Business Information Systems Report: AI, Challenges, and Strategies

This report delves into the realm of Business Information Systems, particularly focusing on the integration of Artificial Intelligence (AI). It begins by defining business information systems and illustrating their relevance through the example of Bancone Golden Square restaurant. The report then explores the characteristics and implications of AI, followed by an analysis of organizational opportunities and challenges posed by AI implementation, including provability, data privacy, and data scarcity. The report also presents various strategies for addressing trust, responsibility, bias, fairness, inclusion, and environmental and socio-economic impacts within a business context. Furthermore, it outlines how these strategies contribute to overall business objectives, including marketing, competitor tracking, CRM, and integrated customer support solutions. The report concludes by emphasizing the importance of strategic planning in leveraging AI for enhanced business performance and achieving goals, such as a 15% sales increase.

Business Information
System

Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................3
Characteristics as well as implication of artificial intelligence.................................................................3
Task 2..........................................................................................................................................................4
Organisational opportunities as well as challenges posed by artificial intelligence.................................4
Task 3..........................................................................................................................................................6
a. Overview of business...........................................................................................................................6
b. Strategy for addressing trust and responsibility..................................................................................7
c. Strategy to acknowledge biasness, fairness and inclusion...................................................................8
d. Strategy for addressing environmental and socio-economic impact...................................................8
e. Business strategy and ways in which above strategies will contribute................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................12

Introduction
The interconnected procedures which make use of IT infrastructure within business firms for
generating as well as disseminating required data is referred to as business information system. It
is developed for supporting decisions that are related with firm and achieving their objectives
(Chan, 2015). To understand the concept of business information system, Bancone Golden
Square restaurant is taken in consideration which started their services from December 14, 2019.
They provide their customers with fresh pasta, cocktail bar and various other items on their
menu. This report comprises of relevance of Artificial intelligence at global context along with
this, opportunities which a firm can have and challenges related while implementing them in
context of AI. Furthermore, overview of business, strategies for addressing trust as well as
responsibility will be illustrated. In addition to this, various other approaches related with
fairness, inclusion, biasness, environmental social economic aspects are provided. Moreover, the
ways in which these strategies will contribute within business is also analyzed.
Task 1
Characteristics as well as implication of artificial intelligence
Simulation of human intelligence within machines which have been programmed for
thinking like humans as well as mimic actions carried out by them is referred to as artificial
intelligence. This denotes capability of digital controlled robots for performing tasks related with
intelligent beings (Cosenz, 2017). As per John McCarthy (father of Artificial Intelligence), the
engineering as well as science for making intelligent machines, especially intelligent computer
programs is referred to as artificial intelligence. Basically, here knowledge is imparted to
machines by which they act as a human being. Characteristics and significance of artificial
intelligence are mentioned beneath:
 Data ingestion: Artificially intelligent system that deals in large amount of information
even when it is a small firm. They are liable for storing multiple information related with
heterogeneous sources and this appears within system in simultaneous or synchronous
way (Greasley, 2017). As new businesses like Bancone Golden Square are increasing
exponentially at this point AI steps in. It is liable for gathering data, analyzing it and
proving that whether it is useful for all or not. For an instance, Elucify is an AI that is a
database for diverse business contacts.

