Introduction to Information System

Definition:
An information system is like a digital brain for organizations. It collects, stores, processes,
and shares data to help people make better decisions. Think of it as a big toolbox that
businesses use to manage information, from emails and documents to customer orders and
sales records. It includes computers, software, networks, and people who work together to
handle all this information efficiently.
Example:
Imagine a university's student information system. It includes:
Hardware: Computers, servers, and networking equipment to store and process data.
Software: Student database software, registration systems, and learning management
systems.
Data: Information about students, courses, grades, and schedules.
People: Administrators, faculty, and students who interact with the system.
Processes: Registration processes, grading procedures, and course scheduling workflows.

Components of IS:
The components of an information system (IS) typically include:
1. Hardware: This includes computers, servers, networking equipment, and storage
devices that physically support the IS infrastructure.

2. Software: This encompasses applications, operating systems, and databases that

enable data processing, storage, and retrieval within the IS.

3. Data: Refers to the raw facts and figures that are input into the IS. This data can be
structured (organized in a specific format, such as databases) or unstructured (like
emails or documents).

4. People: Users, administrators, and IT professionals who interact with the IS, input data,
utilize applications, and make decisions based on the information provided by the
system.

5. Networks: Communication networks, including local area networks (LANs), wide area
networks (WANs), and the internet, that connect different components of the IS and
allow for data transmission and exchange.
Types of Information Systems:

Transaction Processing Systems (TPS):

TPS is the foundational level of information systems. They are designed to process and
record day-to-day transactions, such as sales, purchases, inventory management, and
payroll. TPS ensures that basic operational data is captured accurately and in real-time,
forming the basis for other levels of information systems.
Management Information Systems (MIS):
MIS generate reports and provide information to support managerial decision-making. They
summarize and analyze data from TPS to produce reports like sales forecasts and budget
analysis.
Decision Support Systems (DSS):
DSS (Decision Support Systems) are like helpful tools for managers at different levels to
make decisions, especially when the choices are not straightforward. They use tools to
analyze data, create models, and explore "what-if" situations to understand different options
and their possible results.
Executive Information Systems (EIS):
EIS is a specialized information system designed for top-level executives. It provides strategic
information and high-level performance indicators to support executive decision-making. EIS
typically offers visually rich dashboards and customizable displays to help executives quickly
grasp the organization’s overall health and performance.
Enterprise Resource Planning (ERP) Systems:
ERP systems integrate various business processes and functions across an organization into
a single, unified system. They facilitate the flow of information and enable real-time data
sharing between different departments, such as finance, human resources, sales, and supply
chain management. ERP promotes efficiency, reduces redundancies, and enhances
collaboration.
Knowledge Management Systems (KMS):
KMS focuses on capturing, organizing, and sharing an organization’s knowledge and
expertise. It includes tools for document management, collaboration, and knowledge
sharing, enabling employees to access critical information, best practices, and lessons
learned.