A system is an organized grouping of interdependent components that work together to achieve a common objective. Key characteristics of systems include being organized, having interacting components, and prioritizing overall objectives over individual parts. There are various types of systems like dynamic, static, open, and closed systems. An information system uses hardware, software, networks and data to collect, process and distribute information within an organization to support business operations and managerial decision making. It involves input, processing, output, storage and control of data and information.