Unit 2.5
Types of Business Information Systems
Learning Objectives
By the end of this chapter, you will be able to:
- ✅ Define a Business Information System (BIS).
- ✅ Provide examples of systems for Finance and Accounting.
- ✅ Provide examples of systems for Marketing and Human Resources.
- ✅ Provide examples of systems for Manufacturing.
What is a Business Information System?
Definition: A Business Information System (BIS) is an information system designed to support a specific functional area within an organization.
Think of them as specialized toolkits for each department.
- Tailored to unique processes and data needs.
- Helps a department perform its tasks efficiently.
The Four Core Functional Areas
Most businesses organize their information systems around these key departments:
- 📊 Finance & Accounting
- 🎯 Marketing
- 👥 Human Resources
- 🏭 Manufacturing & Production
Let's explore each one.
📊 Financial & Accounting IS
These systems manage the financial assets and accounting records of the organization.
Core Function: To track the flow of money.
Examples:
- Accounts Payable/Receivable: Who owes us? Who do we owe?
- General Ledger: The central book of all financial transactions.
- Cash & Investment Management: Managing liquid assets and investments.
🎯 Marketing IS
Supports all aspects of the marketing function, from finding customers to building relationships.
Core Function: To understand and connect with customers.
Examples:
- Customer Relationship Management (CRM): Manages all customer interactions.
- Sales Force Automation: Tools for the sales team to manage leads and contacts.
- Advertising & Promotion Management: Tracks campaign performance.
👥 Human Resource IS (HRIS)
Manages the entire employee lifecycle, from recruitment to retirement.
Core Function: To manage the organization's people.
Examples:
- Payroll Systems: Manages employee salaries and wages.
- Benefits Administration: Manages health insurance, leave, etc.
- Employee Records & Performance: Tracks employee data and reviews.
🏭 Manufacturing & Production IS
Manages all activities related to producing the company's goods and services.
Core Function: To manage the creation of products.
Examples:
- Inventory Management: Tracks raw materials and finished goods.
- Production Scheduling: Plans what to build and when.
- Computer-Aided Manufacturing (CAM): Uses computers to control machinery.
Different Departments, Different Needs
Why can't the Marketing and Finance departments just share a system?
🎯 Marketing IS
- Focus: Customers
- Data: Customer preferences, campaign results, sales leads
- Goal: Increase sales, build brand loyalty
📊 Finance IS
- Focus: Money
- Data: Transactions, budgets, financial statements
- Goal: Ensure profitability, manage assets
⚡ The Integration Challenge
Each department has its own specialized system. But what happens when they don't talk to each other?
Key Problem: Isolated systems ("silos") prevent a unified view of the business.
Example: If the Marketing IS runs a successful promotion, the Manufacturing IS might not know it needs to increase production, leading to stock shortages!
BIS in Action: Nepal Context
🏦 Banking Sector
Nabil Bank uses a core banking system (a type of Financial IS) like Finacle to manage customer accounts, transactions, and loans across all its branches in real-time.
🛍️ E-Commerce
Daraz Nepal uses a Marketing IS (CRM) to track customer behavior and an Inventory Management System to manage products from thousands of sellers in its warehouses.
🏢 Conglomerates
Chaudhary Group (CG) uses an HRIS to manage payroll, benefits, and records for its thousands of employees across diverse industries like FMCG, electronics, and hospitality.
🔍 Key Takeaways
- Business Information Systems (BIS) are specialized for specific departments like finance, marketing, HR, and manufacturing.
- Financial IS manages money and accounting records.
- Marketing IS supports all customer-related activities.
- HRIS manages the entire employee lifecycle.
- Manufacturing IS manages the product creation process.
- The biggest challenge is integrating these separate systems for a complete business overview.
Thank You
Any questions?
Next Topic: Unit 2.6 - E-Business and Enterprise Systems