An information system is defined as a set of interconnected components that collect, manipulate, store data to support decision making and provide feedback. [1] Information systems were first introduced in the 1960s to help with accounting but have evolved significantly. [2] They can be classified based on their usage as either operations support systems, which generate reports for internal/external users from input data, or management support systems, which provide customized information to managers to facilitate decision making. [3] Common types of information systems include transaction processing systems, process control systems, and enterprise collaboration systems.
2. Introduction to Information Systems
Introduction to Information System. An
information system can be defined as a set of
interrelated components that collect,
manipulate, store data, distribute information
to support decision making and provide a
feedback mechanism to monitor performance.
3. Need of Information in Managing
Business
The key importance of information is it allows a business to make
informed decisions by presenting data in a way that can be
interpreted by management. In this context, customer information
would be useful in providing metrics surrounding client/customer
engagement to determine better ways to engage or work with your
clients.
5. Evolution of Information Systems
Information systems were first introduced in the 1960s to deal with
accounting management issues. They had however been in use in the
previous years as computers strive to evolve. Even the first machines that
used vacuum tubes and transistors had the capability that the information
systems have today. Businesspeople used them and also scientists to
perform tasks that had proven challenging to perform manually (Peppard,
2016). Simple arithmetic problems could be solved using the computers
however the results were recorded down on paper.
6. Information and Control Systems
Information :- Information comes in general surveys, data, articles,
books, references, search-engines, and internal records that a
business can use to guide its planning, operations, and the evaluation
of its activities. Such information also comes from friends,
customers, associates, and vendors.
7. Control Systems :- control systems consist of procedures and
processes, which help an organization achieve its mission and
objectives. Controls define how employees should conduct
themselves and perform job duties. After business owners and
managers implement standards, they must track and monitor
performance. Systems require ongoing modifications and
adjustments to help reach targets.
8.
9. Classification of Information Systems
An information system is essentially made up of five components
hardware, software, database, network and people. These five components
integrate to perform input, process, output, feedback and control.
Information processing consists of input; data process, data storage, output
and control. During input stage data instructions are fed to the systems
which during process stage are worked upon by software programs and
other queries. During output stage, data is presented in structured format
and reports.
10. Classification of Information Systems
In any given organization information
system can be classified based on the
usage of the information. Therefore, an
information system in an organization can
be divided into operations support system
and management support system.
11. Operations support system
In an organization, data input is done by the end user which is
processed to generate information products i.e. reports, which are
utilized by internal and or external users. Such a system is called
operation support system.
Transaction Processing System (TPS)
In manufacturing organization, there are several types of transaction
across department. Typical organizational departments are Sales,
Account, Finance, Plant, Engineering, Human Resource and
Marketing. Across which following transaction may occur sales
order, sales return, cash receipts, credit sales; credit slips, material
accounting, inventory management, depreciation accounting, etc.
12. Process Control System
In a manufacturing organization, certain decisions are made by a
computer system without any manual intervention. In this type of
system, critical information is fed to the system on a real-time basis
thereby enabling process control. This kind of systems is referred as
process control systems.
Enterprise Collaboration System
In recent times, there is more stress on team effort or collaboration
across different functional teams. A system which enables
collaborative effort by improving communication and sharing of data
is referred to as an enterprise collaboration system.
13. Management Support System
Managers require precise information in a specific format to
undertake an organizational decision. A system which facilitates an
efficient decision making process for managers is called
management support system.