INFORMATION SYSTEM

Definition of Information System

When talking about information systems, first of all needs to be defined what is considered under information and to define difference between data and information. So, information can be defined as data converted into something valuable and usable for certain user.

Out of this definition following can be concluded, information are data sets that together offer new knowledge to data owner.  For example, currency exchange rate is for ordinary person just data but for financial analyst it is information because together with other historical currency exchange rates might give certain predictability, new information, about short-term currency trend. 

From this statement following can be concluded, any system consists of minimally 3 components:

• Input, on level of sales details,
• Processing, same material in production processes.
• Output, new product

Based upon this 3 components modern systems use two more components. Without them many modern systems could not work without:

• process of feedback, where from previous example can be process of quality for new product or for used materials in production process;
• control, that analyzes data from feedback and based upon results makes conclusions (is company moving toward goal or not).

Aim and purpose of each information system (definition of information system) is conversion of data into information. This process consists of four basic concepts:

1. people, hardware, software and data are four basic resources of information system;
2. human resources consist of end users and IT specialists; hardware consists from machines and media; Software resources consist from: programs and procedures; data resources consist form data, model and knowledge base;
3. data are converted in information process into many information products for end users;
4. information process consists of input, processing, output, storage and control processes.

All components of information system are mutually connected and cannot exist individually and to perform role of informing. Relationship between separated components is defined for best process efficiency.