Chapter ( 1 ): Introduction to Information Systems Assoc. Prof Mohamed Ismail Fath Allah Faculty of Engineering – Suez University Main Outlines • Definition of Information Systems • Importance of Information Systems. • Types of Information Systems. • Components of Information Systems. Definition of Information Systems Definition: A set of interrelated components that collect , process , store , and distribute information to support decision - making and control in an organization It enhances decision making , increases efficiency , and supports strategic plan Importance of Information Systems Information systems are very important for: Streamlining operations Improving communication Enabling data analysis Supporting innovation and competitiveness Types of Information Systems Transaction Processing Systems (TPS): Definition : Systems that handle day - to - day transactions efficiently Examples : Point of Sale systems, payroll systems Key Functions : Data collection , transaction processing , and reporting Management Information Systems ( MI S ): Definition : Systems that provide middle management with reports on the organization ’ s performance Examples : Sales management systems, inventory control systems Key Functions : Data summarization , performance monitoring , and reporting Decision Support Systems ( DS S ): Definition : Systems that help with complex decision - making and problem - solving Examples : Financial planning systems, forecasting tools Key Functions : Data analysis , scenario analysis, and modeling Components of Information Systems Hardware : Definition : Physical devices used in an information system Examples : Computers, servers, networking equipment Software : Definition : Programs and applications that process data Examples : Operating systems, business applications Data : Definition : Raw facts and figures that are processed into meaningful information Importance : Quality data is crucial for effective decision - making Procedures or Processes : Definition : The rules or guidelines for using the information system Importance : Ensures consistency and security in operations People : Definition : Users who interact with the information systems Role s : IT professionals, end - users, managers