Information System (IS)

An information system (IS) is an organized system for the collection, organization, storage and communication of
information. More specifically, it is the study of complementary networks that people and organizations use to collect,
filter, process, create and distribute data.
information system (IS) is a group of components that interact to produce information. It focuses on the internal rather
than the external.
Information system can also be described as a combination of hardware, software, data, business process and functions
which can be used to increase efficiency and management of an organization. Information Systems is the expression
used to describe an Automated System (which may be referred to as a Computerized Information System), be it manual,
which covers people, machines or organized methods to collect, process, transmit and disseminate data representing
information for the user or client.

 Billing systems to send invoices to customers

 Systems to calculate the weekly and monthly payroll and tax payments
 Production and purchasing systems to calculate raw material requirements
 Stock control systems to process all movements into, within and out of the business

Process Improvement: To meet the coming challenges, every organization required continuous improvement. The IS
should be flexible to adopt the new technology. Following steps can be taken for process improvement of the IS of an
organization.

1. Set a clear vision

2. Determine a plan for making sure staff and leaders were connected to that vision
3. Develop a high level roadmap of the steps to achieve success

IS Components:

1. Hardware: The term hardware refers to machinery. This category includes the computer itself, which is
often referred to as the central processing unit (CPU), and all of its support equipment. Among the
support, equipment are input and output devices, storage devices and communications devices.
2. Software: The term software refers to computer programs and the manuals (if any) that support them.
Computer programs are machine-readable instructions that direct the circuitry within the hardware parts
of the system to function in ways that produce useful information from data. Programs are generally
stored on some input/output medium, often a disk or tape.
3. Data: Data are facts that are used by programs to produce useful information. Like programs, data are
generally stored in machine-readable form on disk or tape until the computer needs them.
4. Procedures: Procedures are the policies that govern the operation of a computer system. "Procedures are
to people what software is to hardware" is a common analogy that is used to illustrate the role of
procedures in a system.
5. People: Every system needs people if it is to be useful. Often the most overlooked element of the system
are the people, probably the component that most influence the success or failure of information
systems. This includes "not only the users, but those who operate and service the computers, those who
maintain the data, and those who support the network of computers
6. Feedback: it is another component of the IS, that defines that an IS may be provided with a feedback
(Although this component isn't necessary to function).

Types of Information Systems

1. Transaction Processing Systems (TPS)

A transaction processing system provides a way to collect, process, store, display modify or cancel transactions. Most of
these systems allow multiple transactions to take place simultaneously. The data that this system collects is usually stored
in databases which can be used to produce reports such as billing, wages, inventory summaries, manufacturing schedules,
or check registers.
 Billing systems to send invoices to customers

 Systems to calculate the weekly and monthly payroll and tax payments

2. Management Information Systems (MIS)

A management information system is an information system that uses the data collected by the transaction processing
system and uses this data to create reports in a way that managers can use it to make routine business decisions in
response to problems. Some of the reports that this information system creates are summary, exception and ad hoc reports.
All this is done to increase the efficiency of managerial activity.

3. Decision Support Systems (DSS)

Specifically designed to help management make decisions in situations where there is uncertainty about the
outcomes of those decisions.

DSS use tools and techniques to help gather relevant information and analyze the options and alternatives.

4. Expert Systems

4.1. An expert system, also known as a knowledge-based system, is a computer system that is designed to analyze data
and produce recommendations, diagnosis and decisions that are controlled. A neutral system uses computers to foster the
way a human brain may process information, learn and remember that information.

5. Information Systems in Organizations

5.1. This information system collects, stores and processes data to give an organization real time useful and accurate
information. This information system encompasses data gathering information from the people and machines that collect,
process, output and store data. Also in the networks that transmit and receive data and the procedures that govern the way
data is handled.

Knowledge management systems (KMS)

They are typically used in businesses where employees create new knowledge and expertise, which can then be
shared by other people in the organization to create further commercial opportunities. Good examples include
firms of lawyers, accountants and management consultants.

KMS are built around systems which allow efficient categorization and distribution of knowledge. For example,
the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint presentations.
Internet pages etc. To share the knowledge, a KMS would use group collaboration systems, such as an intranet.

Executive Information System (EIS): An executive information system (EIS), also known as an executive
support system (ESS), is a type of management support system that facilitates and supports senior executive
information and decision-making needs. It provides easy access to internal and external information relevant to
organizational goals.
Security controls are safeguards or countermeasures to avoid, detect, counteract, or minimize security
risks to physical property, information, computer systems, or other assets.

They can be classified by several criteria. For example, according to the time that they act, relative to a security
incident:

 Before the event, preventive controls are intended to prevent an incident from occurring e.g. by locking
out unauthorized intruders;
 During the event, detective controls are intended to identify and characterize an incident in progress e.g.
by sounding the intruder alarm and alerting the security guards or police;
 After the event, corrective controls are intended to limit the extent of any damage caused by the incident
e.g. by recovering the organization to normal working status as efficiently as possible.

According to their nature, for example:

 Physical controls e.g. fences, doors, locks and fire extinguishers;

 Procedural controls e.g. incident response processes, management oversight, security awareness and training;
 Technical controls e.g. user authentication (login) and logical access controls, antivirus software, firewalls;
 Legal and regulatory or compliance controls e.g. privacy laws, policies and clauses.