Month: June 2020

With more innovation in technology, new businesses are created. With more business, technology comes to the rescue by making things easier. The two exist in something of a symbiotic relationship that ensures they will always coexist.

Business has been around since prehistoric times. It may have begun with nothing more than barter trade, if the history books are to be believed, but it has since morphed into something far more complex, and none of that would have been possible without technology. The major industries of the world would collapse, if the existence and use of information technology were to be snatched suddenly from businesses. That’s because most business transactions and operations cannot be conducted in the 21st century without technology.

Technology Is Necessary in Business

Over the years, technology has caused an explosion in commerce and trade. Because of technology, many traditional business models and concepts were revolutionized. Technology gave us the opportunity to see things from a new perspective, and to approach what we were already doing from a new perspective. Technology also gave us greater efficiency for conducting business.

Some of the areas in which technology is crucial to business include point of sales systems, the use of ICT in management, accounting systems, and other complex aspects of every day business activities. Even something as simple as the calculator, which was revolutionary in its time, came about because of technology. It is tough to imagine going back to performing tasks manually. It would take us back about 100 or so years.

Technology as a Source of Support and Security

Technology enables us to automate numerous processes, which thereby increases our productivity. This is possible because it enables us to use fewer resources, thereby enabling us to improve on quality at a low cost and to improve the speed with which we can deliver to customers. In the process, it has become possible to serve even more clients.

Technology also makes it easy to store more information while maintaining the integrity of that information. We are better able to store sensitive and confidential information in a way that makes it less vulnerable to a data breach. The information can be retrieved instantly when needed, and it can be analyzed not only to study past trends but also to forecast the future. In turn, this can help with the decision-making process.

Technology as a Link to the World

Communication is a part of business. So, transportation and processes make business a web of complicated processes that interplay with each other. With technology, it has been possible to globalize business operations. Now, just about anyone can do business practically anywhere, from any room in their house.

Technology has made it possible for businesses to have a wider reach in the world. The best example of this is the internet and the World Wide Web. The internet is now a crucial part of any businesses’ marketing campaign, as it enables the business to attract customers world wide.

Technology, when well-integrated with business, has made life itself worth living. It would be foolish to deny, however, that there are also threats to business brought about by technology. These include malicious activities by activities and organizations, such as hacking. Because of this, it is important for businesses to exercise responsibility when using technology to conduct business. With the good that technology brings, there is some bad that must also be dealt with. All the same, it is something that’s worth all of the baggage, and we must acknowledge and responsibly utilize it to make our businesses better.

How Does Information Technology Affect Business?

The Industrial Revolution changed things in the business world, making a lot of processes more efficient and increasing productivity a hundred-fold. However, the business world remained somewhat stagnant for a century after. With the technological revolution, and the use of technology in business, however, things changed even more disruptively than during the Industrial Revolution and it would be safe to say that things will never be the same again. The rate at which technology is evolving and adapting is exponential to the point where all businesses are being swept by the wave, whether they are ready for it or not. It might not seem like we’ve made that much progress, but even just 5 years ago, social media did not have any consumerism, mobile phones weren’t used for business, cloud-based solutions did not exist, the App Generation was not born yet, and omni-channel marketing was taking its baby steps.

Technology has just about changed every aspect of business in a big way and this has never happened this fast before in history. To be more specific, here are a few ways in which information technology has affected business:

The Advent of Mobile Solutions

Mobility is seen by many as the next great frontier for businesses. Google’s algorithms reflect this, as they make mobile websites a priority. Your business, and every aspect of it can be handled, using nothing more than a tablet or smartphone. From content marketing to customer relations, to sales, the back-end stuff like invoicing and shipping, all of that power is in your hands.

But mobile solutions aren’t just about businesses; they are also about consumers. The millennial generation uses their phones to do everything from buying and selling to sharing their experiences with their friends and finding local businesses.

The Phenomenon of Cloud Computing

Cloud computing has made it possible for businesses to outsource many of their functions to third parties using the internet. It makes it possible for variable data packages to be handled but also makes it possible for businesses to expand rapidly and embrace mobility without having to worry about such things as crashes, downtime, and lost data. This has enabled small and medium-sized businesses to gain access to resources that would have cost them a fortune only a few years ago. In effect, the playing field has been leveled.

