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Information System (IS)

Definition - What does Information System (IS) mean?

An information system (IS) refers to a collection of multiple pieces of equipment involved in the dissemination of information. Hardware, software, computer system connections and information, information system users, and the system’s housing are all part of an IS.

Techopedia explains Information System (IS)

There are several types of information systems, including the following common types:

  • Operations support systems, including transaction processing systems
  • Management information systems
  • Decision support systems
  • Executive information systems

An information system commonly refers to a basic computer system but may also describe a telephone switching or environmental controlling system. The IS involves resources for shared or processed information, as well as the people who manage the system. People are considered part of the system because without them, systems would not operate correctly.

There are many types of information systems, depending on the need they are designed to fill. An operations support system, such as a transaction processing system, converts business data (financial transactions) into valuable information. Similarly, a management information system uses database information to output reports, helping users and businesses make decisions based on extracted data.

In a decision support system, data is pulled from various sources and then reviewed by managers, who make determinations based on the compiled data. An executive information system is useful for examining business trends, allowing users to quickly access custom strategic information in summary form, which can be reviewed in more detail.

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