Data and Information in Sales

Data, Information, and Knowledge in Sales

• Data is raw, unprocessed facts, like individual sales transactions.
• Information is organized and processed data, providing context and revealing trends. Example: Weekly sales totals derived from daily transaction data.
• Knowledge integrates multiple pieces of information, leading to deeper understanding. Example: Analyzing historical sales data to identify seasonal trends, considering external factors like promotions and economic conditions.

The Value and Quality of Information

• Valuable information helps people work more efficiently and effectively.
• Inaccurate data can lead to poor decisions, financial losses, and customer dissatisfaction.
• Different data types require prioritization of specific quality characteristics, like accuracy and completeness for accounting data.

Characteristics of Quality Information

• Accuracy: Information reflects the real world.
• Completeness: All necessary data is included.
• Consistency: Information is consistent across different sources.
• Timeliness: Information is available when needed.
• Relevance: Information addresses the specific situation or task.
• Valuable: Information helps make better decisions.
• Accessible: Information is easily available to authorized users.
• Secure: Information is protected from unauthorized access.

What is an Information System?

• An information system is a collection of components working together to process and manage information.
• Components include:
  • People (users)
  • Procedures (guidelines for data processing)
  • Software (programs for data manipulation)
  • Databases (organized data storage)
  • Hardware (physical components like computers and networks)

Business Information Systems

• Used across all functional areas of businesses, including:
  • Accounting and Finance
  • Customer Service
  • Human Resources
  • Manufacturing
  • Research and Development
  • Sales and Marketing
• Utilized in various industries, such as:
  • Agriculture
  • Finance
  • Healthcare
  • Mining
  • Professional Services
  • Retail

Types of Information Systems

• Transaction Processing Systems (TPS): Record and process business transactions, like point-of-sale systems.
• Management Information Systems (MIS): Provide routine information to managers, focusing on operational efficiency.
• Enterprise Resource Planning (ERP) Systems: Integrate and manage various business functions, like human resource management, customer relationship management, and financial management.
• Knowledge Management Systems (KMS): Store, retrieve, and share organizational knowledge, like customer support databases or product development best practices.
• Other Types:
  • Decision Support Systems (DSS): Help with complex decision-making.
  • Geographic Information Systems (GIS): Manage and analyze geographically referenced data.
  • Learning Management Systems (LMS): Manage online learning activities.

Electronic Commerce (E-commerce)

• Exchange of money for goods and services over electronic networks.
• Forms of E-commerce:
  • Business-to-Business (B2B): Alibaba, Sary
  • Business-to-Consumer (B2C): Amazon, NiceOne, Floward
  • Consumer-to-Consumer (C2C): eBay, Etsy, Soum
  • Government-to-Citizen (G2C)
  • Government-to-Business (G2B)
  • Government-to-Government (G2G)
• Organizations use:
  • Buy-side e-commerce for purchasing.
  • Sell-side e-commerce for selling.
• Key decisions for e-commerce companies:
  • Hosting their own website or using a third-party provider.

Summary

• Information value is linked to its ability to support decision-making and achieve organizational goals.
• Information systems are essential for integrated and effective information management.
• Businesses utilize various information systems (TPS, MIS, ERP, KMS) to improve operations, efficiency, and decision-making.

Data, Information, and Knowledge

• Data is raw and lacks context or interpretation.
• Information is organized data, providing context revealing trends.
• Knowledge is the integration of information leading to deeper understanding of trends beyond surface insights.

The Value and Quality of Information

• Valuable information aids in efficient and effective task completion.
• Inaccurate data can lead to customer loss and reduced satisfaction.
• Incomplete or inaccurate information can lead to poor decisions with significant financial consequences.

What is an Information System?

• A computer-based information system (CBIS) includes hardware, software, databases, networks, people and procedures that work together.
• When all components are working together effectively, they create a system that enhances job satisfaction and improves worker productivity.
• Information systems personnel manage, run, program, and maintain the system.

Procedures

• Procedures define steps to achieve specific results, such as entering customer orders or paying supplier invoices.
• Procedures ensure consistent and successful use, maintenance, and security of the CBIS.
• Examples of procedures include user authentication and data retention protocols.

Information Systems in Organizations

• Organizations should focus on well-trained workers, system support, improved teamwork, redesigned processes and new decision rights, to ensure successful implementation and utilization of information systems.

Redesigned Processes vs Continuous Improvement

• Business Process Reengineering (BPR) involves a radical redesign of business processes, organizational structures, and information systems for a breakthrough in business results.
• Continuous improvement seeks to constantly improve business processes and add value to products and services.

Business Information Systems

• Information systems are essential for all functional areas of business organizations, such as accounting and finance, customer service, human resources, manufacturing, research and development, sales, and marketing.
• Nearly every industry, including agriculture, finance, healthcare, mining, professional services, and retail utilizes information systems.

