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What Is System Information? Key Components and Examples

Last updated: Jun 20, 2024

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What Is System Information?

An information system is a set of information technologies for managing, collecting, and disseminating information.

What is system information in the opinion of experts? According to Henry Lucas, information systems are activities that provide information in support of decision-making.

Meanwhile, Alter defines an information system as a working system where humans and machines collaborate using available resources to produce outcomes for customers.

The primary goal of an information system is to process data into useful information for decision-making within an organization. Key characteristics of information systems include:

Additions: Information can be updated and provide additions to existing data.
Reinforcement: Information can reinforce existing data.
Collective: Information can correct errors in existing data.
New: Information can bring new data to the enterprise.

Information System Functions

Now that you know what is system information, let's learn about its functions. Besides processing data into information, information systems also serve several purposes:

1. Collecting Data

The function of an information system is to gather data from users, which is then used for various operations.

2. Saving Data

The information system is used to store data. The collected data is stored within the system for future processing.

3. Processing Data into Information

Stored data, whether relevant to the organization or not, is processed to generate the necessary information for the organization.

In addition, information systems also have the following functions:

Control the flow of information and receive feedback.
Increase productivity.
Provide data for decision-making.
Analyze and minimize business errors and losses.

Key Components of Information Systems

To understand more of what is system information, it has a series of components to work properly. According to O'Brien and Marakas, information system components consist of inputs and outputs.

Input is the source of data obtained, while output is the result of processed data that becomes information.

The inputs and outputs are of course supported by pillars. Here are the pillars that support information systems according to O'Brien and Marakas that you should know.

1. Hardware

Hardware is a crucial component of information systems, including devices such as computers, tablets, laptops, and others that support the system's functionality.

2. Software

While hardware is essential, software-like applications are equally vital for operating the information system and managing data collection and storage.

3. Human Resources

Beyond hardware and software, skilled human resources are necessary to operate the equipment effectively. Most importantly, personnel with expertise in their fields can process data accurately and generate valuable information for the organization.

4. Data Source

Information systems rely on data from diverse sources which is stored in databases. This data is then processed to drive business growth and decision-making.

5. Network Source

Lastly, the network source, including wireless networks, connects devices for data collection and sharing. A fast and reliable network is crucial for efficient work and an organized system.

Types of Information Systems

There are different types of information systems that you need to consider to make the right business decisions. The types of information systems are as follows.

1. Decision Support System

A decision support system is a type of information system used to make decisions for organizations.

First, a decision support system identifies issues, collects data, and processes it into useful information. As a result, you can get solutions to the problems that exist in the organization.

2. Management Information System

A management information system solves business problems using existing information system components, providing solutions through in-depth analysis based on operational and management standards.

3. Transaction Processing System

A transaction processing system is a type of information system that records company transactions to monitor the transaction process within an organization.

4. Executive Information System

Executive information system helps company executives make decisions based on relevant information. The system displays verified report results and has an attractive interface.

Example of an Information System

After understanding what is information system, along with its types, and components, let's look at some examples in various business fields. Examples of information systems include.

1. E-Learning

The first example is e-learning. It is an information system for organizing teaching and learning, processing student and teacher data, and processing information relating to training.

2. E-Commerce

E-commerce is an example of an economic information system. It records buying and selling transactions, whether they occur in a marketplace, on a website, or on a device.

3. Office Automation System

Office automation system includes electronic equipment on server devices for computer networking. It is used to facilitate the communication process to run well.

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