Unit 1

Data
Data is defined as a collection of individual facts or statistics. (While “datum” is technically the
singular form of “data,” it’s not commonly used in everyday language.) Data can come in the form of
text, observations, figures, images, numbers, graphs, or symbols. For example, data might include
individual prices, weights, addresses, ages, names, temperatures, dates, or distances.
Data is a raw form of knowledge and, on its own, doesn’t carry any significance or purpose. In other
words, you must interpret data for it to have meaning. Data can be simple—and may even seem
useless until it is analyzed, organized, and interpreted.
There are two main types of data:

• Quantitative data is provided in numerical form, like the weight, volume, or cost of an item.
• Qualitative data is descriptive, but non-numerical, like the name, sex, or eye color of a person.

Data Examples

The number of visitors to a website in one month

Inventory levels in a warehouse on a specific date

Individual satisfaction scores on a customer service survey

The price of a competitors’ product

Information
Information is defined as knowledge gained through study, communication, research, or instruction.
Essentially, information is the result of analyzing and interpreting pieces of data. Whereas data is the
individual figures, numbers, or graphs, information is the perception of those pieces of knowledge.
For example, a set of data could include temperature readings in a location over several years. Without
any additional context, those temperatures have no meaning. However, when you analyze and
organize that information, you could determine seasonal temperature patterns or even broader climate
trends. Only when the data is organized and compiled in a useful way can it provide information that
is beneficial to others.

Information Examples

• Understanding that changes to a website have led to an increase or decrease in monthly site visitors
• Identifying supply chain issues based on trends in warehouse inventory levels over time
• Finding areas for improvement with customer service based on a collection of survey responses
• Determining if a competitor is charging for a similar product
Differences Between Data vs Information

Data is a collection of facts, while information puts those facts into context.

While data is raw and unorganized, information is organized.

Data points are individual and sometimes unrelated. Information maps out that data to provide a big-
picture view of how it all fits together.

Data, on its own, is meaningless. When it’s analyzed and interpreted, it becomes meaningful information.

Data does not depend on information; however, information depends on data.

Data typically comes in the form of graphs, numbers, figures, or statistics. Information is typically
presented through words, language, thoughts, and ideas.

Data isn’t enough for decision-making, but you can make decisions based on information.
Quality of Information

Information is a vital resource for the success of any organization. Future of an organization lies
in using and disseminating information wisely. Good quality information placed in right context
in right time tells us about opportunities and problems well in advance.

Good quality information − Quality is a value that would vary according to the users and uses of
the information.

According to Wang and Strong, following are the dimensions or elements of Information Quality
−
• Intrinsic − Accuracy, Objectivity, Believability, Reputation
• Contextual − Relevancy, Value-Added, Timeliness, Completeness, Amount of
information
• Representational − Interpretability, Format, Coherence, Compatibility
• Accessibility − Accessibility, Access security

essential characteristic features for information quality −

• Reliability − It should be verifiable and dependable.
• Timely − It must be current, and it must reach the users well in time, so that important
decisions can be made in time.
• Relevant − It should be current and valid information and it should reduce uncertainties.
• Accurate − It should be free of errors and mistakes, true, and not deceptive.
• Sufficient − It should be adequate in quantity, so that decisions can be made on its basis.
• Unambiguous − It should be expressed in clear terms. In other words, in should be
comprehensive.
• Complete − It should meet all the needs in the current context.
• Unbiased − It should be impartial, free from any bias. In other words, it should have
integrity.
• Explicit − It should not need any further explanation.
• Comparable − It should be of uniform collection, analysis, content, and format.
• Reproducible − It could be used by documented methods on the same data set to achieve
a consistent result.
Types of Information:

1. Conceptual information

Conceptual information comes from ideas, theories, concepts, hypotheses and more. With
conceptual information, an abstract idea is not always rooted in a scientific foundation and rather
is the fundamental creation of beliefs, thoughts, philosophies and preferences. You can form or
share conceptual information through comparison and reflection, creating philosophies that cannot
be proven or seen.

