Here is a picture to explain it even better:

In our everyday lives, we use at least one type of IS. Today, for example, was a busy day for me. I used at least 5 different types of information systems.
First thing I do when I wake up is check my phone. I received emails and a text message, and so I (people) replied (procedure) by sending emails and a text message back (data) on the email/SMS system (software) of my Blackberry (hardware). I also used computers (my own PC and Rogers') to go on Facebook, pay my bill, and even now since I'm posting here in Blogger. I (people) logged in Facebook/paid my bill/posted in my blog (procedure + data) using Mozilla Firefox/Internet Explorer/Rogers' own payment system (software) on mine and Rogers' computer (hardware).
These are example of things we do on an everyday basis, but not realize the process going on. Now, we can take a look on the simplest procedures from a different perspective and break it down to the 5 components of an IS.