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What Is An Information System

An information system is a network that collects, stores, processes, analyzes, and distributes data through a combination of hardware, software, human resources, and processes. Information systems are used for operational management, tactical management, and strategic management and include transaction processing systems, office automation systems, knowledge management systems, management information systems, decision support systems, and executive support systems. An information system is important for companies as it helps with developing new products and services, storing information, simplifying decision making, and facilitating behavioral modification through improved communication.

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Jun Wen
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127 views

What Is An Information System

An information system is a network that collects, stores, processes, analyzes, and distributes data through a combination of hardware, software, human resources, and processes. Information systems are used for operational management, tactical management, and strategic management and include transaction processing systems, office automation systems, knowledge management systems, management information systems, decision support systems, and executive support systems. An information system is important for companies as it helps with developing new products and services, storing information, simplifying decision making, and facilitating behavioral modification through improved communication.

Uploaded by

Jun Wen
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. What is an information system?

An information system is a network that collects, stores, processes, analyzes, and


distributes data by combining hardware, software, human power, and processes.
Information systems and professionals with advanced degrees in information systems
can assist businesses and other organizations in increasing efficiency, increasing
revenue, and streamlining operations.

2. Classes of Information System

 Operational Management - Includes transaction processing system, office


automation system, and knowledge management system, handles structured
data, and used by workers and employees to streamline daily operations
 Tactical Management - Used by business unit managers, handles semi-
structured data, and includes management information systems
 Strategic Management - Used by executives, handles unstructured data, and
includes the decision support system and executive support system.

Types of Information System

1. Transaction Processing Systems


A transaction encompasses all of the purchases and sales of products and services,
along with any daily business transactions or activities required to operate a company.

2. Office Automation Systems


An office automation system is a network of various tools, technologies, and people
required to conduct clerical and managerial tasks. Typical examples of functions
performed by an OAS include printing documents, mailing paperwork, mailing,
maintaining a company calendar, and producing reports. Primarily, an office automation
system assists in enhancing communication among different departments so everyone
can collaborate to complete a task.

3. Knowledge Management Systems


A knowledge management system stores and extracts information to help users
enhance their knowledge and optimize collaboration efforts to complete tasks.
Examples of documents found in a knowledge management system include employee
training materials, company policies, and procedures, or answers to customer
questions.

4. Management Information Systems


A management information system uses various transaction data from a TPS to help
middle management optimize planning and decision-making. It retrieves TPS
information, aggregates it, and generates reports to help those at the management level
know important details of a situation. Summaries and comparisons are utilized to allow
senior managers to optimize the decision making process to achieve better results.

5. Decision Support Systems


A decision support system processes data to assist in management decision-
making. It stores and gathers the information required for management to take the
proper actions at the correct time. For example, a bank manager can use a DSS to
assess the evolving loan trends to determine which yearly loan targets to meet.

6. Executive Support System


Executive support systems are similar to a DSS but are primarily used by
executive leaders and owners to optimize decision-making. An expert system helps
enterprise leaders find answers to non-routine questions so they can make choices that
improve the company's outlook and performance. Unlike a DSS, an executive support
system provides better telecommunication functionality and a bigger computing
functionality.

3. When is information system used?


Information systems are used to run interorganizational supply chains and
electronic markets. For instance, corporations use information systems to process
financial accounts, to manage their human resources, and to reach their potential
customers with online promotions.

4. Importance of information system in a company?

 New Product and Service


Any company that wants to grow and have a strong hold on the future must
implement a well-organized Business Information System. An information system can
aid in the analysis of independent processes and the organization of work activities. As
a result, an information system allows businesses to understand how they generate,
develop, and sell services or products.
 Storage of Information
Keeping a log of activities is essential for all organizations in order to understand
the cause of problems and thus provide solutions. The Business Information System
simplifies the storage of operational data, revision histories, communication records,
and documents. Manual data storage takes a significant amount of time and money. A
sophisticated information system stores the information in a database, making it easier
to find the data.
 Decision Making Has Been Simplified
A business information system facilitates decision making and simplifies the
process of delivering required information, allowing for better decisions to be made
more quickly.
 Behavioral Modification
Business Information Systems (BIS) can be effectively implemented to improve
communication between employers and employees. Information systems function better
because they store documents and files in folders that employees can access and
share. This ensures that information flows between management and lower-level
employees are monitored. This also allows front-line employees to be a part of the
decision-making process, making them feel more motivated and committed to
completing a task.

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