Analysis of Business Information Systems (T1.4)

Advances with technology have allowed business organizations to focus on information systems that work best with electronic and mobile devices. E-commerce makes business easier for companies because of the lengthy process of traditional processing. E-commerce involves any business transaction that is executed electronically between companies or between companies and consumers. The easiness of e-commerce allows any type of business to sell their products to an international market. Like e-commerce, m-commerce or mobile commerce allows businesses or consumers to use a wireless device to conduct business transactions (whether buying or selling). M-commerce allows businesses to use laptop, handheld devices, and other devices that connect to a network to conduct transactions. E-commerce is expanding with technologies improving such as the boom in smart phone devices. As a result more and more business opportunities are forming.

An information system is made up of components that: collect, manipulate, store, and disseminate data and information in order to meet and objective. In order to better understand business information systems each component must be analyzed.

The first component of business systems is the input. This is the activity where raw data is collected. For instance before a business pays their employees, they must collect the number of hours each employee worked in order to process how much they owe each employee.

Processing is the component where the raw data that was collected during the input phase is converted or transformed into useful outputs. What this means is that during process it a business might have to make calculations, compare data, store data, and take action. In the example of paying employees, certain details might have to be taken into account. For example did they work over time, what department are they in etc. From processing comes storage where the results of the data are kept for future use. 

Output is the component where the information from the previous two steps are produced into useful information. This production could be in the form of documents and reports. In the instance of payroll, it would be each employee’s paycheck.

Finally feedback is information from the system that is used to make changes to the input or processing activities. It is the component where output is used to make changes to input or processing activities. In the example of payroll, it could be a business catching on that they paid an employee for too many hours. By completing all of the components they are able to use forecasting, which is predicting any events that might cause problems based on the results of the previous components.

An example of an e-commerce and the above processes can be done through analyzing the website goincase.com. This website sells products related to electronic devices, most mobile and portable electronics. The layout of the website allows you to search for products to protect your electronic based on the product, which is an example of input. From the consumer’s aspect the organized products would be the raw data. The processing phase would be the consumer deciding what item they would like to purchase by submitting the order. The consumer’s address and billing information are essential parts of the processing which would ultimately allow the product to be delivered. This would be output, similar to the employees getting their paychecks, they would receive the item they order on incase.com. In cases where the item was not delivered or there was a problem with the product is the feedback component of the information system.