Increased Customer Segmentation

Since more and more data is flowing, it is now much easier to analyze and gain deep insight into the things that customers are looking for. Analytics services are expanding by the day and are allowing businesses to segment their prospects into more and more specific groups, making it much easier to target them and get more value for their advertising money. Something as simple as having a Google account can let a business know where a user is from, the kind of browser they’re using, how they stumbled upon a website, What they do on that website, how long they are likely to stay and at what point they decide to leave. There are even more advanced analytics services that allow businesses to become even more refined with this segmentation in order to improve their conversions drastically.

Increased Connectivity

Technology has made it easier for people to stay in touch. Whether you’re looking to communicate with your employees and colleagues via video chat or sending email blasts to leads, mobile technology and the constant innovation that takes place within the space has made it possible for communication to take on a new level of hyper-realism.

Decreasing Costs and Increasing Utility

There are two main things that have come together to make what is called a “buyer’s market” possible. These are the fact that both hardware and software that are needed in creating the necessary software solutions have become more affordable and the fact that more and more entrepreneurs who are also tech-savvy are appearing by the day to make use of these technologies. There was a time when it would take a large company about a year to build a back-end inventory system. Now it takes a few college graduates a matter of weeks to build the same thing. Since the solutions are offered affordably and very easy to use, businesses do not have to invest too much money into them and that has made business easier.

A Changing Consumer Base

Millennials have come of age and they are now the force driving the modern economy. Pretty soon, over half the American workforce will consist of millennials and pretty soon they will also be coming into their peak affluence, where they will have a lot of money to spend and very few financial obligations, give them a lot of disposable income. They are greater in number than the baby boomers and are a lot more liberal with their wallets. They are also all about instant gratification. They have also been raised with the internet. They are connected, tech-savvy, and ready to spend. Businesses have to adapt to this new customer base if they are going to thrive.

Greater Consideration for the Social Impact of Business

You can’t just assume your business operates in a vacuum anymore. Social networking has made the world a smaller place where users can connect regardless of who they are, where they’re from, and how wealthy they are. Only a few years ago you could have gotten by if your customer service was just okay. Now you have to put in the extra effort if you don’t want unfavorable ratings on review sites and people going on rants on social media about your service. Businesses, therefore, need to be careful about their online reputation and need to work on their digital footprint.

The End of Downtime

This is actually a negative effect of technology. With increased connectivity, individuals have less and less time to themselves now. Vacation seems to have all but become a thing of the past, with most people working even when they’re on vacation. Since we can always access our emails, texts, and social media through our phones and laptops, it is harder and harder to just disconnect and wind down.

Why Is Information Technology Important to an Organization?

It might be a little difficult to fathom the importance of information technology to an organization if you’re not an IT professional. However, there are numerous ways in which information technology is crucial to an organization.

1. Business

The business world changed forever when computers were introduced onto the scene. Businesses can utilize information technology through the use of computers and different software to run their operations in a smoother fashion. They use it in different departments, including finance, manufacturing, human resources, and security.

2. Education

Education is one of the frontiers of technology and is growing with technology every day. It’s important that education be able to keep up with the progress happening in technology by reaching students in a way that adequately helps them to prepare for the future. The students in our classrooms today are meant to be the thought leaders, business people, teachers, and investors of tomorrow, so technology should be used to prepare them. This includes the use of gadgets in teaching, such as computers, mobile phones, and tablets, as well as the use of the internet as a medium of learning.

3. Finance

With an increasing number of transactions happening online, it is important that financial and security institutions work together to make the internet a safe place. As more transactions are done on the internet, there will be a need for more networks and greater security, making it possible for banks to keep purchases and sales secure.

4. Health

With improvements in information technology, it is becoming easier to reform the health sector. Medical offices are now able to share medical information with each other, and they can get your health data from your previous doctors. This makes it possible for timely care to be delivered, as well as for costs to be reduced.

5. Security

With an increasing number of transactions being done online, there is an ever-increasing need for safety. Information technology is what makes it possible to keep your data and information safe and only accessible by you. Through the use of encryption and passwords, your digital data is safely hidden away and can only be accessed by those who have your permission.

How Can I use Technology to Work More Efficiently?

As a business owner, you’re probably wondering how you can use technology to its maximum potential for your business.

First, use technology to integrate communication within your organization. Let your employees be on the same page with each other, using such things as collaboration platforms and social media to keep everyone updated about what is going on in the business and where it is headed. That way, they will be in sync with the goals of the business, and their productivity will be significantly improved.

You can also use technology to improve the service you deliver to your customers, by enabling them to give you feedback on your products and services, as well as suggestions on what you can improve.

With improving security standards, you could also do away with passwords altogether and try biometric security systems, which do not require you to remember a dozen passwords at once.