 Imitates Human Cognition: The system is referred to artificial intelligent as it can mimic
or imitate ways in which human mind thinks as well as solve issues. AI attempts to
interpret environment and acts according to that. Till now it has been not attained but
scientists and developers are working to furnish theory of self awareness and mind of
artificially intelligent system. For an instance, Baidu is Chinese tech giant that is search
engine and works in Chinese language only (Features of Artificial Intelligence – The New Age
Electricity, 2020). This possesses a cloning tool which can clone voice through the
assistance of just 3-4 seconds of an audio.
 Futuristic: AI enabled systems have been designed for observing as well as reacting to
situations which prevails within the surroundings or market. It is not only liable for
perceiving environment but also take steps in accordance to them by taking into
consideration situations which may occur in future. The example of this can be a self-
driven car which is liable for recording speed of cars which are driven around as well as
executes identical speed patterns in traffic which is also denoted by neural network. For
an example BMW is a self driven car that is fully automated but driver possess the
control by requesting vehicle.
From above, it is clear that when firms will globally opt for making use of Artificial
Intelligence then outcome attained by them will be enhanced. Like AI driven vehicles can handle
most of situations by themselves (Hajiheydari and Zarei, 2013). This implies that various
unwanted situations through which environment, people or firm can have suffer lose can be
prevented.
Task 2
Organisational opportunities as well as challenges posed by artificial intelligence.
At present scenario, AI is not only confined to innovations within labs but also for their
potential to transform operations of business. But for this certain challenges have to be handled
before potential of this technology can be identified (Jarillo, 2013). In context of Bancone
Golden Square restaurant, challenges have been mentioned below:
 Provability: When Bancone will work on AI-based products, they cannot clearly
illustrate their vision as well as what they have attained by making use of AI techniques.
Employees can be doubtful with respect to this in terms of ways in which decisions are

being taken and whether they will be ideal or not. This leads to creation of confusion in
the minds of people and probability of mathematical uncertainty behind predictions made
by artificial intelligence will be unclear. Along with this, no one can prove that decision
made by this is adequate or not. But Bancone can opt for making use of explainable AI.
 Data Privacy & Security: Most of AI applications are dependent on huge amount of data
for learning as well as making intelligent decisions. ML (Machine Learning) is dependent
on data that is personal and sensitive in nature. These systems learn by information and
accordingly improvise themselves (Kim, 2015). Due to the organized learning ML
systems become vulnerable to identity theft and data breaches. For this GDPR (General
Data Protection Regulation) ensures that personal information is completed protected.
For this Federated learning can be utilized by Bancone restaurant which aims at
disrupting AI paradigm. Along with this it will ensure that Artificial intelligence is
created without creating an impact of confidentiality and security on data of users.
 Data Scarcity: Firms need to access huge amount of data but datasets which are
applicable for learning to AI applications are rare. But powerful machines need to be
trained on supervised learning (Labaki, Michael-Tsabari and Zachary, 2013). Such kind
of training needs labeled data which is an organized form which makes it easy for
machine to understand. But to this there is a limit and situations will become worse with
time.
These are some challenges which can be experienced by Bancone while making use of
artificial intelligence but along with this there various opportunities which can be utilized by
them. They are illustrated beneath:
 Marketing: Firms aim at enhancing their marketing budgets as well as emphasizing on
attainment of higher marketing strategies. Along with this, new firms like Bancone
oftenly looks for activities by which high return on investment can be attained. For this,
Bancone can opt for platform such as Acquisio which aids within management of
marketing operations via Facebook, Bing and Google Adwords. Furthermore, machine
learning will also lead to analyse live campaign data through assistance of sentimental
analysis (Artificial Intelligence Opportunities & Challenges in Businesses, 2019). Here,

regular bids will be carried out and overall marketing will be monitored for minimizing
time spent within tracking marketing campaigns.
 AI techniques for tracking Competitors: It is crucial for keeping track of what is being
done by rivals. But it is not practically feasible that business owners can review
competition due to busy schedules (Lim, 2017). For this, Bancone restaurant can make
use of tools such as Crayon for tracking their competitors by making use of channels such
as social media, websites as well as app. It will enable them to have a look at rivals
planning in terms of changes in prices, PR activities and alterations in message.
 CRM: They are liable for providing valuable insight which will aid within management
of communication with their prospective clients. When CRM is embedded with
functionalities of artificial intelligence then real time data analysis can be done for
furnishing predictions and recommendations depending on Bancone business processes
and customer data.
 Integrated Customer Support Solutions: Automated chat system allows small businesses
for scaling efforts made for customer services as well as make resources available for
carrying out critical interaction (Müller and Pfleger, 2014). For this, Bancone can make
use of customer service solution such as ChattyPeople or DigitalGenius for automation of
answers for questions raised by their customers. There is minimization within regular
time required for handling them.
Task 3
a. Overview of business.
Bancone Golden Square restaurant provides their customer with time to relax as eat and
can view chefs cooking their food. Their menu is inspired 20 regions of Italy along with this their
pasta is prepared via hand each day. The business information system which they can opt for is
marketing by making use of artificial intelligence. In terms of strategic position, it is a new firm
so they need to have appropriate strategies by which they can amplify their services and
marketing plays a critical role in this (No, An and Park, 2015). Performance objective set by
them is to have a 15% increase in their sales in coming year.

