Information System

Information System

A combination of Hardware, Software, Infrastructure, and Trained personnel organized to facilitate Planning, Control, Coordination, and Decision making in an organization.

Types of Information System

  1. Executive Support System (ESS)
  2. Management Information System (MIS)
  3. Decision Support System (DSS)
  4. Knowledge Management System (KMS)
  5. Transaction Processing System (TPS)
  6. Office Automation System (OAS)
Information System

Executive Support System

An executive support system is designed to help senior management make strategic decisions.

Management Information System

A management information system is mainly concerned with internal sources of information and summarizes it into a series of management reports.

Decision Making System

Decision-support system are specifically designed to help management make decision in situations where there is uncertainty about the possible outcomes of those decisions.

Knowledge Management System

Knowledge Management System exist to help businesses create and share information.

Transaction Processing System

Transaction processing system are designed to process routine transactions efficiently and accurately.

Office Automation System

Office automation systems are systems that try to improve the productivity of employee who need to process data and information.

Components of Information System

Basically, there are 5 components available-

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


The term hardware refers to machinery. This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipment.


The term software refers to computer programs and the manuals (if any) that support them.


Data are facts that are used by programs to produce useful information.


Procedures are the policies that govern the operation of a computer system.


People mean the end user of the Systems. Every CBIS (Computer Based Information System) needs people if it is to be useful.

Q. Why Learn About Information Systems in Organizations?

A1. •Information systems used by:

  1. –Sales representatives
  2. –Managers
  3. –Financial advisors

•Information systems:

  1. –Indispensable tools to help you achieve your career goals

The Characteristics of Valuable Information

•If an organization’s information is not accurate or complete:

  • People can make poor decisions, costing thousands, or even millions, of dollars

•Depending on the type of data you need:

  • Some characteristics become more important than others

The Value of Information

•Directly linked to how it helps decision makers achieve their organization’s goals

•Valuable information

  • Can help people and their organizations perform tasks more efficiently and effectively

Input, Processing, Output, Feedback


  • Activity of gathering and capturing raw data


  • Converting data into useful outputs


  • Production of useful information, usually in the form of documents and reports


  • Information from the system that is used to make changes to input or processing activities

Manual and Computerized Information Systems

•An information system can be:

  • Manual or computerized


  • Investment analysts manually draw charts and trend lines to assist them in making investment decisions

•Computerized information systems:

  • Follow stock indexes and markets and suggest when large blocks of stocks should be purchased or sold

Computer-Based Information Systems

•Single set of hardware, software, databases, telecommunications, people, and procedures:

  • That are configured to collect, manipulate, store, and process data into information

•Technology infrastructure:

  • Includes all hardware, software, databases, telecommunications, people, and procedures

•Configured to collect, manipulate, store, and process data into information


Organized collection of facts and information, typically consisting of two or more related data files.

Telecommunications, networks, and the Internet

The electronic transmission of signals for communications.


Connect computers and equipment to enable electronic communication.


World’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information.


Internal network that allows people within an organization to exchange information and work on project.


Network that allows selected outsiders, such as business partners and customers, to access authorized resources of a company’s intranet.

Business Information Systems

•Most common types of information systems:

  • Those designed for electronic and mobile commerce, transaction processing, management information, and decision support

•Some organizations employ:

  • Special-purpose systems, such as virtual reality, that not every organization uses

Electronic and Mobile Commerce


Any business transaction executed electronically between:

  • Companies (business-to-business, B2B)
  • Companies and consumers (business-to-consumer, B2C)
  • Consumers and other consumers (consumer-to-consumer, C2C)
  • Business and the public sector
  • Consumers and the public sector

•Mobile commerce (m-commerce):

The use of mobile, wireless devices to place orders and conduct business

•Electronic business (e-business):

Uses information systems and the Internet to perform all business-related tasks and functions.

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