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Information System

An Information System is a combination of hardware, software, and telecommunications that collects, processes, and distributes data within an organization. Its components include hardware, software, people, procedures, networking, and databases, which work together to enhance decision-making, productivity, and collaboration. Information Systems are essential for data storage, security, and improving operational efficiency, ultimately providing a competitive advantage for businesses.

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22 views15 pages

Information System

An Information System is a combination of hardware, software, and telecommunications that collects, processes, and distributes data within an organization. Its components include hardware, software, people, procedures, networking, and databases, which work together to enhance decision-making, productivity, and collaboration. Information Systems are essential for data storage, security, and improving operational efficiency, ultimately providing a competitive advantage for businesses.

Uploaded by

Coder kids
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Information System

• An Information system is a combination of


hardware and software and
telecommunication networks that people
build to collect, create and distribute useful
data, typically in an organization. It defines the
flow of information within the system.
• The objective of an information system is to
provide appropriate information to the user,
to gather the data, process the data and
communicate information to the user of the
system.
Components of Information System

Components of an information system


are
1. hardware,
2. software,
3. people,
4. procedure,
5. networking,
6. database
1)Hardware:-
This includes the physical tangible part of the computer which includes;
the CPU, memory, input, and output devices.
2)Software:-
Include the operating system, database management systems, utility,
and, application programs that are used on the computer hardware.
3) People: they are the users who interact with the system, from system
administrators to basic end users of the system.
4)Procedures: it is the set of rules that the system follows to accomplish
the objectives that it was meant to do.
5)Database/Data: These are facts that are used on software that is
installed in the hardware to manage different parts of an organization’s
work. Data is the raw working material that is processed on the
computer for decision-making.
6)Networking infrastructure: Most current systems are online (on the
cloud) and used over many geographical locations. Networking
components create a link between other components that are in
remote locations.
Need for Information System
1. Information System Stores Data
2. Information System Ensures Data Security
3. Information System Enhances Decision Making Ability
4.Information System Enhances Productivity
5. Information System Introduces New Products & Services
6.Information System Helps Business To Achieve Goals With
Ease
7. Information System Reduces Operational Costs
8. Information System Helps Improve Collaboration &
Teamwork
• Data are raw facts, events, numbers and transactions,
which have been collected, recorded, stored but are not yet
processed. Data consist of numbers and characters (i.e.
alphabets and special symbols) which are used to record
facts and events about activities occurring in an
environment.
• Information is processed data. It is obtained after
subjecting data to a series of processing operations which
convert related groups of data (raw facts) into a meaningful
and coherent form. Processing could be in the form of
addition, subtracting, comparison, sorting, rearrangement
etc. This makes information useful and meaningful. In other
words, information could be defined as the desired form to
which data is finally transformed after undergoing a series
of processin
TYPES OF
INFORMATION
SYSTEM
Categories of Information System
1)Transaction Processing System (TPS):
• Transaction Processing System are information system
that processes data resulting from the occurrences of
business transactions
• Their objectives are to provide transaction in order to
update records and generate reports i.e to perform store
keeping function
• The transaction is performed in two ways: Batching
processing and Online transaction processing.
• Example: Bill system, payroll system, Stock control system.
2)Management Information System (MIS):
• Management Information System is designed to take
relatively raw data available through a Transaction
Processing System and convert them into a
summarized and aggregated form for the manager,
usually in a report format. It reports tending to be
used by middle management and operational
supervisors.
• Many different types of report are produced in MIS.
Some of the reports are a summary report, on-demand
report, ad-hoc reports and an exception report.
• Example: Sales management systems, Human resource
management system.
3) Decision Support System (DSS):
• Decision Support System is an interactive information
system that provides information, models and data
manipulation tools to help in making the decision in a
semi-structured and unstructured situation.
• Decision Support System comprises tools and
techniques to help in gathering relevant information
and analyze the options and alternatives, the end user
is more involved in creating DSS than an MIS.
• Example: Financial planning systems, Bank loan
management systems.
4) Executive Information system(EIS):
• EIS is a kind of DSS used to assist senior
executives in the decision making process.
• This is done by providing easy access to
important data needed to achieve strategic
goals in an organization
Top analytical tool
• R –.
• Tableau –.
• Sisense –
• Python –
• Application of Information System

• Decision-Making:
• Information systems help managers analyze trends,
forecast future performance, and make informed decisions
by providing relevant, accurate, and timely data.
• Business Process Automation:
• Systems can automate repetitive tasks, streamline
workflows, and improve efficiency by integrating different
functional areas like finance, marketing, production, and
human resources.
• Data Storage and Analysis:
• Databases are used to store large amounts of data, and
information systems provide tools for analyzing this data to
identify patterns, trends, and insights.
• Communication and
Collaboration:
• Information systems facilitate
communication and collaboration
among employees, customers, and
partners, enabling better information
sharing and coordination.
• Operational Efficiency:
• By automating processes and
reducing manual tasks, information
systems can significantly improve
operational efficiency and reduce
costs.
• Competitive Advantage:
• Effective use of information systems
can provide a competitive advantage
by enabling faster response times,
better customer service, and more
informed decision-making.

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