An information system (IS) is a set of interrelated components that collect, process, store, and disseminate data and information to support decision making, communication, and problem solving. IS are used in a wide variety of organizations, including businesses, governments, and non-profit organizations.
Components of an IS
The basic components of an IS are:
- Hardware: The physical components of the system, such as computers, servers, and storage devices.
- Software: The programs that run on the hardware and perform the specific tasks of the IS.
- Data: The raw facts and figures that are input into the system and processed to produce information.
- People: The users of the system, such as managers, employees, and customers.
- Procedures: The steps that are followed to use the system.
Types of IS
There are many different types of IS, but some common examples include:
- Transaction processing systems (TPS): These systems process routine transactions, such as sales orders, payroll, and inventory management.
- Management information systems (MIS): These systems provide managers with reports and summaries of data to help them make decisions.
- Decision support systems (DSS): These systems help managers make complex decisions by providing them with analytical tools and data models.
- Executive information systems (EIS): These systems provide top executives with real-time data and summaries of key performance indicators.
Benefits of IS
IS can provide a number of benefits to organizations, including:
- Improved efficiency and productivity
- Reduced costs
- Better decision making
- Enhanced customer service
- Increased competitive advantage
MCQs and Answers
Q1. What is an information system (IS)?
(A) A set of interrelated components that collect, process, store, and disseminate data and information to support decision making, communication, and problem solving. (B) A computer program that is used to perform a specific task. (C) A device that is used to input, output, or store data. (D) A network of computers that are interconnected to share resources.
Answer: (A)
Q2. Which of the following is NOT a component of an IS?
(A) Hardware (B) Software (C) Data (D) Operating system
Answer: (D)
Q3. What is the most common type of IS?
(A) Transaction processing system (TPS) (B) Management information system (MIS) (C) Decision support system (DSS) (D) Executive information system (EIS)
Answer: (A)
Q4. What is one of the main benefits of IS?
(A) Improved efficiency and productivity (B) Reduced costs (C) Better decision making (D) All of the above
Answer: (D)
Q5. Which of the following is an example of an IS?
(A) A company’s website (B) A bank’s ATM system (C) A hospital’s patient record system (D) All of the above
Answer: (D)