Business Information Management - Essay Example

?BUSINESS INFORMATION MANAGEMENT Introduction The etymology of “business” came from the of being busy, working on some viable and profitable work. An enterprise or a firm also uses it in the sense of business in which an organization deals with goods and services with the costumers and other business owned companies. In first look, it is required to distinguish between data and information. Data can be numbers or statements but they are in raw form. Different procedures are used to put that data in a place because it is necessary for business. Information is generated from collected data. Raw data is reformed into meaningful purposes. The information can be achieved from data using different transformations and data processes. After this, information is categorized as good and bad information. The quality of information depends on different attributes e.g. timing, content and form of information. Just like other assets in the business information, it is also considered as an important asset. Management refers to the effective and efficient operation of a business. Owners or managers or both administer their business. They manage the basic/primary components of business that are resources (capital and tangible), financial resources and human resources. The management in a business if performed is different aspects like financial management, human resource management, strategic management, marketing management and information technology management etc. Business Information Management (BIM) is an integrated system, which established effective information channels to bring business functions and information modules together. These channels are very useful in term of making timely and accurate decisions in organizational productivity and competitiveness (Benyon-Davies 2009). 1: BUSINESS INFORMATION SYSTEM Nature: A system is a collection of different components that work together to achieve a common goal. A system gets inputs from different sources and generates outcomes. The organizations are controlled by information systems because information system provides information that is necessary to control a business. Thus a business information system is a group of systems, which are related to each other and they work collectively. They carry out inputs, process them, generate outputs and control the information. This information is then used for forecasting, planning, coordination and control activities in a business (O’Sullivan & Sheffhrin 2003). The business components can be classified into five resources people, hardware, software, communication and data. People resource consists of information system manager and technical support staff to maintain and operate the business information system. Hardware resources are said to be computers and other devices. Software resources are based on instruction manuals as computer programs. Communication resources consist of networks but computers and software are needed to support them. And data resources are a computer database or paper files of business, which organization has access. Need & Purpose: Due to growth in the competitive environment and development in technology, there become necessary for the organization to make their operation; tactical and strategic process more effective and efficient using the information system. The business information system plays the important role in the e-business and e-commerce operations and in strategic success of the business (Case 2012). Business information system becomes a management information system when it applied in an organization by directors to improve the management. Therefore, the management information system is said to be a collection of manpower, business tools, software and procedures to perform different business tasks and improve the efficiency of management in business. Due to a fundamental change in the external environment, the organizations also change their business information strategy. Now days the most important and significant development in business use of information system is the establishment of enterprise resource planning (ERP) systems. Enterprise resource planning systems are based on information technology infrastructure. This infrastructure facilitates the flow of information in all supply chain processes of organizations. In addition, best of breed (BoB) which is an IT strategy has developed by some organizations as their own customized suits of enterprise applications (Marcella, Baxter & Davies 2007). In the private sector based organizations, the business information system is considered as an important factor for the eventual profitability and competitive advantages. In the government sector, the business information system is just a crucial. But in defence organizations, they also share the same objective as private sector based organizations do. In order to achieve greater visibility and affordable operational readiness, the defence organizations require information system along with the integrated system and technology platform. Business information systems increase the effectiveness and efficiency of the business. Implementing business information systems affect the organizations to a great extend. 2: Information & Communication Technologies (ICT) The information and communication technologies are often considered as most significant, sophisticated and expensive computer based technologies. But information and communication technologies also comprehend conventional technologies like radios, television and telephone technologies. Information and communication technologies are basically information-handling tools a varied set of goods, applications and services that are used to produce, store, process, distribute and exchange information (United Nations 2003). The old ITCs tools included radio, television and telephone and new technologies include as computers, internet, wireless and satellite. These ‘old’ and ‘new’ information and communication technologies tools are combined to create a ‘network world’. The network work is called a massive infrastructure of interconnected telephone services, standardized computer hardware, the internet, radio and television. Information and communication technologies referred to both analogue technologies as well as digital technologies. The analogue technologies are said to be older technology tools, which include audio visual aids such as the transparency and slides, tape and cassette recorders and radio; video cassettes and television; and films. The least computers and internet are familiar technologies are referred as the collective heading of digital technologies (Kitchen and Dodge, 2011). Information and communication technologies are defines in two terms ‘old’ and ‘new’. But now days, due to coming together of the satellite and computers and increased convergence, the differentiation between these two technologies is becoming blurred and consequently. Role of ICT in Education: Liberalization, privatization and globalization constitute the current social, economic, technological and political space within which television and all other media have to exist, survive and function. The meaningless lines draw on world map gets reduced due to revolution in the information and communication technologies. Education has become a service, which needs to b opened up for free flow of trade between countries. So knowledge becomes a tradable commodity between countries. For example, India’s demographic mosaic consists of an increasing demand