Technology is an ever-changing playing field and those wanting to remain at the helm of innovation have to adapt. The consumer journey is charting a new course and customers and companies alike are embracing emerging technologies. As the IT industry trends such as cloud computing and SaaS become more pervasive, the world will look to brands who can deliver with accuracy and real-time efficiency.

To help meet the demands of a technology-enabled consumer base, businesses and solution providers must also turn toward the latest trends and possibilities provided by emerging innovations to realize their full potential.

1. AI

Artificial intelligence holds significant potential for businesses. While we have yet to achieve the full spectrum of capabilities frequently at the center of futuristic cinema, AI is poised as a tool of choice for businesses and solution providers. As is often seen with social media, AI, combined with machine learning, can be a powerful combination. Businesses can use AI to achieve cost-saving benefits, streamline workflows, enable more efficient communications, improve customer satisfaction, and provide insight into purchasing behavior.

Additionally, machine learning can analyze large datasets and provide scaled insight. We are currently just scratching the surface of how machine learning and artificial intelligence can work together to enable businesses. (Think of IT-industry giants such as Google and Amazon.) Current applications provide huge growth potential for solution providers who can fully understand the capabilities of AI and tailor solutions to meet business demands. Businesses can also employ AI to identify new product and service opportunities.

2. Blockchain

Past discussions of blockchain are often hinged on cryptocurrency, but the real power lies in the immutability and transparency of a blockchain. Due to the fixed and highly visible nature of blockchains, this trend has been widely accepted to have financial applications, and often informs discussions of bitcoin. However, the business benefits are much more far reaching.

The blockchain is an information system that holds promise for supply chain management, enabling transparency into the origin and journey of materials from origin to product. Blockchain technology will also allow for better record management, providing a snapshot of any record from its origination. This could be used to verify orders, purchases, returns, receipt of product, you name it.

Another cryptocurrency utilizing blockchain technology is Ethereum. This cryptocurrency uses smart contracts to ensure delivery of conditions. Smart contracts release data when both participants have met the criteria of an agreement. Smart contracts offer endless capabilities for ensuring agreements are carried out and therefor can help position you as a trusted brand.

3. Cybersecurity as Critical Business Function

Cybersecurity will no longer operate as an addendum in the world of information technology. As companies leverage emerging trends and move more toward cloud computing, cybersecurity will become a critical business functionality and will be an integral business process.

Data protections and PII are real-world concerns that are steadily creeping to the forefront as media coverage of data breaches affect our trust in brands. Making information security an operational necessity will position a business as a trusted entity and ensure smooth delivery of products and services.

4. Drones

Drones are helping to transform certain verticals, giving an edge over competitors and offering a technologically powered physical connection between businesses and end users. The remote capabilities of drones coupled with AI applications are transforming business in the industrial, public safety, construction, and insurance sectors, just to name a few.

As the drone industry continues to mature, more and more applications are coming to light and businesses are embracing the possibilities. Gartner predicts that drone shipments will increase 50 percent in 2020. Drones offer a unique opportunity to identify actionable tasks with much less leg work. Businesses and solution providers can offer enhanced support and real-time services. As best practices are developed and proper protocols put in place, drones offer real-potential for businesses.

5. Edge Computing

Edge computing is a decentralized model which places computing nodes closer to the source of interaction. Gartner defines edge computing as a model where “information processing and content collection and delivery are placed closer to the sources, repositories and consumers of this information.” This model optimizes technological interactions and reduces latency at the point of origin to enable more effective and real-time data consumption. Edge computing is quickly becoming the most efficient path for localized interactions.

6. IoT

As the world becomes more and more digitized, informed business is the key to success and internet of things provides greater clarity into consumer behavior. The Internet of Things is increasingly offering business opportunities in the form of data collection and analysis. In fact, IoT is the most widely adopted technology in CompTIA’s emerging tech track.

Unlike traditional data collection methods of the past, the Internet of Things is a conglomeration of devices that interact, providing substantially greater insight into how products and services are being applied for everyday tasks. As more devices become IoT enabled, businesses will be able to design products with a greater understanding of pain points.

7. Quantum Computing

Quantum computing offers unique opportunities for predictive analysis that extend beyond the capacity of conventional computing. Quantum computers leverage the principles of superposition and entanglement to process information on an exponential scale. While Google came on the scene in 2017 with a promise of the largest quantum computer, IBM has actually made it possible for businesses to leverage this technology.

Quantum computing offers businesses a powerful tool for predictive analytics and big data analysis. As we encounter new problems, quantum computing will help predict viable solutions, though it may not be on the radar for many solution providers or channel partners just yet.