2. Procedural information

Procedural information, or imperative knowledge, is the method of how someone knows to do

something and is used by performing a task. You can refer to it as muscle memory since it is
knowledge that is hard to explain and stored deeply in your mind.

Here are two examples of procedural information:

• Riding a bicycle: Riding a bike takes physical practice to comprehend, regardless of the
amount or type of instructions given.
• Driving a car: You can pass your written driving test or get a perfect score, though have
little knowledge of the procedural information it takes to operate and drive a vehicle.
• Tying a shoelace: Because the concept is hard to explain, it may take a child several
attempts to first learn how to tie a shoelace, even with visual examples and descriptive
words.

3. Policy information

Policy information focuses on decision-making and the design, formation and selection of policies.
It comprises laws, guidelines, regulations, rules and oversight for an organization, group of people
or place. You can gain policy information through pictures, diagrams, descriptions and other
visual, audio or written messages.

Here are some examples of policy information:

• Food pyramid diagram

• Periodic table of elements
• Organizational charts
• Employee handbooks
• The United States Constitution
• Government restrictive, regulatory or facilitating policies

4. Stimulatory information

Stimulatory information is information that creates a response or stimulation amongst a person or

group of people. Stimulation encourages the cause of activity and you can gain stimulatory
information in a variety of ways, like in person through observation, through word-of-mouth
communication or through outlets like the news.

One example may be a person observing the nonverbal communication of someone passing by. If
the stimulation is positive, they may say hello and start a conversation perhaps or, if the stimulation
is not positive, they may respond by moving in the other direction, running away or creating more
distance between them.

Here are other examples of stimulatory information:

• Victory day celebrations after a sports team wins a championship

• The physiological fight-or-flight reaction response to perceived harm

5. Empirical information

Empirical information means information gained through human senses, observation,

experimentation and the testing of a hypothesis by establishing documentation of patterns or
behavior. It almost always has a scientific foundation and verifies the truth or falsehood of a claim
through qualitative and quantitative factors.

Here are several examples of empirical information, rooted in science:

• Electricity
• Atomic theory
• Theory of gravity
• Kinetic theory of matter
• Genetics and DNA

Empirical evidence and information are the opposite of anecdotal information and evidence, which
is a conclusion based on informal collection methods, most often a personal experience and
testimony.

6. Directive information

Directive and descriptive information is about providing directions to a person or group of people
to achieve a particular result and outcome. You can use directive information with or without
dictating the means to achieve the desired result. Directive information often comes in verbal or
written form and can apply to leadership at work, in the military or government and with everyday
experiences, like legal, life and safety matters.

Here are some examples of directive and descriptive information:

