Business Information System


In today's world information system is used to collect all sorts of information that is required in an organisation to communicate it to others. It is an organised system which tells the various uses of the collected data and developing information from this data. This information is further used to produce results and to find out the answers to the required questions. It simply gives solutions to the ongoing problems that are happening currently. Information system is a group of components which interact with each other to produce relevant information. It is a system which are made up of people and computers which continuously work together to become a system which in the end produces result. It helps is decision making to find out the most appropriate solution to the given problem. It is the information and communication technology which can be used extensively to produce information. It supports the business processes and use it to overcome various reforms. It produces the relevant products and services which can be used by the companies. These are required now and then to produce the required results. It includes various components like software,hardware,data generation, various people who process this data, and a whole process. For a company the only way to find the solutions to a problem is by the information that is provided to the company. Without knowing the problems respective solutions can't be found out. It is seen that the information and data changes with time and respectively the ways to generate the information also changes.

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Task 1

1.1 There are various components that are related to the information system.

These are used to produce relevant information and these include

1. Hardware– It directly refers to the machines and various parts which are used to produce information. It includes the computer itself which is having various parts like CPU that is central processing unit,monitor,mouse etc. The CPU is everything and it manages all sorts of information which is required to bring out solutions. The hardware components also includes various input and output devices,storage systems,communication devices etc.(Olszak, C.M. and Ziemba, E., 2012)

2. Software– It refers to the computer programs which are used to generate useful information by giving proper instructions using the circuits within the hardware and make them work accordingly.

3. Data– These are the facts that are used to produce information. These are stored in the tapes or storage systems.

4. Procedures– It refers to the policies which govern the operation related to the computer system. Procedure are in simple language are related to people like software is related to hardware.

5. People– Any system,organisation needs people which are the main back bone. It is the most useful and successful element of the product. It influences the success or failure of any organisation because the quality of the employees of an organisation determines the output that the organisation will generate.(Olszak, C.M. and Ziemba, E., 2012)

6. Feedback– IS has a component named as feedback. It is used to determine the quality and the result that is being produced here. It can tell the actual reality of the organisation and the scope of improvement.(Olszak, C.M. and Ziemba, E., 2012)

Here,we have taken the case of IBM whose full form is International Business Machine Corporation. It is an American Multi national technology company which is headquartered in Armonk,New York,US. This company is into manufacturing and marketing of the computer hardware,software etc. It is also related to providing services related to the consulting and hosting of mainframe computers to the nanotechnology. It is also a major research related organisation. If we see in today's time it is among the top notch companies known for providing their services and various products to the market(Olszak, C.M. and Ziemba, E., 2012). It is also known for providing the cloud computing services which can be accessed anywhere with the use of internet.IBM is known as Big Blue due to the reason that it has blue logo and the colour scheme that is associated with the brand. It also includes the white shirt with blue suits which is code here. It has a huge network and is also know for a good employee environment and the happy employees. It has been a good company and the information system is very strong here making it a very reliable and popular company.(Olszak, C.M. and Ziemba, E., 2012)

Information system has to be very strong of any organisation for smooth functioning of that organisation. Organisations always strive to be the market leaders because the competition is so much. They always look for competitive strategies.

1.2 The main role of IS strategy in making corporate strategy is as follows

1. Information storage and analysis

The systems that are used for information management and are provided by other companies are of great use. These are used to store the information it various forms and in time use it for developing various results which can be used by the organisation. The analysis is done in order to provide solutions and respective resources for their current problem.

2. Assist with making decisions

The success of a company is directly related to the strategies that the company uses and plans it has used. The business uses the information and calculate the risks associated with the given information. When the information is gathered then the company can analyse the current conditions of the market and can take proper actions and strategies.

3. Assistance related to the business processes

Information systems not only provide the information systems but also the various systems involved in the process. It aids control over employees,ensures only eligible candidate can use the required task,simplify the process.

Task 2

2.1 Understand the range of key tools and techniques which are employed in the development and evaluation and implementation of information systems

Information system is process that setup for gathering, organization, store and communicating the information. It is study of expletive links that company use to gathering, filter, create, process and divide data or it is part of software, hardware, organization process such as planning, control, coordination and decision making in company.(Xu, L.D., 2011) Information system is complex function that take too much time to complete. Information system has six components and these are hardware, software, data, process, people and feedback. Hardware consider as machinery and its is part of computer, also include CPU (central processing unit). Software consider as program, operating system. Data help to provide useful information and it is save into machine from on disk . Without people system can't run so every system need people for use them. Feedback is another function of information system and information system give with feedback.

