Computer-Based Information System (CBIS)

Computer-Based Information System (CBIS) use computer and telecommunication technology for the generation of information. CBIS uses hardware, software, databases, telecommunications, people, and procedures for the collection, manipulation, storage, and processing of data into information. They take raw data as input, process it, and produce information as output.

The components of a CBIS include the following:

· Hardware—computer devices like keyboard, monitor, processor, and printer, used for performing the input, processing, and output activities.

· Software—computer programs that govern the operation of the computer.

· Database—an organized collection of data, consisting of two or more related data files.

· People—those who work with the CBIS. People are the most important element in most CBIS.

· Procedures—strategies, policies, methods, and rules for using the CBIS.

· Telecommunication, Network, and Internet—Telecommunication and network is used for connecting the computers and computer devices in a building, city, country, or across the world to enable electronic communication. Internet is the world’s largest computer network, which is an interconnection of networks. World Wide Web (WWW) is a system with universally accepted standards for storing, retrieving, formatting, and displaying information in a networked environment. The Internet and WWW have had a tremendous impact on the role IS play in organizations. They are responsible for the increased connectivity and collaboration within and outside the organization. They have helped in transforming the structure of an organization, scope of operations, reporting and control mechanisms, work practices, and services

                         Computer-based information system

IS or CBIS is transforming the way businesses are done nowadays. Communication tools like cell phones, e-mail, online conferencing, and international teleconferencing over the Internet have all become essential tools of a business. E-commerce, e-banking, e-governance, e-learning, Internet advertising, and social media marketing have all seen an increasing usage.

 In this chapter, when we refer to Information Systems, we are talking about the Computer-Based Information System.

Information Technology (IT) is distinct from Information System (IS). Information Technology is used to build Information Systems. IT constitutes the hardware, software, databases, networks, and other related components. IS could be a Payroll system, Inventory system, Marketing system, or a Sales system

Need For Efficient Information System

In today’s world, information systems are indispensable to businesses, industries, and organizations, to meet the future challenges. Organizations need ISs to meet the information needs of its employees. More and more business organizations are using information systems to improve the way they conduct business, as discussed below:

· IS, for many businesses, provide an opportunity to do business in a new way and thus gain huge profits and market shares.

· ISs facilitate the acquisition, transformation, and distribution of information. ISs can improve decision making, enhance organizational performance, and help increase profitability.

· The use of information systems to add value to the organization can also give an organization a competitive advantage. It provides significant, long-term benefit to a company over its competition. ISs are used for strategic planning in a competitive world. It allows changing the structure, creating of new services, and improving upon the existing services.

· Damaged or lost data can cause disruptions in normal business activities leading to financial losses, law suits, etc. ISs help an organization to better manage and secure its critical data.

· ISs also improve integration and the work processes.

· “It is a Flat World”, as said by Thomas Friedman. More and more companies rely on virtual structures and outsourcing, resulting in businesses to operate around the globe. Operating in a global society poses several challenges to the organizations. Different countries have different standards, policies, and laws. Of course, there are language barriers too. Managing and controlling operations of an organization located in different countries becomes almost impossible without the support of an efficient IS.

For an organization, ISs impact the way business is carried out. Organizations need to have an efficient IS to improve and manage their function, performance, and productivity. Briefly summarized, ISs are important for business today due to the need for operational excellence, new products, services and business models, improved decision making, competitive advantage, and the most important—survival.