What is Information Processing Systems

Management Information System (MIS) is a vital part of every business. Information processing systems provide companies with the needed technical support especially in financial services area. Information processing systems or information processor is a mechanical, electrical or a biological system that receives particular information and processes it into a different form. One good example of this is statistics by using algorithmic process. The information processing systems usually consist of four different basic parts: The processor, storage, output and input. These fundamental parts are also called sub-systems. Information processing systems takes information from a different object and changes that information before transmitting or passing it on to another object.

This cycle or process can be compared to what is happening in the universe. A falling rock is one good example of information processing systems. The gravitational force from our planet works as “input” in the “system” we identify as the rock. As the rock travels in a particular speed with a certain distance from the ground, the speed properties and distance are considered as a type of information that is “stored” inside the rock. While the rock falls, its distance from the earth has also changed because of its movement and the gravity of earth. Now the new position of the rock increases its speed as it falls on earth. This process and change in properties of the rock is called “output”.

This illustration, the earth and the rock are considered as the information processing system because these two objects are both changing the compositions of each other as they move. In information, if it is not processed, change will not take place at all. That is why in MIS, information processing systems is important to help companies and organizations in performing various calculations automatically.