INTRODUCTION TO

INFORMATION SYSTEMS

Safia Bal-Bourai
s_bourai@esi.dz

2CP 2024-2025

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Chapter 3: Introduction to
Business
Information Systems

Electronic commerce and

Enterprise systems

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Objectives:

− Understand the different categories of Business

Information Systems utilized within contemporary
organizations.
− Evaluate the impact of Business Information Systems
on organizational processes and decision-making.

Content:
- What is a Business information
System?
- E-Commerce
- Enterprise Systems

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 What is a business information
system?
A business information system is a group of
interrelated components that work
collectively to carry out input, processing,
output, storage and control actions in order to
convert data into information products that
can be used to support forecasting, planning,
control, coordination, decision making and
operational activities in an organization.

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 Key Resources for Business
Information Systems
• People resources
• Hardware resources
• Software
• Communications resources
• Data resources

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 E-business
As defined by the European Commission:
The term ‘’e-business’’ covers both e-commerce (buying
and selling online) and the restructuring of business
processes to make the best use of digital technologies.
According to former IBM CEO Lou Gerstner:
E-business is the process of using Web technology to
help businesses streamline processes, improve
productivity and increase efficiencies. Enables
companies to easily communicate with partners,
vendors and customers, connect back-end data
systems and transact commerce in a secure manner.

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 E-business areas
Three areas of business are enhanced by adopting an e-
business approach. These are:
 Production processes: including procurement,
ordering stock, payment processing, links with
suppliers and production control.
 Customer-focused processes: including marketing,
selling via the Internet, customer support and
processing of customer orders and payments.
 Internal management processes: including training,
recruitment, internal information sharing and other
employee services.

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 E-business and E-commerce
Electronic commerce (e-commerce) is the buying and selling,
marketing and servicing of products and services via
computer networks. Since e-business includes the process
of transacting with suppliers and customers
Although the terms ‘’e-business’’ and ‘’e-commerce’’ are
often used synonymously, the distinction between them
lies in the broader range of processes in e-business that
incorporates internal transactions within an organization.
These include transactions relating to procurement,
logistics, supply chain management, payments, stock
control and order tracking.
As Chaffey (2004) notes, e-commerce can best be conceived
as a subset of e-business. Where the two concepts overlap
is in the buying and selling of products and services.

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 E-Commerce

https://www.jumia.com.dz/
How do you think jumia.com.dz
has impacted the life of some
Algerians?

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 What is E-Commerce?
• Electronic commerce (e-commerce) is a
general term for any type of business or
commercial transaction that involves the
transfer of information across the Internet.

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E-commerce business models

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 Types of E-commerce
General e-commerce categories:
• Business to Consumer (or B2C) e-commerce
• Business to Business (or B2B) e-commerce
(sometimes called e-procurement)
• Consumer to Consumer (or C2C) e-commerce

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 B2C e-commerce
Business to Consumer (B2C) e-commerce
Businesses sell products or services to
individual customers (consumers).
• Example:
Walmart.com sells merchandise to
consumers through its Web site:
www.walmart.com

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 B2B e-commerce
Business to Business (or B2B) e-commerce (sometimes called e-
procurement). Businesses sell products or services to other
businesses.
• Example:
Grainger.com sells industrial supplies to large and small businesses
through its Web site: www.grainger.com

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 C2C e-commerce
Consumer-to-consumer (or C2C) e-commerce
Participants in an online marketplace can buy and sell
goods with each other.
• Example: Consumers and businesses trade with each
other on eBay.com: Web site: www.ebay.com

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Bayer’s perspective

• Realizing a need
Seller’s Perspective
• Researching a
product
• Market Research
• Selecting a vendor
• Product/Service Production
• Providing payment
• Marketing and advertising
• Accepting delivery
• Payment support
• Using product
support • Delivery After-sales support
Consider how these activities
are supported in e-commerce.
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 What are the advantages of e-
commerce?
• Increasing sales and decreasing cost
• Saving time and effort.
• Freedom of choice.
• Allowing small businesses to have global
customer base
• Purchasing opportunities for buyers (businesses
can identify new suppliers and partners)
• Improving the speed and accuracy of information
exchange
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 What are the disadvantages of E-
commerce?
• Inability to sell some products
• Rapid evolution of emerging technologies
• Dependence of product viability on a large
customer base
• High capital investment

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 E-commerce applications
• Retail E-Commerce
E-tailing has dramatically influenced the way
people shop by providing customers with product
information and the ability to comparison shop.
• B2B Global Supply Management
Global supply chain management (GSM) provides
methods for businesses to find the best deals on
the global market for raw materials and supplies
needed to manufacture their products.
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 E-commerce applications
•Electronic Exchanges
An electronic exchange is an industry specific
Web resource created to provide a convenient
centralized platform for B2B e-commerce
among manufacturers suppliers and customers.

