What is an Information System?

What is an Information System?

Many organizations work with large amounts of data. Data are basic values or facts and are organized in a database. Many people think of data as synonymous with information; however, information actually consists of data that has been organized to help answers questions and to solve problems. An information system is defined as the software that helps organize and analyze data. So, the purpose of an information system is to turn raw data into useful information that can be used for decision making in an organization.

Typical Components of Information Systems

While information systems may differ in how they are used within an organization, they typically contain the following components:

1. Hardware: Computer-based information systems use computer hardware, such as processors, monitors, keyboard and printers.
2. Software: These are the programs used to organize, process and analyze data.
3. Databases: Information systems work with data, organized into tables and files.
4. Network: Different elements need to be connected to each other, especially if many different people in an organization use the same information system.
5. Procedures: These describe how specific data are processed and analyzed in order to get the answers for which the information system is designed.

The first four components are part of the general information technology (IT) of an organization. Procedures, the fifth component, are very specific to the information needed to answer a specific question.