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What is the main purpose of an information system?

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Written by Jeanne Lourdes S. Subrado

Reviewed by Dr. Reuben J C. Los Baños, Ph.D.

In today’s digital age, information systems now handle tasks we used to do by hand. These systems store, collect, process, and disseminate information through computer-based tools. As you read this article, your device is an information system designed to access data like this easily!

These systems aim to aid in processing data more efficiently than manual methods. For instance, the machine you see at the cashier counter helps process the customer’s total payment, leading to quick accommodation of all consumers. It establishes a fast-paced environment and improves customer satisfaction.

Another example is the apps or software you use to encode documents. These systems store data and allow access at any time and place. Sending someone a link to the papers automatically grants access which addresses the concern of having to physical travel to send it.

Therefore, its usage is cost-effective and flexible!

Why is it important to study information systems? 

The rise of technology pushes us to learn the system since our surroundings are operated mainly by it. It is essential to study its concepts to understand how it will help you, learn to balance its pros and cons, advance your career, and help in further innovation and development.

Some manual tasks, such as shopping, banking, and payments, are now operated digitally. Online payments allow payment transactions through the comfort of our electronic devices.

One way of making online payments is by linking your bank account to online shopping apps, which helps with fast and instant transactions. It will not require you to pay face-to-face once your order is delivered.

In correlation to the first point, online payments are beneficial when the transaction location is far. Yet, it may fall at risk due to identity theft, where outsiders use your data to withdraw money from your bank account.

However, it’s important to note that security measures are present during online payments; reviewing its drawbacks helps decide which is best and safe for your needs.

Most jobs seek technology experts, primarily because most companies rely on technology. Information systems are vital in producing productivity in the workplace. Knowledge of these systems widens your career and opportunities, including IT and business.

Studying its fundamentals can help enhance your knowledge of the field, improve time efficiency, and establish a well-rounded environment with your career path.

With the current knowledge and inventions, we have the strength to improve information systems to address problems further. An example is connected inhalers in healthcare to help patients remember and track dosage to maintain a healthy schedule. Further innovations may help save lives in the future.

What are the benefits of information systems? 

Information system automates manual processes, improve productivity and flexibility, streamline processes, and are cost-effective.

Manual data processing is time-consuming, yet machines help in minimizing this problem.

For example, cash registers effectively accommodate all customers quickly. The cashier doesn’t need to add all the services or products you bought manually; the machine will automatically generate the total cost of your payment, saving time and speeding up the process, creating a manageable market workflow.

Information systems allow you to perform several tasks at a time. Some hospitals offer appointment websites so patients don’t have to travel to get an appointment from the secretary. Patients can feasibly book an appointment and travel when it’s their turn for check-ups, which maximizes time and energy.

Moreover, health workers can benefit from it, helping them focus on other tasks and simultaneously manage different objectives.

Encoding data using applications and machines allows you to update your work anytime. It is also open to changes while encoding, compared to manual methods, where you must rewrite or erase your errors.

These systems are also accessible to others. You can access your work on other devices or machines as well!

Since data is digitized, monitoring each process is easier and more convenient.

In clinical laboratories, medical technologists store patient data in a computer where patients’ medical history is stored. Based on their medical history, each shows whether the patient’s condition has improved or worsened.

This way, it is also beneficial for the health worker to track the state of numerous patients in the hospital.

Google Meet is an example of an application that hosts a digital meeting if members cannot attend physically. It reduces travel costs, and members can quickly participate in the meeting anywhere through their devices.

Additionally, encoding documents through software and applications reduces costs since you don’t have to buy pens, papers, staplers, and other materials to write the document. You will encode the document and automatically access it through your device.

Photo by Markus Spiske on Pexels.com

What is the most important characteristic of an information system? 

While information systems offer several traits,  how you use them determines their most important characteristic. Yet, one common characteristic is automation. The primary goal of creating the system is to lessen the cons of using manual methods in our everyday lives.

Since data is automated, it processes information quickly, addressing the drawbacks of manual processing like time consumption, minimized flexibility, less security, and cost.

For healthcare, security is a top priority in protecting the personal data of patients and the hospital. Banks must also achieve the accuracy of their monetary values to gain reliability.

What the organization lacks defines the vital traits needed for the system.

Why do organizations need an information system? 

Information systems help manage information, secure data, send and collaborate meetings and documents, provide service to the public, manage the workforce more efficiently, and improve time consumption in organizations.

With its aid, service is accurate and readily available, with accurate decision-making, planning, and results.

CT and MRI scans in the health setting detect certain diseases and injuries. Electrocardiograms (ECG) are also essential to evaluate the heart’s rhythm.

