WHAT IS INFORMATION SYSTEM?

Information system, 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.
 COMPONENTS OF INFORMATION SYSTEMS

An information system is typically made up of five components: hardware,

software, database, network, and people; however they may differ in how they
are used within an organization.
• Hardware
• Database
• Network
• People & procedures
 TYPES OF INFORMATION SYSTEMS:
1. Transaction Processing Systems
2. Expert Systems
3. Knowledge Management Systems
4. Management Information Systems
5. Decision Support Systems
6. Executive Support System
 INFORMATION SYSTEMS TYPES:

1. TRANSACTION PROCESSING SYSTEM (TPS)

An example is an online air ticket booking system, that collects data from users
and generates an airline ticket and a bill. Typical organizational departments that
use transaction processing systems are sales, account, finance, plant, engineering,
human resource, and marketing. Data can be generated from sales order, cash
receipts, accounting, inventory management, depreciation accounting, etc.
 2. MANAGEMENT
INFORMATION SYSTEM

A management information system(MIS) is used to oversee the performance of the organization. The results from the TPS are
input into the MIS to produce management reports that can predict or control future organizational performance. An MIS can be
used in different ways within the enterprise like a budgeting system to gather information to set accurate budget monthly or
annually based on reports of how much money has been spent by the organization in a specific period of time.
 3. DECISION SUPPORT SYSTEM

Decision support systems are used by managers to provide

solutions to problems that are dynamic in nature. This kind of
system uses data from internal systems like TPS and MIS to find
the best possible choice or alternative to a given problem. They
find answers through statistical analysis and mathematical
models.
 4. EXPERT SYSTEM (ES)

Expert system are applications that emulate decision-making capabilities of

humans or a knowledge worker for specific skills and experience within an
organisation. It basically provides knowledge for an expert and also provide
financial advice.
Example: banking industry used expert system to judge credibility of
creditworthiness of loan applicants.
 5. KNOWLEDGE MANAGEMENT SYSTEM

KMS analyze, organize and share knowledge with organization

members for innovation and improved performance.
This type of information system can be expensive as it requires
specialist computer applications to help knowledge worker prioritise
and organise information.
 6. EXECUTIVE SUPPORT SYSTEM

An Executive information system, also known as an Executive

support system, is a type of management support system that
facilitates and supports senior executive information and
decision-making needs. It provides easy access to internal and
external information relevant to organizational goals
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