How do systems and information systems differ?

Systems have three components: inputs, a transformation process, and outputs. Information systems have an additional feature--feedback. Feedback is used to determine whether the system is performing as expected and to make adjustments as needed. The cement example is an example of a system. For an information system we might consider the payroll process.

In a payroll system hours are collected (inputs) and then employee pay is calculated (process). After processing, paychecks are printed (output) and a payroll report (feedback) is produced. Employees receive the paycheck and a manager reviews the payroll report to make sure there are no errors in the paychecks. The hours worked by the employees are the data and the paychecks and payroll report are the information from the system. In this example the paycheck can also serve as a feedback tool, because you know you would complain if there were an error in your check!