What is an example of an information system? 

Some examples include devices, navigation systems, point-of-sale (POS) systems, e-wallet systems, digital goods and online services, medical devices, online shopping and banking, fitness trackers, and document editing apps.

Smartphones, laptops, smart watches, tablets, and televisions are standard devices we use every day.

Smartphones are one of the most portable and readily accessible devices, containing almost everything you need, from communication, calendars, social media, e-books, streaming services, weather apps, flashlights, and calculators.

According to 2024 global statistics, approximately 7.21 billion smartphones are present worldwide, which accounts for 90% of the 8 billion global population. Additionally, 7.69 billion smartphone subscriptions are expected by 2027, with over 95% of teens gaining access to cellphones currently.

With most people owning smartphones, many can access information systems daily with this portable device. However, it also has its drawbacks among users, one of which is phone addiction.

Since information is easily accessible online, it is difficult to lift the addiction to our smartphones. More importantly, social media usage increased throughout the years, with 51.8% of people using social media apps because of boredom. The cons of using smart devices are due to their easily accessible traits.

Application software like Google Maps checks your location and directs your desired destination. It is available on smartphones and desktops,  offering various features such as street view language-friendliness and providing essential details of your desired location.

Since Google Maps shows details of your desired location, it encourages users to visit places that interest them by seeing the provided contact information, images of your business, and time of opening and closing. Lastly, you can also leave a review for other users to see.

This system assists customers in paying for products and services automatically from the store or market. An example is the machine (cash register) that cashiers use when you make a payment. It helps process payments and print receipts.

It ensures accurate processing of data by tracking payment records and reducing errors. It manages the pay scheme much more efficiently and promotes customer satisfaction in the workforce.

E-wallets or digital wallets store money electronically. These systems offer bill payments, money transfers, online shopping, and overseas transactions like PayPal. Another typical example is Gcash, a digital wallet system among Filipinos.

It’s a safe way of transaction if you have a problem carrying large amounts of money or transferring bills in different locations. By using your desired devices, you can manipulate the usage of your money with the comfort of your device.

Digital goods include music and e-books, while online services include Google Chrome.

For students, e-books are helpful because they don’t have to buy physical books to access learning. E-books are cost-efficient alternatives since they are primarily free online.

CT and MRI scans help identify treatment and diagnosis by viewing your internal body structure. These are vital improvements in the healthcare field as they satisfy the goal of patient care and provide adequate help for the lives of those suffering.

These system were helpful during the pandemic since people were not allowed to go outside. Examples are Shoppee, Shein, Amazon, and Lazada which serves as digital alternatives for physical stores.

The advantage of using this is that product prices are sometimes much lower compared to physical stores. However, the system will still include the shipping fee in your payment.

This system is a quick and easy way to find items not seen in physical stores. Yet, it will take weeks or months (if overseas) to arrive.

This system allows you to perform bank transactions on the internet. It’s a convenient way of transacting money from the comfort of your home or any location without going to the bank. You can also link your bank account when shopping online, so you don’t have to pay physically.

This system monitors your fitness schedule and determines if you have major or minor improvements based on past sessions. Examples are workout apps. The system is also available on your devices; it is a convenient way of monitoring health issues if you’re dealing with one.

Google Docs, WPS, and Word-Processing software store and manage documents digitally. Compared to pen and paper, you can edit, add images, spell-check, and update your records anytime. You can easily connect your documents to other systems or devices, making it a flexible alternative to manual methods.

Why are people the most important part of an information system? 

People are the most crucial part since they are the ones who input and interpret data, operate and manage it, and ensure ethical considerations when using the system.

In any information system, they don’t automatically encode the data independently. They are responsible for processing the data input only, and the people will interpret it.

For instance, Google Meet will not automatically host the meeting for you. You have to input the necessary data to make the meeting, and Google Meet will process and start the meeting.  

Since people are the ones who input the data, errors and misinterpretations are not caused by the information system but by a mistake in data input. That’s why it’s essential to have well-trained professionals operating vital systems such as medical devices to ensure accurate interpretations of data.

People are also responsible for ensuring that these systems do what they should. They are accountable for fixing malfunctions and ensuring they operate well when used.

Data privacy is one of the crucial ethical considerations. Humans must ensure that such systems are used responsibly without abusing user’s privacy and data. People are the ones who operate security management among systems.

In healthcare, there have been numerous cases where workers take advantage of their work to gather patient data and commit fraudulent actions. Security and reliability depend solely on the people’s intentions since they can ensure that data is protected.

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