Information Systems in Business and Organization

Information Systems in Business and Organization

Introduction

In today's competitive world the growth of business organization is very important. The things are getting complex because in today's organization there is huge amount of information to administer. The mass of information is usually sensitive to business, environment and its resources thus it needs to be managed effectively. Information system is the most effective way to store process and analyze data for effective decision making thus in this paper I am going to discuss in detail about the information system and its types along with some examples in daily life.

Information System

An information system can be defined as a set of components that interact to achieve a specific purpose, which is to meet the information needs of the organization. These components may be people, data, or material resources activities in general, which process and distribute information appropriately, to satisfy the needs of the organization. An information system is interrelated component that capture, store, process and distribute information to support decision making, control, analysis and insight into a business or organization. The three activities in an information system are (Rezgui, 2008):

The input

Processing

The output

Types of Information Systems

Information systems are used to solve semi-structured problems; it is divided into several types. However according to their function in this paper we are discussing four types of information systems:

Transaction Processing System

When a system collects, stores and alters the information created from transactions carried out within an organization is called transaction processing system. Its purpose is to process daily transactions of a business, accumulating all information received in a database for later reference.

Management Information System

A management information system is the one used by the company to solve problems in the same. That is, the objective is the supply of information for ...