Information Systems – Types And

Applications

Module 01
Information System

“collects processes, stores, analyzes and disseminates information

for specific purpose”
Information System

• At the most basic level, an information system (IS) is a set of components that
work together to manage data processing and storage.

• Its role is to support the key aspects of running an organization, such as

communication, record-keeping, decision making, data analysis and more.

• Companies use this information to improve their business operations, make

strategic decisions and gain a competitive edge.
Components of information systems

 People : Every system needs people if it is to be useful. Often the most over-
looked element of the system are the people, probably the component that most
influence the success or failure of information systems.
 Computer system : Hardware & Software
 Data : Data are facts that are used by programs to produce useful information.
 Networks : Networks Are a connecting system that allows diverse computers to
distribute resources.
 Procedures: Procedures are the policies that govern the operation of a computer
system.
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 Executive Support Systems ("ESS") -designed to help senior management make strategic decisions. ESS
typically involve lots of data analysis and modelling tools such as "what-if" analysis to help strategic decision-
making.
 Management Information Systems ("MIS")-mainly concerned with internal sources of information. MIS
usually take data from the transaction processing systems and MIS reports tend to be used by middle
management and operational supervisors.
 Decision-support systems ("DSS")-specifically designed to help management make decisions in situations
where there is uncertainty about the possible outcomes of those decisions.
 Transaction Processing Systems ("TPS")-designed to process routine transactions efficiently and accurately.
Managers often use these systems to deal with such tasks as payroll, customer billing and payments to
suppliers.
The Benefits of Information Systems

• Boost your company's performance and productivity.

• Businesses can save time and money while making smarter decisions.

•  It reduces human error. 

•  Team members can access massive amounts of data from one

platform.
Uses and Applications

 Business intelligence (BI) systems, for instance, can turn data into valuable insights.
 data visualization, which enables analysts to interpret large amounts of information, predict
future events and find patterns in historical data.
 Organizations can also use enterprise resource planning (ERP) software to collect, manage and
 
analyze data across different areas, from manufacturing to finance and accounting. 
 Information systems can give you a competitive advantage and provide the data you need to
make faster, smarter business decisions.
 Depending on your needs, you can opt for transaction processing systems, knowledge
management systems, decision support systems and more.
Business Drivers of Information Systems

 Operational Excellence
 New products ,services and Business Models
 Customer and Supplier intimacy
 Improved decision making
 Competitive advantage.
 Survival