Business information systems

1
Business information systems
2
Topics

• A one-person business what types of information
  need and what types of system might it have?
• Differences in types of business
• Types of software
• Components in an information system
• Integration and pressures of e-commerce

3
One person business example

• Cashflow (for own information) Accounts (for
  tax man)
• Information on contacts
• Produce CV, business cards
• Write letters inc. mailmerge
• Produce camera-ready publications, brochures
• Create update web pages
• Scan photos, graphics for above
• Communicate (phone, fax, email)
• Run discussion list

4
Zip drives (backup etc.)
Web page editor
Spreadsheet
Desktop Publishing
Name Address database
Fax
Email client
PC
Internet browser
Word Processing
Ansaphone
Phone line
Modem
Flatbed scanner
Printer

• Internet Service Provider
• Access to internet
• Web site
• Email

Discussion list site
Rest of the world
5
Costs of software hardware (year 1)

• PC bundled with MS Office, inc. voice/fax modem
  ansaphone 1,500
• Printer, scanner, zip drives 350
• Desktop Publishing web design s/ware 850
• Website email addresses 300 a year
• Phone charges
• 110 web domain name
• Paper, disks, maintenance, insurance etc.

6
Plus a lot of staff timelearning,
troubleshooting, creating updating web pages,
answering emails...
7
Types of software I

• Generic
• Can be used for different things
• Excel - Spreadsheet - used for accounts,
  attendance (this class) etc,

• Applications-specific
• Used for one type of thing
• Accounting package
• Payroll
• Travel bookings

8
Types of software 2

• Off the shelf
• Ready made, no tailoring to your needs
• Packages you are familiar with e.g. Word, Excel,
  Netscape
• Cheaper, but may not do exactly what you want

• Custom
• Tailored or designed just for you
• May need to fit with other systems, unique
  requirements etc
• More expensive, but should exactly meet your needs

9
One-person business

• All off-the shelf
• Some generic (word processor etc.)
• Some specific (fax, DTP, web editor)
• NB no digital links to clients or suppliers,
  except via public networks, and using software
  applications hosted by others (Internet Service
  Provider)

10
What helps to make this business relatively
simple in terms of business systems?

• Relatively few transactions, each different
• Product is self, no major supplier or need for
  inventory
• No staff
• Client lists relatively small, communications
  need to be personalised

11
Becomes more complex as you get

• More transactions
• More clients
• Requirement to keep track of and communicate with
  suppliers
• Requirement to keep track of your product
  (inventory)
• Staff (communicate keep records monitor share
  information)
• More costs and revenue

12
Recap from semester 1 Components in an
Information System

• Inputs
• Processing
• Data files
• Outputs
• People

13
Example one-person business

• Inputs
• Processing
• Data files
• Outputs
• People

• Contact addresses
• Searching, formatting etc.
• Name, address, phone etc
• Labels, single phone no.
• Entering input, using output

14
Databases
URL http//homepages.strath.ac.uk/ hbs99101/core.
htm Title Integrative Studies Text Integrative
Studies Welcome to the home page. Here is ...
A record
A field in a record
Title Integrative Studies
15
Index And (text 2) Arts (text 2) Business (text
2) Computers (text 2) Entertainment (text 2) Here
(text 1) Home (text 1) Integrative (title 1, text
1) Internet (text 2) Is (text 1) Page (text
1) Scotland.org (title 2) Studies (title 1, text
1) The (text 1) To (text 1) Welcome (text 1)
1 URL http//homepages.strath.ac.uk/ hbs99101/cor
e.htm Title Integrative Studies Text Integrative
Studies Welcome to the home page. Here is ...
2 URL http//www.scotland.org/ index.html Title
Scotland.org Text Arts and entertainment Business
Computers and internet ...
16
Examples of databases?
17
Booking a Glasgow-London flight
18
Example travel agent

• Inputs include
• Customer details
• Flight details
• Availability details

• Processing includes
• Searching flight database
• Changing seat availability
• Existing client?
• Listed as prospect?
• Transfer of details between databases
• Credit card check update
• Adding record of sales

19
Example travel agent 2

• Databases include
• Customer
• Prospect
• Flights
• Financial
• Staff (commission)

• Outputs include
• Flight availability
• Prices
• Customer details
• Travel agent details
• Credit charge confirmation
• Paperwork for customer
• Instruction to generate tickets

20
Example travel agent 3

• People e.g.
• Input original client and flight data
• Set up customer accounts
• Dont e.g. change flight availability, compile
  list of customers on that flight, change pricing,
  check credit card status

21
Software applications

• Likely to be custom packages
• A lot of applications-specific software
• Need IT support people, backup arrangements
• Systems are mission-critical

22
Integration, Communication

• Relies heavily on software applications talking
  to each other via networks (Flight operator,
  travel agent (various locations), credit card
  operator) Electronic Data Interchange
• Use of IT creates cost savings and improves speed
  of transactions

23
Four ways of using information to create value
Add value (customer and market orientation)
Reduce costs (transactions and processes
Minimise risks (management reporting and
monitoring
Orna, E. Practical information policies. 2nd ed.
Gower, 1999. P141.
Create new reality (intelligence social,
political etc)
24
Recap Organisational Triangle
25
Impact of e-commerce

• More software applications needed
• More need to integrate applications, within
  companies and between companies
• Therefore more need for interchange standards
  may have to spend more money on changing systems
  to suit suppliers customers
• Changed customer expectations (24x7 hour service,
  online booking etc.)

26
More opportunities

• Impact of e-commerce 2

27
Some questions for a business

• What are your needs? (essential/desirable)
• What type of software packages e.g. off-the shelf
  or custom?
• Do you need compatibility with suppliers,
  customers? What are their expectations?
• How many transactions (purchases, sales etc) are
  you going to process?
• Implications for administration support staff