Information Systems in Business

Business information systems are sets of inter-related procedures using IT infrastructure in a business enterprise to generate and disseminate desired information.

Such systems are designed to support decision making by the people associated with the enterprise in the process of attainment of its objectives.

The business information system gets data and other resources of IT infrastructure as input from the environment and process them to satisfy the information needs of different entities associated with the business enterprise.

There are systems of control over the use of IT resources and the feedback system offers useful clues for increasing the benefits of information systems to business. The business information systems are sub-systems of business system and by themselves serve the function of feedback and control in business system.

Features of Business Information System

• Data Management:

BIS involves the collection, storage, and management of data from various sources within an organization. This includes structured data from databases, as well as unstructured data from documents, emails, and other sources.

• Integration:

BIS integrates data and processes across different functional areas of an organization, such as finance, human resources, sales, and marketing. This integration enables seamless communication and collaboration between departments.

• Decision Support:

BIS provides tools and technologies for analyzing data and generating insights to support decision-making at all levels of the organization. This includes reporting tools, dashboards, and predictive analytics capabilities.

• Automation:

BIS automates routine tasks and processes, increasing efficiency and reducing the likelihood of errors. This includes workflow automation, where tasks are automatically routed to the appropriate individuals based on predefined rules.

• Accessibility:

BIS allows users to access information and perform tasks from anywhere at any time, using a variety of devices such as computers, tablets, and smartphones. This enables remote work and enhances flexibility.

• Security:

BIS incorporates security measures to protect sensitive information and prevent unauthorized access or data breaches. This includes encryption, user authentication, access controls, and regular security audits.

• Scalability:

BIS is designed to scale with the needs of the organization, accommodating growth in data volume, user base, and complexity. This scalability ensures that the system can continue to support the organization as it evolves.

• Customization:

BIS can be customized to meet the specific requirements and workflows of an organization. This includes configuring user interfaces, reports, and business processes to align with the organization’s unique needs and preferences.

Key Components of Business Information System

• Hardware:

This includes all the physical equipment used to process and store data within the information system. Hardware components may include servers, computers, networking devices (routers, switches), storage devices (hard drives, solid-state drives), and peripherals (printers, scanners).

• Software:

Software components encompass the programs and applications used to manage data and support various business processes. This includes operating systems (e.g., Windows, Linux), database management systems (e.g., MySQL, Oracle), enterprise resource planning (ERP) software, customer relationship management (CRM) software, productivity suites (e.g., Microsoft Office), and specialized business applications.

• Data:

Data is a fundamental component of any information system. It encompasses the raw facts and figures collected and stored by the system. Data can be structured (e.g., databases, spreadsheets) or unstructured (e.g., documents, emails). Effective management of data involves processes such as data capture, validation, storage, retrieval, and analysis.

• Procedures:

Procedures refer to the methods and protocols established within the organization to govern the use of the information system. This includes guidelines for data entry, processing, security protocols, backup and recovery procedures, and user access controls. Well-defined procedures ensure consistency, accuracy, and compliance with organizational policies and standards.

• People:

People are an integral component of any information system. This includes system users, administrators, IT support staff, managers, and other stakeholders involved in the operation, maintenance, and utilization of the system. Effective training, communication, and collaboration among individuals are essential for the successful implementation and operation of the information system.

• Networks:

Networks facilitate the communication and exchange of data between different components of the information system. This includes local area networks (LANs), wide area networks (WANs), wireless networks, and the internet. Networking infrastructure enables seamless connectivity and collaboration among users and facilitates access to centralized data and resources.

• Feedback Mechanisms:

Feedback mechanisms allow users to provide input, report issues, and suggest improvements to the information system. This may include user feedback forms, helpdesk support, system logs and monitoring tools, and periodic reviews and evaluations. Feedback mechanisms help identify areas for improvement and ensure that the information system continues to meet the evolving needs of the organization.