Wednesday 3 October 2012

What is an Information System?

An Information system(IS) is a set of interrelated components that collect, manipulate and disseminate data and information and provide a feedback mechanism to meet an objective.

The essential components of an information system are
  • people
  • technology
  • rules and procedures
Nowadays business organization needs information system to support their business, because each business has its own policies and instruction. For example a bank has a huge sensitive database of customers' information and the database is connected to other branches and ATM with information system. That's why people can go to different branches to withdraw money or make different accounts within the same banking organization even in other states because the information system should be accurate and reliable to keep their money. Using information system is economical because it can control huge numbers of data with few people so the company does not need to hire many people to control the data.

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