Introduction to Information System

Dr. Shimaa Ismail

Information System Department
Faculty of Computers and Artificial Intelligence
Information Systems in Perspective
Chapter 1
Business Information Systems Part2

2
Business Information Systems
Information systems are used in all functional areas of business organizations, as summarized here:
• Accounting and finance. • Agriculture.
• Customer service. • Finance.
• Human resources. • Health care.
• Manufacturing. • Mining.
• Research and development. • Professional services .
• Sales and marketing. • Retail.
Electronic and Mobile Commerce
• E-commerce: Involves the exchange of
money for goods and services over
electronic networks and encompasses many
of an organization’s outward facing
processes such as sales, marketing, order
taking, delivery, procurement of goods and
services, and customer service—that touch
customers, suppliers, and other business
partners.
• E-commerce enables organizations and
individuals to build new revenue streams, to
create and enhance relationships with
customers and business partners, and to
improve operating efficiencies.

The scope of e-commerce

It covers a wide range of business activities.
Electronic and Mobile Commerce
• Mobile commerce (m-commerce): The buying and selling of goods and/or services using a
mobile device, such as a tablet, smartphone, or other portable device.
It support all forms of e-commerce - business-to-business (B2B), business-to-consumer (B2C),
consumer-to-consumer (C2C), and government-to-citizen (G2C)

• Electronic business (e-business) goes beyond e-commerce by using information systems and
networks to perform business-related tasks and functions, such as:
• Gathering product demand forecasts directly from the distributors of your product.
• Sharing product data (e.g., design specifications and bills of material) electronically with suppliers
and contract manufacturers.
Enterprise Systems
• There were early common business application since 1950 that were designed to reduce costs by automating
routine, labor-intensive business transactions.
• A transaction is any business-related exchange such as a payment to an employee, a sale to a customer, or
a payment to a supplier.
• A Transaction Processing System (TPS) is an organized collection of people, procedures, software, databases,
and devices used to process and record business transactions.
• One of the first business systems to be computerized was the payroll system.

Examples of transaction processing

• payroll system
• Reservation systems
• Library loan system
Enterprise Systems
• A Management Information System (MIS) is an organized collection of people, procedures, software,
databases, and devices that provides routine information to managers and decision makers.
• MISs were first developed in the 1960s and were typically used to produce managerial reports. In many
cases, these early reports were produced periodically—daily, weekly, monthly, or yearly.
• A Manufacturing, marketing, production, finance, and other functional areas of an organization were often
supported by their own TPS and MIS. An MIS typically provides standard reports generated using data from a
TPS.

The TPS and MIS work together to process business transaction and create standard management reports.
Enterprise Systems
• Enterprise Resource Planning (ERP) system: A system
that supports an organization’s routine business
processes, maintains records about those processes,
and provides extensive reporting and data analysis
capabilities.
• ERP systems eliminate the problems of missing and
inconsistent information caused by multiple
transaction processing systems that support only one
business function or one department in an
organization.
• ERP systems have expanded in scope so that they now
provide support for business analytics and e-business.

ERP components
An ERP system consists of many components that provide shared
access to a database of business information.
Enterprise Systems
• Business analytics is the extensive use of data and quantitative analysis to support fact-based
decision making within organizations.
• Data scientists are people who understand the business and the business analytics technology,
while also recognizing the limitations of their data, tools, and techniques. A data scientist puts all
of this together to deliver real improvements in decision making.
• To ensure the success of a business analytics program, the management team within an
organization must have a strong commitment to data-driven decision making.
Knowledge Management and Specialized
Information Systems
• Knowledge Management System (KMS): An organized collection of people, procedures, software, databases,
and devices that stores and retrieves knowledge, improves collaboration, locates knowledge sources,
captures and uses knowledge, or in some other way enhances the knowledge management process.
• Consulting firms often use a KMS to capture and provide the collective knowledge of its consultants to one
another. This makes each consultant much more valuable and avoids “re-inventing the wheel” to solve
similar problems for different clients.

• Specialized Information Systems include a wide range of artificial intelligence systems (robotics, vision
systems, natural language processing and voice recognition systems, learning systems, and expert systems)
that can simulate human intelligence processes.
• Multimedia systems, virtual reality systems, assistive technology systems, and systems based on game
theory are additional types of specialized information systems.
Artificial Intelligence Systems AI
Artificial intelligence (AI) is wide-ranging branch of computer science concerned with building smart
machines capable of performing tasks that typically require human intelligence

• Robotics is an area of artificial intelligence in which machines take over complex, dangerous, routine,
or boring tasks, such as welding car frames or assembling computer systems and components.

• Vision systems allow robots and other devices to “see,” store, and process visual images

• Natural language processing involves computers understanding and acting on verbal or written
commands in English, Spanish, or other human languages

• Learning systems allow computers to learn from past mistakes or experiences, such as playing games or
making business decisions

• Virtual reality is the simulation of a real or imagined environment that can be experienced visually in
three dimensions