Chapter 2 introduction to business information systems

System

A collection of interrelated components working together toward a common goal; processes inputs into outputs with feedback.

Closed System

A system with little or no interaction with its external environment (e.g., basic thermostat).

Open System

A system that interacts with its environment and adapts based on feedback (e.g., a supermarket changing shelf layout).

Feedback Mechanism

Used to adjust systems; Positive = reinforces behavior, Negative = corrects deviations. Shown using pasta sales example.

BIS (Business Information System)

Systems that support business operations, decision-making, coordination, and control within an organization.

CBIS (Computer-Based IS)

A BIS that uses IT tools (hardware/software) to capture, process, store, and distribute data.

Advantages of CBIS

Speed, Accuracy, Reliability, Programmability; emphasized in PowerPoint and textbook.

Transaction Processing System (TPS)

Records routine day-to-day transactions (e.g., POS, payroll); operational level.

Management Information System (MIS)

Provides structured reports for mid-level managers using data from TPS.

Decision Support System (DSS)

Interactive tools used for non-routine, semi-structured decision-making (e.g., "what if" analysis).

Executive Information System (EIS/ESS)

Provides top managers with dashboards, KPIs, and strategic overviews.

Functional BIS

Information systems tailored to specific business areas (e.g., Finance IS, HRIS, Marketing IS).

E-Business

Use of IT to support all business functions including internal processes; broader than e-commerce.

E-Commerce

Subset of e-business focused on online buying/selling. Example: Amazon, eBay.

Enterprise Systems

Integrated systems linking all business areas to enable information flow across departments.

ERP (Enterprise Resource Planning)

Software that unifies business functions (finance, HR, supply chain) on one platform. Examples: SAP, Oracle.

Customer Relationship Management (CRM)

Manages customer data and interactions to improve loyalty and service. Examples: Salesforce, HubSpot.

Business Benefits of BIS

Includes reduced manual effort, faster delivery, better customer satisfaction, improved stock and resource control.

Supermarket Shelf Example

Used in slides to show open system behavior and BIS use in strategic product placement.

BIS Support for Business Goals

BIS supports forecasting, planning, operational efficiency, and customer management.

Time to Market

Speed of introducing a product to market; BIS can reduce cycle times significantly.

Performance Metrics Used in BIS

Customer satisfaction, delivery accuracy, manufacturing costs, admin workload; measurable via BIS tools.