
An Information System (IS) is a software program (or application) that automates business processes & tasks and collects, processes, stores, & distributes information to support decision-making & analysis in an organization.
Key Functions of an Information System:
- Data Collection
- Captures raw data from internal and/or external sources.
- Data Processing
- Converts raw data into meaningful information through sorting, classifying, and summarizing.
- Data/Information Storage
- Saves data and information for future use, often in databases or data warehouses.
- Information Retrieval
- Allows users to access and retrieve stored data when needed.
- Information Dissemination
- Distributes processed information to the right people at the right time to support decision-making.
- Support for Decision-Making
- Provides tools, reports and visualizations that help managers and employees make informed choices.
- Automation of Processes
- Streamlines routine tasks and business processes to improve efficiency and reduce errors.
Types of Information Systems
Transaction Processing Systems (TPS)
Enterprise Resource Planning (ERP)
Functional Area Information Systems
Decision Support Systems (DSS)