COMPUTER BASES INFORMATION SYSTEM: SIGNIFICANCE AND TYPES

 



COMPUTER BASES INFORMATION SYSTEM: SIGNIFICANCE AND TYPES

Introduction: An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.

A Computer-Based Information System (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks. Such a system can include as little as a personal computer and software. Or it may include several thousand computers of various sizes with hundreds of printers, plotters, and other devices, as well as communication networks (wire-line and wireless) and databases. In most cases an information system also includes people.

Components of CBIS

• People ((end users and CBIS specialists)

• Hardware (Physical computer equipments and associate device, machines and media)

• Software (programs and procedures)

• Database, and

• Networks (communications media and network support)

Types of CBIS

1. Transaction Processing Systems: The most fundamental computer based system in an organisation pertains to the processing of business transactions. A transaction pro sing system can be defined as a computer based system that captures, classifies, stores, maintains, updates and retrieves transaction data for record keeping and for input to other types of CBIS. Transaction Processing Systems are aimed at improving the routine business activities on which all organisations depend. A transaction is any event or activity that affects the whole organisation. Placing orders, billing customers, hiring of employees and depositing cheques are some of the common transactions. The types of transactions that occur vary from organisation to organisation. Transaction processing systems provide speed and accuracy and can be programmed to follow routines without a any variance.

2. Management Information System: Data processing by computers has been extremely effective because of several reasons. The main reason being that huge amount of data relating to accounts and other transactions can be processed very quickly. Earlier most of the computer applications were concerned with record keeping and the automation of routine clerical processes. However, in recent years, increasing attention has been focused on computer applications providing information for policy making, management planning and control purposes. Management Information System are more concerned with management function. MIS can be described as information system that can provide all levels of management with information essential to the running of smooth business. This information must be as relevant, timely, accurate, complete and concise and economically feasible.

3. Decision Support Systems: It is an information system that offers the kind of information that may not be predictable, the kind that business professionals may need only once. These systems do not produce regularly scheduled management reports. Instead, they are designed to respond to a wide range of requests. It is true that all the decisions in an organisation are not of a recurring nature. Decision support systems assist managers who must make decisions that are not highly structured, often called unstructured or semi-structured decisions. A decision is considered unstructured if there are no clear procedures for making the decision and if not all the factors to be considered in the decision can be readily identified in advance. Judgement of the manager plays a vital role in decision making where the problem is not structured. The decision support system supports, but does not replace, judgement of manager. 

4. Office Automation Systems: Office automation systems are among the newest and most rapidly expanding computer based information systems. They are being developed with the hopes and expectations that they will increase the efficiency and productivity of office workers- typists, secretaries, administrative assistants, staff professionals, managers and the like. Many organisations have taken the First step toward automating their offices. Often this step involves the use of word processing equipment to facilitate the typing, storing, revising and printing of textual materials. Another development is a computer based communications system such as electronic mail which allows people to communicate in an electronic mode through computer terminals. An office automation system can be described as a multi-function, integrated computer based system that allows many office activities to be performed in an electronic mode.

Significance of CBIS

• Decrease in information processing costs; For example, the elimination of unnecessary procedures and document.

• The decrease in operating cost; For example, a reduction in inventory carrying a cost.

• Increase operational ability and efficiency; For example, Improvement in production ability and efficiency.

• New or improved information availability: For example, More timely and accurate information and new types of information.

• Improved abilities in computation and analysis; For example, analytical modeling.

• Improved customer service; For example, a more timely service response.

• Improved employee morale; For example, Elimination of burdensome boring job tasks.

•  Improved management decision making; For example, better information and decision analysis.

 E-COMMERCE AND DIGITAL MARKETING: BASIC CONCEPTS, BENEFITS AND CHALLENGES

 Electronic Commerce (e-commerce)

Electronic Commerce or e-commerce means buying and selling of goods, products, or services over the internet. Services like transaction of money, funds, and data over the network are also considered as e-commerce. The standard definition of e-commerce is any commercial transaction which has happened over the internet. Online stores like Amazon, Flipkart, Ajio, Myntra, eBay, Quirk, Olx are examples of E-commerce websites. As of now, e-commerce is one of the fastest growing industries in the global economy. As per one estimate, it grows nearly 23% every year.

Types of E-Commerce Models

Electronic commerce can be classified into four main categories. The basis for this simple classification is the parties that are involved in the transactions. So the four basic electronic commerce models are as follows:

1. Business to Business: This is Business to Business transactions. Here the companies are doing business with each other. The final consumer is not involved. So the online transactions only involve the manufacturers, wholesalers, retailers etc, e.g.. Amazon Business, Flipkart wholesale.

 2. Business to Consumer: Here the company will sell their goods and/or services directly to the consumer. The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Ajio etc.

