Information System

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Information system
An information system (IS) - or application landscape[1] - is any combination of information technology and people's activities using that technology to support operations, management[2] In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes.[3] Some make a clear distinction between information systems, and computer systems ICT, and business processes. Information systems are distinct from information technology in that an information system is typically seen as having an ICT component. Information systems are also different from business processes. Information systems help to control the performance of business processes.[4] Alter argues for an information system as a special type of work system. A work system is a system in which humans and/or machines perform work using resources (including ICT) to produce specific products and/or services for customers. An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information.[5] Part of the difficulty in defining the term information system is due to vagueness in the definition of related terms such as system and information. Following the pioneering work of Ronald Stamper, Beynon-Davies argues for a clearer terminology based in systemics and semiotics. He defines an information system as an example of a system concerned with the manipulation of signs. An information system is a type of sociotechnical system. An information system is a mediating construct between actions and technology.[6] As such, information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action. Information systems are the primary focus of study for the information systems discipline and for organisational informatics.[7]

Components
It consists of computers, instructions, stored facts, people and procedures. ISs can be categorized in four parts:

1. 2. 3. 4.

Management Information System (MIS). Decision Support System (DSS). Executive Information System (EIS). Transaction Information Technology – A Definition:

Information Technology – A Definition:
We use the term information technology or IT to refer to an entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company would be responsible for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary. TRENDS IN INFORMATION SYSTEM: It is generally accepted that information is a vital commodity for the successful operation of today's organizations. Nowadays modern business organizations are using computerized information systems in order to obtain desired information. However, as the technology advances rapidly the main issue is how can an organization should effectively use such an information system which its management sometimes can be unpredictable in order to effectively help the whole organization structure to improve and take the most out of it. It seems fairly obvious that Information systems have played an important linking role even before the advent of the Internet. Thus, for example, the possibilities offered by Information systems have strongly influenced the way managers were able to exercise control and therefore constituted an important factor in the organization of large-scale enterprise and their geographic extension. The same is true for governments and their statistical apparatus. The recent integration of computer networks and electronic data exchange facilitated the creation of common databases and policies among governments, speeding up developments, which had started earlier. It also created new possibilities for business, for example enabling companies to develop new organizational practices (e.g. just-in-time). However, the role of Information systems in the organization is shifting to support business processes rather than individual functions. The focus is outwards to customers, rather than inwards to procedures. Businesses are changing more and more rapidly. This poses a challenge to existing Information systems, which are often inappropriately structured to meet these needs. It also poses a challenge to the people who design, work and use these systems, since they may hold outdated assumptions. To ensure the services provided by Information systems whenever needed and their failure will not cause catastrophic disaster their reliability and efficiency become

extremely important. Imagine what would happen when a banking system malfunctions due to some critical faults in the system or when a healthcare information system provides wrong advice for patients. It is even not over-saying that our lives are already under control of computer systems but their reliability and efficiency has become extremely important.

Role of E-Business in Business
E-business" refers to any business that uses the Internet and related technologies. It applies to both large and small businesses in electronic commerce for buying, selling, marketing, as well as customer relations and management services. E-business breaks geographical barriers and is cost-efficient, thereby improving a business' productivity and increasing revenue.

Types of Information Systems
Information systems differ in their business needs. Also depending upon different levels in organization information systems differ. Three major information systems are 1. Transaction processing systems 2. Management information systems 3. Decision support systems Strategic information is the information needed by top most management for decision making. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. This information is not required by the lower levels in the organization. The information systems that provide these kinds of information are known as Decision Support Systems. The second category of information required by the middle management is known as managerial information. The information required at this level is used for making short term decisions and plans for the organization. Information like sales analysis for the past quarter or yearly production details etc. fall under this category. Management information system (MIS) caters to such information needs of the organization. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system. The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. This kind of information is required at the operational level for carrying out the day-to-day operational activities.

Due to its capabilities to provide information for processing transaction of the organization, the information system is known as Transaction Processing System or Data Processing System. Some examples of information provided by such systems areprocessing of orders, posting of entries in bank, evaluating overdue purchaser orders etc.

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