Information system divide in transaction processing systems, management information systems, decisions support systems and executive information system and some system are enterprise system, data warehouse, office automation, search engines and global information system.(Zott, C., Amit, R. and Massa, L., 2011.) Transaction processing system distribute work in to peoples ans its serve is program system and combination of hardware that help to processing the transaction Management information system also known as MIS and it consider to provide information help of computers to setup and support management decisions with in IBM. Its include transaction processing system, decision support system, expert system and executive support system. It is use in business study and connect with various areas.(Chiticariu, L., Li, Y. and Reiss, F.R., 2013) Decision support system help to organization decision making, sorting and selecting from alternatives.(Xu, L.D., 2011) It help in controlling, planning levels of the IBM and help to select right decisions about issues which is continuously changing and it is based on computer, human power and both, it is used for prepare well organization structure and combine use of techniques. Executive information system also called support system and it is function of MIS (management information system) that support senior executive data or information that help to take decision.(Zott, C., Amit, R. and Massa, L., 2011.) We can access to information very easily even it may be internal or external information. It6 help to achieve organizational objectives and goals and its four components these are hardware, software, user interface and telecommunication.

Advantage of executive information system top level executive use very easily, giving timely delivery of company information, it provide effective understood information. provide work on time and also help to decision makers.(Xu, L.D., 2011) Disadvantages of executive information system are limited function, high expense, need effective information for manage information. Depend on system, system may run slow and high cost for small company. Advantage of management information system for company are provide total picture of the company, help in take decision, gain competitive advantage and use as planning techniques.(Chiticariu, L., Li, Y. and Reiss, F.R., 2013) Information system work area are information system strategy, information system management, information system development, information system iteration, information system organization(Chiticariu, L., Li, Y. and Reiss, F.R., 2013). Tools of information system development are method tool companionship and remarks on modelling tool help, Method tool companionship include abstraction, checking, form conversion and review. Abstraction is case tool that help to achieve and show functions of object systems and also most useful step its needed all modelling regarding part for conceptual graph. Checking ensure that models that consist with knowledge. Management information system divided in data capturing, processing of data, storage of information, retrieval information and dissemination of MI(Chiticariu, L., Li, Y. and Reiss, F.R., 2013). Data capturing giving automated methods to manage and help of management of the centres and MIS is computerised database. In management information system is art of management which help to work done and elements of management are planning, organizing, directing, coordinating and controlling. Information is the process of the data that help to provide most important information and these information are appropriate data, accurate information and relevant decision. Data are raw facts and only exists in the back end. Data is technology oriented and Information are processed facts, live presented facts and active.

Information are business oriented and it provide effective decision making leading to prosperity of the company.(Chiticariu, L., Li, Y. and Reiss, F.R., 2013) Information classified by sources, nature, level, time, frequency, use, form and frequency. There are four characteristics of perfect information and these are complete, relevant, accurate, understandable. System involves group of functions to produce fixed outputs by processing information are input, process and output. MIS help to quality analysis, cost& budget analysis, risk analysis, market analysis, inventory analysis, SWOT analysis, stakeholder analysis, feedback analysis and behaviour analysis.(Zott, C., Amit, R. and Massa, L., 2011.) Management information system divided into four types. These are Decision support system, executive information system, marketing information system and office automation system. DSS is computer program software used by middle management that help to compile information from many sources and it help to decision making. Sources of management information are business transactions, transaction processing system which include operational database, database of valid transaction which include input and error list, management information systems, application database include corporate intranet and employees and executive support system include decision support system and expert systems. Outputs of MIS are scheduled reports(periodically produced), key indicator report( explain the previous day's critical points), demand report (provide specific information at a manager's request) and exception report (automatically produced when a situation unusual). Role of information system in current business are how information systems are transforming business and globalization opportunities, Increase in wireless use like websites, in media and advertising and new accounting laws. Globalization opportunities include decreasing expense of controlling on global scale and show the both challenges and opportunities.(Zott, C., Amit, R. and Massa, L., 2011.) Main business process are complete help of digital layers and key corporate assets are arrange digitally.

Digital company provide greater flexibility in organization. And its include time shifting, space shifting. IBM invest highly in information systems to reach strategic organization objectives and these objectives are operational excellence, new products, services and business models, consumer and supplier intimacy, effective decision making, competitive advantage and survival key tools and techniques which are employed in development , evaluation of information system.(torey, V.C., 2012)


Information system plays a very important role in developing the functionality of the organisation. It means that if it is not present then the work can't get completed. It provides proper solution to the company and always helps is the betterment of the company. New technologies should be used to find out solutions. Today,the IS is the basic backbone of any industry because it tells us about the information which is required to process the information provided and help the organisation.

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