IS, can be any organized combination of People, Hardware, Software and data resources that collects transformation or screening the information in an organization.
Input
Processing
Output
Storage
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What Is an Information System?
Information system has been defined in terms of two perspectives:
one relating to its function;
the other relating to its structure.
From a functional perspective; an information system is a technologically implemented medium for the purpose of recording, storing, and disseminating linguistic expressions as well as for the supporting of inference making.
From a structural perspective; an information system consists of a collection of people, processes, data, models, technology and partly formalized language, forming a cohesive structure which serves some organizational purpose or function.
Functions of an information system
Components of Information Systems
Resources of people: (end users and IS specialists, system analyst, programmers, data administrators etc.).
Hardware: (Physical computer equipments and associate device, machines and media).
Software: (programs and procedures).
Data: (data and knowledge bases), and
Networks: (communications media and network support).
Transaction Processing Systems. These systems have been designed to collect, process and store transactions that occur in the day to day operations of a company.
The system can also be used to cancel or modify transactions done in the past if the need arises. One property of this system that enables them to work effectively is the ability to accurately record multiple transactions even if the different transactions take place simultaneously.
They are built to be able to handle large volumes of transactions. Examples include stock control systems, payroll systems, order processing systems etc.
Decision Support Systems. These systems help decision makers to make the best decisions by generating statistical projections from analyzed data.
Although it does not eliminate the need for the manager’s judgment, it significantly improves the quality of the decision by offering forecasts that help determine the best course of action.
These systems compile information from several sources for purposes of aiding in decision making. Examples of these systems include computer supported cooperative work, group decision support systems, logistics systems and financial planning systems.
Executive Information Systems. Also known as Executive Support System, this is a tool used for reporting enterprise-wide data to top executives.
These systems provide quick and easy to use reports that are presented in graphical displays that are easy to compare. They can be taken as specialized decision support systems because they provide information necessary to help improve the quality of decisions. Owing to the high expectations from such a system, these systems need to be highly individualized hence they are usually custom made for specific clients. They are also customizable to fit the specific needs of the clients.
Management Information Systems. These systems make use of information technology to help managers ensure a smooth and efficient running of the organization.
Information collected by these systems is structured so that the managers can easily evaluate the company’s current performance vis-à-vis previous outputs.
Some of the common types of Management Information Systems include process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.
