February 23, 2013
Information is vital to any business. In the past, information was kept primarily on paper and it was easy to control the flow and access to sensitive company information. In today’s business environment, information is passed instantly via computers, tablets, and smart phones and is used in a multitude of ways. There are so many methods of information management available that controlling the flow and security has become a real challenge.
There are multiple ways that information can be used in an organization. A transaction processing system (TPS) is a core system whose primary function is to collect data, process the data, and generate output based on desired information. Think of a TPS as a funnel. Raw data is poured in the top, and structured and useful information is trickled out of the bottom. A good example of a TPS system would be an airline booking system. Customers navigate the website choosing flights and seats, the computer updates the website with the selection and shows whether choices are available or unavailable, and then generates a receipt and an e-ticket.
Another type of information system is a customer relationship management (CRM) system. A CRM’s primary job is to manage customer information and interactions with a company. The resulting information allows a company to build deeper relationships with their customers and allows targeted marketing which in turn drives sales growth. A good example would be a customer support section of a store’s website. The website will receive, track, and provide outbound information when the company responds to the customer’s specific issue. Recently, a surge towards social CRM has been seen by companies taking their customer relations services to the social media realm. Customers can now interact with service departments via Twitter, Facebook, and other media outlets.
Companies use a business intelligence system (BIS)...