Information Systems

Question 1

What is an Information System (IS)?

Answer 1

Software that helps collect, sort, process, and analyse data to produce useful information, knowledge, or digital products.
📌 Example: An accounting system that processes financial transactions into readable reports.

Question 2

What is the role of Information Systems in organisations?

Answer 2

To help manage data, support decision-making, improve efficiency, and deliver digital services or products.
📌 Example: Using a Customer Relationship Management (CRM) system to manage client interactions.

Question 3

What is the difference between data and information?

Answer 3

Data = raw, unprocessed facts (e.g., numbers, text)

Information = processed data that is meaningful and useful for decision-making
📌 Example: “100” is data, but “100 units sold today” is information.

Question 4

How do IS support decision-making?

Answer 4

By extracting and organising key data that managers use to make operational, tactical, or strategic decisions.
📌 Example: HR software provides employee turnover data to inform recruitment plans.

Question 5

What are the components of an Information System?

Answer 5

1. Hardware
2. Software
3. Telecommunications
4. Databases
5. Human resources
   📌 Example: A payroll system includes computers (hardware), payroll application (software), network access (telecom), employee records (database), and users (HR staff).