Text What Is an Information System?

Two tools that are used to convert data into information and communicate it to the people who need it are computers and information systems. A system is any set of components that work together to perform a task. An information system is a set of components that work together to manage the acquisition, storage, manipulation and distribution of information.

Information systems designed to be used by many users are called multiuser information systems. These are found in most businesses and organizations, and are vital to their successful operation. Information systems that are designed for use by an

individual user are called personal information systems. You might set up a personal information system on your home computer to manage your financial portfolio.

An information system has three basic functions: (1) to accept data (input), (2) to convert data to information (process), and (3) to produce and communicate information in a timely fashion to users for decision making (output). For example, many banks and other financial institutions use information systems to help determine whether a customer applying for a loan is a good risk. Data about the customer, lending policies, and interest rates are input into the information system. The data is then processed using previously defined procedures for determining credit worthiness. Finally,

information is communicated to the loan officer (the user in this case) in the form of a recommendation to grant or deny the loan. It is important to note, however, that no matter what the output indicates, the user of an information system makes the actual decision.

Many of today’s products could not be produced without the effective use of

information systems on the factory floor. Aerospace, automotive, and industrial manufacturers use information systems to automate production and streamline

engineering, speed developing time, reduce costs, and keep up with the competition. These industries need strong commitment to and investment in information systems to compete successfully in cost, quality, and delivery.

We are in the midst of a revolution where the possession and dissemination of

information has replaced industrialization as the driving force. Computers and

information systems are the tools that allow you to transform data efficiently and effectively into information and distribute it to where it is needed. If used properly they can also improve your productivity. Productivity refers to the amount of time and resources required to gain a desired result. Ideally, you’d like to use less time and fewer resources to get the same or better results. In recent years, the growing use of microcomputers has brought the benefits of these tools to almost anyone who wants to take advantage of them.

As you examine potential career choices, you will find that many require — or will soon require — knowledge and understanding of computers and information systems as well as the ability to use them. Possessing knowledge and understanding of computers and information systems in combination with the ability to use them effectively is called computer literacy. Judging the value of information and using the information

generated wisely is called information literacy. You will need both to compete for many jobs. This doesn’t mean, however, that you’ll have to be a technical wizard, because there are many levels of ability. These range from users who only need to know how to turn the computer on and off and use the software required by their job to

generate or gain access to needed information; to those who must decide what data should be gathered and how that data should be processed; to those who repair, install, or design computers and information systems.

Ex. IV. Study the list of terms below.