Core Knowledge and Components of Information Systems

Posted on Oct 12, 2025 in Business Administration and Innovation Management

Knowledge Required by System Administrators

The knowledge required by system administrators falls into two general categories:

1. Data Processing

Almost all organizations perform a large number and variety of transactions. Writing with precision and processing these transactions is known as Business Data Processing.

2. Management Information Systems (MIS)

Managers at all levels should receive summary volumes of transactions of the organization, as well as information extensively about many other issues. Systems are required with extensive and complex facts to meet the needs of managers.

Types of Knowledge in Active Systems

The active system must have at least three types of knowledge:

  1. Knowledge of Languages: To communicate and receive information, knowledge of lexical items (words, sentences), parts of speech (noun, verb), and grammatical relations (subject, complement) to denote the linguistic knowledge in particular domains.
  2. Extra-Linguistic Knowledge: Knowledge about the entities, attributes, events, processes, and relationships that create information models for the corresponding domain.
  3. Capacity: The system should use the extra-linguistic knowledge and language to achieve a goal.

Main Activities of Information Systems (IS)

All IS involve three main activities:

  • They receive data as input.
  • They process the data through complex calculations, combining data elements, updating accounts, etc.
  • They provide information as output.

Therefore, a system receives and processes data and converts them into information. A data processing system could be called a “generator of information.”

Elements of a Decision Support System (DSS)

The key elements of a Decision Support System (DSS) are:

  • The model.
  • A specialized file, often referred to as a “database.”
  • An administrator, who interacts directly with the model using a terminal to test possible solutions to a management problem.

Components of Information Systems (IS)

Information Systems are composed of several critical components:

  • Personal Components

    These include sources of input and output receivers, the makers of the processes (those who develop and maintain the system), and providers of administrative and technical support for the operation of the system.

  • Hardware Component

    These are the computers where the system is installed, whether PCs or larger computers called mainframes. The most useful measure of the size of a system is based on the volume of data and information it must keep in memory for processing, who will share the data, the need for rapid protection of information, and the responsibility in handling the machine and the data by a person or persons in particular.

  • Software Component

    This is the ability to accept and interpret sets of instructions provided by the user. These sets of instructions are called programs. There are four types of software:

    1. The Operating System, which is the interface between the application software and hardware.
    2. Application Systems, which are used by users to perform their jobs and can be application-specific or general use.
    3. Utility Software, such as system development languages (programming languages) and fourth-generation languages.
    4. Maintenance Utilities and packages, which are sets of instructions to copy files, create, monitor, etc.

  • Data Storage Component

    This is generally the most crucial decision to be taken, concerning how to save data (centralized or subdivided) and the medium on which it should be saved.

Target Users of Decision Support Systems (DSS)

Decision Support Systems (DSS) are generally designed to primarily serve a manager at any level of the organization.