In the field of computer science, a system can be defined as a collection of components that work together to perform a specific task or set of tasks.
One of the key aspects of any system is the information it processes and stores. There are several different types of information that a system can handle, each with its own unique characteristics and properties.
One type of information that systems handle is structured data. Structured data is information that is organized in a specific way, such as in a table or spreadsheet. This type of data is easy for systems to process and analyze, as it follows a predefined format.
Another type of information that systems handle is unstructured data. Unstructured data is information that does not follow a specific format and can include things like text, images, and videos.
This type of data is more difficult for systems to process and analyze, as it does not have a predefined structure.
Intro to Information System
According to Britannica, an information system is a series of integrated components to collect, process, and store data. Later, this component will produce various information, knowledge, and digital products we can encounter every day.
In simple terms, IS is used by companies and other organizations to manage their operations. This includes interactions with customers, suppliers of goods, and competing in the marketplace.
Some large companies like eBay, Alibaba, and even Google are built around information systems. For example, e-commerce or marketplaces have digital displays to sell their products. The product information they have is the result of IS.
In fact, the promo they made to attract buyers’ attention was also the result of SI. This happens through collecting data on customer shopping habits.
Next, items that we could only see digitally were sent to the address the buyer managed to get from SI. Not only do companies use SI, but many ordinary people also use SI in their daily lives.
Typically, SI is used to search for information via Google, shop online, study, read e-books, and have social media.
Components of Information System
1. Management Information System
The first type of information system is SIM (Management Information System). As the name implies, this system targets managerial activities.
Included in the executive is everyone with a position in the organization and a job responsible for management in a division or part of the company.
The functions of this management information system are as follows:
- Monitoring employee performance
- Provide employee appraisal
- Receive reports from employees
- Carry out the supervisory role of employees
- Provide input to the directors
2. Accounting Information System
The second type is an accounting information system called AIS. SIA is the implementation of information systems related to the accounting system of an organization or company. Accounting has a function to see the financial condition of an organization, whether it is surplus or minus.
This accounting information system will help the task of accountant to audit the company’s financial condition, display income and expenditure data, view business profits and losses, tidy up financial reporting records, and many others.
3. Financial information system
The financial information system is an information system under management that manages company finances. This financial information system will later be integrated with the accounting information system for data-matching problems.
- There are several important reasons why you should implement a financial information system in business:
- To record all financial transactions within a specific time
- It can be integrated with accounting information systems
- As an audit and crosscheck of business income and expenses
- Assist in tax calculations
- Accelerating the auditor in conducting a company financial audit.
4. Manufacturing Information System
This management information system is mandatory for your business engaged in manufacturing or production. There are several benefits to be gained from manufacturing information systems, such as:
- For recording production in business
- To record production results that do not pass the quality check
- Recording orders for goods
- Record production costs
- Analysis of production needs
- Provide real-time data on ongoing production activities
5. Marketing Information System
Very important for the marketing division within the company. This marketing system, it will assist in the recording process and provide all information regarding sales that have been made by the company. Other benefits of this marketing information system such as:
- Know the number of products sold
- Find out the best-selling products
- Know products that are rarely interested
- Know the correct marketing methods
- Knowing the market response to the product
Types of Information Systems
In addition to components, information systems also have various types. What are the classes? Here’s the presentation:
1. Transaction processing system (TPS)
One type of information system that is often used by companies is a transaction processing system or TPS. Launching Alta Metrics is usually used to record matters related to transactions in a company.
Examples of its use are file documentation of the history of ordering goods, salaries, customer addresses, and others.
TPS is the information used to make daily, monthly, and even yearly reports.
2. Decision support system (DSS)
Used by the management of a company. DSS has tools for analyzing data that will influence someone in making decisions.
These tools are usually used when complex problems occur and management cannot make decisions independently. DSS does not decide for someone to do something but only helps.
3. Executive information system (EIS)
The third type of SI is EIS. EIS can also be referred to as an Executive Support System that not everyone can use. Usually, only a manager or higher level can use the EIS.
EIS also has tools that can analyze internally and externally. In fact, EIS can analyze current trends for the needs of a company.
The data displayed by the EIS is usually in the form of graphs that can be reinterpreted.
4. Management information system (MIS)
The next type of information system often used by companies is a management information system or MIS.
According to the Indeed page, it is usually used to present a summary of management routines in the basic operations of a company.
MIS can also support a broader range of organizational tasks than TPS, including decision analysis and decision-making.
Not only that, but MIS also produces information that is used to make decisions and can unify several functions of data stored in the database.
5. Workflow systems
Has a function to monitor and manage the system for business processes. The workflow system also executes actions within an organization or company.
Workflow systems can be internet-based and combined with e-mail or servers that use databases to store files.
6. Enterprise resource planning (ERP)
ERP is process management in a business in the form of software.
This software allows an organization to use a system integrated with the company’s vital business operations.
7. Expert systems
An expert system or expert system can be said to be artificial intelligence or what is commonly called Artificial Intelligent (AI).
Artificial intelligence is intended to develop information systems to be broader and more innovative. Expert systems use AI to solve problems through business people or companies.
In contrast to DSS, expert systems produce the final decision for decision-makers.