8. Virtual Reality/Augmented Reality

When we think of virtual reality and augmented reality technologies (now referred to as XR), we often drift to possibilities in gaming. While those should not be overlooked, there is real potential for businesses and solution providers as well.

XR helps provide context to possibility. Consumers and businesses may know that they need a solution but have difficulty visualizing how a product or service will enable a particular outcome. Businesses can use XR to enhance their offerings and inform effective decision making.

9. 3D Printing

The business applications for 3D printing are endless. The ability to customize a product according to personalized specifications will allow businesses to provide nearly limitless possibilities. In recent years, providing this kind of customization required either significant reprogramming or manual intervention. With 3D printing, personalization is now one more task that can be automated. 3D printing also enables the use of various materials that offer cost-saving and environmentally sustainable benefits.

10. 5G

The speeds accomplished with 5G greatly outpace those seen with previous networks. 5G offers the supporting foundation that businesses can leverage to embrace emerging technologies. When unencumbered by latency issues, businesses can provide greater capabilities and service. Reaching consumer bases via mobile devices and smartphones will soar to new heights as the IT infrastructure for 5G expands and becomes more pervasive.

A knowledge-based system (KBS) is a computer system which generates and utilizes knowledge from different sources, data and information. These systems aid in solving problems, especially complex ones, by utilizing artificial intelligence concepts. These systems are mostly used in problem-solving procedures and to support human learning, decision making and actions.

A knowledge-based system (KBS) is a program that captures and uses knowledge from a variety of sources. A KBS assists with solving problems, particularly complex issues, by artificial intelligence. These systems are primarily used to support human decision making, learning, and other activities.

A knowledge-based system is a major area of artificial intelligence. These systems can make decisions based on the data and information that resides in their database. In addition, they can comprehend the context of the data being processed.

A knowledge-based system is comprised of a knowledge base and an interface engine. The knowledge base functions as the knowledge repository, while the interface engine functions as the search engine. Learning is a key element to a knowledge-based system, and learning simulation improves the system over time. Knowledge-based systems are categorized as expert systems, intelligent tutoring systems, hypertext manipulations systems, CASE-based systems, and databases having an intelligent user interface.

Knowledge-based systems are considered to be a major branch of artificial intelligence. They are capable of making decisions based on the knowledge residing in them, and can understand the context of the data that is being processed.

Knowledge-based systems broadly consist of an interface engine and knowledge base. The interface engine acts as the search engine, and the knowledge base acts as the knowledge repository. Learning is an essential component of knowledge-based systems and simulation of learning helps in the betterment of the systems. Knowledge-based systems can be broadly classified as CASE-based systems, intelligent tutoring systems, expert systems, hypertext manipulation systems and databases with intelligent user interface.

Compared to traditional computer-based information systems, knowledge-based systems have many advantages. They can provide efficient documentation and also handle large amounts of unstructured data in an intelligent fashion. Knowledge-based systems can aid in expert decision making and allow users to work at a higher level of expertise and promote productivity and consistency. These systems are considered very useful when expertise is unavailable, or when data needs to be stored for future usage or needs to be grouped with different expertise at a common platform, thus providing large-scale integration of knowledge. Finally, knowledge-based systems are capable of creating new knowledge by referring to the stored content.

The limitations of knowledge-based systems are the abstract nature of the concerned knowledge, acquiring and manipulating large volumes of information or data, and the limitations of cognitive and other scientific techniques.

Knowledge-Based Systems and Artificial Intelligence

While these systems are a subcategory of artificial intelligence, traditional knowledge-based systems are different in certain ways from AI. In some ways, AI is organized in a top-down, know everything system to capture and utilize statistical pattern detection methods, big data, deep learning, and data-mining. Examples of AI include approaches that involve neural network systems, which are a category of deep learning technology concentrated on pattern recognition and signal processing.

In contrast to conventional computer-based information systems, a KBS has several advantages. They provide excellent documentation while handling large quantities of unstructured data in an intelligent way. A KBS helps improve decision making and enables users to work at greater levels of expertise, productivity, and consistency. In addition, a KBS is useful when expertise is not available, or when information must be stored effectively for future use. It also provides a common platform for integrating knowledge on a large scale. Finally, a KBS is capable of generating new knowledge by using the stored data.

The architecture of a knowledge-based system is its inference engine and knowledge base. The knowledge base holds a collection of data, and the inference engine can deduce insights from the data stored in the knowledge base.