for education for a population, half of which is below 15 years of age, 75 percent rural, a linguistic break-up of 15 different major languages. They are at a critical junction, when the new technologies of communication from the individualized computer assisted learning system to the more mass directed radio and television today offer an unparallel opportunity to reconsider conventional educational and learning practices and institutions (Reddi n.d). The modern information and communication technologies offer them to telescope the decades of infrastructure building and development activities by providing them with high a speed delivery with no dilution in quality, wide reach, any ware situation, individualization of learning and a low per cost. These information and communication technologies can be used for language teaching and for literacy. The ICT focuses on the role of teachers and educators. They feel very threatened and challenged when they have to use information and communication technologies. Sometimes they feel fear that they will lose their jobs (Simpson and Toyn 2012). Strengths of ICT: Like all other inventions, information and communication technologies also have some advantages as well as disadvantages. Information and communication technologies provide each single individual to interact with medium and its content in term of individualization of learning. This means that people learn as individuals not as homogenous. Information and communication technologies reduced the cost of education as per person from very high to very low. There are no difficulties and restriction for accessing ICT. It can be accessed anytime, anywhere, as it doesn’t matter how the weather is. Information and communication technologies provide people interactivity in which they can relate to the content, go forward and backward into the content, can start at any point depending on their prior knowledge instead of in a sequential way. Information and communication technologies especially the computers and internet are the very useful in solving problems and for accessing knowledge and information about various related themes. There is an instant delivery of messages in the information and communication technologies (Cherifi, Zain and El-Qawasmeh 2011). On the other hand, the information and communication technologies have some weakness: Information and communication technologies have high infrastructure and cost to start and maintain them. There are no equally benefits for use of information and communication technologies; there is not equal access and use of ICT. Those people who have access and knowledge of information and communication technologies become richer and those who haven’t become poorer. This creates knowledge or digital gap in rich and poor. Any content can be delivered by information and communication technologies because ICT only mean to deliver content, not to bring about a change in behaviour or change in attitude. While using ICT trainers and officers also need training (Simpson and Toyn 2012). 3: Business Information needs of Managers and Knowledge Workers Business information is essential asset/information that is related to business/organization for business operations, activities and environment. Managers and knowledge worker make a decision for their organization relying on the information; they seek from inside the organization or from outside resources. Why business information is an essential source for managers and knowledge to run their business in an effective and efficient manner? But there is another fact that the large amount of information may hold back the personnel having to walk through it as well as wastage of other resources. The information acquisition and dissemination have become easier due to advances in and use of information and communication technologies but at the other side the risk of information overload has been increased. Various methods are used to define information needs. They differ from each other such as for concerning the benefits, downsides, cost and other resource demanded. It should be kept in mind that all methods are not suitable and appropriate for every situation and for all organizations. The main purpose of identifying the business information needs is that what will be done with the results and should also be noted when choosing the method. Therefore, in order to get best and desired results, the method should be evaluated carefully (Griffin 2013). It is more important to specify the difference between information needs and wants because of cost of information gathering processing, analyzing and dissemination. There is no need to spend a lot of time and cost on the information to process it into a specific unit while its efficiency is poor. Needs cannot be assessed even when the best methods are used because these usually surface only in decision making operations. The fact is that decision is made inside the mind of managers so information needs are also generated into the head of the decision maker, so it is also defining challenges. Simpson and Toyn 2012 proposed needs for information into three categories. 1) Information that is wanted but not really needed. This information is usually waste of money. 2) Information that lacks and that is recognized to be needed. The money and time required spending on it, seems to be useful and acceptable. This is the essential work of the business intelligence to obtain information that is needed. 3) Information that is needed but not known to be needed, wanted or asked for. When the information is revealed, these blind spots can create a lot of confusion. Business Intelligence Process: Business intelligence provides timely and accurate information for both operative and strategic decision making. In other words, the business intelligence aims to satisfy the information needs of managers and knowledge workers. Business intelligence enhanced the organization decision making and it created the competitive advantages. The definition of information needs however it is a complex task, is the essential part of business intelligence process. An appropriate method should be chosen carefully to suit the particular situations and objectives (Turban, Sharda, and Delen 2010). In addition to use of the terms to describe business intelligence process, the content of the term are also varies. For example Collins (1997) defined business intelligence process as a process in which information about competitors, customers and markets is gathered by legal means and analysis to support decision making. Sawka (1996) recognizes that business intelligence to be focused on gathering especially the external information. Prior (2006) sees business intelligence process as a combination of data, information and knowledge concerning an organization operational environment, which leads to decisions that create competitive advantages for organization. Raisinghani (2004); Kalakota and Robinson (2001) define business intelligence as technological tools and applications that serve as an aid in information management. Thomas Jr. (2001) introduced several different business intelligence models. According to Pirttimaki and Hannula (2006) the most significant distinctions between business intelligence process models occur in the number of phases, structure of cycles and sources of information among others. Most intelligence process model’s phases include information needs analysis, information acquisition, information storage, information distribution and information use. Figure: A generic business intelligence model Process model functions in a typical way as a continuous cycle, thus the last phase of the model can lead to the very first phase of the model and the cycle continues. Defining information needs is the starting point of an effective intelligence model cycle. In Miller’s intelligence model, Choo (2005), told that the identification of information was the first phase in both models. In the work of Pirttimaki and Hannula (2006) and Thomas Jr. (2001), the defining information needs as a starting point is also the connecting factor among different business intelligence process model. A practitioner or a business intelligence function or unit acts as a buffer between overload of the information and managers by preventing entry of unneeded information into a decision making process. 