Chapter 1-2
● Business informatics is a broad field that combines the use of
information technology and computer science to solve business
problems and support decision-making.
● Business Informatics enables efficient resource allocation,
improves workflow efficiency, and empowers organizations to adapt
to changing market demands.
● Information Technology -it is any technology which deals with
collecting, processing, storing, and communicating information or
data. Ex : ATM machine , Fingerprint scanner, Printer
● An information system (IS) is a formal, organized setup of
interacting components—specifically, people, processes, software,
hardware, and networks—that collect, process, store, and distribute
(transmit data and digital information)information to support
decision-making and operations within an organization.
Ex: online stores like Amazon, social media platforms such as
Facebook, airline reservation systems, library catalogs, and
supermarket checkout systems.
● It is used for : Organizational communications , Data management,
Accounts , Logistics , Marketing , Sales , R&D, Customer
interaction , All types of forecasting.
Advantages
● Increased information speed.
● High efficiency and performance
● Networking to a global scale
● Multi-tasking capabilities.
● Ability to expand business phenomenally.
● Reduces error to a fraction.
Disadvantages
● Too dependent on Information systems.
● Computer Crimes
● Illegal access of data.
● Lack of privacy
1. Core Components: 1. hardware , software, data, people, network.
2. The basic process an IS follows includes the following steps:
[Link] [Link] [Link] 4. Output 5. Feedback
3. There are various types of IS, including transaction processing
systems (TPS), management information systems (MIS), and
decision support systems (DSS).
4. MIS
- It enhances the efficiency and productivity of the company
- It provides a clear picture of the organization’s performance
- It adds value to the existing products, introduces innovation, and
improves product development
- It assists in communication and planning for business processes
- It helps the organization provide a competitive advantage
5. KNW (knowledge work systems)
- Designers often use computer-aided design systems (CAD) to
automate their design process.
- Financial workstations are used to analyze huge amounts of
financial data with the help of new technologies.
- Virtual reality systems are found in the scientific, education, and
business fields for using graphics and different systems to present
data.
6. DSS - an information system that analyses business data and other
information related to the enterprise to offer automation in
decision-making or problem-solving.
7. TPS (transaction process)
- automates the transaction collection, modification, and retrieval
process.
- increases the performance, reliability, and consistency of business
transactions.
- a TPS used by a bank may process customer transactions, such as
deposits and withdrawals, and maintain account balances
8. Executive information systems (EIS)
- It provides great telecommunication, better computing capabilities,
and effective display options to executives.
- It enables them with information through static reports, graphs, and
textual information on demand.
- It helps monitor performances, track competitors’ strategies, and
forecast future trends, among others.
9. Information system application
Communication. Information system applications allow rapid data sharing
on a global scale.
- Education. Information systems help make remote learning easier
(particularly useful during pandemics) and make people more comfortable
with tech advancements such as smartphones, tablets, and other network
devices.
- Employment. The advent of information systems has directly resulted in
the creation of new positions such as data analyzers and cyber-security
experts.
- Finance. Information systems make the transfer of funds more
manageable and more secure.
- Healthcare. Thanks to information systems, healthcare providers can
access vital medical records faster.
- Security. Information systems make it easier to employ data safeguards
to reduce the likelihood of a data breach or malware.
Here are some of the business activities that require the intervention
of an information system.
ENTERPRİSE RESOURCE PLANNİNG (ERP) - Applying
information systems to enterprise resource planning helps automate
business administration and planning functions.
SUPPLY CHAİN MANAGEMENT (SCM)- Information systems
provide a common forum to connect with different parties in supply
chain management. Moreover, it makes communication between
parties easy and resourceful.
CUSTOMER RELATİONSHİP MANAGEMENT (CRM) -
Many information systems help in realizing customer requirements.
Furthermore, other information applications help companies interact
with their audience easily and hassle-free.