INFORMATION SYSTEM

 INFORMATION SYSTEMS

Information: First of all, we should be able to distinguish between Data and Information. Data is a raw fact and can take the form of a number or statement such as a date or a measurement. It is necessary for businesses to put in place procedures to ensure data have been processed so that they are meaningful. This requires a process that is used to produce information which involves collecting data and then subjecting them to a transformation process in order to create information. Some examples of information include aggregating which summarizes data by such means as taking an average value of a group of numbers. Sorting organizes data so that items are placed in a particular order, for example listing orders by delivery date etc.

System: The system can be defined as “a group of mutually related, cooperating elements with a defined boundary; working on reaching a common goal by taking inputs and producing outputs in organized transformation process.”

Not every system has a single goal and often a system contains several subsystems with sub goals, all contributing to meeting the overall system goal. For example, the finance, operations and marketing areas of an organization should all have goals which together help to achieve overall corporate objectives. In systems, data are used as the input for a process that creates information as an output. To monitor the performance of the system, some kind of feedback mechanism is required. In addition, control must be exerted to correct any problems that occur and ensure that the system is fulfilling its purpose. There are thus five components of a generic system in terms of Input, Process, Output, Feedback and Control.
In the extensive sense, the term Information Systems (IS) refers to the interaction between processes and technology.