--- title: "Why organizations need IS; IS vs DBMS" subject: "Information System" chapter: 1 key: "semester_8/information_system:why-need-is-vs-dbms" source: https://www.bctengineer.com/q/semester_8/information_system/why-need-is-vs-dbms site: BCT Engineering --- # Why organizations need IS; IS vs DBMS Information System · Chapter 1: Information Systems - Asked in: 2074 Magh, 4+4 marks - Video: [What is a Database and Information System? (DBMS and IS Explained) | IT Fundamentals Ep. 10](https://www.youtube.com/watch?v=zB9PAr3h1uc) — Prof LJ Learning Hub - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/why-need-is-vs-dbms - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-1 ## Question Why do organizations need Information System? Differentiate between Information System and typical database management system. ## Short answer Organizations need information systems for decision support, operational automation, competitive advantage, handling large data volumes, coordination, planning, customer service and legal compliance. An IS is a complete system including people and procedures, while a DBMS is only the software for data storage and retrieval; an IS uses a DBMS. ## Answer #### Why organizations need an Information System 1. **Support decision making** - managers get timely, accurate information instead of guessing. 2. **Efficient operations** - routine work (billing, payroll, inventory) is automated, faster and less error-prone. 3. **Competitive advantage** - better service, lower costs and new products. 4. **Handling large data volume** - modern organizations produce more data than can be managed manually. 5. **Coordination and communication** - departments and branches share the same information. 6. **Planning and control** - monitoring performance against targets. 7. **Customer service** - 24/7 services, order tracking, personalization. 8. **Legal and record-keeping needs** - audit trails, tax and regulatory reports. #### Information System vs DBMS A DBMS is software that defines, stores and manages data. An IS is a complete system that uses data (usually through a DBMS) to produce information for people. | Basis | Information System | DBMS | |---|---|---| | Nature | Complete system: people, hardware, software, data, procedures | Software component only | | Purpose | Support operations and decisions | Store, retrieve and manage data | | Output | Meaningful information, reports, analysis | Raw or queried data | | Users | Managers, staff, customers | DBA, developers, applications | | Scope | Business processes and organization | Data storage and access | | Includes | Database, applications, rules, users | Only data definition and manipulation | | Example | Hospital management system | MySQL, Oracle | An IS depends on a DBMS, but a DBMS alone does not give business information without applications and users. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How does an Information System differ from a DBMS? A. An IS is only software; a DBMS includes people B. An IS is a complete system with people, hardware, software, data and procedures; a DBMS is only a software component C. They are the same thing with different names D. A DBMS includes the users and procedures; an IS is only data Answer: B. A DBMS defines, stores and manages data, whereas an IS uses it to produce information for people. (Key point: IS vs DBMS nature) 2. What is the typical output of an IS compared with a DBMS? A. IS gives meaningful information and reports; DBMS gives raw or queried data B. IS gives raw data; DBMS gives reports C. Both give only raw data D. IS gives only backups; DBMS gives analysis Answer: A. The IS turns data into information for decisions. (Key point: Output difference) 3. Which statement about their dependence is correct? A. A DBMS depends on an IS to store data B. Neither can work with the other C. An IS usually depends on a DBMS, but a DBMS alone does not give business information D. A DBMS alone provides all business information Answer: C. Applications and users are needed on top of a DBMS to get business information. (Key point: Dependence) 4. Which is a reason organizations need an IS? A. To avoid keeping records B. To remove all managers C. To replace the need for planning D. To handle large data volume and share it among departments Answer: D. Large data volume and coordination between departments are key reasons. (Key point: Why need IS) ## Related in Information System - [Knowledge management vs expert systems](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Akm-vs-expert-systems) — Information System, chapter 4 - [MIS vs DSS information and processing](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Amis-vs-dss-information-processing) — Information System, chapter 4 - [Enterprise management system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aems-with-example-benefits) — Information System, chapter 3 - [Strategic information system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Astrategic-is-benefits) — Information System, chapter 1, asked 2× - [Geographic Information System](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Agis-characteristics-uses) — Information System, chapter 1 - [Short note: HR information system](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ashort-note-hris) — Information System, chapter 6 ## Related in other subjects - [Project management information system](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apmis) — ICT Project Management, chapter 7 - [RA: employees on project DBMS](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-emp-project-dbms) — Database Management System, chapter 3 - [RA: parts used in DBMS and MIS](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-parts-both-dbms-mis) — Database Management System, chapter 3 - [RA: employees in both DBMS and MIS](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-emp-both-dbms-mis) — Database Management System, chapter 3