b. Strategy for addressing trust and responsibility.
While delivering services in a market it is important that workforce possessed by them is
well qualified not only in terms of education but also on moral and ethical grounds. It is crucial
for organisation like Bancone Golden Square restaurant to develop trust among employees as it
is a new firm and in case if things do not go well them it will become difficult for them to sustain
within evolving market (Paul, Yeates and Cadle, 2014). Certain strategies have been developed
by Bancone to develop trust and sense of responsibilities among employees. They are illustrated
below:
 Demonstrate Clear Vision: Individuals want to have something bigger and when
employees are part of formulation of mission, vision and directions, they can be aligned
to them easily. It will aid them to have a sense of responsibility and employees will give
their best to turn vision into actions.
 Practice Transparency: Effectual interaction and transparency goes together but this
does not imply that everything has to be shared each time. Basically, pertinent
information has to be communicated when it is required. Along with this, it is essential
that within Bancone information must be easily accessible as this will aid employees to
carry out their work in an affirmative manner without any kind of hindrance.
 Create open lines for interaction: Change is inevitable when Bancone will enhance then
it will become crucial to analyze day to day altering needs of employees for this open
lines for interaction must be developed (Saleem and et. al., 2019). For this high-level
view has to be maintained which will aid within spotting places in which support and
visibility is required. It will aid individuals to have a sense of responsibility as a
continuous support will be provided to them.
The strategies mentioned above will assist within developing trust and sense of
responsibility among employees. Along with this feedback can be taken from employees of
Bancone Golden Square restaurant through which they may easily speak about problems faced
by them. According to that firm can give revert to them so that their performance is not affected.
AI will provide an effective way through which interaction will become smooth.

c. Strategy to acknowledge biasness, fairness and inclusion.
The actions for supporting or opposing a peculiar person in a unfair manner is referred to as
bias. Such kind of activity creates a negative on employees like if a single person is appreciated
every time even when efforts made by them is less then it will lead to hamper performance of
other employees (Winnard and et. al., 2014). Thus, kind of activities has to be avoided by leaders
and management of Bancone Golden Square restaurant to have improvised performance of their
employees. Fairness implies impartial as well as just treatment without any kind of
discrimination or favoritism. This creates a sense of being valued as employees will be
appreciated for work done by them. Inclusion implies state or action fro including in a structure
or a group. Like different teams can be formulated within Bancone for delivering their jobs.
Strategies with respect to these aspects have been specified beneath:
 Be aware of unconscious biasness: Management of Bancone can educate their
employees and let them know impact created through unconscious bias. Along with this,
what actions reinforce bias will also be understood and each employee will be inspired to
review, question as well as carry out analysis towards potential biases as well as
assumptions.
 Interact significance of management of biasness: Employees within Bancone needs
training and tools for rendering guidance on actions to move forward. This will lead
employees to understand the impact which is being created by being bias and will
encouraged to avoid such kind of activities either in working environment or outside
(Zhang and Wen, 2015).
 Furnish training on diversity and inclusion: This will enable employees of Bancone to
acknowledge ways in which culture creates influence on working of people as well as
allow them to interact. This will include concepts related with communication style, time
and self0identity while dealing with conflicts.
Furthermore, by making use of artificial intelligence biasness can be eliminated as machines
will be responsible for carrying out process of decision making.
d. Strategy for addressing environmental and socio-economic impact.
It is important to fix the aspects which can hamper the way in which services are being
delivered by organisation (Chan, 2015). The environmental impact that will be created by