Knowledge-based systems work across a number of applications. For instance, in the medical field, a KBS can help doctors more accurately diagnose diseases. These systems are called clinical decision-support systems in the health industry. A KBS can also be used in areas as diverse as industrial equipment fault diagnosis, avalanche path analysis, and cash management.

Office automation systems (OAS) are configurations of networked computer hardware and software. A variety of office automation systems are now applied to business and communication functions that used to be performed manually or in multiple locations of a company, such as preparing written communications and strategic planning. In addition, functions that once required coordinating the expertise of outside specialists in typesetting, printing, or electronic recording can now be integrated into the everyday work of an organization, saving both time and money.

At the heart of these systems is often a local area network (LAN). The LAN allows users to transmit data, voice, mail, and images across the network to any destination, whether that destination is in the local office on the LAN, or in another country or continent, through a connecting network. An OAS makes office work more efficient and increases productivity.

Types of functions integrated by office automation systems include:-

1. Electronic Publishing

Electronic publishing systems include word processing and desktop publishing. Word processing software, (e.g., Microsoft Word, Corel Word-Perfect) allows users to create, edit, revise, store, and print documents such as letters, memos, reports, and manuscripts. Desktop publishing software (e.g., Adobe Pagemaker, Corel VENTURA, Microsoft Publisher) enables users to integrate text, images, photographs, and graphics to produce high-quality printable output. Desktop publishing software is used on a microcomputer with a mouse, scanner, and printer to create professional-looking publications. These may be newsletters, brochures, magazines, or books.

2. Electronic Communication

Electronic communication systems include electronic mail (e-mail), voice mail, facsimile (fax), and desktop videoconferencing.

• Electronic Mail: E-mail is software that allows users, via their computer keyboards, to create, send, and receive messages and files to or from anywhere in the world. Most e-mail systems let the user do other sophisticated tasks such as filter, prioritize, or file messages; forward copies of messages to other users; create and save drafts of messages; send “carbon copies”; and request automatic confirmation of the delivery of a message. E-mail is very popular because it is easy to use, offers fast delivery, and is inexpensive. Examples of e-mail software are Eudora, Lotus Notes, and Microsoft Outlook.
• Voice Mail: Voice mail is a sophisticated telephone answering machine. It digitizes incoming voice messages and stores them on disk. When the recipient is ready to listen, the message is converted from its digitized version back to audio, or sound. Recipients may save messages for future use, delete them, or forward them to other people.
• Facsimile: A facsimile or facsimile transmission machine (FAX) scans a document containing both text and graphics and sends it as electronic signals over ordinary telephone lines to a receiving fax machine. This receiving fax recreates the image on paper. A fax can also scan and send a document to a fax modem (circuit board) inside a remote computer. The fax can then be displayed on the computer screen and stored or printed out by the computer’s printer.
• Desktop Videoconferencing: Desktop videoconferencing is one of the fastest growing forms of videoconferencing. Desktop videoconferencing requires a network and a desktop computer with special application software (e.g., CUSeeMe) as well as a small camera installed on top of the monitor. Images of a computer user from the desktop computer are captured and sent across the network to the other computers and users that are participating in the conference. This type of videoconferencing simulates face-to-face meetings of individuals.

3. Electronic Collaboration

Electronic collaboration is made possible through electronic meeting and collaborative work systems and teleconferencing. Electronic meeting and collaborative work systems allow teams of coworkers to use networks of microcomputers to share information, update schedules and plans, and cooperate on projects regardless of geographic distance. Special software called groupware is needed to allow two or more people to edit or otherwise work on the same files simultaneously.

Teleconferencing is also known as videoconferencing. As was mentioned in the discussion of desktop videoconferencing earlier, this technology allows people in multiple locations to interact and work collaboratively using real-time sound and images. Full teleconferencing, as compared to the desktop version, requires special-purpose meeting rooms with cameras, video display monitors, and audio microphones and speakers.

4. Image Processing

Image processing systems include electronic document management, presentation graphics, and multimedia systems. Imaging systems convert text, drawings, and photographs into digital form that can be stored in a computer system. This digital form can be manipulated, stored, printed, or sent via a modem to another computer. Imaging systems may use scanners, digital cameras, video capture cards , or advanced graphic computers. Companies use imaging systems for a variety of documents such as insurance forms, medical records, dental records, and mortgage applications.

Presentation graphics software uses graphics and data from other software tools to create and display presentations. The graphics include charts, bullet lists, text, sound, photos, animation, and video clips. Examples of such software are Microsoft Power Point, Lotus Freelance Graphics, and SPC Harvard Graphics.

