3 Information Systems

3.1 What is an Information System

An information system (IS) is a set of interrelated elements or components that collect (input),
manipulate (process) and store, and disseminate (output) data and information and provide
a feedback mechanism to meet an objective. Hence Information system consists of four
main components, namely input, processing, output and feedback. Their relationship is
illustrated in the figure below.








This feedback mechanism is very important since it provides to improve the quality of
processing as well as the input. Every system including Information system, has a goal to be
achieved to fulfill the need of the organization. As a result of this mechanism, organizations
can achieve their goals, such as increasing profits or improving customer service.