To depict how data moves through a company, try using this Information System Diagram. An IFD illustrates the connection between the internal and external flows of information within and between businesses. Furthermore, it illustrates the interdependence of the various administrative units and operational components. Information flow diagrams (IFDs) are frequently confused with data flow diagrams (DFDs) (DFDs). The IFD displays data as inputs, outputs, and flows. DFDs depict procedures that take in inputs and produce a new product or service. DFDs also include databases to depict storage locations for information.