Information System

INFORMATION SYSTEM

Introduction

·       An Information System (IS) is a structured arrangement of people, processes, data, and technology designed to collect, process, store, and distribute information to support decision-making and control in an organization.

Operating Elements of IS

These are the core components that make an IS functional

Element	Description
Hardware	Physical devices like servers, computers, networking equipment, printers, etc.
Software	Programs and applications used to process data (e.g., database systems, MIS software).
Data	Raw facts and figures that are processed into meaningful information.
People	Users who interact with the system (end-users, IT staff, analysts).
Processes/Procedures	Rules and guidelines for operating and using the system efficiently.
Networks	Communication systems that allow sharing of resources and data across systems.

Information System Process

1. Input – Data is collected from internal or external sources.
2. Processing – Data is converted into meaningful information.
3. Storage – Data and information are stored for retrieval and future use.
4. Output – Processed information is delivered to users.
5. Feedback – Output is evaluated and used to make improvements.

Functions of IS

Function	Explanation
Data Collection	Gathering data from various sources (manual or electronic).
Data Processing	Transforming raw data into meaningful formats.
Storage	Organizing and storing data securely.
Information Distribution	Delivering information to relevant users timely.
Support for Decision Making	Providing tools and data for operational, tactical, and strategic decisions.
Communication	Enabling interaction between departments and stakeholders.

Layout of Information Flow in an Organization

Information Flow Layout (Three Types)

Type	Flow Direction	Example in a Hospital
Upward	From lower to higher levels	Nurses reporting patient vitals to doctors.
Downward	From top to bottom levels	Management directives to departments.
Horizontal	Between departments at the same level	Coordination between laboratory and OPD.

Diagrammatic representation (simplified):

     Top Management

          ↑ ↓

     Middle Management

          ↑ ↓

     Operational Staff

       ←→ Peer Departments

Classification of Information Systems

Level	Type of IS	Purpose
Operational	Transaction Processing Systems (TPS)	Routine tasks like billing, admissions.
Knowledge	Knowledge Work Systems (KWS), Office Automation Systems (OAS)	Support professionals, documentation, scheduling.
Tactical/Middle	Management Information Systems (MIS), Decision Support Systems (DSS)	Aid mid-level managers in planning.
Strategic	Executive Support Systems (ESS)	Assist senior executives in strategic decisions.

TYPES OF INFORMATION SYSTEMS

Executive Support System (ESS)

Definition

ESS is designed for senior management to help in strategic planning by providing aggregated internal and external information.

Features

• Summarized dashboards and reports
• Trend analysis and forecasting
• Highly graphical interface (charts, graphs)
• External data integration (e.g., economic indicators)

Components

• Data from MIS, DSS, and external databases
• Analytical tools and reporting software
• Interactive user interfaces

Example in Hospital

Hospital CEO uses ESS to monitor:

• Patient inflow trends
• Budget utilization
• Disease outbreak alerts

Decision Support System (DSS)

Definition

DSS assists middle-level managers in non-routine, complex decision-making using analytical models and data access.

Features

• Supports semi-structured decisions
• Allows "what-if" analysis
• User-friendly interface
• Uses real-time and historical data

Components

• Database – stores internal and external data
• Model base – contains decision models (forecasting, optimization)
• User interface – for query input/output
• DSS software system – handles data-model interactions

Example in Hospital

• Resource allocation (beds, ICU)
• Drug inventory forecasting
• Cost-benefit analysis of new services

Comparison: ESS vs DSS

Feature	ESS	DSS
Users	Senior Executives	Middle-level Managers
Focus	Strategic planning	Tactical decision-making
Data Type	Summarized, external + internal	Detailed internal + analytical
Decision Type	Unstructured	Semi-structured
Interface	Graphical, dashboards	Analytical, models
Speed	Real-time, on-demand	May require computation time

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