Business Information Systems: Understanding, Rules, Components, Resources and Types

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Written By Adelia Davira

Lorem ipsum dolor sit amet consectetur pulvinar ligula augue quis venenatis. – Definition of Business Information System

The definition of a business information system is before discussing business information systems, which is the main topic in this article, we will first discuss information systems one by one and what is meant by business.

Information system is a combination of information technology and the activities of people who use it to support operations and management. Meanwhile, business is an attempt to sell goods or services carried out by a person, individual or even an organization to consumers and is intended to gain profit.

It can be concluded that a business information system is a collection of information technology that has unity with one another and is intended for the benefit of selling products or services (business). The existence of this business information system is of course very vital and will not be separated from the activities of business people. There are still many interesting things to discuss about this business information system and you can see the review below.

Basic Rules of Business Information Systems

There are 3 basic rules for business information systems that must be obeyed by business people to support success. The three rules are as follows:

1. Support for business processes and operations

Support for business processes and operations is a rule that must be applied to the running of a company’s business because it will greatly affect the performance and good or bad quality of the company.

2. Support for decision making by employees and managers

Furthermore, no less important is support for decision making by employees and managers. Decision-making from these two aspects greatly affects the quality of the company even though they serve as employees.

3. Support strategy for competitive advantage

And the last is strategic support for competitive advantage which is one of the vital things because it greatly influences the course of a company’s business. It is undeniable that when building a business, one of the risks that must be faced is competition, therefore the need for these basic rules.

Business Information System Components

There are 4 main components needed in running a business information system, which include technology, application, development and management. An example of the role of technology in a business information system is the use of computer networks to support information processing both hardware and software.

In the form of an application, this is what we often see everyday in the form of e-commerce. The use of e-commerce or internet-based sales applications will never be separated from business activities in today’s modern era.

In addition, there is also one important component of a business information system, namely development. The point here is to develop the use of information technology in business to support the progress of the company. And the last component is management. Its application includes managing technology to support an emphasis on quality, strategic business value and in terms of the security of the system used.

Business Information Systems Resources

Definition of Business Information Systems and Its Components. Supporting resources in a business information system, but in general there are 5, namely human resources, hardware, software, data and network. For a full review of each, see below:

1. Human resources

Human resources consist of two parts, namely Users (users) and Experts (developers). Users are human resources who are in a position as users of information systems, for example customers, managers, operators, accountants and others. Whereas Experts are human resources in charge of developing information systems, for example, a system analyst, software maker and others.

2. Hardware resources

Hardware resources consist of hardware or equipment that is physically owned and used in processing business information systems that are run.

3. Software resources

Software resources consist of 3 parts, namely system software, application software and procedures. System software can be likened to an operating system that is on a computer, while application software is a program that directly processes every task from a computer user, for example, a sales application. Procedures are a form of operating orders for information system users, for example data entry procedures.

4. Data resources

Data resources discuss meregarding data in a business process such as product descriptions, customer records, personnel files, and inventory databases and much more depending on the type of business.

5. Network resources

These network resources tend to be more towards communication such as communication media, communication processors and software for network access and control in an information system.

Types of Business Information Systems

Sales and marketing system, namely the function responsible for selling products or services of a company/organization. Much is considered in marketing such as product introduction, customer needs, advertising and much more.

The manufacturing and production system is a function that is responsible for managing the production activities of the company’s goods or services so that they are as desired. This system is closely related to aspects such as the availability of production materials, production targets, procurement, storage, and others.

The human resource system, also called the human resources information system, is responsible for building, developing and maintaining the company’s workforce. This system supports activities such as identifying potential employees, recording complete employee data and others.


The financial and accounting system is responsible for managing company finances such as cash, bonds, stocks and other forms of investment. Examples of the application of this system are in the management of financial records, receipts and payments, payroll and many more.

That is an explanation of the meaning of business information systems along with the rules, components and other matters related to business information systems. Hopefully the above article is useful and easy to understand!

Hello, my name is Keyla Verminton usually called Keyla. I am a professional writer on several sites, one of which is this blog.

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