Multimedia systems are technologies that integrate two or more types of media such as text, graphic, sound, voice, full-motion video, or animation into a computer-based application. Multimedia is used for electronic books and newspapers, video conferencing, imaging, presentations, and web sites.

5. Office Management

Office management systems include electronic office accessories, electronic scheduling, and task management. These systems provide an electronic means of organizing people, projects, and data. Business dates, appointments, notes, and client contact information can be created, edited, stored, and retrieved. Additionally, automatic reminders about crucial dates and appointments can be programmed. Projects and tasks can be allocated, subdivided, and planned. All of these actions can either be done individually or for an entire group. Computerized systems that automate these office functions can dramatically increase productivity and improve communication within an organization.

Benefits of Implementing Office Automation System

1. Data Storage and Manipulation

Data storage includes important and confidential office documents and records. Office automation system includes data applications, which are used to create or edit a document, file, spreadsheet or an image. There are various types of word processing and desktop presentation packages available, which allow creating or editing textual data. Similarly, you can find dedicated applications for editing spreadsheets and images.

2. Data Management

Data management is one of the major components of office automation system that offers strategic advantages by simplifying the management of stored data and information. Large business organizations can monitor and control various projects and activities within the office through an electronic management system. Program schedules, tickler systems or reminder systems, and task management are some of the features, which empower businesses to have an eye on all business processes without any hassle.

3. Data Exchange

Exchange of stored or manipulated data and information is also an important component of an office automation system. Sending files or exchanging data or information between one or more than one member of an organization has become possible with an electronic transfer application. Through a network connection, all data and information, including text documents, presentations, spreadsheets, images, and videos can be sent in real-time within a few seconds. Illustrating the collaborative nature of an office automation system, this would allow your employees to collaborate in real-time and enhance their productivity.

4. Accuracy

Yes, it’s true! Computer systems and other machines are as effective as a human brain. Once the bugs are removed from a program or an application, it can help you in getting 100% accuracy in the day-to-day business processes. The software programs are more reliable than the human, who actually made it. Implementing an advanced business automation software reduces the probability of errors.

5. Save Time and Resources

Office automation empowers businesses to save both time and money. It simplifies and automates those complex tasks, which earlier required a dedicated resource and a great amount of time. For example, with the introduction of the latest computer technologies and network communications, businesses are now not constricted by geographical limitations. And hence, they can easily save both time and money spent on traveling. Another great example is the digital storage, which eliminates the need of preserving hard copies and hence, saving paper and nature as well.

6. Reduced Costs

Since every business process is now automated, you don’t need to invest much on hiring new resources for taking care of those tasks, which can be easily executed using an office automation system. As we know that time saved is money saved, your business enterprise can easily save huge by automating various complex business processes. With saving large on the overall expenditure and investment on other resources, your profit margins are surely going to improve.

Information is one main resource factor that is available to the manager. As the business market is becoming more complex nowadays and also the computer has improved its capabilities, the information should be managed properly.

Initially, the first major computer application was the processing of accounting data. After sometime, the four system also included this computer application, they were management information system, decision support system, the virtual office and knowledge based system. All of these application composed the computer based information systems.

1. Accounting information system

Accounting information system performs the firm accounting application. It is a data oriented application, so it should produce some information. A firm data processing  tasks  are performed  by it that  collects   data describing  the firm  activities  converts the data into  information  and makes the  information available  to users both  inside  and outside the firm.

Advantage of accounting information system

• Adheres to relatively standardized methods
• Handles detailed data
• Has a good historical focus

2. Management Information System

System management information is a combination of the various information systems. It makes information available with similar needs to the user needs. An MIS deals with the information that can be collected regularly and systematically according to the predefined rules. To do the tasks, such systems should operate in the real time, so they can process the information as early as received.

Advantage of Management Information System

• It can handle inquiries and towards result oriented.
• It is suitable for analysis.
• It helps to build the decisions and for the basis of management activities like planning controlling etc.

3. Decision support system

Decision support system enhances the capabilities of MIS. The origin of the terms. Decision forces on the  decision  making  in problem  solving  support requires computer aided decisions with enough  structure and system integrate all the  subsystems and suggesting  a combined man  machine  and decision  environment.

Advantage of Decision support system

• Better decisions are taken
• Only one manager is required
• It saves the cost and time

4. Virtual Office

In virtual office  the  office work  can be done  virtually at any  geographical area as long  as the work site is linked  to one  or more  of the  firms fixed areas by some type of electronic communication  capability.

