Information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. From a sociotechnical perspective, information systems are composed of four components: task, people, structure, and technology. It can be defined as an integration of components for collection, storage, and processing of data of which the data is used to provide information, contribute to knowledge as well as digital products.
Information Systems are an academic study of systems with a specific reference to information and the complementary networks of hardware and software that people and organizations use to collect, filter, process, create and also distribute data. It may have a definitive boundary, users, processors, storage, inputs, outputs, and the aforementioned communication networks. It aims to support operations, management, and decision-making.
Components of Information Systems
It may contain the following components:
- Hardware: Computer-based information systems use computer hardware, such as processors, monitors, keyboards, and printers.
- Software: These are the programs used to organize, process, and analyze data.
- Data: Information systems work with data, organized into tables and files.
- Network: Different elements need to be connected, especially if many different people in an organization use the same information system.
- Procedures: These describe how specific data are processed and analyzed to get the answers for which the information system is designed.
- 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.
- Feedback: It determines that an information system can be offered with feedback. However, this component is not needed to function.
Information System Types
- Transaction Processing System (TPS): It 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 that we used to complete the transaction. Examples of transaction processing systems are Stock control systems, Payroll systems, Etc.
- Management Information System: 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. 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. Ex:- Human resource management systems and Sales management systems.
- Decision Support System (DSS): It is interactive, It offers, 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. Ex: Bank loan management systems, financial planning systems.
- Experts System: This 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.