If you are a student looking for the definition of Information System, its components, and how it works, you are in the right place. In today's digital world, understanding Information Systems (IS) is crucial for business and technology management.
An Information System (IS) is a set of interrelated components that work together to collect (input), process, store, and distribute information to support decision-making and control in an organization.
Think of it as a bridge between Computer Science and Business.
Every Information System follows a basic cycle known as the IPO Cycle (Input-Process-Output).
Figure 1: The Basic Functions of an IS
To understand "What is an Information System" fully, you must know its five key pillars. These are essential for any Computer-Based Information System (CBIS).
| Component | Description | Example |
|---|---|---|
| 1. Hardware | Physical devices used to process data. | Computers, Servers, Routers, Mobile Phones. |
| 2. Software | Programs that control the hardware. | Windows, Excel, ERP Systems, MySQL. |
| 3. Data | Raw facts and figures waiting to be processed. | Customer names, sales figures, employee ID. |
| 4. Procedures (Process) | Rules and guidelines for using the system. | Security policies, backup schedules, user manuals. |
| 5. People | Users who operate and maintain the system. | System Analysts, Managers, Data Entry Operators. |
Many students confuse these two terms. Here is a clear comparison table:
| Parameter | Data | Information |
|---|---|---|
| Meaning | Raw, unorganized facts. | Processed, organized, and structured data. |
| Usefulness | Not directly useful for decision making. | Crucial for making business decisions. |
| Example | "100, 5000, USD" | "Total Sales: $5000 from 100 units." |
In an organization, different levels of management use different types of systems. These are often represented as a pyramid.
Information systems are the backbone of modern businesses. They provide:
