What is a BIS? © A business information system is 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.’ OL Sly SESW Stele} jad Ur ey BS Oba jbl Styl op depF go jbo Suc Slyke olf Sy couailly Bly ably gull 954) (Ds Sins OTF Sboyleb SUL gd Olas ity Ng ES Yly Dail § Ohad OPIS y 1,81 Resources that support BIS 1. People resources | People resources include the users of an information system and those who develop, maintain, and operate the system. 5929 il yi ei Slog pf Ip asiny Web ep lSN aly 2) Hardware | the term hardware resources refer to all types of machines, not just resources computer hardware. om SI fgualll fas ORES SY 065 50M o,hyp 3. ‘Software [In the same way, the term software resources do not only refer to resources ‘computer programs and the media on which they are stored but the term can also be used to describe the procedures used by people. (DUS Ojrin hi Hilos 9 Squall poly ct) ll aly 4. Communications | Resources are also required to enable different systems to transfer resources data. SEL SBE OLS EE MEM oly 5.Dataresources | Data resources describe all of the data that an organization has access to, regardless of its form. (ips Saniflo MEL SS cpg Mblsl polar An information system that makes use of information technology in order to create management information. Scanned with CamScannerAdvantages of computer processing oh Spall ote Slt os iin © Computers can process millions of instructions each second, allowing them to complete a given task in a very short time. OBE cd Stale Gurl Ele sky jigualll yp OF pull @ The result of a calculation carried out by a computer is likely to be completely accurate. In addition, errors that a human might Accuracy make, such as a typing error, can be reduced or eliminated entirely. OlSY! las, GF eI sae diy 9 ONE B5y Sylar SLs dary jigualll 058 @ In many organizations, computer-based information systems Reliability operate for 24 hours a day and are only ever halted for repairs or routine maintenance. Oilyall Vis iar 9 ppl GSLs 24 ANE ean SUS pf Sloghahl Qabil :O.dyh9h4 @ Although most computer-based information systems are created to fulfill a particular function, the ability to modify the software that Programmability | controls them provides a high degree of flexibility. Even the simplest personal computer, for example, can be used to create letters, produce cash flow forecasts or manipulate databases. Bg6 Gig Ob I> OF, iO cy lab quilt ‘Computer-based information systems are suited to highly repetitive tasks that might result in boredom or fatigue in people. The use of Repetitive tasks | technology can help to reduce errors and free employees to cany out other tasks. ele gets Y 9g b 1S or chal ga 7 diay enn gOS das jah gulls OSH onli dan dak, dif alt olait Limitations of computer-based processing @ Despite advances in atlificial intelligence techniques and Judgement/experience| expert systems, computer-based information systems are considered incapable of solving problems using their own judgment and experience. ABM or gph STEM Ss E20 b ghy SLClu O'! gH Scanned with CamScannerImprovisation/flexibility Qualitative information / In general, computer-based information systems are unable fo react to unexpected situations and events. ? Additionally, since most systems are created to fulfil a particular function, it can be difficult 1o modify them to meet new or changed requirements. Bd ys pi ely iw £6015 Ab ephis Sl iguall pew 7 Computers lack the creativity of a human being. They are unable to think in the abstract and are therefore restricted in their ability to discover new ways of improving processes or solving problems. ala ej Ela Vy Gil cigain lab jiu Human intuition can play an important part in certain social situations. For example, one might use intuition to gauge the emotional state of a person before deciding whether or not to give them bad news. BIS cannot use intuition in this way and are therefore unsuitable for certain kinds of situations, GLE ef) gules gil D sins dil igual 7 Managers offen make unstructured decisions based on the recommendations of others. Their confidence in the person they are dealing with often has a major influence on