Information Theory: Data and Systems Approach

• These are study notes on the topic of Information Theory based on the provided text images.

Introduction

• Strategic importance of oil as a commodity has declined due to technological advancements, increasing the prominence of information.
• Information and technology are interdependent influencing each other positively or negatively.
• A large amount of raw information is generated.
• Lack of proper organization can impede technological advancements and harm any organization.
• A systems approach to information is essential to harness its value.

Data, Information, Knowledge and Wisdom

• Bit: The smallest unit of information in the binary system, which is either 0 or 1.

Bytes

• Byte: A combination of bits.
• Programming languages form words using 7 or 8 bits.

Data

• Bytes combine to form raw data, such as '12' or a 'table'.
• Data represents observations or facts without inherent meaning, until context is given.
• Data is facts and figures that are meaningless to the end user.
• Data enters a computer for processing.

Information

• Meaningful data within a context, often a message.
• It is structured or interpreted data.
• Data becomes information when it is interpreted for decision-making.
• Information is the result of processed data.

Knowledge

• "Dretske": Knowledge is organized, structured, and meaningful data assembled through experience, communication, or inference and believed to be valuable.
• "Blakler" (views):: It's both a stored entity and an active process, incorporating expertise and skill.
• Organizations require knowledge management both as a tangible resource and a process.

Insight

• Insight is derived from synthesizing diverse knowledge sets.
• It is the ability to unearth the relationship between a variety of different knowledge aspects.

Wisdom

• Wisdom is achieved by identifying the governing laws in the interdisciplinary.

Information Classification

• Data, information, knowledge, and wisdom are referred to as special information when they are in the forefront.

Data in Another Category

• Explicit (evident to everyone) data is easily seen and found
• Hidden (non-evident to everyone) data requires more investigation.

Data Types

• Input Data: data received by hardware
• Stored Data: data saved on hardware
• Output Data: data produced by the hardware

Role of an Information System

• It is intended to answer questions through data access and processing.
• A key question is how easily can data be entered.
• Another key question is what reports can be generated from stored data.
• A further key question is how helpful those reports and computer screen displays are helpful
• Important Note: data must be properly defined

Structured Data

• It is a model of a real world structure.
• Client details are a model for the customer.
• The more data stored, the more detailed the model and the more customized the system will be.

Data Design

• Software should compress the data.
• Inversely: no software can make up for a data structure that it too simplified.
• Data must be up to date.

Data Capture

• User interface is needed for all inputs and outputs.
• Interfaces include spreadsheets, manual entry or even voice entry.

Organizational Perspective

• Stock levels at a specific time.

Transactional Perspective

• The acceptance of an order.

Operational Perspective

• How a sale should take place.

Technical Perspective

• Maps and blueprints for products.

Data States

• Reports
• Documents
• Charts
• Pictures

Data Management

• Organizations must understand the role, traits, and opportunities for each source.
• Data allows many channels to be opened.
• Data challenges include easiness for copy others share.
• The exchange of data could result in a power struggle.

Data Lifecycle

• Data has its own lifecycle in a management information system.

Data Creation

• Data can be internally or externally generated.

Data Storage

• Internal experiences or planned activities.
• Data is typically stored in documents or databases.

Data Transmission

• Data is transferred between processes frequently.

Data Retrieval

• Data is easily retrieved from a database management system.
• The data is separate from programs and users.

Data ReProduction

• Duplication of data requires reorganization.

Data Evaluation

• To ensure appropriate changes.

Data Sorting

• To be easily used.

Data Analysis

• Identification of what use the data will be put to.

Data Unification

• The union of multiple streams of Data.

Data Application

• Turning collected Data into information to use.

Data Deletion

• Removing the data after evaluation.

Definition of Information

• Processed events for decision making.
• Data turned into meaningful and useful elements.
• Information helps people define meaning.

Information Aims

• Transfer knowledge
• Provide awareness
• Motivate to act
• Reduce uncertainty
• Reveal and eliminate bad choices

Key Points

• Information influences behavior.
• Information has many formats, e.g. sound and images.
• A fact might be informative for one person, but raw data for another.

Levels

• Top: must be big picture strategic level.
• Middle: must be able to manage resources and control performance/output