An information system is a combination of people, hardware, software, networks, and databases that collect, process, and distribute information to support the goals of an organization. It receives input data and instructions, processes the data according to the instructions, and produces output results. An information system also meets daily transaction needs, supports operations, and provides managerial and strategic support through reports to external stakeholders. The purpose of an information system is to support business functions like finance, accounting, operations, marketing, and human resources to achieve organizational goals.