4: Management of Information Systems Information systems do not include decision making system but when management is applied on them then management information system is widely used to totalize the information based management systems. The importance of improvement of the information system to make decision prudently and reasonably is shown by the chaotic business world and the stiff competition with rivals. According to Loudon and Loudon (2007) the management information system is a mixture of elements that collect, process, store and distribute information to help decision making and control support decision makers, staff and customers to coordinate, control, analyze and visualize issue while the business activities are being realized. Tan and Payton (2010) define that management information system is an integrated, user machine system providing information to support operations, management and decision making functions in an organization. Management According to Koontz and Weihrich (2010) the management is defined in terms of following five activities: 1: Planning: In this activity the goals and objective are pursued, when they will be achieved and how resources of personnel, equipments and time will be devoted to their achievement. 2: Organizing: Indentifying the activities required to achieve the purpose of the organization and establishing the structure and roles. 3: Staffing: Define the requirement of personnel for the job to be done and inventorying, appraising and selecting candidates for position, compensation and training. 4: Directing: orienting sub-ordinates, guiding them toward improved performance and encourage them to work with a zeal and confidence. 5: Controlling: correcting the activities of sub-ordinates and put them in a right direction for effective and efficient management (Oz & Jones 2008). Planning: Nagpal (2011) proposed the alignment of the management information system plan with the overall strategies and objectives of the organization. In requirements, the planning is solely based on the bottom up proposals. Although formal planning of information system seems to be widely practiced so this planning not consistently applied (O’Brien 2009). Sullivan (1985) has done the further evolution of current management information system planning practices. He surveyed many firms in order to evaluate the effectiveness of organization for the information requirements analysis method. He proposed that the success of the planning method depends on the level of information system diffusion and infusion in the organization. Diffusion refers to the degree to which the information technology has been disseminated or scattered throughout the firm. While infusion refers to the degree to which information technology has penetrated a firm in terms of importance, impact and significance. King (1985) thus suggests that evaluation of these planning systems must be performed within individual firms to comprehensively identify the associated cost and benefits. Organizing: Organizing typically deals with in term of the rules necessary for the successful employment for analysis, design and implementation methods and approaches. In some aspects, there is some work focusing on the overall organizational structure necessary for the successful assessment and adoption. Xiao (2007) suggests three stages for the requirement of data processing. In the first stage, the emerging technological possibilities are matched with user needs by data processing staff. In this stage technology is infused into the work activities of the small user groups. The final stage is inside diffusion that depends on the small groups of users to champion the new technology in other organizational groups. Russell (2008) identified major two approaches, which were assessment and adoption. An issue-driven strategy is a top-down approach while the technology driven strategy is a bottom-up approach. They also propose that when assessment and adoption were not consistently managed then an unplanned, opportunistic approach predominated. They identify six assessment and adoption phases i.e. awareness, interest, evaluation, trial, implementation and diffusion. As well as they also defined six rules i.e. users, influencers, deciders, gatekeepers, planners and sponsors. Controlling: Nolan’s stage model has become the most accepted as the description of how changes in organization system take place over time according to managing requirements. The stage model has the ability to align data processing control systems that encourage effective current and future use of computers (Nolan 1979). Gibson and Nolan (1974) expanded their descriptive model and added normative guidelines that reflected the appropriate mix of data processing accessibility and control. Change in technology is the primary driving force behind the growth of computing through the stages is probably overstated. The demand also influences the growth of computing. Increase in the external and external knowledge will lead to effective and efficient control on computing. The processes are not explained in the model by which knowledge is brought to bear on problems (Kling and Iacono 1976). Conclusion: This work explored the importance of Business Information System. Nature and purpose of the integration process for the BIM has been also explained. Importance of business information system for public as well as private sector is significant. Old as well as information communication technologies supported the business. Differences between two technologies have become blurred consequently. Role of ICT in the education field also highlighted the importance of information and communication technologies. Strengths of ICT dominate the weaknesses of the new information and communication technologies. Needs of business knowledge for managers and workers’ knowledge has been also focused along with the intelligence business process. In the final part of the paper, requirement for management of the business information system are given in details. Management, planning, organizing and controlling are the main concerning points for the management of business information systems. Few models are also included to support the changes overtime. References: Benyon-Davies, P (2009) Business Information Systems, Palgrave Macmillan, Basingstoke. Case, D. (2002) Looking for Information: A Survey of Research on Information Seeking, Needs, Behavior, (3rd Ed.). Emerald Group Publishing Ltd. Choo, C. (2005). The Knowing Organization: How Organization Use Information to Construct Meaning, Create Knowledge and Make Decisions, Oxford University Press. Cherifi, H., Zain, J., and El-Qawasmeh, E. (2011). 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