 Advantage of Virtual Office

• Reduced equipment and facility cost
• Formal communication work
• Social contribution
• Reduced work stoppages

5. Knowledge Based System

The CBIS subsystem which is attracting the greatest attention from computer scientists and information specialists is knowledge based system a subset of artificial intelligence or AI.

A popular form of knowledge based system is the expert system. It is the activity of providing such machines as computer with the ability to display behaviour that would be regarded as intelligent of it were observed in humans.

Advantage of Knowledge Based System

• Improved output and expertise
• Flexibility
• Output is selected with the opinion of many experts.
• Effective manipulation of large knowledge base.

A CBIS is an organized integration of hardware and software technologies and human elements designed to produce timely, integrated, accurate and useful information for decision making purposes.

Computer Based Information System is essentially an IS using computer technology to carry out some or all of its planned tasks. The basic components of computer based information system are:

• Hardware: These are the devices like the monitor, processor, printer and keyboard, all of which work together to accept, process, show data and information, hardware and software
• Software: The programs that allow the hardware to process the data.
• Databases: The gathering of associated files or tables containing related data.
• Networks: A connecting system that allows diverse computers to distribute resources.
• Procedures: The commands for combining the components above to process information and produce the preferred output.

Advantages of Computer-Based Information Systems

Compute-based information systems have been in widespread use since the 1990s in industry, non-profit organizations and government agencies. These systems provide fast, centralized access to databases of personnel information, reference reading, best practices and on-the-job training, and are easily customizable to meet an organization’s needs. With the Internet and technology boom of the early 21st century, use of computer-based information networks is growing faster each year.

1. Data Centrality

Access to data via a computer network information system is central, providing a “one-stop” location to find and access pertinent computer data. Most large-scale businesses and organizations use some sort of central database to manage user information, manage advertisement lists, store product information and keep track of orders. Examples of central database solutions are MySQL, PostgreSQL or Microsoft SQL database solutions, coupled with custom software which provides user interfaces.

2. Information Coverage

Central information systems provide organizations with the advantages of having large amounts of data, covering many different fields, all accessible via a central source. Information coverage is a huge advantage for any organization, because having vast amounts of useful data from every different department streamlines access and increases productivity. For users, having access to a networked information system is analogous to having a digital library of shared knowledge. Recent developments in database information systems link company information access with larger databases of academic and professional research, such as Google Scholar, to provide even more information capability to personnel.

3. Access Efficiency

Efficiency of access is a crucial advantage to networked information systems over more traditional information management systems, such as paper cataloging and filing. Computer-based information systems catalog and file documents in a set logical way, making data access very efficient and fast. Data can be manually categorized, and filters created to automatically file documents that match certain patterns. This increases employee productivity time by allowing workers to focus more on the task at hand rather than filing paperwork.

4. Extensibility

Computer-based information systems are completely extensible and customizable to an organization’s needs. Upon installation, customized computer information systems use configuration files that are tailor-made to an organization’s needs to file and categorize data. Computer software engineers frequently design custom database interfaces and information storage/recovery systems for enterprise clients. As a company grows, modifications and additions to this filing configuration allow easy extensibility. Computer information systems are not limited in scale or possibility. They are uniquely designed for maximum organizational benefit for each customer.

A typical organization has six of information systems with each supporting a specific organizational level. These systems include transaction processing systems (TPS) at the operational level, office automation systems (OAS) and knowledge work systems (KWS) at the knowledge level, management information systems (MIS) and decision support Systems (DSS) at the management level, and the executive support systems (ESS) at the strategic level.

1. Transaction Processing Systems

Every firm needs to process transactions in order to perform their daily business operations. A transaction refers to any event or activity that affects the organization. Depending on the organization’s business, transactions may differ from one organization to another. In a manufacturing unit, for example, transactions include order entry, receipt of goods, shipping, etc., while in a bank, transactions include deposits and withdrawals, cashing of cheques etc.

However, some transactions, including placing orders, billing customers, hiring employees, employee record keeping, etc., are common to all organizations. To support the processing of business transactions, the transaction processing systems (TPS) are used in the organizations.

2. Office Automation Systems

An office automation system (OAS) is a collection of communication technology, computers and persons to perform official tasks. It executes office transactions and supports official activities at every organizational level. These activities can be divided into clerical and managerial activities.

Clerical activities performed with the help of office automation system include preparing written communication, typesetting, printing, mailing, scheduling meetings, calendar keeping etc. Under managerial activities, office automation system helps in conferencing, creating reports and messages, and controlling performance of organization. Many applications like word processing, electronic filing and e-mail are integrated in office automation system.

