Components of Information System

Introduction

An information system takes all four components to operate properly and efficiently. By considering each component when creating an information system, organizations can achieve higher efficiency, better effectiveness, and improved coordination. An organization that has a payroll system for employees must consider the people using the system and the end product. It needs to ensure everyone is paid on time and properly. The data must be carefully reviewed and input correctly to ensure the process produces proper, efficient payment. The equipment must be able to handle the data and process it without mistakes. All of the components must be taken into consideration when creating an information system (Laudon & Laudon, 2020).

Components of an Information System

Process

The process component of an information system is the operating instructions of an information system. It is the way the software translates data or the instructions for an end user to use the information system properly. The process is the instructions to properly capture, translate, and disseminate information to the users. Effective process management can lead to significant improvements in overall organizational productivity and agility (Stair & Reynolds, 2018).

Data

Data is input to systems for processing and to produce an information product. Data resources must be managed effectively to benefit the end user. It is the numbers, letters, characters, audio, or images that are processed to have an effective product produced by an organization. It is important to note that data is a raw material that must be processed in order to have a finished information system. Organizations that harness the power of data analytics can gain strategic insights that drive better decision-making (McAfee & Brynjolfsson, 2012).

Equipment

The equipment used for an information system is the hardware and software. Most information systems today are computer-driven and have software that runs the applications to process the data input. This is the tangible component of an information system. Like stated before, the equipment may be, as ancient as it is, a pencil or pen. In today's society, however, we tend to associate equipment with hard drives, computers, cell phones, or cameras. The evolution of technology has dramatically increased the potential capabilities of information systems (O'Brien & Marakas, 2011).

People

People are a required component of an information system. They are composed of end users and specialists that are involved in creating or maintaining the information system. The end users are people who use the information produced by the system. Most people that use information systems are end users and are not involved in the planning or creating of a system. These people are employees, customers, or sellers involved with an organization's information system. Information specialists are people that develop, operate, and maintain information systems. Large information computer systems are used by trained specialists because of the complexity of the system. Many specialists are end users because the product of the system is used by them, as well. The role of people in information systems emphasizes the human-technology interaction and the importance of user-centered design (Pearlson, Saunders, & Galletta, 2019).

Conclusion

An information system is a system that takes data resources as inputs and translates them into information as outputs. There are four components that make up an information system: people, data, equipment, and process. An information system relies on the resources of people, the equipment, and the data to process it to an information product. As technology is the most prevalent adaptation of information systems today, computers and modern technology are not needed components of an information system. A person (the people) can collect pertinent information (the data) and write it down (the process) on a piece of paper (the equipment); this is a type of information system. Understanding the foundational components of information systems helps organizations leverage these systems for competitive advantage and operational excellence (Turban, Pollard, & Wood, 2018).

References

Laudon, K. C., & Laudon, J. P. (2020). Management Information Systems: Managing the Digital Firm. Pearson.

McAfee, A., & Brynjolfsson, E. (2012). Big Data: The Management Revolution. Harvard Business Review, 90(10), 60-68.

O'Brien, J. A., & Marakas, G. M. (2011). Management Information Systems. McGraw-Hill/Irwin.

Pearlson, K., Saunders, C. S., & Galletta, D. F. (2019). Managing and Using Information Systems: A Strategic Approach. Wiley.

Stair, R., & Reynolds, G. (2018). Principles of Information Systems. Cengage Learning.

Turban, E., Pollard, C., & Wood, G. (2018). Information Technology for Management: On-Demand Strategies for Performance, Growth, and Sustainability. Wiley.