10

Computer
Programming
Quarter I – Module 3:
Concepts on Business Information System

"Designed by macrovector / Freepik"

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 DEFINING DATA AND INFORMATION
It is important to distinguish between data and information. Data is a raw
fact and can take the form of a number or statement such as a date or a
measurement. It is necessary for businesses to put in place procedures to ensure
data are recorded. For example, to ensure a call center operator includes the
postcode of every customer this can be written into their script and a validation
check performed to check these data have been entered into the system.

A common definition of information is that it is data that have been

processed so that they are meaningful. This requires a process that is used to
produce information which involves collecting data and then subjecting them to
a transformation process in order to create information. Some examples of
information include a sales forecast or a financial statement. As stated
information is generated through the transformation of data. This can be
achieved using a number of different transformation or data processes. Some
examples of data processes include aggregating which summarizes data by such
means as taking an average value of a group of numbers. Classification places
data into categories such as on-time and late deliveries. Sorting organizes data
so that items are placed in a particular order, for example listing orders by
delivery date. Calculations can be made on data such as calculating an
employee’s pay by multiplying the number of hours worked by the hourly rate of
pay.

Finally, data can be chosen based on a set of selection criteria, such as the
geographical location of customers. Although information is a useful resource for
individuals and organizations not all information can be considered useful. The
differences between ‘good’ and ‘bad’ information can be identified by
considering whether or not it has some or all of the attributes of information
quality. Attributes can be related to the timing, content and form of the
information.

Defining Information Systems

The role of the Information systems to provide information to
management which will enable them to make decisions which ensure that the
organization is controlled. The organization will be in control if it is meeting the
needs of the environment. In relation to control systems can be classified into
open-loop and closed-loop.

An open-loop control system is one that has no way of ensuring objectives

are met for a process. This means they are unsuitable in an organizational
context because of the complexity of the environment in which organizations
exist. Thus open-loop systems would only be successful in attaining a system’s
objectives in cases where we know with certainty the events that would take
place during the system’s process.

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 Closed loop systems can have two types of control mechanism referred to
as feedback control and feedforward control. Feedback control systems generally
provide a way of ensuring a system is under control. Negative feedback is when
actions are taken to reverse any differences between desired and actual outputs.
The weakness of this approach is the potential for delay between the
discrepancy and the action taken to reduce it.

BUSINESS INFORMATION SYSTEMS

With the previous definitions of information and systems we can now

define a business information system as a group of interrelated components
that work collectively to carry out input, processing, output, storage and control
actions in order to convert data into information products that can be used to
support forecasting, planning, control, coordination, decision making and
operational activities in an organization. In terms of the components that
undertake this activity, they can be classified into five basic resources of people,
hardware, software, communications and data. People resources include the
users and developers of an information system and those who help maintain and
operate the system such as IS managers and technical support staff. Hardware
resources include computers and other items such as printers. Software
resources refer to computer programs known as software and associated
instruction manuals. Communications resources include networks and the
hardware and software needed to support them. Data resources cover the data
that an organization has access to such as computer databases and paper files.
In most organizations Business Information Systems (BIS) make extensive
use of information technology, such as personal computers. The reasons why
computerized BIS have become widespread are evident in their advantages such
as speed, accuracy and dependability. They also have a high degree of flexibility
due to their ability to be programmed to carry out a wide variety of tasks. There
are, however, some disadvantages to BIS such as their lack of creativity that
humans possess and the difficulty of incorporating other factors into their
decision making such as innovation and intuition.
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.

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 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.
Types of business information system
Information systems may be divided into two categories of systems that
support an organisation’s day-to-day business activities and systems that
support managerial decision making.

Operations Information Systems (OIS) are generally concerned with

process control, transaction processing and communications. Management
Information Systems (MIS) are concerned with providing support to managerial
decision making. Recently this division of BIS into operational and management
systems, although useful for managers reviewing the types of BIS in use, does
not now accurately reflect the reality of systems used within an organisation,
particularly with the increased use of inter-organisational e-commerce and
electronic data interchange (EDI).

