Have someone ever imagine how bank ATM machines provide you secure info about your bank account or a real-time interactive touch-screen flight stat machine on airport? In terms of business and engineering it’s known as information system (IS). Business Information system is a set of interrelated component (Departments or might be technical hardware) that collect (Input), manipulate it based on the knowledge (Process) and disseminate information (Output) and this information provides corrective reactions on business organization. Information is a single variable which enables the most powerful strategic decision making and in spite of raw data and business/technical knowledge it also requires accuracy, accessibility, flexible, economical, relevant, reliable, secure, simple and timely. Information system are used in almost every possible occupation and organization. Small business owners use information system to reach customer or sales representatives use information systems to advertise product and communicate with customer and analyze purchasing trends. At organizational level the main IS assist companies to cut costs and increase profit in simple business language. Technically, it simply provides easy access for every person working in organization to manage, access and create business records.
In 21st century as internet and social networking dominate public domain more than throughout history; information system became a crucial part in dealing with current inter-connected world business. It’s important for business organization to develop and manage most reliable Information system (IS) in order to expand business, reach new customers, marketing future products and investing in new projects. For example a new Information system for a startup cost $20,000 but it powers to generate additional $30,000 in terms of sales. So now the question rises what are the challenges for developing Business Information System for an organization?
In order to develop Business Information System, professionals require knowledge to turn raw data into information process which is set of logically related tasks perform to achieve well-defined and organized information. These professionals usually in science, engineering, business and other areas; are people who create, use and spread knowledge which are known as Knowledge Workers (KW). For example Part of the knowledge you need to build a railroad layout, for instance, is the understanding of how much space you have for the layout, how many trains will run on the track, and how fast they will travel. Selecting or rejecting facts according to their relevancy to particular tasks is based on the knowledge used in the process of converting data into information. An organized collection of people, procedures, software, databases, and devices used to create, store, and use the organization’s knowledge and experience which commonly known as knowledge management system (KMS).
In order to accomplish knowledge management system (KMS), engineers seek to develop a System Concept (SC) which defines set of elements or components (Software, Hardware and regulatory power) that interact to accomplish goals. The elements themselves and the relationships among them determine how the system works. Systems have inputs, processing mechanisms, outputs, and feedback. After finalizing system concept, Engineers and data scientists analyze the system performance as following:
• Efficiency is a measure of what is produced divided by what is consumed. It can range from 0 to 100 percent.
• Effectiveness is a measure of the extent to which a system achieves its goals. It can be computed by dividing the goals actually achieved by the total of the stated goals.
• System performance standard, a specific objective of the system.
These above variable tools provide foresight for developing near-absolute computer-based information system (CBIS). A computer-based information system (CBIS) is a single set of hardwares, softwares, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. From corporate prospect CBIS reduces time in process and manual information handling. It reduces paper transactions, insure a secure medium for sharing need-to-know basis information within organization, which provides favorable advantage to Information Privacy of organization, employees and customer.
From deploying to provisioning computer-based information system (CBIS), I.T infrastructure specialists and developers work on various factors in order to experiment the effectiveness, security features and accessibility of information based on technological infrastructure as follows:
Computer equipment used to perform input, processing, and output activities.
The computer programs that govern the operation of the computer.
An organized collection of facts and information.
The electronic transmission of signals for communications; enables organizations to carry out their processes and tasks through effective computer networks.
Computers and equipment that are connected in a building, around the country, or around the world to enable electronic communications.
The strategies, policies, methods, and rules for using a CBIS.
The world’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information.
Even developing CBIS based infrastructure can be a challenge for professionals in terms of judging ethical issues of information handling. Ethical issues concern what is generally considered right or wrong, however insecurity that this increased usage can lead to problems, including hacking and gaining sensitive corporate information. The speed and widespread use of information system externally open user to variety of threats from hackers. According to a new cyber security research about 70% to 50% of corporate security attacks comes from people within a company. This might lead developers and cyber security experts to encounter bugs and improve security features of information system during developing system infrastructure as discuss above. For example, this could be security clearance of staff working on IS, or physical security of equipment. Technically almost majority of business information systems are managed through firewalls and Virtual Private Network (VPN) as precaution for avoiding unauthorized Access externally via internet. For advance security layer, developer and security network engineers deploy intranet (Internal network that allows employees to exchange information within organization) and Extranet (Internal network that allows customers, business partners, selected individuals to access corporate resources of intranet). In response to possible abuses, a number of laws have been passed to protect people from privacy abuses, like Personal Information Protection and Electronic Documents Act (PIPEDA).
For big corporate business, one of the major challenge for developing a corporate business can be implement and designing of artificial intelligence in information system. Because designing ideal artificial intelligence requires maximum allocation of information created within the information in results of accuracy and efficiency. Use of robotic equipment in automobile industry and manufacturing of microchip has already revolutionized artificial intelligence in terms of efficiency as well as accuracy. There are six major elements of artificial intelligence which IS experts are focused while developing the Business information system:
Robotics may decrease labor cost, product manufacturing duration and human errors. This provide greater advantage in manufacturing products which might be difficult for human hands to manage and may also increase product quality.
Provide real-time information for handlers for rectifying any errors which commonly being ignored by human eyes. This system is mainly based on cameras and sensors used on assembly lines.
Natural Language Processing
Allowing computer to process human input based on typical graphical-user interface (GUI).
Integrated Learning System
Hardware/software solutions which allow employees to use different management tools and tutorial assessment for training.
Different terminal and access-points used by employees and customer to access Information system.
Group of different technical users who exchange and upgrade information system. This includes outsource contracts and third parties involvement.
These Artificial Intelligence elements helps Management Information System (MIS) and Enterprise System (ERP) to support information management and decision support system (DSS). A management information system (MIS) is an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers. In simple terms, the focus of a DSS is on making effective decisions. Whereas an MIS helps an organization “do things right,” a DSS helps a manager “do the right thing” within the limits of Business management system.
An Organization requires to build mechanism by which it constantly uses money, people, materials, machines and other equipment, data, and information in order to keep the profit margin up. On the other side, business information infrastructure uses to simplify business complexes and making decision making process easier and thirdly making every possible data as valuable information. With same prospect, the real challenge in developing information system is allocating resources and assets more accessible and useful. This includes human resources, financial resources, inventory resources or even information resources. Nowadays with real-time data transmission and remote operations as a plus feature in simple information system; this has revolutionized the trend in every industry through virtual organization concept. A virtual organizational structure uses individuals, groups, or complete business units in geographically dispersed areas. A virtual organization structure can reduce costs for an organization. According to the chief information officer of the outsourcing company Wipro, “The next big thing for my industry will be virtual delivery by global teams. This is an extension of the global delivery model for outsourcing, and it will allow virtual teams to work together more effectively.”
Another challenge for business developers is to implement the strategic technological infusion and diffusion as it can determine the actual usage of an information system. Technology diffusion is a measure of how widely technology is spread throughout an organization. An organization in which computers and information systems are located in most departments and areas has a high level of technology diffusion. Technology infusion, on the other hand, is the extent to which technology permeates an area or department. In other words, it is a measure of how deeply embedded technology is in an area of the organization. Diffusion and infusion often depend on the technology available now and in the future, the size and type of the organization, and the environmental factors that include the competition, government regulations, suppliers, and so on. This is often called the technology, organization, and environment (TOE) framework. How appropriate and useful the information system is to the tasks or activities being performed, often called Task-Technology Fit (TTF), can also lead to greater performance and proﬁtability.