• Medical do not resuscitate (DNR) orders

• Organ donation paperwork
• Living wills
• Coaching
• Mode of operations in any organization
• Employment performance reviews
• Military commands
• Directive leadership
Process of information generation:
Information usually generates following such modes as Observation, thought process, Deliberation
or Imagination, Experimentation, Processing of data, Happening of various events, and so on. In
certain cases, like language, information generates following the path of evolution. Now, we shall
discuss all these modes one by one. 6.4.1 Observation By the word ‘observation’ here we mean
not only seeing with eyes, but also hearing, smelling, tasting and feeling with skin. We can get
information about the sky whether it is sunny, cloudy or hazy by looking at it. Many a time, an
ornithologist can identify a bird just by hearing its call. Often chemists can recognize a chemical
substance, e.g. phenol, by smelling it. Our tongue gives us information about the taste of a
substance. A simple touch by the hand is enough to know whether a substance is hot, cold or warm.
Observation may be termed as the most potent mode of generation of information. Charles Darwin
observed nature for years to gather information for establishing the theory of evolution.
Astronomers all over the world gathered information by observing the celestial bodies for centuries
initially with naked eyes and subsequently with telescopes. Similarly, microbiologists gathered
information on all microbes observing them with microscopes. A police officer must observe
minutely every detail of the venue while investigating an accident, theft, etc. A scientist conducting
an experiment has to observe very carefully the changes taking place in temperature, pressure,
color, etc. and faithfully record the changes. A doctor has to observe the condition of a patient at
regular intervals to see whether his condition is improving or deteriorating. Thus, we find, in every
walk of like observation is a prerequisite for the generation of information.
Thought Process, Deliberation and Imagination
Thought process is the mother of generation of information. Be it observation, experimentation or
data collection, thought process is involved in every case to generate information. Man has seen
the solar and lunar eclipses for thousands of years and have tried to find out the underlying causes
with his limited knowledge and generated information. The ancients observed that during eclipse
the sun or the moon is gradually swallowed by something and again it comes out. Hence, the
ancient Hindus reasoned that during an eclipse the sun or the moon is gradually gobbled by the
beheaded Rahu. As it gobbles the celestial body through the mouth it comes out through the cutout
throat. Considering the level of knowledge human beings possessed at that time, the reasoning was
quite logical. After centuries of observation and reasoning, now we know the real cause of eclipse.
The information we generate through our observation, experimentation, reasoning, etc may not
always be absolutely true.
In many cases, it is subject to correction at a later date. In Arthur Conan Doyle’s novels we have
seen both Dr. John Watson and Mr. Sherlock Holmes have visited together the site of the crime. It
was always the superior thought process of Sherlock Holmes that was able to pinpoint the culprit.
Be it a household, an office, an organisation or institution, the process of deliberation is
encountered everywhere. While studying in class XII, many students are to appear in a number of
entrance tests. When a student qualifies in more than one test, the student and the parents are to
deliberate a lot to arrive at a decision as to the course the student is going to pursue. The moment
the final decision is taken and is made known to others, information is generated.
Experimentation
If we go through abstracting and indexing services devoted to physics, chemistry, biology,
medicine, engineering, agriculture, and other scientific disciplines, we shall find that about two
million articles are being included in these databases every year. Most of these articles are based
on experimentation. Just from this, one can make out how much information is being generated
per year through experimentation. It is however to be noted that experimentation is always attended
with observation and thinking process. The results of experimentation usually appear in the form
of research papers, short communications, patents and so on. 6.4.4 Processing of Data You have
already learnt that data collected through questionnaire and other methods gives rise to information
when processed. Now, we shall see how the processing of data gives rise to information with a
concrete example. Let us take the students of a BLIS class of an Indian university as a sample. The
data collected about the students may be given in Table.
Events:
A scholar releasing a book, an artist inaugurating an exhibition, a philosopher explaining the
concept of time, a saint giving a discourse on a religious matter, a political leader campaigning for
vote, legislators debating in a parliament, a lawyer passing a judgement, the prime minister of a
country taking oath of office, a war breaking out at a particular region of the world, a patient dying
in a hospital due to neglect, a new train being flagged off by a minister, two buses colliding causing
death and injuries to a number of passengers, a terrorist hijacking a plane, a comet appearing in
the sky, a physicist bombarding an atom with alpha particles, a chemist conducting an experiment
to create a new material, a geologist drilling a borehole to prospect petroleum deposit, a
paleontologist spotting the skeleton of a dinosaur, a geneticist giving birth to a high-yielding
variety of rice, an inventor filing a patent application, a surgeon performing an open heart surgery,
a director shooting a new film, umpteen number of sports and games being held every day all over
the world, adventurers venturing to conquer a mountain peak, etc. are all examples of events.
Let us go through some of the headlines figured in The Hindustan Times of 30th July 2004.
1) IA diverts flight, saves Pakistani baby. (p 1)
2) Bofor’s Ardbo dead (p1)
3) Aravali bio-diversity park takes off (p2)
4) PM flies, spares traffic (p3) [PM’s journey to the airport by a helicopter while proceeding to
Thailand]
5) 16 lockers cleaned out at Safdarjung Enclave Bank (3)
6) 1 killed as bus overturns in NOIDA (p5)
7) As expected Pak win easily [in Asia Cup ODI in Sri Lanka](p9)
8) CA examination results on August 4 (p19]
9) Pakistani hostages killed (p21)
10) Madonna makes peace with Jesus in Portugal (p22)
Evolution
Man started communicating by speech some 100,000 years ago [Odham’s Colour Library of
Knowledge: Language and Communication, 1968]. In those dizzy old days of human civilisation,
the vocabulary of human beings of a particular race was only limited. They had only that many
words which were required to express their ideas. As they invented newer and newer devices,
encountered objects not known before, they started naming them for the purpose of easy
identification. This led to the enrichment of vocabulary. When they moved from an old area to a
new area they encountered numerous new things such as trees, animals, fruits, tubers, and so on.
They also named them. In the course of their endless journey sometimes they encountered an alien
race, which resulted either in fighting or friendship. For the exchange of ideas between two
different races, need arose for interpretation. How and when the art of interpretation came into
being is shrouded in mystery.
Dream
It is common with every human being to dream. Some of the dreams we remember, other we do
not. The dream that we remember and convey about the same to others or record it in our diary,
information is generated. Psychologists extract a lot of information about the subconscious mind
of a patient through the interpretation of dreams. At times dreams provide the necessary
information or clue for solving a problem. Kekule, an organic chemist, was trying to find out the
structural formula of benzene for quite sometime, but failing again and again. One night, he dreamt
that six snakes had created a ring by biting the tail of each other. This dream immediately gave
him the information or clue that the structural formula of benzene would be ring-shaped.

