Lesson 1: Introduction to Information Systems (IS)
What Is an Information System?
Broadly speaking, an information system is an ensemble of computer hardware and software that collects, stores, processes, and manipulates data. In most information systems, the central component is a database which stores the information.Typically an information system will run on at least one powerful computer called a server that is specifically dedicated to running the information software. Some older information systems run on mainframe computers. Information systems can, however, also be run on a desktop computer, perhaps like the one you are using now to do this lesson.
Figure 1.2. Basic Network Structure
At the most basic level, an information system consists of hardware, software, databases, and people.
Hardware are the physical components that make up the system such as the processor, physical storage (hard drive), memory (RAM), and the network card.
Software are the applications that can be run on the system including the operating system.
A database is an application that stores data. A database management system is a software program such as Microsoft Access that is used to access the data stored in the database system.
Perhaps the most important component of an information system is the people who use it and benefit from it.
In practice, information systems are often designed to address specific needs.
Types of Information Systems
There are other types of information systems, but these five are the main types used in organizations today. Navigate through the slides below to learn more about each type of information system.
Types of Information Systems
Transaction Processing Systems
Enterprise Resource Planning Systems
Management Information Systems
Decision Support Systems
Knowledge Management Systems
1. Transaction Processing Systems
Transaction processing systems, or TPS, are the oldest and most basic form of information systems. TPS are systems designed to handle the processes of large amounts of routine business transactions. For example, a big-box retailer like Wal-Mart may use a TPS to collect and process all of the sales receipts from each of their stores every day.
A little TPS humor for those of you who have seen Office Space ...
2. Enterprise Resource Planning Systems
Enterprise resource planning systems, or ERP systems, are advanced information systems that have gained widespread adoption in the past decade. ERP systems are designed to integrate and manage all of the different business units that comprise an organization such as human resources, accounting, manufacturing, finance, and supply-chain management. Perhaps the most well-known ERP system manufacturer on the market today is SAP. Typical SAP installations involve restructuring organizational processes based on a set of industry best practices.
3. Management Information Systems
Management information systems (MIS) are systems created to facilitate the work of managers and decision makers. MIS typically allow managers to access data and produce reports (such as sales trends) that they then use to manage the organization.
4. Decision Support Systems
Decision support systems (DSS) are information systems that facilitate decision making by managers, typically through the use of complex models and artificial agents (small programs that make a recommendation based on a set of inputs).
5. Knowledge Management Systems
Knowledge management is the taking of tacit knowledge (knowledge inside of our heads) and transforming it and storing it as explicit knowledge (knowledge that is stored externally). Knowledge management systems (KM) are used by organizations to capture and exploit the expertise of their employees.
