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Information systems do play a vital role in decision-making and data processing. When it is used correctly then it can leave an impressive effect on the overall revenue and performance of an organization.

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What is Meant by Information System?

At the fundamental level, an IS or information system is considered a set of elements that work together for managing data storage and processing. It does the work of supporting the fundamental features of managing an organization, like record-keeping, communication, data analysis, decision making, etc.

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Companies or organizations utilize this information for augmenting their business operations, make planned decisions, and also gain a highly competitive edge. Commonly, information systems comprise an integration of hardware, software, and telecommunications networks.

For instance, organizations utilize customer relationship management systems for gaining an improved understanding of their target audience, getting novice customers, and also retaining existing clients. Companies use this technology for gathering and analyzing sales activity data and defining the target groups of marketing campaigns and also measuring customer satisfaction.

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Various Kinds of Information System

In the earlier days of computing when an information system was required then it used to be tailor-made. It was created in the form of a one-off solution for some specific problems. Nonetheless, soon it turned obvious that many problems that information systems do solve share some specific features. As a result, individuals tried to develop only one system which would solve many similar issues.

Soon they came to know that for doing this, it was important to define where and how the information system will be utilized besides its usefulness. At this time the lookout for a method of classifying information systems started accurately.

The Method of Identifying Various Kinds of Information System

The various kinds of information systems that are found are recognized via a method of classification. This classification is a process through which things are classed or categorized together. There is present a long history of the organization of things in the world of natural things, like animals or plants. However, it must be noted that information systems aren’t a portion of the natural world as they are formed and also acquired by men for handling specific issues and tasks.

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The organization of information systems in various kinds is a vital technique to design systems and also discuss their application. A category or type of information system is an abstraction or a concept that has been formed for simplifying a complicated issue by recognizing some fields of commonality between various things.

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