Information System

During this week, we had an overview of information systems. This is a system which helps people (normally businesses) to handle large chunks of information in a more effective, reliable way using information technology. It makes it easier to manage large amounts of information, handle complex calculations and control and monitor many simultaneous processes. Information Systems are used all around the world and there’s no company that can survive without the help of information systems.



According to Silver et-al,

“Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved.”

So there are two kinds of information systems. One is the manual way which is completely outdated. No one uses it anymore so there’s obviously no point of explaining it. The second and the most popular kind of IS is the computer-based information system. This is a network of five components that are working hand in hand to satisfy a common purpose.
Here are the five basic components of a computer-based information system

1. Hardware – This refers to the computer itself. The CPU and all its support systems like input/output devices, storage devices and communication devices
2. Software – This term refers to the computer programs and the manuals that support them
3. Data – This is the basic input. The facts that the programs uses to produce the useful information.
4. Procedures – These are the policies that govern the operations of a computer system. It’s something like a manual/a supervisor for the people who are involved in running the system. In simpler terms, "Procedures are to people what software is to hardware".
5. People – Obviously, no information system can run on its own without people to operate it. This is the the most important component of an IS which mostly determines the success or failure of the information system.

A widely used example of IS is the Enterprise system which is probably used in all complex organizations. This is a package that supports handling business processes, information flows, reporting and data analytics. The subsystems under Enterprise system include, Enterprise resource planning system, Enterprise planning system, customer relationship management system and data warehousing.
There are many of these kinds of information systems which are widely used all around the world. And Information systems seems to be a demanding topic in the business world today. As the bulk of information keep adding up in every business organization, people tend to find refugee in the help of IS.