Introduction
The term "information system" refers to a variety of information technology systems used by an organisation to gather, transfer, organise, and store data, including computers, software, databases, communication systems, the internet, devices, and others. The dynamic business environment of today has enabled businesses to integrate a variety of cutting-edge technologies into various processes. These IT tools have improved numerous company processes by automating them and making them more timely.
The use of information systems in business has sparked a chain reaction among several interconnected processes that, among other things, has increased profits while decreasing costs and lead times for the organizations. Understanding the expanding significance of information systems in businesses is therefore crucial.
Types of information system
After covering the fundamentals, let's examine the six main categories of information systems. Although this list is not exhaustive, most corporations and organisations have the following six information systems, each of which supports a distinct organisational level.
The transaction processing systems (TPS) at the operational level are a good place to start. Next are knowledge work systems (KWS) and office automation systems (OAS), both of which operate at the knowledge level. Executive support systems (ESS) at the strategic level come next, followed by management information systems (MIS) and decision support systems (DSS) at the management level.
1.System for Processing Transactions (TPS)
The ability of firms to conduct daily operations is facilitated by transaction processing. Any action or occurrence that has an impact on the business is referred to as a transaction, and examples include deposits, withdrawals, shipments, customer billing, order entry, and placing orders. TPS facilitates these commercial activities.
2.System for Office Automation (OAS)
Computers, communication-related technology, and the staff members tasked with carrying out official duties make up OAS. At every level of the organization, the OAS supports official activities and covers office transactions. Administrative and managerial tasks make up the official activities.
The following applications are included in office automation systems:
Email: File attachments including audio, video, and documents are supported via the email application.
VoiceMail is an application that can be used to record and store phone messages in the system's memory for later retrieval.
Word Processing: Word processing is the process of creating papers that can be printed electronically, such as memos, reports, letters, and other types of documents. By using word processing commands, the created text can be copied, edited, and stored. It can also be checked for grammar and spelling, line and word counts, headers, and footers.
Work Knowledge System (KWS)
3.The KWS knowledge work System
is a specialised system that speeds up knowledge generation and makes sure that the technical know-how and expertise of the company are properly utilised. Through the use of graphic design, communication, and document management systems, the Knowledge Work System assists employees in producing and disseminating new information. Here are some KWS instances.
Computer-Aided Design (CAD) Systems: CAD systems use computers and graphics software to automate the generation and revision of designs, particularly in the manufacturing and tooling processes.
Financial Workstations: These systems collect information from a wide range of internal and external sources, including market data, management information, and research reports. Large volumes of financial data and trading circumstances can be quickly analysed by financial workstations.
Systems for creating virtual reality: These systems advance the capabilities of the CAD system by using interactive graphics tools to produce lifelike computer-generated simulations. VR systems are typically used in academic, corporate, and scientific settings.
4.Administration Information System (MIS)
The majority of administrative tasks for daily operations and performance evaluations are handled by middle managers, who also make sure that all work is in line with the requirements of the business. Because of this, MIS is a very useful tool. Middle managers and supervisors can use management information systems to plan, organise, and manage the workflow. The MIS gathers transactional data from different Transactional Processing Systems, compiles it, and then displays and reports it.
Though MIS can have more rapid results, these reports can also be produced monthly, quarterly, or annually (e.g., hourly, daily).
5.System for Supporting Decisions (DSS)
The DSS is a decision-supporting, interactive computer-based information system for management. Middle managers are explicitly provided with the data they need to make wise decisions via the decision support system.
Different decision models are used by decision support systems to analyse or summarise massive amounts of data into a simple format that makes it simpler for managers to compare and interpret data. These summaries frequently take the shape of graphs and tables.
6.Executive Assistance Program (ESS)
With regard to executive-level decision-making, the ESS is similar to the MIS. The stakes are larger because the decisions pertain to the entire firm. They therefore require additional understanding and discretion.
Compared to the DSS, the ESS has superior computing, more connection possibilities, and more effective display options. Through the utilisation of internal data that has been summarised from DSS, MIS, and external sources, executives use ESS to make smart decisions. Executive support systems also aid in tracking competitors, identifying opportunities, and predicting future trends.
Components of Information Systems
A new component, known as an information system, which deals with gathering and organising data and information, was brought to corporations, universities, and a variety of other organisations with the advent of computers. There are five elements listed as making up an information system.
1.Computer hardware
This is information-using physical technology. Hardware can range in size from a pocket-sized smartphone to a supercomputer that takes up a whole building. Additionally, hardware includes computer peripherals like keyboards, routers, and external hard drives. Sensors that communicate with computers are becoming more commonplace as a result of the Internet of Things, which will enable anything from home appliances to cars to clothing to be able to receive and transmit data.
