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Overview of Computer-Based Information Systems

A Computer-Based Information System (CBIS) integrates hardware, software, data, procedures, and people to collect and process data into information for various management levels. Operational, middle, and senior managers have distinct information needs, with CBIS providing operational data, tactical information, and strategic insights respectively. The system includes elements such as transaction processing systems, management information systems, decision support systems, and office automation systems to facilitate decision-making and improve organizational efficiency.

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0% found this document useful (0 votes)
191 views2 pages

Overview of Computer-Based Information Systems

A Computer-Based Information System (CBIS) integrates hardware, software, data, procedures, and people to collect and process data into information for various management levels. Operational, middle, and senior managers have distinct information needs, with CBIS providing operational data, tactical information, and strategic insights respectively. The system includes elements such as transaction processing systems, management information systems, decision support systems, and office automation systems to facilitate decision-making and improve organizational efficiency.

Uploaded by

Eun Hae
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A Computer-Based Information System (CBIS) is a set of hardware,

software, databases, telecommunications, people, and


procedures configured to collect, manipulate, store, and process data into
information. It uses computer technology to carry out its planned tasks.

Information needs for business managers tend to be similar for most businesses when one considers the
same level of management. There are usually three levels of managers whose information needs are
slightly different from each other. These include operational managers, middle managers, and executive
or senior managers. Computer based information systems provide the information needed by the
aforementioned categories of managers, which assists them in their work.

The following are the information needs of the three categories of managers. Operational managers
usually benefit from such systems by getting all the information related to the short-term or daily
operations of the organization. For instance, the computer-based information systems provides such
managers with information related to attendance of employees, shifts of employees, and so forth. Such
information helps operational managers make structured business decisions. On the other hand, middle
management benefits from a computer-based information systems by getting managerial or tactical
information. The middle-level managers use this information to make short plans or decisions. Such
information includes annual production details or even quarterly sales analysis. The information also
helps them supervise the operational level by giving managers specific activities that they should
perform. Lastly, computer-based information systems help senior management make decisions. The
systems provide these managers with strategic information, which the managers use to make strategic or
unstructured decisions. Such decisions may include setting the objectives and policies of the enterprise.
The information they get also helps them to manage other managers within the organization. Senior
management gets information from the system detailing trends in costs incurred by the enterprise or
even the revenue trends. With this kind of information, senior managers can make decisions aimed at
increasing revenues and reducing the costs incurred by the enterprise.

Computer Based Information System (CBIS) is an information system in which the computer plays a
major role. Such a system consists of the following elements:

Hardware: The term hardware refers to machinery. This category includes the computer itself, which is
often referred to as the central processing unit (CPU), and all of its support equipment’s. Among the
support equipment’s are input and output devices, storage devices and communications devices.
Software: The term software refers to computer programs and the manuals (if any) that support them.
Computer programs are machine-readable instructions that direct the circuitry within the hardware
parts of the Computer Based Information System (CBIS) to function in ways that produce useful
information from data. Programs are generally stored on some input / output medium-often a disk or
tape.

Data: Data are facts that are used by program to produce useful information. Like programs, data are
generally stored in machine-readable from on disk or tape until the computer needs them.

Procedures: Procedures are the policies that govern the operation of a computer system. “Procedures
are to people what software is to hardware” is a common analogy that is used to illustrate the role of
procedures in a CBIS.

People: Every Computer Based Information System (CBIS) needs people if it is to be useful. Often the
most over-looked element of the CBIS is the people: probably the components that most influence the
success or failure of information system.

Category of Information System Characteristics

Transaction Processing System Substitutes computer-based processing for manual processes.


Includes record-keeping applications.

Management Information System Provides input to be used in the managerial decision process.
Deals with supporting well structured decision situations. Typical
information requirements can be anticipated

Decision Support System Provides information to managers who make judgements about
particular situations. Supports decision makes in situations that
are not well structured.

Office Automation System It is a multi-function, integrated computer-based system, that


allows many office activities to be performed in an electronic
mode.

Common questions

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Operational managers benefit from CBIS by receiving information related to short-term or daily operations, such as attendance or employee shifts, enabling them to make structured decisions . Middle managers use CBIS for managerial or tactical information, like annual production details or quarterly sales analysis, to make short-term plans and supervise operational levels . Senior managers receive strategic information from CBIS to make unstructured or strategic decisions, such as setting objectives and policies or analyzing revenue trends to increase revenue and reduce costs .

The essential components of a CBIS include hardware, software, data, telecommunications, people, and procedures. Hardware involves machinery like computers and peripherals, software encompasses programs and manuals, data are stored facts, telecommunications involve data transfer, people are the users, and procedures are policies for system operation .

In a CBIS, data and programs interact where programs, consisting of machine-readable instructions, process the raw data stored on machine-readable media. These instructions direct the hardware to manipulate data, transforming it into information useful for decision-making and operational purposes .

Procedures in a CBIS are analogous to the relationship between software and hardware because procedures govern the operation of the entire computer system, much like software directs hardware in executing tasks. This analogy emphasizes that just as software is critical for hardware productivity, procedures are vital for human interaction with the system .

A Management Information System (MIS) provides structured information that managers use in decision-making processes. By dealing with well-structured decision situations, MIS gives inputs necessary for managerial decisions and planning, thus facilitating efficient management .

Office Automation Systems (OAS) differ from other computer-based systems by their multifunctionality and integration, allowing various office activities to be electronically conducted within a single system. Unlike TPS or DSS that focus on specific transactional or decision-making tasks, OAS enhances overall office productivity and automation of workflows .

Transaction Processing Systems (TPS) replace manual processes with computer-based processing, primarily focusing on record-keeping applications . In contrast, Decision Support Systems (DSS) are designed to provide information to managers dealing with unstructured decision situations, supporting judgement and decision making in complex scenarios . TPS focuses on operational efficiency, while DSS enhances managerial decision-making capabilities.

Using a CBIS influences decision-making across managerial levels by providing a tailored flow of information that aids structured, tactical, and strategic decisions. Operational managers get information for immediate, routine decision-making, middle managers receive insights for tactical supervision and planning, and senior managers obtain strategic data to guide major organizational policies and future direction . The system ensures each level is supported with relevant information, enhancing accuracy, speed, and effectiveness of decisions at all levels.

In a CBIS, hardware includes machinery like the computer, CPU, input/output devices, storage, and communications devices, serving as the foundation for operations . Software refers to computer programs and supporting manuals that direct hardware functions to produce useful information from data, typically stored on disks or tapes .

People are often considered the most influential component of a CBIS because they operationalize the system, interpreting and using the information produced to make decisions. Their understanding and interaction with the system significantly affect its success or failure, making them critical to achieving the system's objectives .

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