the decision itself. Once again, BIS cannot act upon qualitative information of this kind. il eonl Gp lady OaBhis efiw Slogher 69 BHI) 9 Ng Lv oy yah! WE Figure 2.7 Usage and applications of computer-based information systems by organizational level (shading denotes usage of BIS) Scanned with CamScannerNote that % there will be fewer applications and therefore lower levels of usage at the strategic level. A need for higher levels of automation and the structure of the tasks carried out mean that highest levels of usage will be at the operational level.) © Dala processing: Handling the large volumes of data that arise from an organization's daily activities is described as data processing Oana Oury) OBIS gs Laid QIN SUL os bi Sl g doles edyogy UD SUL Ot © Transaction processing: Processing the sales and purchase transactions that an organization caries out in the course of its normal activities. Gyre WHsfaisl colaas f Gafibh (Diy NN 1 lly gull Yel OH Ly oD SUI Oty © Process control___systems: Systems whichmanage ~—_ manufacturing ‘and other production processes. SW GCN Sasy gies) pry eM OB oD Salad! Saf) © The speed, accuracy and reliability of computer-based information systems mean that they are able fo handle repetitive tasks involving large volumes of data. © Furthermore, they are best used in situations governed by clear, logical rules. This makes them ideally suited to transaction processing or process control applications. © From thls, it is reasonable to suggest that the widest use of computer-based information systems will be at the operational level of an organisation NT (LOS go dolall $6820 WBN eo at jigualll eo nisdt Slrghebl afl ODgi9y 529 OS yu No gdp Ouslpin 01yh (DATE Sl ebDighl of Wot Sint APM or O'S 12 999 gSUlWl ord ns Sls gains ela tinh gl SVL GLU fl lly Cuulis usw E-business and e-commerce @ Electronic business (e-business): All electronically mediated information exchanges, both within an organisation and with external stakeholders, supporting the range of business processes. bool gy loaf sto slou Oyj il] Slug gis MSloglal Jabs Sus S585 —9 Oy Yi Susi! ead D1 Osdabt Scanned with CamScanner© E-business is the use of ICT especially the intemet to conduct business. © E-business involves several key _acivities: @) improving —_business_processes, b) enhancing communications and ) providing the means to carry out business transactions securely. Three areas of business are enhanced by adopting an e-business approach, These are: 1- Production processes - including procurement, ordering stock, payment processing, links with suppliers and production control, RENOH1 9 o29,981 gv duly ly asl Otley gy SS edb Sk as LOS Wy OY ULE 2- Customer-focused processes ~ including marketing, selling via the Intemet, customer support and processing of customer orders and payments. BIC My pas SSP Gilg ral) p29 5 GY! pS gully cooguill LO Uy pawl! Ae 15,5 MN SLsaslt 3- Intemal_monagement processes - including training, recruitment, intemal Information sharing and other employee services. SSM Gab P Slory OLSIM Sl Joly cabyiy cw all OD OSI 1 Saba @ Electronic commerce (e-commerce): All electronically mediated information exchanges between an organization and its extemal stakeholders. . It is using technology to conduct business transactions such as buying and selling goods and services. a) Buy-side e-commerce: E-commerce transactions between a purchasing organization and its suppliers. 0439999 Os SS Oui ery Qaig TH YN 6 th rLobw is) pl OG os Guy AYN aN) b) Sell-side e-commerce: E-commerce transactions between a supplier organisation and its customers. ABYae 8299 Ooanly dy Oy DYN ba Sable gall ONG os Ou TTY6 ah Note: The importance of E-commerce can be illustrated by looking at the rapid growth of online sales. Scanned with CamScannerE-commerce activities can be broken down into five basic type: 1. Business-to-business (B28), Transactions take place between companies. Approximately 80 per cent of all e-commerce is of this type. £9 NID oor oD aig YN 8 Ll gd 9 OI 80 99 gr phy by SG pS ey SLA! . Business-lo-consumer (B2C), Companies sell products directly to consumers. B2C can involve activities such as product research (where consumers gather information and compare prices) and electronic delivery (where information products are delivered to consumers via e- mail or other means). Binal 6 ply SUH SS iS aus 3. Business-to-aovernment (82G), Transactions take place between companies and public sector organizations. ps ELAM Slumigey SE pall ey SLL gis 4, Consumer-to-consumer (C2C). Transactions take place between private individuals. Perhaps the best examples of C2C commerce are online auction sites and peer-to-peer systems. BBY gfe WM Staljheg) asl ol ef> 9 AP Wey Swot ity ;. Mobile commerce (m-commerce). M-commerce is a relatively new development and involves selling goods or services via wireless technology, especially mobile phones and PDAs Legh po ead gh gla gx esata Cams Saya (igh Oudy DYN 84 iat ef g Sgasbl east! po’ Lead! APBES eA N JeUuH 8) Orly Olgas easly! Opty OTaW' Enterprise systems @ Enterprise systems alm to support the business processes of an organization across any functional boundaries that exist within that organization. @ They use Intemet technology to integrate information within the business and with external stakeholders such as customers, suppliers, and partners. 9 OAPI Als S12 B2ghgp Oadufy 2935 eC con P OS Oaumiyal Oe [oil SUlasll o> gf} Suamighl Gafsl ob 165 14 paSly exoyghly palates gad JH OSL Spl ary SSM esto cloghabl 9) i OY Oui Np Say Scanned with CamScanner1) Enlerprise_ resource planning (ERE) which is concemed with intemal production, distribution, and financial processes OIE Slay g yily AUN EYL py ell Sbamshh 9jhye fabs 2) Customer relationship management (CRM) which is concerned with marketing and sales processes Slaably yg Slay yell g pall SYS} 3) Supply chain management (SCM) which Is concemed with the flow of materials, information, and customers through the supply chain pyill lanka SAS» slay Sloglably 26h 9 1h A Nw jyil Gland f>$ 4) Supplier_relationship_management_(SRM)_which is concemed with sourcing, purchasing, and the warehousing of goods and services. WDigiBy (OS pig SL Ay ahah 29 GDH eA 9 e281 SHYEE No} stem in compari arate functional Enteroa sate _ystem 1 fom SAP, Oro nor @ Enterprise systems provide a single solution from a single supplier with integrated functions for major business functions from across the value chain such as production, distribution, sales, finance and human resources management, @ The main reason for implementing an enterprise system is explained by Figure 2.8, It compares an enterprise application with the previous company arrangement of separate data silos and applications (sometimes known as ‘Information islands’) In different parts of the company. @ Data Silos refers to a collection of data held by specific groups within the organization that are not easily accessible by other depariments Scanned with CamScannerBIS. and strategic advantage © Inorder to survive and grow in a competitive environment, organisations must seek to gain strategic advantage (or competitive advantage) over their competitors. BIS play a crucial part in gaining and sustaining a competitive edge over other organizations operating in the same industry. 7 In order to gain or maintain competitive advantage, organisations can adopt three basic strategies which can be provided by BIS: % Costleadership asta oats Product differentiation Slwiih\ pit Innovation. ,&\ Cost Leadership: ® Cost leadership means simply providing goods or services at the lowest possible cost. © In most cases this is achieved by reducing the organisation's costs in producing goods or providing services, for example by automating parts of the production process.. @ Using Intemet technologies for e-business can assist in achieving cost leadership by helping t action costs, @ Transaction Costs are the costs associated with a business transaction, such as selling product, or ordering stock. 