An information system is a collection of hardware, software, people, procedures, and data:

1. They work together to provide information essential to running an organization
2. The information helps to produce a product or service.
3. The information helps to make a profit for the organization.

How does information flow in an organization?

1.  Information can flow from the outside.
   1. Orders received.
   2. Supplies received.
        
2.  Information can also flow inside an organization.
   1. Bills paid
   2. Money owed to vendors.

There are many reasons why an organization may need to change its information systems:

1. Organizational growth
2. Merger or acquisition
3. New marketing opportunities
4. Revisions in governmental regulations
5. Availability of new technology
6. Other changes.

1. Preliminary Investigation - Information problems or needs are identified.
2. Systems Analysis - Present system is studied in depth and new requirements are specified.
3. Systems Design - A new or alternative information system is designed.
4. Systems Development - New hardware and software are acquired, developed, and tested.
5. Systems Implementation - The new information is installed and tested, people are trained.
6. Systems Maintenance - The system is periodically evaluated and updated as needed.

The six-phase systems life cycle is used by computer professionals known as system analysts who:

1. Study the organization's systems.
2. Determine actions to be taken.
3. Determine what computer technology can be used to help them.

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