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1. Principles of Information System (PIS)
Sri Lanka Institute of Information Technology
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Eng. Naleen Jayasuriya
BSc (Eng Hons), MSc (PM), MBA (MOT), MLRHRM (UOC),
IntPE (IESL), C. Eng (UK), C.Eng (IESL), CQHRM (CIPM),
FIESL, MIET (UK), MCCSL, MHRP, AMCIPM, ITIL,PMJA
Keynote Speaker| Researcher | Trainer| BPM Specialist

2. Principles of Information System (PIS)
Sri Lanka Institute of Information Technology
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Introduction to information system

3. Lecture schedule
Activity Description Target Date
Lecture 1 Introduction to PIS 03-02-2024
Lecture 2 Organization and Information Systems 10-02-2024
Lecture 3 Business Process and Information System 17-02-2024
Lecture 4 Strategic Information System – Part 1 24-02-2024
Lecture 5 Strategic Information System – Part 2 02-03-2024
Lecture 6 Individual Assignment Presentation 09-03-2024
Lecture 7 Information System Planning 16-03-2024
Lecture 8 Knowledge Management Systems 23-03-2024
Lecture 9 Case study Discussion - KMS 30-03-2024
Lecture 10 Enterprise Resources Planning System 06-04-2024
Lecture 11 Decision Making and Information System 27-04-2024
Lecture 12 Group Assignment Presentation 04-05-2024
Lecture 13 Group Assignment Presentation 11-05-2024
Lecture 14 Revision 18-05-2024

4. Learning Objectives
 Difference between data and information.
 What is an Information System and describe the functions of an
Information System.
 Components of an Information System.
 Types of Information Systems and give an example of each type.
 Who are the users of Information Systems and describe how users
use Information Systems.
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5. Why learn about Information System
 Increase customer base and capture untouched market
 Develop new products, communicate with customers, and analyze
sales trend
 Provide timely information to get multimillion-dollar decision
 Planning Future and do forecasting
 Provide support to achieve your career goals
 Get improve your career

6. What is Information System
 A set of interrelated components that
collect, manipulate, store, and disseminate
data and information and provide a
feedback mechanism to meet an objective.

7. Data
 Data is a representation of a fact, a number, a word,
an image, a picture or a sound.
 Raw facts, such as an employee number, total hours
worked in a week, inventory part numbers, or sales
orders.
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8. Information
 Information is data that is meaningful or useful to
someone.
 A collection of facts organized in such a way that they
have additional value beyond the value of the individual
facts.
 Defining and Organizing Relationships Among Data
Creates Information
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9.  Turning data into information is a process, or a set of logically related
tasks performed to achieve a defined outcome. The process of defining
relationships among data to create useful information requires
knowledge.
 Knowledge is the awareness and understanding of a set of information
and the ways that information can be made useful to support a specific
task or reach a decision.

10. Knowledge
 Acts, information, and skills acquired through
experience or education; the theoretical or practical
understanding of a subject.

11. Data, Information, Knowledge and
Wisdom

12. Data, Information, Knowledge
and Wisdom

13. Types of Data

14. The Characteristics of Valuable
Information
 If an organization’s information is not accurate or
complete:
 People can make poor decisions, costing thousands, or even
millions, of dollars
 Depending on the type of data you need:
 Some characteristics become more important than others

16. The Value of Information
 Directly linked to how it helps decision makers
achieve their organization’s goals
 Valuable information:
 Can help people and their organizations perform
tasks more efficiently and effectively

17. System
 A set of elements or components that interact to
accomplish goals.
 Components of a System: A system’s four
components consist of input, processing, output,
and feedback.

18. What is an Information System
 An Information System is a collection of
components that work together to provide
information to help in the operations and
management of an organization. An information
system provides a solution to important business
problems or challenges facing the firm.
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19. What is an Information System
 Information system (IS) is a set of interrelated elements
that:
 Collect (input)
 Manipulate (process)
 Store
 Disseminate (output) data and information Provide a
corrective reaction (feedback mechanism) to meet an
objective

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An information system contains information about an organization and its
surrounding environment. Three basic activities—input, processing, and output—
produce the information organizations need. Feedback is output returned to
appropriate people or activities in the organization to evaluate and refine the input.
Environmental factors, such as customers, suppliers, competitors, stockholders, and
regulatory agencies, interact with the organization and its information systems.
What is an Information System

21. Input, Processing, Output, Feedback
 Input:
 Activity of gathering and capturing raw data
 Processing:
 Converting data into useful outputs
 Output:
 Production of useful information, usually in the form of documents and
reports
 Feedback:
 Information from the system that is used to make changes to input or
processing activities

22. Manual and Computerized Information
 Systems
 An information system can be:
 Manual or computerized
 Example: Investment analysts manually draw charts and trend
lines to assist them in making investment decisions
 Computerized information systems:
 Follow stock indexes and markets and suggest when large blocks of stocks
should be purchased or sold

23. What is an Information Technology
 Information Technology is the integration of
computers, communications equipment, and other
technology used in information systems.
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24. Information Technology Vs Information
System

25. Information Technology Vs Information
System

26. It Isn’t Simply Technology: The Role of People and
Organizations

28. Information Systems Functions
 Input Function accepts the input data from outside the
system.
 Processing Function calculates and in other ways
manipulates the input and stored data.
 Output Function produces results of processing for use
outside the system.
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29. Components of an Information System
 Components
 Hardware - Equipment such as computers
 Software - Instructions for the equipment
 Stored Data - Facts stored in the system
 Personnel - People who operate the system
 Procedures for the people to follow
 Feedback for the people to use
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30. Businesses invest in IT to achieve six strategic
business objectives.
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
Business Drivers of Information Systems

31. Operational Excellence:
 Improved efficiency results in higher profits.
 Information systems and technologies help improve efficiency and
productivity.
Power of combining information systems and best business
practices to achieve operational efficiency (Eg. CRM)
Most efficient store in world as result of digital links between
suppliers and stores
Business Drivers of Information Systems

32. • Information systems and technologies enable firms to create new
products, services, and business models.
• Business model: how a company produces, delivers, and sells its products
and services (Eg. Uber)
• Example: Music industry
• Drastic changes in business models in recent years
• Apple: Successful innovations—iPod, iPhone, and so on
New Products, Services, and Business Models:
Business Drivers of Information Systems

33. • Customers who are served well become repeat customers who
purchase more.
• Hospitality Industry
• Uses IT to foster an intimate relationship with its customers, keeping track
of preferences, and so on
• Close relationships with suppliers result in lower costs.
• IT to enhance relationship with suppliers in different countries.
Customer and Supplier Intimacy:
Business Drivers of Information Systems

34. • If managers rely on forecasts, best guesses, and luck, it might lead to
Overproduction, underproduction of goods and services, misallocation
of resources, poor response times
• Poor outcomes raise costs, lose customers
• Real-time data improves ability of managers to make decisions.
• Eg. Web-based digital dashboard to update managers with real-
time data on customer complaints, network performance, and line
outages
Improved Decision Making:
Business Drivers of Information Systems

35. • Advantages over competitors:
• Charging less for superior products, better performance, and better
response to suppliers and customers (real time response)
• Toyota: uses TPS (Toyota Production System) to achieve high
levels of efficiency and quality
Competitive Advantage:
Business Drivers of Information Systems

36. • Businesses may need to invest in information systems out of
necessity; simply the cost of doing business.
• Keeping up with competitors
• Introduction of ATMs
• Government regulations and reporting requirements
• Taxes and other legislative requirements
Survival:
Business Drivers of Information Systems