85 SAW phan o '> cod. ping OT BAM JL Ob gl lull Oy Olay ay 12k Cost leaderships UB (ea gl hall gi} Gabbe UT Salts ejb Product Differentiatior ®@ Differentiation involves creating a distinction between the organization's products and those of its competitors. @& Inmany cases, differentiation is used to concentrate on a specific niche in the market so that the company can focus on particular goods and services. BCG Ae pb pS jlall pal iy 9 Wand lin Sling OMB SU dy jut BIS g AS uiay CHOSEN jl WIS 9 gla elS 5,51 g9 OS ill Glas lt cogull dae Scanned with CamScannerInnovation: ® Innovation is concerned with finding new ways to approach an organisation's activities. & Examples of innovation include improving existing producis or creating new ones, forging strategic linkages, improving production processes and entering new markets. alg) O91]y 2.25 Stasis Lbs! gl SU Stssibl ead 6) Oafibl Ofatsl gp Soleil Is eo yb Lb AiDy LEY Sars Algal dps 9 LY OWLS eendy Oxstjial he Value Chain and the Virtual Value Chain @ Value chain is a concept related to supply chain which analyzes how supply chain activities can add valve to products and services delivered to the customer, SUM Sf Gad GD} y9H1 Shaan Olas GH ches SF A yg) Olah hes pyDin oD Sasi Olan dus Ori ole By 3 loaistos Primary value chaln activities The Virtual Value Chain © Today's modem marketplace sees many companies concemed with producing and markeling non-physical products, such as subscriplion-based services. In these new indushies, primary and secondary activiies may be so transformed as to be virtually unrecognizable. © Asan example, delivering a digital product - such as a music track, movie or ring tone -to buyers may involve litfle more than sending an automated e- mail or text message. © Thus, the virtual valve chain (VVC) allows value chain analysis to be extended to modern businesses that operate across the Internet or market virtual products and services. In the VVC, physical processes are replaced by virlual ones and the marketplace Is replaced by a virtual marketspace. Cee ance aaaEEEEEEEEEEEEEEEEEEEE Scanned with CamScanner$1 OW gS SWAN cyymig PEL Bais G5 SE pa cl Ayo dost Goyal! OuplWY Gad) bale ala OasSIN Glaahas Sad eth grog (VVC) dup OV Gail Shabu paus BL 9 oS) it eS OSH! SULasN SN al gin Wg oS yOxinl OV Gb tly SIN conga ogi 16s,GY) po an Od HOY pill yp) BN eayn Oat eoyall al ging Oui D1 Slag Gyo The virtual value chains © Rayport and Sviokla have suggested the concept of the virtual value chain (VVC) to explain how information can help to create acompetitive advantage. In doing this, they refer to the physical marketplace and its virtual counterpart, he marketspace. BSG Was Sys olf el yphin ego g WC Was I y Qu} OY dull Blake pyBio B01 ¢ UO © They suggest that companies adopting a virtual value chain tend to go through three phases. In each phase, companies have the opportunity to reduce costs, improve efficiency or find new ways of doing things: 1) Visibility. Companies use information to examine the physical value chain more closely. Technology is used to manage activities in the physical value chain more efficiently. SpassN,12Y lghgilAt pss WH 99 9.45 0,211 GasH Ohh ASHI Slog pind SU pil} -DO} 1 eS jy OyoH1 GarW/l Ohubw 2) Mirroring capability. Physical processes start to be replaced by virtual processes. A parallel value chain is created in the market space. Put more simply, activities are moved from the marketplace to the marketspace. Ohh sii} ply GAS Oupl WY Subadl Wis OipleinY § Osyjadll Sled Vj GH ull Yl e160 yall Eihs ef cagalh gs si J pig GOH gf ODgull Bsns Orly Gad 3) New customer relationships. Information drawn from the virtual value chain is used fo create new customer relationships by delivering value in new ways. IIS G9 BY Fas SUIS HLGY Syl pV SaxWll Slukw go byaiaabl Sloglebl pias 2341 sYasl! SOYS byt yh dad 25 Scanned with CamScannerFigure 2.9 The value chain model Secondary value chain activites Human resources Finence Information systems Sales Ouitound \ fons) “glee a oy Primary value chain activities, ina computer-based information systems for competitive advantage f/ ‘Organisation Promote business Innovation @ Porter's work can also be used to identify a number of ways in which BIS can be used to achieve competitive advantage. @ These include: 4 improving operational efficiency; G raising barriers to entry; locking in customers and suppliers; & promoting business Innovation; L increasing switching costs; & leverage. Scanned with CamScanner