Introduction to

Information Systems
Subject: Information Systems
Lecturer : Quratulain
Course Code:
 Overview

Importance of Information

Introduction Systems in Organizations

Table of Content Types of information systems

What is Information Systems?
Information Systems (IS) refer to integrated sets of
components used to collect, store, process, and
disseminate information within an organization.
The primary goal of IS is to support
decision-making, enhance efficiency, and facilitate
strategic planning.

It offers the organized use of data for effective

decision-making and problem-solving within an
organizational context. They serve as a bridge
between technology and business, enabling
organizations to achieve their goals efficiently.
Role of information in organizations
Information is a crucial asset for organizations, serving as the foundation for
decision-making and strategic planning. It enables businesses to stay
competitive, adapt to changes, and innovate in a rapidly evolving environment.

Example: Enterprise Resource Planning (ERP) systems integrate various

business functions, such as finance, human resources, and supply chain, into a
unified platform, facilitating seamless information flow across an organization.
Components of an information system
Information systems consist of five key components:

● Hardware: Physical devices such as computers, servers, and networks.

● Software: Programs and applications that enable data processing.
● Data: Raw facts and figures that form the basis of information.
● People: Individuals who operate and interact with the system.
● Procedures: Guidelines and processes governing the use of IS components.

Example: A Customer Relationship Management (CRM) system integrates software

applications, data, and user procedures to manage customer interactions, sales leads, and
support services effectively.
Importance of Information Systems
Information Systems contribute significantly to organizational success by providing various benefits.

● Enhancing Decision-Making Processes: Information systems provide timely and accurate data to support
decision-making at all levels of an organization. For example, a sales dashboard can offer real-time insights
into customer preferences, helping managers make informed decisions on marketing strategies.
● Improving Operational Efficiency: IS automates routine tasks, streamlines processes, and ensures the
seamless flow of information. An inventory management system, for instance, can optimize stock levels,
reducing carrying costs and enhancing overall operational efficiency.
● Facilitating Strategic Planning and Innovation: Information systems play a pivotal role in strategic
planning by providing tools for analyzing market trends, competitors, and internal capabilities. Innovative
products and services can be developed by leveraging IS capabilities. For instance, a company might use
data analytics to identify emerging market trends and launch new products accordingly.
IS Types
Understanding these types of
information systems is crucial for
organizations to effectively
leverage technology for specific
operational, managerial, and
strategic needs.
IS Types
Transaction TPS handle day-to-day transactional data Point of Sale (POS) systems in retail,
Processing processing, ensuring the smooth operation where sales transactions are processed
Systems (TPS) of routine business activities and recorded instantly

Management MIS provide managers with reports and Monthly financial reports summarizing
Information information to support decision-making and key performance indicators for
Systems (MIS) control at the middle level of an organization departmental managers.

DSS assist in complex decision-making A healthcare DSS analyzing patient data

Decision Support
processes by providing analytical tools and to aid doctors in diagnosis and
Systems (DSS)
interactive capabilities treatment decisions.

An EIS for a CEO displaying graphical

Executive Information EIS serve top-level executives by providing representations of market trends,
Systems (EIS) strategic information tailored to their needs. financial forecasts, and key performance
indicators.

Enterprise Resource ERP integrates various business processes SAP or Oracle ERP systems managing
Planning (ERP) and functions across an organization into a finance, human resources, supply chain,
Systems unified system. and more.
IS Types
Knowledge KMS capture, organize, and apply the Wikis or collaboration platforms
Management collective knowledge within an facilitating the sharing of expertise and
Systems (KMS) organization. best practices among employees.

A medical diagnosis system that utilizes

Expert Systems mimic human expertise to
rules and knowledge from expert
Expert Systems solve specific problems or make decisions
physicians to assist in diagnosing
within a specific domain.
diseases.

Geographic Google Maps, which combines location

GIS capture, store, analyze, and present
Information data with mapping for navigation and
geographical data to support decision-making.
Systems (GIS) location-based services.

Microsoft Teams or Slack, providing a

Collaboration Systems facilitate
Collaboration platform for real-time messaging, file
communication and teamwork among
Systems sharing, and collaborative project
individuals or groups.
management.

Customer Salesforce, which helps businesses track

Relationship CRM systems manage an organization's
customer interactions, manage leads, and
Management (CRM) interactions with current and future customers.
improve customer relationships.
Systems
Assignment 01

Q1: Which type of project are you

working on ? Identify the type of

information system, you are developing.

Q2: Explain why you select particular

type?