HOW INFORMATION SYSTEM SUPPORTS BUSINESS ORGANIZATION TO CARRY

OUT E-COMMERCE TRANSACTION.

For the last twenty years, different kinds of information systems are developed for different
purposes, depending on the need of the business . In today’s business world, there are
varieties of information systems such as transaction processing systems (TPS), office
automation systems (OAS), management information systems (MIS), decision support
system (DSS), and executive information systems (EIS), Expert System (ES) etc . Each plays a
different role in organizational hierarchy and management operations. This study attempts to
explain the role of each type of information systems in business organizations.
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and
selling of goods or services using the internet, and the transfer of money and data to execute
these transactions. Ecommerce is often used to refer to the sale of physical products online, but it
can also describe any kind of commercial transaction that is facilitated through the internet.
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 maiking in an organization.
an integrated set of components for collecting, storing, and processing data and for providing
information, knowledge, and digital products. Business firms and other organizations rely on
information systems to carry out and manage their operations, interact with their customers and
suppliers, and compete in the marketplace. 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. Many major companies are built entirely
around information systems. These include eBay, a largely auction marketplace; Amazon, an
expanding electronic mall and provider of cloud computing services; Alibaba, a business-to-
business e-marketplace; and Google, a search engine company that derives most of its revenue
from keyword advertising on Internet searches. Governments deploy information systems to
provide services cost-effectively to citizens. Digital goods—such as electronic books, video
products, and software—and online services, such as gaming and social networking, are
delivered with information systems. Individuals rely on information systems, generally Internet-
based, for conducting much of their personal lives: for socializing, study, shopping, banking, and
entertainment.1
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

1 Vladimir Zwass, ‘information retrieval system,’< https://www.britannica.com/topic/information-

system> accessed on 09/01/2019

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 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 expert’s 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:

Hardware: Computer-based information systems use computer hardware, such as processors,

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

Reference.

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 i <https://study.com/academy/lesson/what-are-information-systems-definition-types-quiz.html>accessed on
09/01/2019Hasan, .y. Shamsuddin, .A. & Aziati, .M. ‘Role of different types of information system in business organization’
International Journal of Research(IJR) 1<
https://www.researchgate.net/publication/264556488_The_Role_of_Different_Types_of_Information_Systems_In_Busine
ss_Organizations_A_Review> accesed on 09/01/2019

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