What is System ? Explain the Importance of Information System.

What is System ?  Explain the Importance of Information System.

When you begin the study of Information Systems, you should become acquainted with a theoretical framework for understanding their use, development and effect on organizations; that is you need to have an understanding of systems concepts as a foundation for further study. The word "system" is often misunderstood – some people think you are refining to a computer system when you use the terms, but you may hear people talk about functional systems, hospital systems, school systems and investment systems as well as about information systems. A system is a collection of people machines and methods organized to accomplish a set of specific tasks.

Definition of a System:

There are many types of system but essentially all systems are made up of various parts that are connected together in a particular way in order for the parts to interact so as to achieve a specific purpose. Examples of systems range from a single system such as a central heating system, which through the combination of parts – pipes, radiation, boiler working together provides heating for a building, through to complex systems such as an organization – which through its component parts of people, buildings, equipment, financial resources, etc work together to meet the objectives of that organization.  

System can be defined as:

"Orderly arrangement of a set of interrelated and interacting elements- operate collectively to achieve common goal”.

Example: Human body, Computer System, Business Enterprise

Information systems and organization influence one another. Information systems are built by manager to serve the interests of the business firm/organization. At the same time, the organization must be aware of and open to the influences of information systems to benefit from new technologies. 

Managers need to understand certain features of organizations to build and use information systems successfully. All modern organizations are hierarchical, specialized, and impartial, using explicit routines to maximize efficiency. All organizations have their own cultures and politics arising from differences in interest groups, and they are affected by their surrounding environments. Organizations differ in goods, group served social ruler, leadership styles, in organizations use of information systems. Information systems and organizations in which they are used interact with influence each other. The introduction of a new information system will affect organizational structure, goods, work design, values, competition between interest groups, decision making, and day-to-day behavior. At the same time, information systems must be designed to serve the needs of important organizational groups and will be shaped by the organization's structure, tasks, goals, culture, politics, and management. Information technology cab reduce transaction and agency costs and such changes have been accentuated in organizations using the Interest. 

Information systems are closely inter wined with an organization's structure, culture, and business processes. New systems disrupts established patterns of work and power relationships to there is often considerable resistance to them when they are introduced. The complex relationship between information systems, organizational performances, and decision making must be carefully managed.