Information System Definition
A system that collects, stores, and uses information to help people or businesses work.
Example Use: The library’s computer system is an information system that tracks all the books.
Business Information System Terms
Business information system terms gives examples, definitions and explanations of the vocabulary related to Information Systems terms, definitions and examples of use.
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Information System Terms
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Management Information Systems (MIS)
Systems that give managers the information they need to make decisions.
Example Use: The MIS report shows the manager which products are selling well.
Components of Information Systems
Hardware, software, networks, people and procedures.
What is Information Technology?
Information Technology (IT) Using computers and digital tools to store, send, and manage information.
Example Use: She works in IT and helps fix computer problems at the company.
Information and Communication Technology (ICT) Technology used to communicate and share information, such as computers, phones, and the internet. ICT in schools helps students learn through online videos and apps.
E-Commerce
E-commerce is trade taking place over the internet.
Weekly Information system Terms
WEEK 1
Introduction to Information Systems
Types of Information Systems
Business Information Systems (BIS)
Information systems used in companies to support business activities.
Many shops use a business information system to record sales each day.
Enterprise Information Systems
Large information systems that connect all parts of a big company.
The enterprise system links the sales, finance, and HR departments together.
Functional Information Systems
Systems designed to support one department or one business function.
The HR department uses a functional information system to track employee attendance.
Decision Support Systems (DSS)
Computer systems that help people make better decisions by analysing data.
The DSS helps doctors choose the best treatment by comparing patient information.
Business English Vocabulary
Business procedures
The usual steps or rules that a company follows to do work.
One business procedure in the shop is to check the cash balance every night.
Business objectives
The goals a company wants to achieve.
A common business objective is to increase sales.
CRM (Customer Relationship Management)
A system that helps a company manage information about its customers.
The CRM system shows what each customer has bought before.
Google Analytics
A tool that shows how people use a website, such as how many visitors it has.
Google Analytics shows which pages on our website are most popular.
Visualization of information
Showing information in pictures, such as charts or graphs, to make it easy to understand.
The sales data is easier to understand when we use a bar chart.
Information System Terms
System Development Lifecycle
The step-by-step process used to plan, build, test, and improve a computer system.
During the system development lifecycle, the team first studies what the users need.
Cloud computing
Using online services to store files or run software instead of using your own computer.
We save our homework on Google Drive using cloud computing.
Online platform
A website or app where people can do activities such as learning, shopping, or sharing.
YouTube is an online platform for watching and sharing videos.
Computer tool
Software or a program that helps you complete a task.
A dictionary app is a computer tool that helps you learn new words.
Web browser
A program used to open websites.
Chrome is a web browser that lets you search the internet.
Wi-Fi router
A device that sends out a wireless internet signal in a home or office.
If the Wi-Fi is slow, you may need to restart the Wi-Fi router.
Spreadsheet
Software for organising numbers and data in rows and columns.
We used a spreadsheet to compare monthly expenses.
Database management software
Software used to store, organise, and find large amounts of information.
The school uses database software to keep student records.
A phishing email
A fake email that tries to trick you into giving personal information.
The phishing email asked me to click a link and enter my password.
WEEK 2
Information and Making Decisions
Tangible / Intangible Value
- Tangible Value is the direct, measurable benefit from something, like increased money, reduced costs, or improved speed.
- Intangible Value is an important but indirect benefit that is hard to measure, like happier employees, a stronger brand reputation, or better customer loyalty.
Transferable Skills
These are abilities you learn in one job or field that you can use in many different jobs. Examples include problem-solving, project management, and communication skills, which are valuable in any career.
Interrelated Components
These are the individual parts of a system that are connected and affect each other. A change in one part will cause changes in the other parts, like how the hardware, software, and data in a computer all work together.
Adaptive System
This is a system that can change and adjust itself when its environment changes. For example, a smart thermostat learns your schedule and adjusts the temperature to save energy.
Business Rules
These are the specific, clear statements that define or control some aspect of a business. They are the reason why a system works in a certain way. For example, a business rule might be: “A customer can only place an order if their account is in good standing.”
Hard & Soft Systems
- Hard Systems involve clear, technical problems with a defined solution, like building a bridge or designing a computer network.
