Information system is a mechanism that helps people collect, store, organise and use information.Information system can be any organized organise combination of people, hardware, software, communications networks and data resources that collects, transforms, and disseminates information in an organization.

The basic purpose of any information system is to help its users get a certain type of value from the information in the system, regardless of the type of information that is stored or the type of value desired.

The Purpose of Information systemsFor many businesses data storage can be an

enormous requirement that involves large computer systems with terabytes of disk space. Therefore the physical means of storing information in file cabinets, notebooks or hard disks will not be enough.

The procedures for handling information is to ensure its integrity. So, regardless of the size of the information system, data-management rules must be followed to eliminate duplicate entries, validate the accuracy or format of data and to avoid the loss of information.

The rules regarding information’s use and distribution. The rules govern what information should be distributed to whom, at what time, and in what format.

Types of Information Processing

As more business functions have been automated, information systems have become increasingly specialized. For example a company’s system may be designed to help users gather and store sales orders. Another system may be designed to help managers analyze data. These specialized systems can operate alone, or they can be combined to create a larger system that performs different functions for different people.

Transaction Processing SystemsA Transaction is a complete event, which may

occur as a series of many steps such as taking an order form a customer. (Allow responses for taking an order)

All these steps can be processed through an information system. A system that handles the processing and tracking of transactions is called a transaction processing system (TPS)

Decision Support SystemsDecision support system (DSS) is a special

application that collects and reports certain types of business data, which can help mangers make better decisions. Business managers often use decision support systems to access and analyze data in the company’s transaction processing system.

These systems can also include or access other types of data, such as stock market reports or data about competitors.

Many decision support systems are spreadsheet or database applications that have been customized for a certain business.