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You are here: Home / Accounting / Accounting Information System / What is an Information System for? Explanation and Examples

What is an Information System for? Explanation and Examples

March 21, 2017 By Salman Qureshi

What is an Information System

With the globalization of information and the rapid development of the means to access it, its management has become fundamental within all companies. For example, Harper says that “managing your business is about managing your future and managing your future. It’s about managing your information.”

The information system allows to control the company and is divided into 2 phases: to collect the information, then to treat it and to use it efficiently.

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  • What is Accounting Information System

Explanation

Collecting information

Any information system relies mostly on a database, then managed using specialized software packages (such as Access for example). It is, therefore, essential to collect these data, whether encrypted or not. In the case of a database, these are mainly quantitative measures and quantitative information. Efficiently gathered and collected, they are used to assess the company’s high performance. However, the information system also uses the “dashboard”, which contains, above all, qualitative information on the performance of the company. The latter are not encrypted, it is here the quality of these performances, in terms of efficiency, and satisfaction is required.

Examples:

Below is the example of using information system

Using Information System (IS)

The raw information collected in a database must be pre-formatted in order to be accessible to the largest number of employees working within the company. In the case of the database, reports and forms are all tools to increase the visibility of the information collected.

More importantly, they ensure that the information will be used correctly. Indeed, the form allows viewing all the data of a database, with the possibility of the creator of this same base to block the modification of the base by another user. The form then allows to visualize, but not to modify. This minimizes the risk of error or false manipulation by the user. The importance of “An IS and its good management is illustrated by concrete examples within American companies.

It is estimated that the annual losses of these companies due to mismanagement of their IS are several billion dollars. A single error in the use of the Nasa IS has thus led to the disintegration of the Columbia shuttle. The same is true for some generalized bugs. By having a good IS, all that is left to do is to use it to drive the company well. Use of the Nasa IS has thus led to the disintegration of the Columbia shuttle. The same is true for some generalized bugs.

By having a good IS, all that is left to do is to use it to drive the company well. Use of the Nasa IS has thus led to the disintegration of the Columbia shuttle. The same is true for some generalized bugs. By having a good IS, all that is left to do is to use it to drive the company well

Filed Under: Accounting Information System Tagged With: What is an Information System

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Salman Qureshi is Researcher & passionate Blogger, he loves to write on Commerce & Management Sciences subjects to assist students, Hope you guys will like his effort.




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