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Information System Definition

“Information system is set of people, information technology, and business process in order to achieve a business objective.”

Information systems are a set of interconnected elements working together to collect, process, store, and distribute information to help coordination, visualization in an organization, analysis, and decision-making.

The Information system can be defined as a collection of software, hardware, and telecommunications network that people develop and use to gather, create, and distribute useful data, mainly in organizational settings.

In other words, an information system means a collection of interrelated components which work together to gather, process, store, and break down the information to help decision making.

Dimensions of an information system

There are various dimensions of an information system:

1. Organizational dimension
2. Management dimension
3. Technology dimension

Let’s discuss the above dimensions in detail:

1. Organizational Dimension

The information system is the organization’s part. The ordinary operating procedure and culture of an organization would be embedded in the information system. This includes the following:

• Business processes
• Political interest groups
• Functional specialties
• Cultured

2. Management Dimension

In today’s world, managers face business challenges. Information systems provide managers with the tools and information they have to plan, manage, monitor their work, make decisions, develop new goods and services, and make long-term tactical decisions.

3. Technology Dimension

Management makes use of technology to fulfill their duties. It contains- computer hardware and software, networking/telecom technology, and data management. It’s one of the many strategies a manager can use to deal with changes. Organizational levels, processing, system goals, mode of data and type of support provided are used to classify information systems.

Types of Information System

The types of information systems are as follows:

1. Transaction Processing System (TPS):

• The term “transaction processing system” refers to an information system that processes data are originating from business transactions.
• The primary purpose of a transaction processing system is to offer transactions to update records and produce reports required for storekeeping.
• Online Transaction Processing and Batching Processing are the methods which we used to complete the transaction.
• Examples of transaction processing systems are Stock control systems, Payroll systems, Bill systems.

2. Management Information System (MIS):

• The purpose of a management information system is to transform comparatively raw data accessible through using Transaction Processing System into a summarized and aggregated form for managers, generally in the form of a report. Operational supervisors and middle management are likely to use the reports.
• In MIS, there are various kinds of reports generated. Few reports are a kind of summary report, ad-hoc reports, exception report, and on-demand report.
• Examples of Management Information System are Human resource management system and Sales management systems.

3. Decision Support System (DSS)

• Another type of information system is a decision support system. It is interactive, which offers information, data manipulation tools, and models to support decision-making in a semi-structured and unstructured scenario.
• This type of information system includes tools and techniques to help gather relevant information and examine options, and substitutes, the end-user being more elaborate in making DSS than MIS.
• Examples of Decision Support System: Bank loan management systems, financial planning systems.

4. Experts System

• The expert system contains expertise which is helpful for a manager in identifying problems or in problem-solving. The principles of artificial intelligence research are used to develop these kinds of information systems.
• This type of information system is a knowledge-based system. It acts as an expert consultant to users by utilizing its knowledge of a specific area.
• There are some components of expert systems such as Knowledgebase and software modules. These modules make inferences based on knowledge and provide answers to a user’s query.

Components of Information System

There are various components of an information system:

1. Hardware
2. Software
3. Data
4. Procedures
5. People
6. Feedback

Let’s discuss the above components in detail:

1. Hardware

Hardware means equipment and machinery. This category encompasses the computer and all of its supporting equipment in modern information systems. The supporting devices contain input and output devices, communication devices and storage device. Hardware in pre-computer information systems may contain ledger books and ink.

2. Software

In an information system, software means computer programs as well as the manuals which support them. Computer program means the machine-readable instructions that tell circuitry in the system’s hardware to work to generate helpful information from the data. In most cases, programs are stored on an input/output medium, such as a tape or disk. The software which is for pre-computer information systems comprised instruction for using them means the guidebook for a card catalog and the information regarding how the hardware was configured for use such as columns headings in the ledger book.

3. Data

Data means facts that systems use to generate valuable knowledge. Data is usually stored in machine-readable form on tape or disk until the computer requires them. The data in pre-computer information systems is usually stored in a human-readable format.

4. Procedures

Procedures mean rules which govern how an operation is performed in information system. “Procedures are for people what software is for hardware” is a general analogy that we used to clarify the importance of procedures in a system.

5. People

Every system requires individuals if the system is to be beneficial. People are often the most neglected part of the system, and they are possibly the factor that has the greatest impact on the success or failure of information systems.

This contains clients, yet additionally the individuals who operate as well as service the computers, those who support the network of computers, and the individuals who keep up the information.

6. Feedback

Another component of an information system is feedback, which determines that an information system can be offered with feedback. However, this component is not needed to function.

Advantages of Information System

There are various advantages of the information system:

• Communication
• Availability
• Creation of new types of jobs
• Globalization and cultural gap

Communication

Using information technology, instant messaging, emails, voice, and video calls, communication become inexpensive, faster, and effective.

Availability

With the help of the Information system, it is possible for businesses around the world to be open around the clock. This implies that a business can be open anytime, anyplace, making buys from various nations simpler and more helpful. It likewise implies that you can have your products delivered right to your doorstep without making more effort.

Creation of New Types of Jobs

The creation of new and exciting jobs is another advantage of the information system. We can create various opportunities using IT such as computer programmers, Hardware and Software developers, Web designers, and Systems analyzers.

Globalization and Cultural Gap

We may reduce semantic, Geological, and some social constraints by implementing an information system. Sharing data, information, knowledge, communication, and connections between different nations, societies, and dialects are a lot easier.

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