Unit 2 Session 3: Business Information and Enterprise Systems | IT 231 Slides

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Unit 2 · Session 3

Business Information and Enterprise Systems

IT 231: IT and Application (BBM)

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.

📊 Finance IS: Classify the Transaction

Select a scenario card, then click the correct module to place it.

Click a scenario to select it, then click a module.

🎯 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.

🎯 Marketing IS: Which Tool Fits?

Read each marketing scenario and select the correct Marketing IS tool.

👥 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.

👥 HRIS: Which Module Handles It?

Click the HRIS module that best handles each HR situation.

Select a situation on the left, then click the correct module on the right.

🏭 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.

🏭 Manufacturing IS: Solve the Problem

A factory faces five problems. Click the Manufacturing IS component that solves each one.

Select a problem, then click the component that solves it.

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!

⚡ Silo Effect Simulator

Click each department's isolated system to see the chain reaction it causes when data is not shared.

Click a department OR press "Next Step" to watch the silo chain reaction unfold.

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.

Exam Practice: Short Answer

  1. What is a Business Information System?
  2. What is an HRIS? List three of its functions.
  3. Differentiate between TPS and MIS.

Exam Practice: Long Answer

  1. Explain the information systems used in finance, marketing, HR, and manufacturing with examples.
  2. Classify information systems by management level. Why is integration between systems important?

Revise the chapter note before writing these answers.

Thank You

Any questions?

Course Home | Previous Chapter

Read the full note: Types of Business Information Systems

Next deck: Unit 2.6: E-Business and Enterprise Systems

Learning Objectives

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

  • ✅ Define e-business and differentiate it from e-commerce.
  • ✅ Define an enterprise system and its purpose.
  • ✅ Describe the purpose of the three main types of enterprise systems: ERP, SCM, and CRM.

What is E-Business?

E-business (Electronic Business) is the use of internet technologies to conduct all forms of business, not just buying and selling.

It's a broad term that covers any process a business conducts over a computer-mediated network.

Think bigger than just an online store! 🌐

E-Business vs. E-Commerce

E-Business (The Whole Picture)

  • Includes e-commerce
  • Internal processes (HR, Finance)
  • Online customer service
  • Collaboration with partners
  • Digital marketing
  • Scope: The entire business ecosystem online.

E-Commerce (A Key Part)

  • A subset of e-business
  • Buying goods online
  • Selling services online
  • Processing online payments
  • Scope: The transaction of goods and services.

Activity: E-Business or E-Commerce?

A scenario will appear. Decide: is it E-Commerce (a transaction) or E-Business Only (broader digital activity)?

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E-Business in Action

Examples Beyond the "Buy Now" Button

  • An employee accessing the company's internal HR portal to request leave.
  • A bank providing 24/7 customer support through an online chatbot.
  • A manufacturer sharing production data in real-time with its suppliers via a web portal.
  • A university using an online learning management system (LMS) for course delivery.

The Challenge of Complexity

How do large organizations manage all these complex online and offline activities seamlessly?

↓

They use Enterprise Systems to integrate everything.

What are Enterprise Systems?

Enterprise Systems are large-scale, integrated information systems that span across the entire organization and support business processes across multiple functional areas.

🎯 The Goal: Break Down Information Silos

Before (Silos)

HR Dept અલગ

Finance Dept અલગ

Sales Dept અલગ

After (Integrated)

One Unified System

Single Source of Truth

The Three Pillars of Enterprise Systems

There are three main types, each focusing on a different part of the business.

1. ERP

Internal Focus

Manages core business processes.

2. SCM

Supplier/Partner Focus

Manages the flow of goods.

3. CRM

Customer Focus

Manages customer relationships.

Match the System: ERP, SCM, or CRM?

Read each description and click the correct enterprise system.

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1. Enterprise Resource Planning (ERP)

Goal: Provide a "single source of truth" for the entire organization.

  • Purpose: To integrate and manage all core business processes in a single system.
  • Modules Include:
    • 📊 Finance & Accounting
    • 👥 Human Resources (HR)
    • 🏭 Manufacturing & Production
    • 📦 Inventory Management

ERP in Action: Which Module?

A business scenario is shown. Click the ERP module that handles it.

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2. Supply Chain Management (SCM)

Goal: Improve efficiency, reduce costs, and increase customer satisfaction.

  • Purpose: To manage the flow of goods, data, and finances from raw materials to the final customer.
  • Covers:
    • 🚚 Procurement of materials
    • 📦 Warehousing
    • 🚛 Logistics & Transportation
    • 📈 Demand Forecasting

Build the Supply Chain

Click the steps in the correct order — from raw materials to the customer.

Click the first step in the supply chain.

3. Customer Relationship Management (CRM)

Goal: Drive customer loyalty, retention, and revenue growth.

  • Purpose: To manage all of a company's relationships and interactions with current and potential customers.
  • Manages:
    • 📞 Contact Information
    • 🛒 Purchase History
    • 📧 Marketing Campaigns
    • 💬 Customer Service Interactions

Real-World Triage: Which System?

Read the real-world scenario and select the enterprise system that best handles it.

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Enterprise Systems in Nepal

Example: A large E-commerce platform like Daraz

SCM: Manages thousands of sellers, inventory levels, and logistics with delivery partners.

CRM: Tracks customer orders, preferences, and manages promotional emails/notifications.

Example: A major bank like Nabil Bank

ERP: Integrates finance, accounting, and HR for all its branches nationwide.

CRM: Manages millions of customer accounts, loan applications, and support tickets.

Summary & Key Takeaways

  • ⚡ E-business is broader than e-commerce. It includes all online business activities, not just transactions.
  • ⚡ Enterprise systems integrate the entire organization. They break down information silos and create a single source of truth.
  • ⚡ The three main systems have distinct focuses:
    • ERP for internal processes.
    • SCM for external supply partners.
    • CRM for customers.

Discussion Questions 🔍

  1. Is a company's internal employee portal an example of e-business? Why or why not?
  2. How might the ERP, SCM, and CRM systems of a company like Foodmandu work together?
  3. Can a small local business operate without any enterprise systems? What challenges might it face as it grows?

Exam Practice: Short Answer

  1. Differentiate between e-business and e-commerce.
  2. What is ERP? Name two ERP products.
  3. What is the purpose of CRM?

Exam Practice: Long Answer

  1. Explain ERP, SCM, and CRM, and describe how they work together using an order-to-delivery example.
  2. Discuss the benefits and challenges of implementing enterprise systems in a Nepali company.

Revise the chapter note before writing these answers.

Thank You!

Back to IT 231 Course Notes

Read the full note: E-Business and Enterprise Systems

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