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Information Systems

History of computers. (n.d.). Retrieved November 17, 2005, ments allow users to use the system in some concerted
from http://www.hitmill.com/computers/history/index.html manner to achieve personal or institutional missions,
A history of computers. (n.d.). Retrieved November 17, 2005, goals, and objectives.
from http://www.maxmon.com/history.htm
Introduction to computers. (n.d.). Retrieved November 17,
2005, from http://www97.intel.com/discover/Journey THE INFORMATION SYSTEM
Inside/TJI_Intro/default.aspx An information system is a melding of the concept of
Schneider, David I. (2003). An introduction to programming information with a system of technology to best facilitate
using Visual Basic .NET (5th ed.). Upper Saddle River, NJ: organizational needs. An information system requires
Prentice Hall. designers and users capable of systems thinking to keep
the system dynamic within an environment of constantly
changing variables over time.
Ronda B. Henderson
CLASSIFICATION OF
INFORMATION SYSTEMS
INFORMATION The need for information systems creates various classifi-
SYSTEMS cations. The areas of need reflected in these classifications
are organizational levels, functional areas, support areas,
Information systems refers to technology designed to han- and the information system architecture.
dle the data that institutions receive, process, generate,
save, backup, disseminate, and use to make decisions. Organizational Level Classification. Many organizations
Designs for such systems vary according to the missions, are so complex that their technological systems are organ-
goals, objectives, and global market conditions of the
ized in a hierarchical structure representative of their orga-
institutions investing in the technology.
nizational charts. For example, information systems may
be classified by departments, divisions, and/or work units.
DATA, INFORMATION, AND A major point, however, is that organizational informa-
KNOWLEDGE tion systems must be interconnected.
Information should not be confused with the related con-
cepts of data and knowledge. Data are simply characteris- Functional Area Classification. An information system
tics or descriptions of relevant objects or events that can be classified by the major functions of the organiza-
influence business decisions. Common examples include tion that cross organizational structure. Typical functional
inventory, sales, receipts, and payments of transactional information systems are developed for accounting,
activities frequently stored and retrieved in databases. finance, manufacturing, marketing, and human resource
Information is an extension of data by adding organ- management.
ization in ways that add value and relevance to the data.
Institutional users are then able derive interpretation that Support Area Classification. Information systems all have
leads to conclusions and implications. When data become a support role in facilitating the meeting of institutional
more valuable than simple retrieval, information has been missions, goals, and objectives. Examples of support clas-
produced. sification information systems are transaction processing
Knowledge exists when users understand how exist- systems, management information systems, knowledge
ing information can be applied in higher-order tasks such management systems, office automation systems, decision
as explaining phenomena, predicting happenings, or pro- support systems, group support systems, and intelligent
jecting trends. These abilities allow users to become support systems.
experts rather than simply perform operations. Transaction processing system: A transaction processing
system (TPS) performs the routine functions of an organ-
THE SYSTEMS CONCEPT ization, such as payroll, customer orders, billing, and
A system consists of elements that have either been expenses. A TPS provides support to the monitoring, col-
designed into particular configurations or evolved into lection, storage, processing, and dissemination need for
configurations over time. For example, a computer system these routine business processes.
for one user may be just one element, a computer, and Management information system: A management
related peripheral elements, devices. A system for multiple information system (MIS) supports activities to make sure
users may have many computers and peripheral devices. that business strategies are being efficiently employed.
The main point of such a system, however, is that the ele- Those support activities include planning, monitoring,

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