INFORMATION SYSTEMS

1. Information system is a mechanism that helps
people collect, store, organise and use
information.
Information system can be any organized
organise combination of people, hardware,
software, communications networks and data
resources that collects, transforms, and
disseminates information in an organization.

2. The basic purpose of any information system is to
help its users get a certain type of value from the
information in the system, regardless of the type
of information that is stored or the type of value
desired.

3. The Purpose of Information
systems
For many businesses data storage can be an
enormous requirement that involves large computer
systems with terabytes of disk space. Therefore the
physical means of storing information in file cabinets,
notebooks or hard disks will not be enough.

4. The procedures for handling information is to ensure
its integrity. So, regardless of the size of the
information system, data-management rules must be
followed to eliminate duplicate entries, validate the
accuracy or format of data and to avoid the loss of
information.

5. The rules regarding information’s use and
distribution. The rules govern what information
should be distributed to whom, at what time, and in
what format.

6. Types of Information
Processing
As more business functions have been automated,
information systems have become increasingly
specialized. For example a company’s system may be
designed to help users gather and store sales orders.
Another system may be designed to help managers
analyze data. These specialized systems can operate
alone, or they can be combined to create a larger
system that performs different functions for different
people.

7. Transaction Processing Systems
A Transaction is a complete event, which may occur
as a series of many steps such as taking an order form
a customer. (Allow responses for taking an order)
All these steps can be processed through an
information system. A system that handles the
processing and tracking of transactions is called a
transaction processing system (TPS)

8. Decision Support Systems
Decision support system (DSS) is a special application
that collects and reports certain types of business
data, which can help mangers make better decisions.
Business managers often use decision support systems
to access and analyze data in the company’s
transaction processing system.
These systems can also include or access other types
of data, such as stock market reports or data about
competitors.
Many decision support systems are spreadsheet or
database applications that have been customized for a
certain business.