Bancone can be minimized by making sure that they eliminate minimized waste and it is
decomposed in an appropriate manner. The reason behind this is that if it is not handled in an
effectual manner then it will lead to various problems. Strategies formulated by Bancone are
illustrated below:
 Smart Disaster response: Artificial intelligence can analyze simulations along with real
time data it will aid Bancone to identify probable risk which is being caused by them on
environment. When machine mimic a human then decisions made will be precise and
accurate.
 Artificial Intelligence can be used for monitoring the operations carried out by firm and
analyse probable impact on environment. Like if at some place light is not required then
it has to be turned off (Cosenz, 2017). AI can be used for doing small activities which
will minimize additional cost of Bancone and also resources.
Socio-economic factors impacts ways of working like society of UK may not like
Chinese food so accordingly services have to be delivered. For this Artificial Intelligence will
render a effective way for predicting requirements of society and by carrying out market
analysis. The strategies which can be used by Bancone in this aspect are as follows:
 Strengthen value chain: By assessment of socio-economic influence, firms can analyse
loyalty, stability, capacity and performance for growth of their business (Greasley, 2017).
Artificial intelligence will be used for identification of vulnerabilities and opportunities
for addressing them.
 Improvise business enabling environment: AI is used for analyzing socio-economic
impact which will aid Bancone to show to policymakers illustrate ways in which business
activities contributes in attainment of public policy goals. Here, appropriate incentives,
public services and rules will be formulated through which business contributions can be
enhanced.
e. Business strategy and ways in which above strategies will contribute.
Aggregation of decisions as well as actions which are carried out by businesses for
accomplishment of their goals and attain competitive edge within market is referred to as
business strategy (Hajiheydari and Zarei, 2013). Bancone has decided to opt for artificial

intelligence as it yields affirmative results in context of ways in which operations are being
carried out by them. The decisions taken by machine can be considered as appropriate as there
will be impartiality and each employee will treated identically. This will lead to eliminate
conflicts associated with discrimination and favoritism (Jarillo, 2013). Along with this,
marketing analysis will also be conducted in an efficacious way by monitoring alterations which
are brought by their competitors either in prices, services or offers given to them. This will aid
Bancone to have competitive edge in marketplace.
The above section illustrate business strategy which is opted by Bancone while delivering
their services in market of UK. Effectiveness of this strategy can be anlysed by looking at crucial
aspect which can be attained by firm through usage of AI, they are shown below:
 Reduction within human errors: Human makes mistakes but machines do not do when
they programmed in appropriate way. Through AI decisions will be made for Bancone
will be made by taking into consideration previous data (Kim, 2015). It will lead them to
minimize or eliminate mistakes which were made by them in those decisions.
 Assist within Repetitive tasks: As Bancone is a new restaurant so it becomes important
for them to carry out their tasks on time as well as with high preciseness. This makes it
crucial for firm to have something like AI which will aid them to carry out repetitive
tasks. Like sending email for customers who visited them, monitoring comments made by
them on their website and various other aspects.
In this way Artificial intelligence, business strategy of Bancone Golden Square restaurant
will lead them to have enhanced performance and attain their goals on stipulated time frame.
Furthermore, Bancone can mix up their teams as diverse cross-section within talents will aid
within amplified perspective that will assist to bring in creativity while serving in Bancone
restaurant. This will also lead to have value within their experiences that will encourage novel
thinking as well as formulating connections in distinct ways (Labaki, Michael-Tsabari and
Zachary, 2013).
Conclusion
From above it can be concluded that, business information system is applicable to dynamics
of business environment and must be flexible through which they firms can absorb inevitable

alterations within. Artificial Intelligence is defined as ability of systems for copying or mimic the
intelligence possessed by humans. The systems have enhanced capabilities which will make it
easier for firm to deliver their services. For an instance, intelligent cars, marketing and various
other activities can be carried out in affirmative way. But while implementation certain
challenges will be faced such as effectiveness of decisions made cannot be analyzed. This will
also provide various opportunities. Apart from this, certain strategies have been developed
through which trust and responsibilities can be developed among employees like effectual
interaction will lead to understand perspective of both. Furthermore, strategies related with
inclusion, bias, fairness, environmental & socio-economic aspects are also developed so that any
factor do not create a problem for firm to deliver their services within the market.

References
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https://data-flair.training/blogs/features-of-artificial-intelligence/ >.