‘As Information system (IS) can be defined technically as a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making, coordination, and control in an organization.’ (Laudon, Laudon,) However, Information System has to go through three basic activities, which include input, processing, and output in order to transform its raw data into essential information. Meanwhile, from the business prospective, IS represents an organizational and management solution based on information technology to a challenge posed by the environment. (Laudon, Laudon,)
Information System is useful for helping organizations to deal with changes in global economies and business enterprise. Firms use Information System on communication and analytic tools for conducting trade and managing business on a global sale. Information System is the basic of service in knowledge economies; new knowledge based products and help firms manage their knowledge assets. By using Information System, a business can adopt flatter, more decentralized structures and more flexible arrangement of employees and managements. (Laudon, Laudon,)
Nowadays Information System (IS) has become a vital component of successful organisation particularly for manager in order for organisation to grow and survive. With Information System, it can provide companies with require practical and functional information that leads to efficient, operation, competitive advantage and effective management. On the other hand, Information System can critically damage and negatively effect it prospect as well as bring dissatisfaction and unable to fulfill all the requirements for success and survival if Information System appropriately sustain the business objective operation strategy of an organisation.