Information Systems

Information System refers to the methods, materials medium, producers, recipients and services involved in an organised way to collect information transfer within a specific field, activity or organisation. It consists of a complex collection of people who produce them, institutions which process them and a set of behaviour patterns, customs and traditions by which these persons and institution interrelate.

Sage defines “an information system as an input-output structure, which acquires, stores and processes data and produces and disseminates information in an organised manner”. In brief, a system, which performs the data information process, is called an information system.

Thus, an information system is a set of interrelated components that collect, retrieve, process, store, and distribute information to support decision making and control in an organisation. Information systems can also be used to analyse problems, visualise complex subjects, and create new products. Here, we define information as a tangible or intangible entity which serves to reduce uncertainty about some future state or event.

Components of an Information System

An information system has the following elements:

Inputs,
Processes,
Data files,
Outputs,
Personnel, and
Hardware.

All systems, including information systems and computer systems, have inputs, processes and outputs. Processes transform inputs (data) into outputs (management information). Processes can be further subdivided into computer programs and procedures. Computer programs are executed by the computer hardware, and the procedures are executed by people. An information system also contains data files, which can be either computer-based or manual. Personnel are the most important component of an information system. System analysts and programmers design, implement and maintain the programs and procedures, while computer operators run the computer-based portion of the system. Accounting, finance, marketing and manufacturing personnel perform other aspects of an information system, many times without the use of computer hardware.

Types of Information Systems

Transaction Processing Systems

Transaction processing systems keep track of the daily activities of an organisation. These systems collect and store data concerning various aspect of the activities of an organisation, provide the information necessary for the day-to-day control of events and serve as the database for higher-level information systems that may be used by managers and executives at the middle and upper levels of an organisation.

Office Automation Systems

These systems use the computer to automate many of the routine tasks that are performed in a typical office. Besides word processing, other applications in the office include desktop publishing, electronic mail, facsimile transmission and image processing.

Executive Information Systems

Executive information systems provide for the communication of summary-level information to executives. The information in these systems are generally brief, meant exclusively for executives of the organisation and updated frequently, usually on a daily basis. The systems also provide the capability to display more detailed information if an executive requires it. Many executives use these systems to keep track of pieces of information which are of importance to the organisation.

Expert Systems

An expert system is a computer programme that enables a computer to make decisions which are usually made by humans with special expertise. These systems store facts and data that are necessary and are used to arrive at a judgment in a particular case.

Management Information Systems

The term management information system (MIS) applies to a system that provides information to the upper and middle-level management about routine and other anticipated activities concerning an organisation. MIS is in widespread use and form the backbone of information systems in business and industrial organisations. In many situations, all the other types of information systems-transaction processing, decision support, expert systems and other are parts of the MIS.

Database Management System

A database management system (DBMS) is a software application that stores the structure of the database, the data itself, relationships among data in the database, as well as forms and reports pertaining to the database. DBMS thus is a system that generates, runs and maintains databases, and as such, the system must include all the software needed for the purpose. Stored with actual data is the description of a database, which enables the DBMS to retrieve information from the database, and to store new data in appropriate places in the database, establishing relationships with other data if relevant. The DBMS, in essence, is data-oriented with more importance on data modelling and data design.

Decision Support System

A decision support system (DSS) is an integrated set of computer tools that allow a decision-maker to interface directly with computers to create information which is useful in making semi-structured and unstructured decisions. The basic idea underlying DSS is to provide a set of computer-based tools so that MIS can produce information to support semi-structured or unstructured decisions.

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