Cost and Value of Information

Value

The importance, worth, or usefulness of something.

Cost

An amount that has to be paid or spent to buy or obtain something.

Paying for Content

Do you regularly spend money to buy digital information? If so, what do you purchase?

According to a Pew Study (2010), 65% of U.S. Internet users paid for online content. Most
of us spend about $10 per month on information. Digital music and software are the most
commonly downloaded forms of information.

A 2016 pop-up poll of 1006 students showed that 31% paid for music or videos, 44%
paid for TV or movies, 15% paid for apps or games, 1% paid for news or magazines
and the remainder marked “other.” (9)
Adding Value to Information

Why do people pay for online information if so much on the Internet is free? If you are looking
for the most valuable information, it can be difficult to know how much to pay for it.

Value-added information is defined as information that has been enhanced to increase its
usefulness.

Value-Added Characteristics of Information

Here are some of the most common value-added characteristics of information that people are
willing to pay for along with an example.
Proprietary Information
Expert Advice
Synthesized Information
Save Time or Money
Organized Information
Role of information in corporate:
Business Data

Information flows in and out of a business in many different direction. The type of data a business
collects is informed by a business’s goals and objectives. Computing systems can collect a
dizzying array of data about the world around us. Businesses must decide what type of data they
need to inform their business decisions and then determine where and how that data can be
collected. The types of data that businesses collect can be broken down into 5 broad categories:
business process, physical world observations, biological data, public data and personal data. Let’s
examine each of these categories of data in greater detail.

Use of information in business:

Business Process Data. In order to remain competitive businesses must find ways to increase
efficiency while maintaining quality standards for their products, goods and services. In order to
continuously improve their operations, businesses collect data regarding their business processes.
This data can range from collecting data on the number of days it takes their customers to pay
invoices to the tie it takes to assemble and package a product. In order to collect this type of data,
many businesses employ enterprise resource planning systems. ERP systems track business
resources—cash, raw materials, production capacity—and the status of business commitments:
orders, purchase orders, and payroll. The applications that make up the system share data across
various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.
Another source of process data is Point of Sale (POS) systems.

