# What is an information system (IS)?

> What an information system is for a small business: hardware, software and people, how it differs from IT, a quick inventory example and Quebec privacy duties.

Updated on October 15, 2026 · https://app.pilotiko.com/en/glossary/information-system

An information system (IS) is a structured set of hardware, software and human resources that lets an organization collect, store, process and share information. It is broader than the computer system alone: the people, the rules they follow and even paper forms are part of it, because they shape how information actually flows.

## In short
- An IS combines three kinds of resources: hardware, software and people.
- The computer system is only the hardware-and-software part of the IS.
- In Quebec, overhauling an IS that handles personal information requires a privacy impact assessment.
- A small service business can map its IS on a single page.

## What makes up an information system?

The OQLF defines an information system as a structured set of material, software and human resources used to collect, store, process and disseminate information. Its English equivalents are information system and IS. The entry adds that information systems support decision-making, process improvement and internal and external communication [1].

It also draws a useful line: the computer system is only the IT part, meaning hardware and software, of the information system [1]. A technician jotting a reading in a notebook, a dispatcher phoning an address to a crew and a rule like "call every quote back after seven days" are all part of the IS, computer or not.

## Information system or computer system: what's the difference?

| Element | Computer system | Information system |
|---|---|---|
| Computers, phones, servers | Yes | Yes |
| Software (accounting, calendar, CRM) | Yes | Yes |
| People who enter and use information | No | Yes |
| Rules and procedures (who does what, when) | No | Yes |
| Paper forms, the shop whiteboard | No | Yes |

## What does a service company's IS look like in practice?

**Example: a 15-person commercial cleaning company in Drummondville**

A one-hour inventory with the owners, using hypothetical figures. An inventory like this then guides the choice between an [ERP system](https://app.pilotiko.com/en/glossary/erp) and connecting existing tools through an [API](https://app.pilotiko.com/en/glossary/api).

- Software tools in use : 6 (calendar, accounting, payroll, email, contracts spreadsheet, messaging)
- Places where a client address is typed in : 4
- People who edit schedules : 3
- Paper documents still in use : 2 (timesheet, inspection checklist)
- Information flows with no named owner : 5
- **= The real issue isn't the number of tools; it's one address typed in four places and five flows nobody owns.**

## What does Quebec privacy law require for an information system?

Quebec's private-sector privacy act targets information systems directly. Any business must conduct a privacy impact assessment for any project to acquire, develop or overhaul an information system involving personal information, and must consult its person in charge of privacy from the outset [2].

The same section requires that the project allow computerized personal information to be released to the person concerned in a structured, commonly used technological format [2]. Quebec's access-to-information commission adds that the assessment must be proportionate to the sensitivity, purpose, quantity, distribution and medium of the information [3].

Moving from a spreadsheet to a [software-as-a-service](https://app.pilotiko.com/en/glossary/saas) customer tool is exactly that kind of acquisition project. See our entry on [Law 25](https://app.pilotiko.com/en/glossary/quebec-law-25).

## What mistakes do businesses make with their information system?

- Treating IS as "the computer stuff" and forgetting people and procedures when switching tools.
- Adding one app per problem until the same data lives in five places.
- Not knowing where customers' personal information sits, or who can see it.
- Changing management software without a privacy impact assessment.
- Never writing rules down ("who confirms appointments?"), so they leave with the employee.

## Where does Pilotiko fit in an information system?

Pilotiko is one piece of the IS, not the whole thing. It shows a virtual office where each department is a room, with staff and AI agents, urgent items and [key indicators](https://app.pilotiko.com/en/glossary/kpi) drawn from your real data. It handles online booking, real open slots and proposed assignment, and it produces internal reports. Accounting, payroll and other tools stay separate. Its [AI agents](https://app.pilotiko.com/en/glossary/ai-agent) prepare work, and anything touching a customer, money or a send waits for a person's approval.

## Frequently asked questions

### What does IS mean in business?

IS stands for information system: the hardware, software and human resources a business uses to collect, store, process and share information. In French it is système d'information, or SI.

### Does an information system have to be computerized?

No. The computer system is only one part of it. Procedures, paper documents and the people who handle information all belong to the information system.

### Does a small business have an information system?

Yes, every business has one, whether or not it uses the term. A calendar, accounting software, email and the team's habits already form an IS. The real question is whether it's organized.

### When is a privacy impact assessment required in Quebec?

Quebec's private-sector act requires one for any project to acquire, develop or overhaul an information system that handles personal information. It has to be proportionate to the sensitivity and quantity of the information involved.

### What's the difference between an IS and an ERP?

The IS is the company's whole information setup. An ERP is software that can become its centre by integrating several functions in one database, but it remains one component of the IS.

## Sources

1. Office québécois de la langue française (Vitrine linguistique), « système d'information (GDT) », https://vitrinelinguistique.oqlf.gouv.qc.ca/fiche-gdt/fiche/8358435/systeme-dinformation (accessed on 2026-10-15)
2. LégisQuébec, « Act respecting the protection of personal information in the private sector (CQLR, c. P-39.1) », https://www.legisquebec.gouv.qc.ca/en/document/cs/P-39.1 (accessed on 2026-10-15)
3. Commission d'accès à l'information du Québec, « Principaux changements apportés par la Loi 25 », https://www.cai.gouv.qc.ca/protection-renseignements-personnels/sujets-et-domaines-dinteret/principaux-changements-loi-25 (accessed on 2026-10-15)