Module 1: Introduction to Information Systems and Their
Environment
This handout provides a foundational understanding of Information Systems (IS), exploring their
components, stakeholders, types, architectures, and processing modes. It also discusses the
challenges of legacy systems.
1.1 What is an Information System (IS)?
An Information System (IS) is a sociotechnical organizational system designed to collect, process,
store, and distribute information. It combines hardware, software, data, procedures, and people to
support operations, management, and decision-making. The primary goal is to transform raw data
into actionable information to achieve organizational objectives.
1.1.1 Stakeholders in Information Systems
Role Responsibilities Examples
System Users Use the system for daily tasks; provide feedback
Clerks, sales reps, customers
System Owners Fund projects, define goals and scope CEOs, department heads
System Analysts Bridge business and IT; gather requirements Business analysts
System Designers Design system architecture and UI System architects, UI/UX designers
System Builders Develop and implement system components Programmers, engineers
1.1.2 Legacy Systems
Legacy systems are outdated computer systems, programming languages, or applications still in
use due to critical business needs. They pose challenges such as high maintenance costs, security
risks, poor integration, and lack of scalability.
1.2 Types of Information Systems
Information systems are categorized based on organizational level and function, including
Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision
Support Systems (DSS), Executive Information Systems (EIS), Expert Systems (ES),
Communications and Collaboration Systems (CCS), and Office Automation Systems (OAS).
1.4 Processing Types
Processing Mode Description Examples
Batch Processing
Transactions collected and processed as a group periodicallyPayroll, billing
Online (Real-Time)
Transactions processed immediately upon occurrence
ATM withdrawals, POS sales