• Word Processing: Word processing is used for the preparation of documents like letters, reports, memos, or any type of printable material by electronic means. The text is entered by keyboard and displayed on the computer’s display unit. This text can be edited, stored, and reproduced with the help of commands present in the word processor. Word processors have facilities for spell checking, grammar checking, counting (character, lines, pages, etc.), automatic page numbering, index creation, header and footer, etc.
• Email: E-mail or electronic mail facilitates the transfer of messages or documents with the help of computer and communication lines. This helps in speedy delivery of mails and also reduces time and cost of sending a paper mail. E-mail supports not only the transfer of text messages but it also has options for sending images, audio, video, and many other types of data.
• Voice Mail: Voice mail, an important call service, allows recording and storing of telephone messages into the computer’s memory. The intended person can retrieve these messages any time.

3. Knowledge Work Systems

A knowledge work system (KWS) is a specialized system built to promote the creation of knowledge and to make sure that knowledge and technical skills are proper integrated into business. It helps the knowledge workers in creating and propagating new information and knowledge by providing them the graphics, analytical, communications, and document management tools.

The knowledge workers also need to search for knowledge outside the organization. Thus, knowledge work system must give easy access to external databases. In addition, knowledge work systems should have user-friendly interface to help users to get the required information quickly and easily.

Some examples of knowledge work systems are computer-aided design (CAD) systems, virtual reality systems, and financial workstations.

• Computer-aided design (CAD) systems: These systems are used for automating the creation and revision of designs using computers and graphics software. The CAD software has the capability to provide design specifications for tooling and manufacturing process. This saves much time and money while making a manufacturing process.
• Virtual Reality System: These systems have more capabilities than CAD systems for visualization, rendering and simulation. They make use of interactive graphics software to build computer-generated simulations which almost look like real. They can be used in educational, scientific and business work.
• Financial Workstations: They are used to combine a wide range of data from internal as well as external sources. This data includes contact management data, market data and research reports. Financial workstations help in analyzing trading situations and large amount of financial data within no time. It is also used for portfolio management.

4. Management Information Systems

Management information systems are especially developed to support planning, controlling, and decision-making functions of middle managers. A management information system (MIS) extracts transaction data from underlying TPSs, compiles them, and produces information products in the form of reports, displays or responses.

These information products provide information that conforms to decision-making needs of managers and supervisors. Management information systems use simple routines like summaries and comparisons which enable managers to take decisions for which the procedure of reaching at a solution has been specified in advance.

Generally, the format of reports produced by MIS is pre-specified. A typical MIS report is a summary report, such as a report on the quarterly sales made by each sales representative of the organization. Another type of management information system report is an; for example, exception report that specifies the exception conditions the sales made by some sales representative is far below than expected.

Usually, management information systems are used to produce reports on monthly, quarterly, or yearly basis. However, if managers want to view the daily or hourly data, MIS enables them to do so. In addition, they provide managers online access to the current performance as well as past records of the organization.

5. Decision Support Systems

A decision support system (DSS) is an interactive computer-based information system that, like MIS, also serves at the management level of an organization. However, in contrast to MIS, it processes information to support the decision making process of managers. It provides middle managers with the information that enables them to make intelligent decisions. A decision support system in a bank, for example, enable a manager to analyze the changing trends in deposits and loans in order to ascertain the yearly targets.

Decision support systems are designed for every manager to execute a specific managerial task or problem. Generally, they help managers to make semi-structured decisions, the solution to which can be arrived at logically. However, sometimes, they can also help in taking complex decisions. To support such decisions, they use information generated by OASs and TPSs.

Decision support systems have more analytical power as compared to other information systems. They employ a wide variety of decision models to analyze data or summarize vast amount of data into a form (usually form of tables or charts) that make the comparison and analysis of data easier for managers. They provide interactive environment so that the users could work with them directly, add or change data as per their requirements, and ask new questions.

6. Executive Support Systems

An executive support system (ESS) an extension of MIS is a computer based information system that helps ind decision making at the top-level of an organization. The decisions taken with the help of executive support system are non-routine decisions that effect the entire organization and, thus, require judgement and sight.

As compared to DSSs, ESSs offer more general computing capabilities, better telecommunications and efficient display options. They use the advanced graphics software to display the critical information in the form of charts or graphs that help senior executives to solve a wide range of problems. To make effective decisions, they use summarized internal data from MIS and DSS as well as data from external sources about events like new tax laws, new competitors, etc. They filter, compress, and track data of high importance and make it available to the strategic-level managers.