infrastructure
Information
Systems
Business Environment
Use
Business
Value
Lufthansa
Telecommuting
Mobile office
Stay connected
Global reach
Valentine’s Day Text Messages
Automatic Teller Machines (ATMs)
 Invented on September 2nd,
1969 (Chemical Bank, NY)
 Became popular in the 1980s
 Today, they one of three
popular customer
daily/weekly indispensable
elements with cell phones
and email
Managerial Challenges of IT/IS
 Reasons for success
 Continuous user involvement
 Executive management
support
 Clear statement of user
requirements
 Proper planning and
implementation
 Realistic expectations
 Reasons for failure
 Lack of user input
 Enforcement of certain
applications
 Incomplete or changing
requirements and
specifications
 Lack of executive support
 Technological incompetence
 Change of management with
new ideas
 Internal conflicts between
different stakeholders
Challenges of IT Careers
 Creation of highly paid and interesting career opportunities
 A growing industry with great potentials
 161+ million job vacancies in the European Union within the
coming 25 years (2000-2025)
 Fields include…academia, industry, consultation, IT vendors…
 Opportunities are in the IT sector and in related service oriented
industries
System Concepts Foundations
 System concepts represent the foundation of information systems
 Understanding system concepts helps in understanding various
concepts related to information systems including…
 Technology
 Applications
 Development
 Management
What is a System?
 A system is a group of interrelated or interacting elements
forming a unified whole and working together toward a
common goal by accepting inputs and producing outputs in
an organized transformation process
 Examples of systems include:
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Physical system: sun and its planets
Biological system: human body
Technological system: oil refinery
Socioeconomic system: firm
System Life Cycle
Input
Involves capturing
and assembling
elements that enter
the system to be
processed
Raw materials
Energy
Data
Human efforts
Processing
Involves transformation
processes that convert input
into output
Manufacturing process
Mathematical calculations
Output
Involves transferring
elements that have
been produced by a
transformation process
to their ultimate
destination
Finished products
Human services
Information
System and the Business Environment
Competition
Suppliers
Input
Economic resources
People/Money
Material
Machines/Land
Facilities/Energy
Information
Financial Institutions
Information Systems
Feedback
Processing
Organizational Processes
Production/Marketing
Finance/Personnel
Other Processes
Customers
Government
Management
Control
Output
Goods & Services
Products/Services
Payments/Contributions
Information
Other Effects
Labor Unions
Stockholders
Community
Abraham Lincoln v John Kennedy (Information
Synergies)
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Lincoln was elected to Congress in 1846
Lincoln was elected President in 1860
The names Lincoln and Kennedy each contain
seven letters
Both wives lost their children while living in the
White House
Both Presidents were shot in the head
Lincoln's secretary was named Kennedy
Both were succeeded by Southerners
Andrew Johnson, who succeeded Lincoln, was
born in 1808
John Wilkes Booth, who assassinated Lincoln,
was born in 1839
Both assassins were known by their three names
Lincoln was shot in a theater named "Kennedy"
Booth ran from a theater and was caught in a
warehouse
A week before Lincoln was shot, he was in
Monroe, Maryland
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Kennedy was elected to Congress in 1946
Kennedy was elected President in 1960
Both were concerned with civil rights
Both Presidents were shot on a Friday
Both were assassinated by Southerners
Kennedy's secretary was named Lincoln
Both successors were named "Johnson"
Lyndon Johnson, who succeeded Kennedy
was born in 1908
Lee Harvey Oswald, who assassinated
Kennedy, was born in 1939
Both names are comprised of 15 letters
Kennedy was shot in a car called "Lincoln"
Oswald ran from a warehouse and was
caught in a theater
Both Booth and Oswald were assassinated
before their trials
A week before Kennedy was shot, he
was with Marilyn Monroe!!
Saad Zaghloul v Mostafa El Nahas
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Zaghloul was born on 15 June 1859
Zagloul died on 23 August 1927
Zaghloul died at the age of 68
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El Nahas was born on 15 June 1879
El Nahas died on 23 August 1965
El Nahas died at the age of 86