In the previous section we studied about various classification of systems. Since in
business we mainly deal with information systems we'll further explore these systems.
We will be talking about different types of information systems prevalent in the industry.
Information system deals with data of the organizations. The purposes of Information
system are to process input, maintain data, produce reports, handle queries, handle on line
transactions, generate reports, and other output. These maintain huge databases, handle
hundreds of queries etc. The transformation of data into information is primary function
of information system.
These types of systems depend upon computers for performing their objectives. A
computer based business system involves six interdependent elements. These are
hardware (machines), software, people (programmers, managers or users), procedures,
data, and information (processed data). All six elements interact to convert data into
information. System analysis relies heavily upon computers to solve problems. For these
types of systems, analyst should have a sound understanding of computer technologies. In the following section, we explore three most important information systems namely,
transaction processing system, management information system and decision support
system, and examine how computers assist in maintaining Information systems.
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