Information system encompasses the software and other information technologies that work together to collect, keep, share, process, provide, manage, and analyze data and information. People engage with information system to support business processes.
Purpose of information system
Information system help organizations manage their operations, interact with customers, vendors and other partners and stay competitive.
- Information system supports decision-making, as well as the run of business processes and company operations
- Information system collect, keep and process data to share, provide or generate useful information for decision-making
- Information system have to support all business processes in the organization
- The most visible part of information system is a software which consists of several parts - particular applications which are integrated together
Key components of information system
Information system is more than just technology, it’s about how people can use it and how information technology enhances decision-making and operational efficiency within the company. So key components of information system are
- Information and data
- Software
- Hardware
- Networks and communication
- People
Information system's essential parts and examples
Every single process, task, activity or decision in the organization need some information and therefore must be supported by information technologies. It means either a paper or some kind of business software. This means that any business processes from human resource management, enterprise resource planning, accounting, payroll processing, up to work management should be supported by either any software or a paper. Yes, Let's not forget the most widespread part of information system, the papers. They still carry and contain a large amount of information even in today's digital age.
There is no software covering all processes, information system always consist of several software integrated together. Most common business software categories are:
- Accounting software
- Payroll software
- HRIS system, HCM, (Human resource management)
- ERP systems (Enterprise resource management and planning )
- CRM system (Customer relationship management)
- Vendor management software
- Supply Chain Management System
- Project management software
- Task and work management software
- Systems for cooperation, collaboration, and communication
- Work-flow management systems
In general, software that allows people to work together, share and keep data, collaborate and provides them information.
It doesn't matter where and how the information system applications are operated (in the cloud or on the company's infrastructure, premises). Importantly, they store, process and provide information important to the running and management of the organization. It must therefore support all company processes, both the core ones and all supporting and control processes.