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The different steps to an effective information system include –

• Input: This is the activity of gathering and storing raw data.
• Processing: This refers to the transformation of data into valuable output. It includes activities like comparing collected data, taking alternative action, making calculations and storing the same for future reference. This action can be performed either manually or with the help of computer assistance.
• Output: This involves arranging the processed data into useful information in the form of reports and documents. The output is mainly dictated by the purpose of its use and the sector for which it is prepared.
• Feedback: The information so gathered in the form of input or processing activity is then worked upon to make necessary modifications for making the output more relevant and useful. Feedback is essential for both decision makers and managers.

Essential Components of Information Systems

All information systems contain certain essential components which are as follows –

• Data: It is an organized collection of information and facts that are used by programs for giving valuable information. The database prepared for different organizations are different based on the requirement and the purpose of such use.
• Hardware: In information system, hardware is referred to as the Central Processing Unit along with its support components. These include storage devices, output devices, keyboard, mouse, scanning devices, printers and the like.
• Software: This refers to computer programs that store machine-readable information. It allows the computer to perform various activities to improve its performance and reduce turnaround time. The software is an integral part of any hardware.
• People: This is an essential element of an information system. There is no meaning of an information system without this component. They are responsible for giving shape to the information systems. This includes decision makers, stakeholders, action takers and other interested parties to the information.
• Procedures: The policies that run the operations of an information system are referred to as procedures. This includes methods, strategies, and rules for the maintenance, operation, and security of the information system.

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