What are the 3 activities of information systems?

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Learn the information system definition and see examples. Learn about the components and basic concepts of information systems. Updated: 01/13/2022

Information systems are complex sets of interconnected information, data, and processes. They are used in all aspects of human life, business, and industry.

The information system definition in technology is a broad term that refers to any information system or tool that helps with the collection and use of data. Information systems can be used to provide assistance in an organization, or they can be used for personal gain.

Put simply, information systems are sets of technological methods and techniques used to store, organize, manage, and retrieve information digitally. They take on many forms such as computers, mobile devices, tablets, and software programs.

In technology, information systems are mainly used as a platform for information gathering and processing. They can be hardware or software and use computer systems to perform tasks like data storage or data analysis.

What is an Information System?

Many organizations work with large amounts of data. Data are basic values or facts and are organized in a database. Many people think of data as synonymous with information; however, information actually consists of data that has been organized to help answer questions and to solve problems. An information system is defined as the software that helps organize and analyze data. So, the purpose of an information system is to turn raw data into useful information that can be used for decision making in an organization.

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Basic Concepts of Information Systems

An information system is a system designed to process, store, and retrieve data. The term is broad and encompasses data storage both on computers (by means of local memory and disks) and in the cloud.

The information system includes programs that are used to process and manage data. The program performs activities such as extracting, categorizing, analyzing, retrieving, and storing the data. Depending on the type of system used by an organization, the basic concepts of an information system can vary significantly.

The basic processes of an information system include input and output processes, coordination processes, and decision-making processes.

The output processes are responsible for delivering new, useful information to the user or end-user after processing the input data.

The coordination process coordinates all other functions within the system while maintaining overall performance. Finally, the decision-making process is also known as a control process because it is used to manage everything else in the information system.

Some common characteristics of information systems include the following:

• Data stored in electronic form
• Processing of all types of inputs including visual, audio, and video
• Capable of handling high volumes of data with minimal effort

Another important distinction to note is that data and information are two different things.

Data is a collection of facts and statistics that can easily be accessed via technology such as computers and smartphones. Data consists of singular values. Data is recorded as an input or output from an operation/process. Data can also be stored in memory for later use, for example, when processing the data and calculating new results.

Information can be found in many formats such as electronic text, print text, or images.

Information, on the other hand, is difficult to quantify. It can be anything from newspaper articles to images. Information may be a general idea that we have about something or facts about something, e.g., "the population of Africa". Information can also be a value that our data contains like "the average age in Africa" or "the percentage of people who speak Arabic."

Information Systems Components

These are some of the key information system terms that you should be familiar with:

General Purpose vs. Specialized Information Systems

There are some general types of information systems. For example, a database management system (DBMS) is a combination of software and data that makes it possible to organize and analyze data. DBMS software is typically not designed to work with a specific organization or a specific type of analysis. Rather, it is a general-purpose information system. Another example is an electronic spreadsheet. This is a tool for basic data analysis based on formulas that define relationships among the data. For example, you can use a spreadsheet to calculate averages for a set of values or to plot the trend of a value over time.

In contrast, there are a number of specialized information systems that have been specifically designed to support a particular process within an organization or to carry out very specific analysis tasks. For example, enterprise resource planning (ERP) is an information system used to integrate the management of all internal and external information across an entire organization. Another example is a geographic information system (GIS), which is used to manage and analyze all types of geographical data. Expert systems are another example of information systems. An experts system is designed to solve complex problems by following the reasoning of an expert.

Typical Components of Information Systems

While information systems may differ in how they are used within an organization, they typically contain the following components:

1. Hardware: Computer-based information systems use computer hardware, such as processors, monitors, keyboard and printers.
2. Software: These are the programs used to organize, process and analyze data.
3. Databases: Information systems work with data, organized into tables and files.
4. Network: Different elements need to be connected to each other, especially if many different people in an organization use the same information system.
5. Procedures: These describe how specific data are processed and analyzed in order to get the answers for which the information system is designed.

The first four components are part of the general information technology (IT) of an organization. Procedures, the fifth component, are very specific to the information needed to answer a specific question.

Different Types

The many different types of information systems can be divided into categories based on where they are used in the hierarchy of an organization.

What is an Information System?

Many organizations work with large amounts of data. Data are basic values or facts and are organized in a database. Many people think of data as synonymous with information; however, information actually consists of data that has been organized to help answer questions and to solve problems. An information system is defined as the software that helps organize and analyze data. So, the purpose of an information system is to turn raw data into useful information that can be used for decision making in an organization.

General Purpose vs. Specialized Information Systems

There are some general types of information systems. For example, a database management system (DBMS) is a combination of software and data that makes it possible to organize and analyze data. DBMS software is typically not designed to work with a specific organization or a specific type of analysis. Rather, it is a general-purpose information system. Another example is an electronic spreadsheet. This is a tool for basic data analysis based on formulas that define relationships among the data. For example, you can use a spreadsheet to calculate averages for a set of values or to plot the trend of a value over time.

In contrast, there are a number of specialized information systems that have been specifically designed to support a particular process within an organization or to carry out very specific analysis tasks. For example, enterprise resource planning (ERP) is an information system used to integrate the management of all internal and external information across an entire organization. Another example is a geographic information system (GIS), which is used to manage and analyze all types of geographical data. Expert systems are another example of information systems. An experts system is designed to solve complex problems by following the reasoning of an expert.

Typical Components of Information Systems

While information systems may differ in how they are used within an organization, they typically contain the following components:

1. Hardware: Computer-based information systems use computer hardware, such as processors, monitors, keyboard and printers.
2. Software: These are the programs used to organize, process and analyze data.
3. Databases: Information systems work with data, organized into tables and files.
4. Network: Different elements need to be connected to each other, especially if many different people in an organization use the same information system.
5. Procedures: These describe how specific data are processed and analyzed in order to get the answers for which the information system is designed.

The first four components are part of the general information technology (IT) of an organization. Procedures, the fifth component, are very specific to the information needed to answer a specific question.

Different Types

The many different types of information systems can be divided into categories based on where they are used in the hierarchy of an organization.

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Information Systems - A Business Case

The following business case will allow you to put your knowledge of information systems into practice in a real-life corporate context.

Here, you're the head of information technology at PhunkyCars, Inc., a car part reseller. You receive a call from the board of directors, in which you're asked to attend their next meeting to explain how the different types of information systems can be used to optimize a business' operations. The board member who called provided you with a list of tasks and needs (presented below) that he has been told can be optimized by using information systems. He specifically wants to know the type of information system required for each task so that the board can assess whether an investment in information systems is warranted.

Required:

Identify which type of information system is required for each of these tasks/needs.

Solution:

What are the 5 components of an information system?

The five components of an information system are hardware, software, network, data, and procedures. Sometimes, people are added as a 6th component.

What is meant by information system?

An information system is a way to organize and analyze data. Its purpose is to turn raw data into useful information that can guide decision-making in an organization.

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