- Soft Systems involve complex, human-centered problems where there is no single “correct” answer, like improving office communication or reducing employee turnover.
Decision Structure
This describes how organized a decision is.
- Structured Decisions are repetitive and routine, with a clear procedure to follow.
- Semi-Structured Decisions are partly routine and partly unpredictable. They have a basic framework or some data to guide the decision, but also require human judgment for the final choice.
- Unstructured Decisions are unique and complex, requiring human judgment and insight because there is no pre-defined rule.
Management Levels
This refers to the three main layers of responsibility in an organization:
- Operational Management: The daily activities and decisions.
- Tactical Management: Medium-term planning (e.g., department budgets, projects).
- Strategic Management: Long-term goals and overall direction of the company.
Information System Terms A-Z and Abbreviations
Interested in more business English? Try our Business English vocabulary
Information System Terms & Abbreviations
Abbreviations
- CRM Customer Relationship Management
- DSS Decision Support Systems
- ERP Enterprise Resource Planning
- EIS Enterprise Information Systems
- EIS Executive Information Systems
- ESS Executive Support Systems
- GIS Global Information Systems
- GIS also be Geographical Information Systems
- HR Human Resources
- IS Information System
- MIS Management Information system
- SCM Supply Chain Management
- SRM Supply Relationship Management
- TPS Transaction Processing Systems
Information System Terms A-Z
Adaptive Systems
An adaptive system changes its operation in response to a change in its environment. It monitors operations and when there is a need to adapt its behavior it does so accordingly.
Business Environment
The business environment includes the physical location, its position within its market such as the economic, legal and technology situation it is in, and the specific environment regarding its stakeholders both internally such as staff and externally such as suppliers, partners and customers.
Business Information System (BIS)
A business information system is an information system, normally computerized, that assist in the efficient and effective management of an organization.
Control Mechanism
A control mechanism monitors a system to check to see if everything is working and to implement corrections if issues arise, or give notification of any issues.
Coupling
Coupling, or the degree of coupling, is how subsystems are closely linked.
Customer Relationship Management (CRM)
Customer relationship management uses technology to manage interactions with customers and potential customers.
Data Systems
Data systems are any system that assists in the storage, communication and organization of the data in a company.
Decoupled Systems
Decoupled systems are not linked with other systems and therefore have greater freedom to work independently.
Deterministic System
A deterministic system is a system that the outputs can easily be determined by examining the inputs.
E-Commerce
E-commerce is trade taking place over the internet.
Enterprise Information Systems (EIS, Enterprise IS)
Enterprise information systems are used across the whole organization by multiple departments such as TPS and ERP systems.
Expert System
An expert system stores and uses expertise and knowledge to help decision making.
Feedback
Feedback is data or information provided from analysis which can be used as the basis for improvement.
Formal Information
Formal information is information communicates through official and proper channels. It tends to be organized and structured such as in reports.
Functional information systems
functional information systems are the departmental systems such as the information systems used by for accounting, finance, HR, marketing, sales, and production.
Global Information system
A global information system attempts to perform the same functions as any other information systems but over different locations across countries, incorporating approaches to issues such as language, culture, currency and transportation.
Globalization
The increasing trade of goods and services by companies across over the world resulting in more people technology and business flowing between organizations in different countries.
Good Information
Good information is accurate, reliable, complete, cost effective, accessible, user-friendly and up-to-date.
Hardware
Hardware is the set of devices used in processing like computers and assisting technology such as input and output devices. This includes network, server and storage devices.
In-house
Inside the company.
Informal Information
Informal information is information that is not communicated through official and proper channels. Examples include spoken conversation outside of meetings such as hearsay and gossip.
Information of Quality
Quality information is information, in the right form, at the right time, given to the right person. It has the correct form, context and meets time requirements.
Information System (IS)
An information system is a set of hardware, software, data, people, and procedures that work together to produce information
Information System Components
The components or parts of an information system are of hardware, software, networks, data systems, people and procedures
Interface
The interface is where a system and environment interact. If it is a user interface it is where the user interacts with the system, such as a computer screen.
Intangible resources
Intangible resources are valuable but not physical benefits to your company such as the experience, motivation, judgement, knowledge, and ideas of the employees.
Inventory Control
Inventory control is maintaining an adequate amount of stock items and managing the control of these items such that customers’ orders can be fulfilled and items do not run out.
