All businesses share one common asset, regardless of the type of business. It doesn’t matter if they produce goods or provide services. It is a vital part of any business it may be sole proprietorship or a multinational corporation. That common asset is information. Information enables us to determine the need to create new products and services. Information tells us to move into a new markets or exit from other markets. Without information we cannot make the goods, orders cannot be placed, materials cannot be provided, the finished goods cannot be delivered, the customers cannot be charged and the business cannot survive.
But when information is not in organized form it has a lesser impact. In order to maximize the value from information system it must be captured, analyzed, quantified, manipulated, and made accessible and shred throughout the organization.
Information system
An information system is a computer system that facilitates management and other employees within an organization with up to date information regarding the organization performance. Let’s take an example of current inventory and sales. Normally it is connected to a computer network, which is created by integrating different computers together with the purpose of sharing data and resources. It is designed in such a way that it can capture, transmit, store, retrieve, manipulate, and display information used in one or more business process. This system provides information in such a way that it is useable by all management levels of the organization like strategic, tactical and operational.
Information system can be defined technically as a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making and control in an organization. By the word information we mean data that has been converted into a meaningful form, which is useful