BUSİNESS INFORMATİON SYSTEMS

These properties of system can be listed as follows:

• Every system has a specific purpose. The purpose underlines the fact that system has at least one function.

• System has more than one component (part, element)

• There is a relationship and interaction between the components forming the system

• Components form a whole. Here, whole is not used in the meaning of “monolith” or “uniform” but in the meaning of “formation” which fulfills a specific function with the help of the components.

System is a collection of conceptual or physical components that are brought together to reach one or more specific purpose or conclusion. The boundary of system must firstly be set to be able to determine the system. Everything stays out of the system constitutes the environment of system. The system boundary is a field separating the system from its environment. Another concept related with the system is system interface. It is defined as the area separating the boundaries of two systems. System interface is the platform that an output of a system is transported to another system or the point of contact which system components connect with the environment or each other.

The system which has not got any interaction with its environment or other systems in the environment is termed as closed system.

Inflows to the open system from environment or elements exported during interaction with environment are named input. In contrast, outflows from open system to the environment or imported elements are termed output.

Businesses are open systems which have input, process and output operations.

Feedback is transmission of data about system performance to the system.

Hardware resources, software resources, data resources, network resources and people resources are the fundamental components of the information system.

Humans are capable of wisdom in which they put knowledge, experience and analytical skills to work and create new knowledge and adapt himself/herself to changing situations. To date, no computer system has attained the properties of wisdom. Wisdom is more difficult to define, but it refers to the ability to learn from experience and adapt to changing conditions. Data, information and knowledge are impersonal concepts unlike wisdom. Wisdom deals with individual’s values, intuitions, understanding, interpretations and judgments.

Features of management information systems are as follows:

• They are not interested in daily operations.

• Even though they provide easy and timely access to all managers from operational, tactical and strategic level, they especially serve to managers from tactical level.

• Generally, they produce reports oriented to support structural decisions.

• They are partially flexible and may be adapted to changes in the information requirements of the business.

• They use the data produced by transaction processing systems.

• Because they may benefit the data from multiple transaction processing systems, they use integrated database and support the variety of functional fields.

A decision support system has five fundamental components listed below:

• Data management subsystem

• Model management subsystem

• Dialog management subsystem

• Knowledge (know-how) management subsystem

• Decision maker

Operational management consists the lower level managers who are responsible of the execution of daily routines and business processes. In order to carry out the tactical level decisions, it involves the effective and efficient executions of required tasks. In this sense, these are decisions in which medium level tactical decisions are elaborated and transformed into short term plans. For example, converting 6-month medium plan into one month plans, determining stock reorder times and amounts, assigning the jobs to employees etc. are operational decisions. Because all information about the factors related with decision problems at this level can be obtained, decisions are made in deterministic environment.

Knowledge is classified as tacit knowledge and explicit knowledge based on the attribute.

Knowledge is examined under two subtitles according to its source: Outsourced and internal sourced knowledge.

Every system has a specific purpose. The purpose underlines the fact that system has at least one function.

There is an integrity and order in each formation that is thought to be a system. There are components forming the whole, and interactions connecting the components within each system. These components are not brought together incidentally, but composed in order to achieve a specific purpose.

Another concept related with the system is system interface. It is defined as the area separating the boundaries of two systems. System interface is the platform that an output of a system is transported to another system or the point of contact which system components connect with the environment or each other.

Economic resources of a business as a system are people, money, material, machines, land, facilities, energy and information.

Hardware resources, software resources, data resources, network resources and people resources are the fundamental components of the information system. Programs and procedures are included in software resources.

Information processing is transforming the processed data (information) to a form (knowledge) providing support to decision making by being passed through specific operations. Accordingly, information is the input and knowledge is the output of information processing.

Office workers like secretary, clerk or bookkeeper are in the position of data workers who are obliged to record and transact all kind of activities within the business. In spite of data workers, the workers who are responsible from design of products or services and transforming the information into knowledge such as engineer, architect, scientist etc. are in the position of information workers.

Analysis of market structure and recognition of customers, creating a marketing plan, executing promotion campaigns and sales of product are the business processes of a Sales and Marketing department.

Process control systems are used to provide support in managing physical processes and inappropriate decision making. Mentioned decisions here may be obtained through computers after specific parameters are identified.

Symbolic use of knowledge is using the knowledge in a way that it is not appropriate with desired goal. Distorting the market research results, hiding knowledge deliberately or demonstrating only the parts appropriate with business interests are examples for symbolic use.