3. Consumer to Consumer: Where the consumers are in direct contact with each other. No company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics etc. OLX, Quirk etc follow this model. 

4. Consumer to Business: This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company. Say for example an IT freelancer who demos and sells his software to a company. This would be a C2B transaction.

Advantages of E-Commerce

• E-commerce provides the sellers with a global reach. They remove the barrier of place (geography). Now sellers and buyers can meet in the virtual world, without the hindrance of location.

• Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin of profit.

•  It provides quick delivery of goods with very little effort on part of the customer. Customer complaints are also addressed quickly. It also saves time, energy and effort for both the consumers and the company.

•  One other great advantage is the convenience it offers. A customer can shop 24x7. The website is functional at all times, it does not have working hours like a shop.

• Electronic commerce also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions. It also gives a valuable personal touch.

Disadvantages of E-Commerce

• The start-up costs of the e-commerce portal are very high. The setup of the hardware and the software, the training cost of employees, the constant maintenance and upkeep are all quite expensive.

• Although it may seem like a sure thing, the e-commerce industry has a high risk of failure. Many companies riding the dot-com wave of the 2000s have failed miserably. The high risk of failure remains even today.

• At times, e-commerce can feel impersonal. So it lacks the warmth of an interpersonal relationship which is important for many brands and products. This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewelry business.

• Security is another area of concern. Only recently, we have witnessed many security breaches where the information of the customers was stolen. Credit card theft, identity theft etc. remain big concerns with the customers.

• Then there are also fulfillment problems. Even after the order is placed there can be problems with shipping, delivery, mix-ups etc. This leaves the customers unhappy and dissatisfied.

 Digital Marketing

Digital Marketing is a term defined to achieve your business objectives and goals using the online channels that include but are not limited to search engines, social media platforms, content creation & advertising in order to educate, engage & market your product or service to potential buyers. Digital has become a part of our existence. From shopping apparel to groceries, furniture & getting laundry delivered everything is online. With this new shift, marketers did not waste anytime and quickly adapted to use social media & other digital tools to push & pull the consumer which gave birth to Digital marketing.

Digital Marketing can be understood as a well-targeted, conversion-oriented, quantifiable, and interactive marketing of products or services by utilizing digital innovation to achieve the customers, and transform them into clients in a sustainable fashion. The whole concept and functionalities of Digital Marketing are more competent, effective, result-oriented and measurable, which make it very different from traditional marketing.

Digital Marketing is a great way of increasing brand awareness, customer engagement and long- term loyalty and generating a short-term boost in sales, despite the fact that every digital marketing campaign is different in their own ways, the reality is that many of them are built on common basics and a few key elements. Successful Digital Marketing Campaign requires a lot of time following through.

analytics and data to find insights. The use of digital marketing for a successful enterprise can be achieved through following tools:

• Getting a Quality Company Website

•  Social Media Presence

• Blogging and Forums

• Email Marketing

•  A Dedicated Digital Marketing Expert

Objectives of Digital Marketing: No matter the size of your business, digital marketing is the most effective way to grow and achieve your goals which could vary from any of the following:

• Increase revenue

• Build brand awareness

• Market your product or service

•  Decrease cost

• Improve efficiency

• Increase productivity

• High return on investment

• Identify loyal customers

• Educating & engaging with potential users

• Increase website traffic

• Providing valuable information

• Building trust

• Customer reviews

• Grow online community

Advantages of Digital Marketing

Marketers today are applying digital marketing tactics to reach to the consumers & here's why you should use digital marketing for your business too:

1. Cost Effective: Digital marketing is economical and most effective way to promote your business as compared to traditional marketing. With limited budget you can create content & start your campaign.

2. Real time results: The moment your ad is live, you can view the performance. Additionally edits can be done in real time. This way you can understand the situation and take necessary action

3. PPC: PPC stands for Pay Per Click. It is a model where the advertiser pays the publisher each time their ad is clicked. Google Ads is the best and easiest platform for PPC.

4. Targeting: In case of traditional marketing there is no way to determine the number and the type of people who saw your billboard. With digital marketing it is not easy to target audience based on their interest, location, behaviour etc. You can create an audience based on your business model and push your ad to the right consumers.

5. Measurable results : Be rest assured about the analytics and reports through digital marketing. You will get the most accurate & realistic data that will help you in reaching your goals as well forecast your future sales

6. Easy Interface: Setting up ad accounts, building a website, managing social media have become straightforward and clear-cut with easy user interface.

Disadvantages

1. Privacy/security-Privacy is one of the biggest concern when it comes to Digital channels. When you click on a product on an ecommerce website, you see the same product following you in most of the website/social media channels (remarketing/retargeting) This is done through cookies. As an Internet user, being aware of how this is targeted will help a user.

2. Ad blockers-Ad blocking or ad filtering is a type of software that can remove or alter advertising content from a webpage, website, or a mobile app.