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Computer Based Information System

Computer-based information systems (CBIS) are used by organizations to store, process, and manage data electronically using computers. A CBIS has five main components: hardware, software, databases, networks, and procedures. It works by inputting raw data, processing it, storing the output, and controlling the evolving data over time. A CBIS is divided into four sub-systems: transaction processing systems, management information systems, decision support systems, and executive support systems. CBIS provides benefits like facilitating real-time transactions, global growth opportunities, and reduced costs.

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Kh Aqeel Farooqi
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8K views5 pages

Computer Based Information System

Computer-based information systems (CBIS) are used by organizations to store, process, and manage data electronically using computers. A CBIS has five main components: hardware, software, databases, networks, and procedures. It works by inputting raw data, processing it, storing the output, and controlling the evolving data over time. A CBIS is divided into four sub-systems: transaction processing systems, management information systems, decision support systems, and executive support systems. CBIS provides benefits like facilitating real-time transactions, global growth opportunities, and reduced costs.

Uploaded by

Kh Aqeel Farooqi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION:

In many organizations data has been collected and stored manually. We have witnessed many
changes in the organizational structure over the period of last few years. The technological
advancement during the last few years have played a major role in the changing structures of
organizations. They have shifted from manual to automated systems. Information system is one
of them, where we store information in the form of compact data in the computers.

Computer-based Information System is one of the management information system that


organizations use frequently for the processing and storing of data. We will be discussing
computer-based information system in detail but in order to fully understand that we first need
to learn a few about the basic details that we would be reading in CBIS.
BASIC ELEMENTS:
There are few basic elements or definitions we should know before learning about CBIS. Those
definitions are:

DATA:

Data is defined as facts and statistics that are collected together for reference or analysis.

If we define data in organizational context, we can say that it is the central characteristics of
organizations, their internal structures and processes as well as their behavior as corporate
actors in different social and economic contexts.

INFORMATION:

Information can be defined as the facts provided or learned about someone or something.

In organizations the processed data is considered as a valuable information because the raw
data has been processed and it goes through different stages one of which is screening of data.

SYSTEM:

System is defined as a set of principles or procedures according to which something is done; an


organized scheme or method.

If we talk about a system in an organization it can be defined as a collection of related


components, procedures or strategies that are working to achieve a common goal/target.

INFORMATION SYSTEM:

It is defined as an integrated set of components for collecting, storing, and processing data and
for providing information, knowledge, and digital products. Information systems are used to
run interorganizational supply chains and electronic markets.
COMPUTER-BASED INFORMATION SYSTEM

INTRODUCTION:

Information system can be categorized into 2 components, which can be manual or automatic.
The automatic one is also known as Computer-Based Information System. Before CBIS, all the
data was handled manually, where all the information was stored and written in separate files.
This process is called noncomputerized process but it was not very efficient and effective. So to
eliminate this problem, a new system was created which was the computerized way of handling
data known as CBIS.

DEFINITION:

A CBIS is an organized integration of hardware and software technologies and human elements
designed to produce timely, integrated, accurate and useful information for decision making
purposes. Computer(-Based) Information System is essentially an IS using computer
technology to carry out some or all of its planned tasks.

COMPONENTS OF CBIS:

The computerized system of storing and processing data and information have 5 components.
They are as follows:

Hardware: these are the devices like the monitor, processor, printer and keyboard, all of which
work together to accept, process, show data and information.

Software: these are the programs that allow the hardware to process the data.

Databases: these are the gathering of associated files or tables containing related data.

Networks: these are a connecting system that allows diverse computers to distribute resources.

Procedures: these are the commands for combining the components above to process
information and produce the preferred output.

WORKING OF CBIS:

CBIS is a proper automated information system. Despite it being an automated system, we still
need human resource or any human element to operate it. There are 5 functions through which
a computerized information system work:

Input: it consists of the raw data either from inside the organization or from outside the
organization that needs to be processed.
Process: transfer the raw data into useful information. The data go through series of processes
in which it is analyzed, filtered and then stored.

Output: the final processed information which is now available to use.

Storage: the useful information is now stored in a place where it is easily accessible.

Control: the evolving data is controlled in this step. New information is added to the data base
over the period of time. The retaining of new data is handled in this process.

SUB-SYSTEM OF CBIS (TYPES):

The CBIS is further divided according to the work specification into 4 main sub-systems:

a. Transaction Processing Systems (TPS)


 Record day-to-day transactions such as customer orders, bills, inventory.
 Helps supervisors by generating databases needed for other information Systems.
 Examples: recording customer orders, bills, inventory levels, and production
output.

b. Management Information Systems (MIS)


 Summarizes the detailed data of the transaction processing system.
 Produces standard reports for middle-level managers.
 Examples: Production schedule and budget summaries.

c. Decision Support Systems (DSS)


 Draws on the detailed data of the transaction processing system.
 Provides a flexible tool for middle-level managers for analysis.
 Examples: Analyzing the effects of events such as strikes, rising interest rates, etc.

d. Executive Support Systems (ESS)


 Presents information in a very highly summarized form.
 Combines the internal data from TPS and MIS with external data.
 Helps top-level managers oversee operations and develop strategic plans.
 Examples: Introducing new products, starting a companywide cost control
program.

CONTRIBUTIONS OF CB:

It is anticipated that no business today will remain untouched by the emergence of the digital
economy. The main role of CBISs in today’s rapidly changing business environment is to bring
market players together to execute real-time exchange transactions, for example cost and
product stipulations, and facilitating teamwork and network synchronization. The key idea is
that a group of customers and vendors transact in a single online platform, allowing member
organizations to take advantage of greater economies of scale and liquidity; and to purchase or
sell anything easily, quickly and cost effectively. In addition, CBISs can help companies
transcend geographical barriers, and grow globally to attain profits in emerging markets that
were once unattainable.

Furthermore, the promising roles of CBISs include aggregating and matching customers and
venders and providing inter-business organizational market information. It performs similar
business transactions to conventional marketplaces, such as matching buyers and venders,
facilitating transactions, providing institutional infrastructure and offering capability, but with
increased effectiveness and reduced transaction expenditure.

CONCLUSION:
As a conclusion computer-based information system (CBIS) give a lot of advantages for the
organization that apply this system, this is because CBIS will help the people to make their work
more efficiency and easier. CBIS also suitable to apply for the archival or record Centre in order
to ensure the process of keeping the record and data more secure and systematic.

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