In: Finance
what is information system is and explain each of its components. Make a graphical representation
An information system is a formal,sociotechnical, organizational system designed to collect, process, store and distribute information.In a sociotechnical perspective, information systems are composed by four components:task, people, structure, and technology.
In other words, Information system,an integrated set of components for collecting, storing,and processing data and for providing information, knowledge, and digital products.Business firms and other organizations relays on information systems to carry out and manage their operations, interact with their customers and suppliers and compete in the marketplace.
Information systems are used to run interorganizational supply chain and electronic markets.For instance, corporation use information systems to process financial accounts,to manage their human resources,and to reach their potential customers with online promotions.Many major companies are built entirely around information systems.These include eBay,a largely auction marketplace; Amazon, an expanding electronic mall and provider of cloud computing services; Alibaba,a business to business e-marketplace;and Google,a search engine company that derives most of it's revenues from keyword advertising on internet searches.
Components of Information System.
The main components of information systems are computer hardware and software, telecommunications, database and data warehouses, human resources and procedures.The hardware, software and telecommunications constitute information technology, which is now ingrained in the operation and management of organizations.
Following are the main components of information systems.
1. Computer hardware.
Computer hardware includes the physical parts of a computer,such as the case, central processing unit, monitor, mouse, keyboard, computer data storage, graphics card, speakers and motherboard.
2.Compuer software.
The hardware needs to know what to do, and that's the role of software.software can be divided into two types: system software and application software.The primary piece of system software is the operating system, such as Windows or iOS, which manage the hardware's operation.
Application software is designed for specific tasks, such as handling a spreadsheet, creating a document,or designing a Web page.
3. Telecommunications
This component connects the hardware together to form a network.Connetions can be through wires, such as Ethernet cable or fiber optics, or wireless, such as through WiFi.A network can be designed to tie together computers in a specific area, such as an office or a school, through a local area network.If computers are more dispersed, the network is called a wide area network.The internet itself can be considered a network of network.
4. Database and data warehouses
This component is where the " material" that the other components work with resides.A database is a place where date is collected and from which it can be retrieved by querying it using one or more specific criteria.A date warehouse contain all of the data in whatever form that an organisation needs. Database and data warehouses have assumed even greater importance in information systems with the emergence of" big data" a term for the truly massive amounts of data that can be collected and analysed.
5 Human resources and procedures
The final, and possibly most important, component of information systems is the human element: the people that are needed to run the system and the procedures they follow so that the knowledge in the huge database and data warehouses can be turned into learning that can interpret what has happened in the past and guide future action.