Types Definitions
Operations To track fundamental activities with the use of ICT, as well as
Information basic transactions that happen over the course of operations
Systems (OIS)
Management Is a computer system consisting of hardware and software
Information that serve as a backbone of organizations operations.
Systems (MIS)

What is MIS (Management Information Sytem)

Management Information System (MIS) is the study of people, technology,
organizations, and the relationship among them. MIS professionals help firms
realize maximum benefit from investment. They are people oriented field with
emphasis on service through technology.

MIS Professionals Makes Business Better

Businesses use information systems at all levels of operation to collect,
process, and store data. Management aggregates and disseminates this data in
the form of information needed to carry out the daily operations of business.
Everyone who works in business, from someone who pays the bills to the person
who makes employment decisions, uses information systems. A car dealership
could use a computer database to keep track of which products sell best. A retail
store might use a computer-based information system to sell products over the
Internet. In fact, many (if not most) businesses concentrate on the alignment of
MIS with business goals to achieve competitive advantage over other businesses.

MIS professionals create information systems for data management (i.e.,

storing, searching, and analyzing data). In addition, they manage various
information systems to meet the needs of managers, staff and customers. By

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 working collaboratively with various members of their work group, as well as with
their customers and clients, MIS professionals are able to play a key role in areas
such as information security, integration, and exchange. As an MIS major, you
will learn to design, implement, and use business information systems in
innovative ways to increase the effectiveness and efficiency of your company.

A large portion of the MIS degree focuses on data analysis, teamwork,

leadership, project management, customer service, and underlying business
theories.

These aspects of the degree are what set the MIS professional apart from a
computer science specialist:
 Do you enjoy working with people?
 Would you enjoy the chance to work on global problems with people from
all over the world?
 Do you enjoy analyzing and solving problems?
 Do you want to create innovative, cutting-edge technology solutions?
 Do you want to learn how to make businesses more efficient, effective and
competitive?

What kinds of people pursue MIS degree?

 good problem solving skills
 ability to effectively manage time and resources
 a clear vision of “the big picture” as well as the “small details”
 a desire to work closely with other people
 excellent communication skills
 ability to think strategically about technology
 a desire to take responsibility for developing and implementing their own
ideas

What are typical career options for MIS Professional?

• IT Consultant
• Web Developer
• Information Systems Manager
• Business Intelligence Analyst
• Network Administrator
• Business Application Developer
• Systems Analyst
• Technical Support Specialist
• Business Analyst
• Systems Developer
Characteristics & features of business information
system

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 Characteristics & features of business information system are:

1. The business information systems are subject to the dynamics of

business environment and need to be flexible enough to absorb the inevitable
changes in the information needs of business. They have to be efficient to satisfy
the demanding and ‘hard task masters,’ the business managers. Thus, there is
need to balance the conflicting objectives in the process of designing business
information systems.

2. Business information systems need to be proactive. They should

anticipate changes in information needs of users and accordingly adapt
themselves to suit their needs. This has become important because of the fact
that the managers get involved in the routine activities to the extent that the
decision making becomes a matter of imitating what competitors are doing or
planning to do, rather than making an informed choice.

3. The purpose of business information system is to cater to the

information needs for decision making in business.

4. The business information systems have to be designed keeping in view

the availability of financial and human resources to the business enterprise.

Key Components of Business Information System

Information systems can be described by four of their key components which

are:

1. Decisions
2. Transactions and processing
3. Information and its flow
4. Individuals or functions involved.

It is difficult to observe the decision process through we can see and

review the results of a decision. Transactions are usually more visible, though
many current systems use computer programs, which are not easy to
understand, to process transactions. In principle, an observer can see
information and its flows. Individuals can be observed too, but it is not always
easy to figure out the information processing functions they perform.

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