1.2 History and Motivations for Information System

Until 1960, the role of information system is just recording a day to day activity which is called TPS.

	By 1960, management information system was born. The role of such system is to summarize and report data
	collected by TPS.

	Managers are not satisfied by the data supplied by MIS. In 1970, decision support system provides managerial
	end users with ad hoc, interactive support of their decision-making processes.

The introduction of microcomputers affected profoundly organizations.

By 1980, executive support system was developed.

	Expert systems and knowledge management systems were introduced after development and applications of
	artificial intelligence.

In 1990, the concept of enterprise resource planning was introduced.

1.2 History and Motivations for Information System

Information System and The Emergence of Internet

The rapid growth of Internet and communication technology has dramatically changed the business.

E-business is the use of Internet technologies to work and empower business processes.

E-commerce is the buying and selling of products or services over a variety of computer networks.

	The Digital Firm is a general term for organizations that have enabled core business relationships with
	employees, customers, suppliers, and other external partners through digital networks.

Motivations for Information System

Managers in an organization depend heavily on information systems to reach the following strategic objectives:

		Improve operational excellence: Improvements to its business processes could allow the firm to cut costs
		dramatically, and improve the quality and delivery of its products and services.

		Retain customer loyalty: When business know its customers and serves them well, customers are likely to
		adhere to that firm.

		Create new products and services: Information system and technology are powerful tool enabling
		managers to create new products and services or even change business models.

1.2 History and Motivations for Information System

		Support of decision making: Information systems provide managers with information they need to
		decrease the ambiguity of environment in which they are obliged to take decision and to decrease
		consequences of bad decisions.

		Support of strategies for competitive advantage: Strategic information systems can help provide
		products and services that give a business a comparative advantage over its competitors.

		Barriers to entry: Large investments in computer based information systems can discourage firm already in
		the industry and deter external firms from entering the industry.