2.Computer software
The function of software is to instruct the hardware on what to do. System software and application software are the two categories into which software can be separated. The operating system, such as Windows or iOS, is the main component of the system software that controls how the hardware functions. Application software is made to perform particular activities, such as managing a spreadsheet, writing a document, or developing a website.
3.Telecommunications
This element creates a network by coupling the hardware together. Wire connections, such Ethernet cables or fibre optic connections, are also possible, as are wireless connections, like Wi-Fi. Through a local area network, a network can be created to connect computers in a particular space, such as an office or a school (LAN). A wide area network is one where computers are more widely spaced apart (WAN). You may think of the Internet as a network of networks.
4.Databases and data warehouses
The "stuff" that the other components use to function is housed in this component. A database is a collection of data that can be accessed by performing a query using one or more specific criteria. All of the data is contained in a data warehouse in any format a business requires. With the rise of "big data," a phrase for the genuinely vast volumes of data that can be collected and analysed, databases and data warehouses have gained an even greater significance in information systems.
5.Human resources and procedures
The last, and arguably most crucial, element of information systems is the human element: the people required to operate the system and the procedures they adhere to in order for the knowledge contained in the enormous databases and data warehouses to be transformed into learning that can interpret what has happened in the past and direct future action.
Importance of information system
1.Utilise all of the capabilities of your company's
information system to get the most out of it. By processing data from company inputs to produce information that is valuable for managing your operations, information systems become important. You can either add more data to make the information more accurate or use the information in innovative ways to boost the usefulness of the information system.
2.Systems for Business Communication
Information systems can streamline the gathering and distribution of information, which is a part of management, by enabling managers to interact quickly. Email is quick and efficient, but managers can make better use of information technology by keeping papers in shared folders with the staff members who need them. Employee collaboration can be done systematically with this kind of communication.
Each employee has the ability to share new
information by modifying system-tracked data. After gathering the inputs, the manager gives his intended audience the newly amended document.
3.Operations Management for Businesses
The information you have will determine how you manage the operations of your business. Information systems can provide more accurate and up-to-date information, enabling you to run your business more successfully. Information systems can be used to outperform competitors on costs or to set oneself apart by providing superior customer service. Sales statistics allow you to stock or develop products that are selling well while also providing insights into what customers are purchasing. With help from the information system, you may organise your work more efficiently.
4.a business's decision-making
By providing all the information you require and simulating the outcomes of your actions, the company information system can assist you in making better decisions. A decision entails selecting a course of action from a number of alternatives and completing the associated duties. You may choose with confidence if you have precise, current information.
5.Maintaining Company Records
For financial and legal reasons, as well as for identifying the root causes of issues and implementing solutions, your business needs records of its actions. The information system keeps track of communication history, operational data, and document revision histories. Organising the data, using the system to process it, and presenting it as helpful historical knowledge are the keys to fully utilising this recording capabilities. Such data can be used to create forecasts and cost estimations, as well as to examine how your activities affected the important corporate metrics.
Information System Development
Larger firms' information technology departments frequently have a significant impact on the creation, adoption, and use of information technology within the industry. An information system can be created and used using numerous approaches and procedures. When creating an information system in stages, many developers employ a systems engineering technique like the system development life cycle (SDLC). The planning, system analysis, and requirements phases, system design, development, integration, and testing phases, implementation and operations phases, and maintenance phases make up the system development life cycle. The continual, collective evolution of such systems within an organisation by all human players is the focus of recent research, which tries to enable[30] and measure[31] this process. It is possible to construct an information system internally (inside the organisation) or outside.
According to Langefors' definition a computer-based information system is a technologically implemented medium for encoding, archiving, and transmitting linguistic expressions as well as deriving conclusions from them.
Although they are examples of emerging information systems, geographic information systems, land information systems, and disaster information systems can all be generically categorised as spatial information systems. The stages of system development are as follows.
Problem identification and description
gathering information
specifications for the new system's requirements
System development System implementation System review and upkeep
Conclusion
An information system is a collection of data sets that guarantees efficient corporate operations, encourages change, and aids organizations in achieving their objectives. An information system is described by the dictionary as a computer system or group of components for gathering, producing, storing, processing, and disseminating information. Without the assistance of information technology (IT) systems, the information system is insufficient
Technology or IT systems are not the main components of an information system. Instead, it has to do with how people, groups, or organisations employ technology to meet their requirements. Information systems are more crucial than ever in the current digital era since they standardize the transfer, gathering, storing, and accessing of information or data for people or businesses.
There are various information system kinds that assist people and businesses in using the information to their advantage. We will go into more detail about various sorts of information systems in the section that follows this one.