CIS1082

Fundamentals of Information Systems

Lesson 01 - Introduction to Information

Systems

Prasadini Padmasiri
MSc in IT(Reading), BICT(Hons) - University of Kelaniya
 References/Reading Materials

• Stair, R., & Reynolds, G. (2014). Fundamentals of information

systems. Boston, Mass.: Course Technology Cengage Learning.

• DeMers, M. (2009). Fundamentals of geographic information systems.

Hoboken, NJ: Wiley.
 What is a Data?

• Raw Material
• Numbers and strings of letters with no precise context or meaning
Data Represented by

Alphanumeric data Numbers, letters, and other characters

Image data Graphic images and pictures

Audio data Sound, noise, or tones

Video data Moving images or pictures

 What is a Information?

• Information is a collection of facts organized so that they have additional value beyond
the value of individual facts.

• Data processed with knowledge

• “Data endowed with relevance and purpose”

• “Data becomes information when its creator adds meaning”

• “An organized, meaningful, and useful interpretation of data”

 What is Knowledge?

• Knowledge is the awareness and understanding of a set of information and how

information can be useful to support a specific task or reach a decision.

• “A body of guidelines and rules used to select, organize, and manipulate data
to make it suitable for a given task”.

• “An awareness and understanding of a set of information and how that

information can be put to its best use”.

• “Internalized information + the ability to utilize this information”

Data transformed into Information
 Characteristics of Valuable Information

• Accessible • Reliable
• Accurate • Secure
• Complete • Simple
• Economical • Timely
• Flexible • Verifiable
• Relevant
 Does Perfect Information Lead to Perfect
Decisions?

IBM
• Among the first to learn that PCs were revolutionizing the computer
industry.

Wal-Mart
• “We got big by replacing inventory with information”
Wal-Mart CIO
 What is a System?

• A system is a set of elements or components that interact to accomplish

goals.

• The elements themselves and the relationships among them determine

how the system works.
e.g. a sound system
Components of a System
Components of a System
 Closed System vs Open System

Closed System
• Stands alone
• No connection to other systems

Open System
• Interfaces and interacts with other systems.
• Gets information from and provides information to other systems.
 What is an Information System?

• An information system (IS) is a set of interrelated elements or

components that collect (input), manipulate (process), store, and
disseminate (output) data and information, and provide a corrective
reaction (feedback mechanism) to meet an objective.

• The feedback mechanism is the component that helps organizations

achieve their goals, such as increasing profits or improving customer
service.
Main Types of Information Systems

Information
Systems

Manual Computer-Based
Information Information
Systems Systems (CBIS)
 Components of CBIS

• Hardware

• Software
o Operating systems
o Applications

• Databases

• Telecommunications/Networks

• People

• Procedures
 Types of Business Information Systems

• Transaction Processing

• E-Commerce

• Workflow

• Enterprise Resource Planning

• Management Information

• Decision Support

• Artificial Intelligence/Expert
Types of Business Information Systems
Types of Business Information Systems

Enterprise Systems
• Transaction Processing Systems (TPS)
• Enterprise Resource Planning Systems
(ERP)

E-Commerce

M-Commerce
 Transaction Processing Systems

• A transaction processing system (TPS) is an organized collection of people,

procedures, software, databases, and devices used to record completed business
transactions.
 Enterprise Resource Planning Systems

• An enterprise resource planning (ERP) system is a set of integrated programs that

manages the vital business operations for an entire multisite, global organization.

• An ERP system can replace many applications with one unified set of programs,
making the system easier to use and more effective.

https://www.cin7.com/what-is-erp-meaning-definition-and-examples/
 E-commerce

• E-commerce involves any business transaction executed electronically between,

• companies (business-to-business, or B2B),

• companies and consumers (business-to-consumer, or B2C),

• consumers and other consumers (consumer-to-consumer, or C2C),

• business and the public sector, and

• consumers and the public sector.

E-commerce
 Mobile commerce

• Mobile commerce (m-commerce) refers to transactions conducted anywhere, anytime.

• M-commerce relies on wireless communications that managers and corporations use to

place orders and conduct business with handheld computers, portable phones, laptop
computers connected to a network, and other mobile devices.

• Today, mobile commerce can use cell phones to pay for goods and services.
Types of Business Information Systems

Management Information Systems

(MIS)

Decision Support Systems (DSS)

 Management Information Systems

• A management information system (MIS) is an organized collection of people, procedures,

software, databases, and devices that provides routine information to managers and
decision makers.

• An MIS focuses on operational efficiency.

• Marketing, production, finance, and other functional areas are supported by MISs and
linked through a common database.

• Provide standard reports generated with data and information from the TPS.
Management Information Systems
 Decision Support Systems

• A decision support system (DSS) is an organized collection of people, procedures, software,

databases, and devices that support problem-specific decision-making.

• The focus of a DSS is on making effective decisions.

• Whereas an MIS helps an organization “do things right,” a DSS helps a manager “do the right
thing.”
Types of Business Information Systems

Artificial Intelligence

Expert Systems

Virtual Reality

Knowledge Management Systems

(KMS)
 Knowledge Management Systems (KMS)

• Many use knowledge management systems (KMSs), an organized collection of people,

procedures, software, databases, and devices to create, store, share, and use the
organization’s knowledge and experience.

• A shipping company, for example, can use a KMS to streamline its transportation and
logistics business.
 Expert Systems

• Expert systems give the computer the ability to make suggestions and function like an
expert in a particular field, helping enhance the performance of the novice user.

• The unique value of expert systems is that they allow organizations to capture and use
the wisdom of experts and specialists.

• Expert systems can be applied to almost any field or discipline. (Ex: Medical diagnoses,
Repair problems, Credit evaluations, Investment strategies)
Thank you