Knowledge
Knowledge is the understanding of a subject with skills and awareness of facts and information, such as those gained by experience.
Knowledge Engineer
A knowledge engineer focuses on getting knowledge from experts so that it can be recorded and shared with others within the organization.
Knowledge Management
The effective handling of the information and resources within an organization.
Knowledge Worker
A knowledge worker is a person whose role is based around creating, using, sharing and applying knowledge.
Management Information System (IS)
A management information system (MIS) is a system that provides information needed by managers to support activities in achieving business objectives. It is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization
Networks
Networks are used to transfer data using both hardware and software.
Open System
An open system has a high degree of interaction with the environment, such as other systems, customers, suppliers, partners, etc.
Outsourcing
Obtain services from an outside provider in preference to providing it within the company.
Operations Information Systems
Operations information systems deal with the day to day running of the company such as transaction processing and stock control.
People
People, in this context, are the people related to the organization that are involved in the use of information.
Probabilistic System
A probabilistic system outputs are predicted rather than known, such as the sales forecast.
Procedures
Procedures are the processes that allow all the other parts of the information system to work together effectively on a regular basis.
Software
Software in information systems is the set of computer programs used by the system that is used by both the hardware and the users.
Supply Chain Management (SCM)
Supply chain management involves the coordination of all supply activities of an organization from its suppliers and partners to its customers.
Supply Relationship Management (SRM)
Supply relationship management refers to all activities related to obtaining items from a supplier
System
A system is a collection of interrelated components that work together towards a collective goal. It transforms inputs into outputs.
System Boundary
The system boundary defines the point between the system inside and the environment outside.
Tangible
Easily recognizable or identified such as something that can be measured. In a business there are tangible valuables such as property, equipment and stock. But company reputation, even if it very valuable, is intangible, it is not easy to measure
Value Chain
A value chain refers to a series of connected activities that adds value to an organization’s products or services.
Wisdom
The ability to use knowledge to make good judgments.
return to the main course page: Management Information Systems
FAQ
What is an Information System?
An information system is a set of components that collect, process information, store, and disseminate information. These parts work together to help organisations use information systems for many business and technology needs.
What are the 5 parts of the information system?
The 5 parts are computer hardware, software (system software and application software), data, people, and processes. These interrelated components that collect and store and retrieve data and information help organisations use technology for a variety of purposes.
What is an example of an information system?
Examples include management systems, business information systems, operating systems, telecommunications networks, word processing systems, data warehouses, and systems used on smartphones and personal computers.
How do information systems help a business?
Information systems help organizational tasks like automation, business processes, data management, inventory levels, project management, and information to support decision making. Systems also distribute data, transmit data, and support the use of information systems across the company.
Who works with information systems?
Many roles work with information systems, including a chief information officer, information security analyst, systems analysts, programmers, and other people who study the use of information systems. These roles focus on people and processes, information security, and the success or failure of information systems.
What does a Chief Information Officer (CIO) do?
A CIO is a chief information officer who leads the use of technology and management systems in a business. They help plan how information systems are becoming important for business intelligence and for the evolution of information in the organisation.
How do information systems support decision making?
Information systems use to collect and analyse large amounts of data. Tools like data warehouses, business intelligence systems, and telecommunications systems help managers describe information, understand different information, and make better decisions.
What are the main components of an information system?
An information system includes hardware (like a computer or printer), software (instructions that tell the computer what to do), data (a collection of facts), people (the people component), and processes (steps that show how the components work).
How do operating systems fit into information systems?
Operating systems are a type of system software. They control computer hardware, used to run applications, and help components work together. They support the use of information systems on devices like smartphones and personal computers.
What happens if an information system fails?
The failure of information systems can stop business processes, block the storage and retrieval of data, limit the use of technology, and reduce the success or failure of information across the organisation. This is why information security and good data management are important.
How does telecommunications support information systems?
Telecommunications and telecommunications networks let systems transmit data, share files, and send information via the internet. This helps systems like email, cloud storage, and databases distribute data quickly.
What do information analysts and system analysts do?
An information security analyst protects data. A systems analyst studies the study of information systems and how components work together. Both roles help organisations improve the use of information systems for business and technology needs.