An information system is a combination of all networks of communication used in a given organization. It involves four major basics. Data is able to be converted into useful and understandeble information. It also involves a mechanism of inputting data, processing it, storage and output process. The information system has human resources that involve the computer, machine or the IT specialists. Basically the four major basics of an information system are hardware and software and also people and the required data (O’Brien, 1993). Information systems are applied in the daily lives and especially in organizations as they simplify work.
There are different types of information systems depending on a given organization. However, there are three major types. The decision support systems are used in organizations to help the management in long term decision making and making of proper judgements on particular situations. They handle both unstructured and semi-structured decisions. Unstructured decisions are unclear decisions. The system must be flexible and able to be adjusted to siut any changes in the organization (Freetutes.com, 2012).
Another type of information systems is the trasnsaction processing system. The main purpose of this system is to process the business’s transactions. Every organization has its form of transactions which vary from others. However there are transactions which are common in many organizations. This system provides high speed proessing and accurate handling of data. It carries out storage of data, calculation and retrieval (Freetutes.com, 2012).
Another important type of information system is the management information system. This is basically a set of information processing functions and it uses the results of already transascted processes. Its purpose is to handle questions as quickly as possible and give appropriate results. Database is an element of management information systems and its important as it is a collection of related information that is available to many users. The management information system provides appropriate input that is vital for the management’s decision making (Freetutes.com, 2012).
There are various examples of information systems used in real life. The accounting information system (AIS) is a system used in organizations to collect, store, manage and process financial data that can therefore be used by managers, financial officers and even accountants. Accountants work with this system so as to ensure accuracy and fast handling of the companies’ financial transactions and proper record keeping (Fontinelle, 2011). This makes the data to be easily available to any interested user.
The Automated Teller Machine (ATM) is also an example of information system in real life. The ATM is an electronic and computerized equipment used in the withdrawal of money. The machine is mostly found outside banks and it carries out its functions automatically. It replaces tellers that are found in the banks. The machine is fast in processing and the operator only requires an ATM card. Its purpose is to provide money to its customers who own bank accounts with its constituent bank. All forms of transaction are recorded automatically and the required balance in the bank account is kept.
The cashier machine in restaurants and in cafeterias is an example of information system. Data is entered in form or codes which represent the different meals or drinks and it automatically does the required calculation giving out a certain result representing the balance and the receipt. All transactions performed by the machine are recorded and stored in its memory to necessitate later or future retrieval. This machine applies the same technique to that used in banks by bank tellers and cashiers in supermarkets.
The knowledge of information systems is a useful piece of knowledge which can be put into real life and its application can largely change many tedious processes. Data is meant to be accurately entered, correctly processed and a good result produced. Proper information systems necessitate all these processes and even support long term storage of information that is important. Information systems make work easier and they are reliable and efficient.