Data, Information, and Knowledge Overview

Data, Information, and Knowledge

• Data is raw, unprocessed facts that lack context or meaning. For example, individual sales transactions recorded on a specific date are data.
• Information is processed and organized data that provides context and meaning. For example, aggregating daily sales to calculate weekly and monthly totals generates valuable information.
• Knowledge is the integration and interpretation of information. It involves analyzing historical sales data to identify seasonal trends and considering external factors like promotions and economic conditions.

Value and Quality of Information

• Accurate and complete information is crucial for making informed decisions.
• Inaccurate information can lead to poor decisions resulting in significant financial losses.
• The importance of different information characteristics varies depending on the specific context.

Characteristics of Quality Information

• Accuracy - Information must be free from errors.
• Completeness - Information must be complete and contain all the necessary details.
• Relevance – Information must be relevant to the task at hand.
• Timeliness - Information must be current and up-to-date.
• Understandability - Information should be easily understood by its intended audience.
• Accessibility - Information should be easily accessible to those who need it.

What is an Information System?

• A computer-based information system (CBIS) consists of interconnected components: hardware, software, databases, networks, people, and procedures.

People in Information Systems

• Information systems personnel play crucial roles in managing, running, programming, and maintaining the system.
• Efficient and effective information systems can improve job satisfaction and boost worker productivity.

Procedures in Information Systems

• Procedures define the steps involved in achieving a specific objective, such as entering a customer order or paying a supplier invoice.
• Following established procedures is essential for operating, maintaining, and securing the system.

Business Information Systems

• Information systems are used across all functional areas of a business organization:
  • Accounting and finance
  • Customer service
  • Human resources
  • Manufacturing
  • Research and development
  • Sales and marketing

Types of Information Systems

• Transaction Processing Systems (TPS): Record and process business transactions, such as sales, payments, and inventory updates.
• Management Information Systems (MIS): Provide routine information to managers for decision-making, often based on data from TPS, focusing on operational efficiency.
• Enterprise Resource Planning (ERP) Systems: Integrated systems that manage an organization's core business operations, covering areas like human resources, finance, customer relationship management, and warehouse management.
• Knowledge Management Systems (KMS): Store, retrieve, and share knowledge within an organization to improve collaboration, problem-solving, and decision-making.

Electronic Commerce (E-Commerce)

• Involves the exchange of goods and services for money over electronic networks.
• Different types of e-commerce models include:
  • Business-to-Business (B2B)
  • Business-to-Consumer (B2C)
  • Consumer-to-Consumer (C2C)
  • Government-to-Citizen (G2C)
  • Government-to-Business (G2B)
  • Government-to-Government (G2G)
• Buy-side e-commerce: Organizations purchase goods and services from suppliers online.
• Sell-side e-commerce: Organizations sell products to customers online.