7.1 Overview of information systems

An information system (IS) is an interconnected set of components used to collect, store, process and transmit data and digital information. At its core, it is a collection of hardware, software, data, people and processes that work together to transform raw data into useful information.

The lifecycle of an information system involves planning, analysis, design, implementation, maintenance, and evaluation stages. These stages ensure that the system continues to meet organizational needs and remains up to date with technology and business requirements.

The following are the characteristics of an information system:

• A system is based on long-term planning.
• It provides a holistic view of the dynamics and the structure of the organization.
• It works as a complete and comprehensive system covering all interconnecting sub-systems within the organization.
• It is based on a need for strategic, operation and tactical information of managers of an organization.
• It is capable of making forecasts and estimates and generating advanced information. Thus it provides a competitive advantage.
• It creates a linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on an integrated view.
• It allows an easy flow of information through various sub-systems, thereby avoiding redundancy and duplicity of data.
• It provides flexibility in data storage and retrieval.
• It provides organized and relevant information for all levels of management: strategic, operational, and tactical.