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Definition, Rules, Components & Types

Understanding Business Information Systems

 Understanding Business Information Systems Is

Before discussing business information systems which are the main topics in this article we will discuss one by one about information systems and what is meant by business. 19659004] Information systems are a combination of information technology and the activities of people who use it to support operations and management. Whereas business is an attempt to sell goods or services done by a person, individual or even organization to consumers and is intended to obtain profit / profit.

It can be concluded that business information systems are a collection of information technology that has a unity between one another and intended for the benefit of selling products or services (business). The existence of a business information system is certainly very vital and will not be separated from the activities of business people. There are still many interesting things to discuss about this business information system and you can refer to the review below.

Basic Rules of Business Information Systems

There are 3 basic rules of business information systems which must be obeyed by business people to support success. The three rules are as follows:

1. Support for business processes and operations

Support for business processes and operations is a rule that must be applied to the course of a company's business because it will greatly affect the performance and good or bad quality of the company

2. Support for decision making by employees and managers

Furthermore, no less important is support for decision making by employees and managers. Decision making from these two aspects greatly affects the quality of the company even though it serves as an employee.

3. Strategy support for competitive advantage

And the last is strategy support for competitive advantage which is one of the vital things because it greatly influences the running of a company's business. It is undeniable when building a business that one of the risks that must be faced is competition and therefore the need for these basic rules.

Business Information System Components

There are 4 main components needed in running a business information system, which includes technology, applications , development and management. An example of the role of technology in business information systems is in the use of computer networks to support information processing both hardware and software.

In the form of applications is what we often see in the form of e-commerce daily. The use of e-commerce or internet-based sales applications will never be separated from business activities in the modern era.

In addition there is also an important component of business information systems, namely development. The point here is to develop the use of information technology in business to support the progress of the company. And the last component is management. Its applications include technology management to support the emphasis on quality, strategic business value and in terms of system security used.

Business Information System Resources

 Understanding Business Information Systems and Components

Supporting resources in business information systems, but in general there are 5 which include human resources, hardware, software, data and networks. For a complete review of each, please see below:

1. Human resources

Human resources consist of two parts, namely User (user) and Expert (developer). Users are human resources who are in the position as users of information systems, for example customers, managers, operators, accountants and others. Whereas for Experts are human resources who are in charge of developing information systems, for example a systems analyst, software maker, etc.

2. Hardware resources

Hardware resources consist of hardware or equipment that has physical features and is used in the processing of business information systems that are run.

3. Software resources

Software resources consist of 3 parts namely system software, application software and procedures. System software can be likened to the operating system that is on a computer while application software is a program that processes every task of a computer user directly, for example such as a sales application. Procedure is a form of operation of commands to the user information system for example such as data entry procedures.

4. Data resources

Data resources discuss data in a business process such as product descriptions, customer records, staffing files, and inventory databases and many more depending on the type of business.

5. Network resources

These network resources tend to be more directed towards communication such as communication media, communication processors and software for network access and control in an information system.

Types of Business Information Systems

  1. Sales systems and marketing, which is the function that is responsible for selling products or services of a company / organization. Much is paid attention to in marketing such as product introduction, customer needs, advertising and much more.
  2. Manufacturing and production systems, are functions that are responsible for organizing the production activities of the company's goods or services to suit what they want. This system is closely related to aspects such as the availability of production materials, production targets, procurement, storage, etc.
  3. Human resource systems, can also be called human resources information systems are responsible for building, developing and maintaining labor. company. This system supports activities such as identifying potential employees, recording complete employee data, etc.
  4. Financial and accounting systems, are responsible for managing the company's finances such as cash, bonds, shares and other forms of investment. Examples of the application of this system are the management of financial records, receipts and payments, payroll and many more.

That is an explanation of the understanding of business information systems along with the rules, components and other matters relating to business information systems. Hopefully the above article is useful and easy to understand!


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