Types of Information Systems

• Transaction Processing Systems (TPS) - Used for recording and performing completed business transactions.
• Management Information Systems (MIS) - Provide routine information for managers and decision makers.
• Enterprise Resource Planning (ERP) - System that manages vital operations across an entire organization by integrating programs for various functions, such as human resource management, customer relationship management, financial management, and warehouse management.
• Knowledge Management Systems (KMS) - Store and retrieve knowledge, improving collaboration by connecting people with the information they need. Example: Customer support using knowledge bases to resolve issues quickly and effectively or product development teams using KMS to share best practices and accelerate innovation.
• Other information systems include Decision Support Systems (DSS), Geographic Information Systems (GIS), Learning Management Systems (LMS), which can be considered as a type of KMS.

Transaction Processing Systems (TPS)

• A transaction is a business-related exchange, such as payments to employees, suppliers, or sales to customers.
• TPS is a system that performs these transactions.
• Example: Point-of-Sale (POS) system which records sales, updates inventory, and processes customer payments.

Management Information Systems (MIS)

• MIS focuses on operational efficiency, providing standard reports using data and information from the TPS.
• Example: Sales dashboard that visualizes sales performance, customer demographics, and product trends to support managerial decision-making.

Electronic Commerce

• E-commerce involves the exchange of money for goods and services online.
• Forms of e-commerce:
  • Business-to-Business (B2B)
  • Business-to-Consumer (B2C)
  • Consumer-to-Consumer (C2C)
  • Government-to-Citizen (G2C)
  • Government-to-Business (G2B)
  • Government-to-Government (G2G)
• Organizations effectively use e-commerce for both buy-side and sell-side operations.
• E-commerce solutions can be designed to be highly scalable, accommodating unexpected user traffic.

Information Systems Fundamentals

• Information systems are comprised of data, information, and knowledge.
• Data is raw, unprocessed facts, while information is processed data that provides context and meaning.
• Knowledge is the application of information, enabling effective decision-making and problem-solving.

Components of an Information System

• People:
  • Critical to information systems, as they manage, use, and maintain them.
  • Skilled personnel are essential for system operation and optimization.
• Procedures:
  • Define the steps for achieving specific tasks, ensuring standardization and efficiency.
  • Examples include customer order entry, supplier invoice payment, user authentication, and data backup procedures.
• Hardware:
  • Physical components of an information system, including computers, peripherals, and storage devices.
• Software:
  • Programs that control hardware and execute specific tasks.
• Databases:
  • Organized collections of data, stored and retrieved efficiently.
• Networks:
  • Communication infrastructure enabling data transfer and resource sharing.

Computer-Based Information Systems (CBIS)

• A CBIS combines all these components into an integrated system.
• Follow proper procedures to operate, maintain, and secure a CBIS effectively.

Data - Information - Knowledge

• Data: Raw, unprocessed facts, lacks context. Example: individual sales transaction on a specific date.
• Information: Processed data with added value, reveals patterns. Example: aggregating daily sales to calculate weekly totals.
• Knowledge: Integrated information, deeper understanding of trends by analyzing historical sales data considering external factors. Example: identifying seasonal trends and analyzing economic conditions.

The Value and Quality of Information

• Valuable information improves efficiency and effectiveness.
• Inaccurate information can result in lost customers and reduced satisfaction.
• Organizations with inaccurate information can face costly consequences due to poor decisions.
• The importance of data characteristics varies based on needs. For example, accuracy and completeness are crucial for financial data.

Characteristics of Quality Information

• Timely: Available when needed.
• Accurate: Free from errors.
• Complete: Contains all essential data elements.
• Consistent: Presented in the same format across different sources.
• Relevant: Useful for the intended purpose.
• Accessible: Easily retrievable by authorized users.

Information Systems (IS)

• An information system (IS) is a collection of elements:
  • Collects (input)
  • Processes
  • Stores, and
  • Disseminates data and information.
• IS provides feedback mechanisms to monitor and control its operation to ensure it meets its goals and objectives.

Types of Feedback

• User Feedback: Collected through surveys, forms, and online reviews to identify usability issues, functionality gaps, and areas for improvement.
• Error Reporting: Captures and reports errors or exceptions to identify root causes, troubleshoot issues, and prevent future occurrences.

Computer-Based Information Systems (CBIS)

• A computer-based information system (CBIS) encompasses hardware, software, databases, networks, people, and procedures.

People

• People contribute to managing, running, programming, and maintaining CBIS. Good systems can boost employee satisfaction and productivity.

Procedures

• Procedures define steps to achieve desired outcomes, such as:
  • Entering a customer order
  • Paying a supplier invoice.
• It's essential to follow procedures for operating, maintaining, and securing CBIS.

Reengineering and Continuous Improvement

• Continuous improvement focuses on making ongoing adjustments and enhancements to IS to maintain effectiveness and efficiency.
• Processes are analyzed closely as part of this process to identify areas for improvement.
• The goal is to optimize IS processes and align them with organizational objectives and changing technological landscapes.
• Continuous improvement enables organizations to effectively adapt to evolving business environments.
• These changes are essential for organizations to remain competitive in the face of constant market dynamics.

This quiz explores the distinctions between data, information, and knowledge in the sales context. It examines the value, quality, and characteristics of information essential for effective sales management. Understand how to leverage these concepts to enhance decision-making and improve business outcomes.