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 E-commerce applications
• Marketing
The Web is used for unsolicited advertising,
solicited product information, and market
research and consumers.
• Banking, Finance and Investment
Many banking, finance and investment
transactions now occur online.

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 Key Elements for an E-commerce Site

• Competitor analysis

• Specifications document

• Product sheets

• Payment methods

• Delivery options

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 M-commerce
Mobile commerce (m-commerce) involves
selling goods or services, any time and
anywhere, via wireless technology, such us
tablets and smartphones.

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Enterprise systems

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Decision Information systems

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 Decision Information systems
For an organization to operate efficiently, its
activities must be carefully planned and
monitored based on well-informed decisions. In
this context, Business Information Systems (BIS)
play a crucial role in supporting various types of
decision-making processes.

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Decision behavior

Figure 1 Decision characteristics

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 Decision behavior

Structured decisions tend to involve situations where the

rules and constraints governing the decision are known.
They tend to involve routine or repetitive situations where
the number of possible courses of action is relatively small.

Unstructured decisions tend to involve more complex

situations, where the rules governing the decision are
complicated or unknown. Such decisions tend to be made
infrequently and rely heavily on the experience, judgment
and knowledge of the decision maker.
However, many decisions fall somewhere in between the two
extremes and are known as semi-structured decisions.
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 Levels of managerial decision making
The characteristics of the decisions taken in an organization vary according to
the level at which they are taken.

Figure 2. Levels of managerial decision making

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 Levels of managerial decision making
At the strategic level, managers are largely concerned with long-term organizational
planning. Decisions tend to be unstructured and are made infrequently.
An example : a choice of new markets to move into.
At the tactical level managers are largely concerned with medium-term planning.
Managers monitor the performance of the organization, control budgets, allocate
resources and set policies. Decisions taken at this level are used to set medium-
term goals that form stages leading to the accomplishment of the organization’s
strategic objectives.
An example: a departmental budget.
At the operational level managers deal with short-term planning and the day-to-day
control of the organization’s activities. The decisions taken at this level direct the
organization’s efforts towards meeting the medium-term goals, abiding by the
budgets, policies and procedures set at the tactical level. Operational decisions
tend to be highly structured and have little impact on the organization as a whole.
An example : a daily or weekly production schedule.

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Example of a decision-making dashboard

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Enterprise Resource planning

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Enterprise Resource planning

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ERP El motakamel PLUS

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ODOO

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 Benefits of ERP
• Streamline processes, thereby increasing organizational agility
•Enhance organizational efficiency by reducing the number of
systems in use
•Increase data visibility and opportunities for data analysis,
including the possibility of accelerated reporting in real-time
•Standardize operations across the enterprise by centralizing
data and ensuring consistent workflows
•Ensure greater data security through centralization, access
controls and audit trails
•Improve productivity by automating tasks and reducing manual
data entry

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 Types of ERP systems

There are several types of ERP systems, including:

• On-premise ERP systems: These systems are
installed and run on your company's servers and
computers.
• Cloud-based ERP systems: These systems are
hosted by a third-party vendor and accessed via
the internet.
• Hybrid ERP systems: These systems are a
combination of on-premise and cloud-based ERP
systems.
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Customer Relationship Management

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CRM: Customer Relationship Management

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HubSpot

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Product Life cycle Management

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 Product Lifecycle Management (PLM)
• Product lifecycle management is the process of
managing a product’s complete lifecycle from
start to finish.
• PLM software is an application used to manage
and integrate data related to this whole life cycle.
• It can manage product-related data and combine
it with ERP, Computer Aided Design (CAD) , etc.

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Product Lifecycle Management (PLM)

Figure 3. Scope of Plm Software Market

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Jira Software

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 Benefits of Product Lifecycle
Management Software

• Product output will get increased.

• The quality of the product will improve.
• The most important benefit is, that it will
accelerate the whole process.
• It helps in increasing revenue.
• Centralized data management.

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 Conclusion
Business Information Systems (BIS) play a key role in improving
organizational performance by centralizing data and
automating processes. The integration of systems such as e-
commerce platforms, ERP, CRM and PLM enhances efficiency,
customer engagement and innovation. Their combined use
strengthens productivity and competitiveness, provided there
is a clear strategy, effective technological integration and
proper change management.

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