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Introduction
Many organizations work with large amounts of data. Data
are basic values or facts and are organized in a database. Many
people think of data as synonymous with information; however,
information actually consists of data that has been organized to help
answers questions and to solve problems. An information system is
defined as the software that helps organize and analyze data. So, the
purpose of an information system is to turn raw data into useful
information that can be used for decision making in an organization.
General Purpose vs. Specialized Information Systems
There are some general types of information systems. For
example, a database management system (DBMS) is a combination
of software and data that makes it possible to organize and analyze
data. DBMS software is typically not designed to work with a specific
organization or a specific type of analysis. Rather, it is a generalpurpose information system. Another example is an electronic
spreadsheet. This is a tool for basic data analysis based on formulas
that define relationships among the data. For example, you can use a
spreadsheet to calculate averages for a set of values or to plot the
trend of a value over time.
In contrast, there are a number of specialized information
systems that have been specifically designed to support a particular
process within an organization or to carry out very specific analysis
tasks. For example, enterprise resource planning (ERP) is an
information system used to integrate the management of all internal
and external information across an entire organization. Another
example is a geographic information system (GIS), which is used to
manage and analyze all types of geographical data. Expert systems
are another example of information systems. An experts system is
designed to solve complex problems by following the reasoning of an
expert.
Typical Components of Information Systems
While information systems may differ in how they are used within an
organization, they typically contain the following components:
1. Hardware. Computer-based information systems use computer
hardware, such as processors, monitors, keyboard, and printers.
2. Software. These are the programs used to organize, process and
analyze data.
3. Databases. Information systems work with data, organized into
tables and files.
4. Network. Different elements need to be connected to each other,
especially if many different people in an organization use the same
information system.
5. Procedures. These describe how specific data are processed and
analyzed in order to get the answers for which the information system
is designed.
The first four components are part of the general
information technology (IT) of an organization. The procedures are
very specific to the information needed to answer a specific question.
Information systems is in essence bridging the gap
between business and the ever growing field of computers. On the
other hand, information technology is all about managing technology
and making use of it for the betterment of business.

In brief:
Information systems and information technology are parts
of a broader computer science.
Whereas information systems focuses on the system
making use of technology, information technology focuses on
technology and how it can help in disseminating information.
However, Information technology and information systems
are not necessarily two fields of study, even though, there can be
fields of studies on these terms.
MEANING
Information system
An information system can be defined as set of coordinated network
of components, which act together towards producing, distributing
and or processing information. An important characteristic of
computer-based information systems information is precision, which
may not apply to other types.
information technology
Information technology can be broadly defined as integration of
computer with telecommunication equipment for storing, retrieving,
manipulating and storage of data. According to Information
Technology Association of America, information technology is defined
as the study, design, development, application, implementation,
support or management of computer-based information systems.
IMPORTANCE
The emegence of a global economy, transformation of industrial
economies, transformation of the business enterprise, and the
emergence of digital firm make information systems essential in
business today. Information system is a fondation for conducting
business today. In many businesses, survival and the ability to
achieve strategic business goals is difficult without extensive use of
information technology. There are six reasons or objectives why
businesses use information system:
1) Operational Excellence businesses can constantly improve their
efficiency of their operations in order to achieve higher profitability.
They can do this by constantly having the correct amount of stock in
store so consumers can always get want they want.
2) New product services and business models I.S systems play a
major role for businesses in creating new products and services. New
business models can be created and these can describe how a
company produce, create and sell there products.
3) Customer and Supplier intimacy the better services a company
provides its consumers with more likely they are too come back to
them and as result the more they will buy off the supplier therefore
creating a good relationship with both parties.
4) Improved decision making I.S systems make it possibly for
managers to use real time data when making a decision to therefore
make better decisions and not have to waste time looking for
information.
5) Competitive advantage if companies achieve any of these 6
reasons to use I.S they will generally create a competitive advantage
over their rivals.
6) Day to Day survival business invest in these systems to make
their jobs as easy as possibly. an example is Citibank introduced the
first ATM machine to make it easier for customers to access their
money and to cut down queues in their banks.

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and making use of it for the betterment of business.

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