Learning Objectives

By the end of this chapter, you will be able to:

  • Define a Business Information System.
  • Provide examples of information systems used in Finance and Accounting.
  • Provide examples of information systems used in Marketing.
  • Provide examples of information systems used in Human Resources.
  • Provide examples of information systems used in Manufacturing.

Business Information Systems

A Business Information System (BIS) is a type of information system that is designed to support a specific functional area within an organization. These systems are tailored to the unique processes and data needs of each department.

Financial and Accounting Information Systems

These systems are used to manage the financial assets of the organization and to maintain all accounting records.

  • Examples: Accounts Payable/Receivable systems, General Ledger, and systems for managing cash, credit, and investments.

Marketing Information Systems

These systems are used to support all aspects of the marketing function, from identifying customers and creating campaigns to managing customer relationships.

Human Resource Information Systems (HRIS)

An HRIS is used to manage the entire employee lifecycle, from recruitment to retirement.

  • Examples: Systems for managing payroll, benefits, employee records, training, and performance reviews.

Manufacturing and Production Information Systems

These systems are used to manage all activities related to the production of goods and services.

  • Examples: Inventory management systems, systems for production scheduling, quality control systems, and Computer-Aided Manufacturing (CAM) systems.

Summary

Business Information Systems are specialized systems that cater to the specific needs of different functional areas within a company. From the financial systems that manage money to the HR systems that manage people, each department relies on its own set of information systems to perform its tasks efficiently and effectively. The challenge for the modern organization is to integrate these separate systems to get a unified view of the business.

Key Takeaways

  • Business Information Systems are designed to support specific functional areas.
  • Financial IS manages money and accounting records.
  • Marketing IS supports customer-related activities.
  • HRIS manages the employee lifecycle.
  • Manufacturing IS manages the production process.

Discussion Questions

  1. Why does the marketing department need a different type of information system than the finance department?
  2. What are some of the potential problems if a company’s inventory management system is not integrated with its marketing information system?
  3. Choose one of the systems mentioned (e.g., CRM, HRIS) and describe in more detail how it would be used on a day-to-day basis.