What are Information System?

An information system (IS) is a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization. The components of Information system (IS) include hardware, software, network, database and human resource that interact to produce information.

IS accept data from their environment and manipulate data to produce information that is used to solve a problem or address a business need. In earlier days, majority of information system were manual systems. •These days, IS is mostly computerized, software intensive systems.

So let us understand the need why we have to shift from manual to computerized system

DISADVANTAGES OF MANUAL SYSTEM: Time Taking Process ,Difficult to handle ,More possibilities of errors

ADVANTAGES OF COMPUTERIZED SYSTEM Time Saving ,Proper Management ,Easy to handle ,Less possibilities of errors

obviously there are more advantages of computerized system.


IS consists of data, hardware, software, procedures and people. The major functions are: Input, storage, processing, control, output. IS are developed to support specific business functions. For example Manufacturing- ERP(Enterprise Resource Planning), Human resource- HR information systems,Marketing and sales- CRM(Customer Relationship Management)


Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient.

Globalization and cultural gap – by implementing information systems we can easily share the information, knowledge, communication and relationships between different countries, languages and cultures.

Availability – information systems has made it possible for businesses to be open 24×7 all over the globe.

Creation of new types of jobs – Most of the jobs nowadays are information- intensive i.e. based on handling large amount of information. Examples: training, teaching, accountants, lawyers etc.

Cost effectiveness and productivity – the IS application promotes more efficient operation of the company and also improves the supply of information to decision-makers. IS has a positive impact on productivity.

Decision-Making: Help to make profitable decisions for any organization.

Record-Keeping: All data is saved and kept for any reference.

The bottom line is that Information systems plays a crucial role, so it is required to keep them safe and secure. Data contained in IS should not be allowed to accessed by unauthorized people.

Threats: -use of internet opens the door for external encroachment

-data stored on hard disk of computer without precautions can be read, copied or modified when connected to internet

 -misuse of information systems by employees may cause loss of productivity, loss of revenue, legal liabilities etc.

SO it is clear there that the advantages of is is more than the threats and threats can be minimized when carefully examined.

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