Introduction: System/ information system of Class 12 Unit 1
  1. A system is a set of components that work together to perform a specific task. It accepts input pko it and gives the required output.

  2. A system is a set of interacting or interdependent objects or ideas which works together like a single unit in order to achieve common goal.

  • For example:

  • Human body 

  • Computer system 

  • Organization 

  • Result processing system 

  • Bank system 

  1. We know the computer system is a set of instructions with input, processing, storage, and output.

1 Information System

  1. Information system is a system which processes supplied/ collected data and generated information that can be used for decision making at different levels. 

  2. “Information systems (IS) is the study of complementary(combining) networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.

  3. “Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.

  4. “Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.

Components of information system 

  1. Hardware 

  2. Software 

  3. Data

  4. Processing 

  5. People 

Types of information system 

Transaction Processing Systems

Way to collect :

  • Process,

  • Store, 

  • Display,

  • Modify or cancel transactions.

  • Simultaneously Multiple transactions 

  • Stored in database


1.1. A transaction processing system provides a way to collect, process, store, display modify or cancel transactions. Most of these systems allow multiple transactions to take place simultaneously. The data that this system collects is usually stored in databases which can be used to produce reports such as billing, wages(a fixed regular payment earned for work), inventory summaries, manufacturing schedules, or check registers.

2. Management Information Systems

  • Collect data from transaction processing system 

  • Managers can use this for business decisions in response to problems.

  • All data and reports are used to increase the efficiency of managerial activity. 

2.1. A management information system is an information system that uses the data collected by the transaction processing system and uses this data to create reports in a way that managers can use it to make routine business decisions in response to problems. Some of the reports that this information system creates are summary, exception and ad hoc(actual) reports. All this is done to increase the efficiency of managerial activity.

3. Decision Support Systems

decision-making activities. 

3.1. A decision support system helps make decisions by working and analyzing data that can generate statistical projections and data models. This system gives support rather than replacing a managers judgement while improving the quality of a managers decision. A DSS helps solve problems while using external data.

4. Executive information system 

It is also known as the executive information system. It operates on the exclusivity level of management  

Role : 

Provides critical information from many sources with optimization.

It provides long term planning and it plays a vital role for  millistons goals of the organization.

This Content is helpful? Write your Responce