Physical-world observations. Technology has made it possible for business to capture real-time
data about the physical world. This data is collected by the use of devices such as radio frequency
identification (RFID), wireless remote cameras, GPS, sensor technology and wireless access
points. By inserting computer chips into almost any object companies are able to track the
movements of that item and in some cases control the object. One of the early adopters of such
technology was the On-Star system installed in millions of U.S. automobiles. Through the use of
a combination of RFID, GPS and satellites if a car owner inadvertently locked their keys in the car
one call to On-Star and like magic the doors to their vehicle would be unlocked.

Biological Data. If you have a newer smart phone it is possible that you can unlock your phone
by simply looking at the screen. This is made possible by facial recognition software. Unlocking
your laptop with your fingerprint is another example of biological data available to businesses.
Although things like voice and face recognition, retinal scans and biometric signatures are
currently used primarily for security purposes, it may be possible in the future for this type of data
to allow for product and service customization.

Public Data. Businesses have an almost endless source of data available to them free from public
sources. Whenever you log onto the Internet, use instant messaging, send emails an electronic
footprint is left behind. For now this data is considered to be “public” and businesses collect, share
and even sell this type of data every day. This has become a very controversial topic in the past
several years and recent legislation by the EU regarding this type of data may be the first step in
limiting the collection and use of this type of public data. For additional information on this
groundbreaking legislation follow this link to the European Commission: European Commission
and Data Protection

Personal Data. Much like data that is considered to be “public” data, as we use technology we
provide a wealth of personal data that businesses can use to reveal much about our personal
preferences, habits, pastimes, likes and dislikes. For example, Facebook uses information people
provide — such as their age, gender and interests — to target ads to a specific audience.
Advertisers tell Facebook which demographics they want to reach, and then the social media giant
places the ads on related accounts. How businesses collect and use this data is also highly
controversial as exemplified by recent disclosures that Facebook has been collecting and selling
personal information gathered from subscribers’ activities on the social network. Much like the
controversy surrounding publicly available data, what rights an individual has to his or her data is
currently being debated globally.
 Unit 2

Information systems encompasses the tools that organizations use to collect, manage, and analyze
data. This data guides decision-making to improve efficiency and profitability.

Every decision an organization makes should be data-driven, so the uses of information systems
are practically limitless—human resource management, financial account management, customer
outreach and advertising, competitive landscape analysis.

Information systems Types

Information systems can improve nearly any business operation, but here are a few valuable ways
you can put them to work.
• Expert systems: AI is becoming more advanced every day, and it's leveraged in information
systems to simulate human problem-solving (think Siri!). Expert systems use knowledge that
would otherwise need to be provided by a subject matter expert to tackle problems and make
decisions. In a business context, it can solve accounting problems or identify malware.
• Office automation systems: Automation saves countless hours that would otherwise be spent
doing simple tasks. Office automation systems combine computer and communication
technology with human resources to enact more efficient procedures. For example, a COO may
schedule monthly company-wide email updates that include AI-generated reports on the
company's status.
• Process control systems: If you're looking for a way to apply information systems to product
manufacturing, process control systems are your solution. They rely on inputs from sensors to
generate specific outputs and are frequently used to ensure a product meets specific criteria. A
simple example is a thermostat—when the temperature dips below a certain level, the heat turns
on. If you produce a physical product that's regularly criticized by customers, you may want to
tweak your process controls.
Collaboration systems
The main objectives of collaboration systems are to facilitate communication and teamwork
among the members of an organization and across organizations. One type of collaboration system,
known as a workflow system, is used to route relevant documents automatically to all appropriate
individuals for their contributions.
Development, pricing, and approval of a commercial insurance policy is a process that can benefit
from such a system. Another category of collaboration systems allows different individuals to
work simultaneously on a shared project. Known as groupware, such systems accomplish this by
allowing controlled shared access, often over an intranet, to the work objects, such as business
proposals, new designs, or digital products in progress.
Knowledge management systems
Knowledge management systems provide a means to assemble and act on the knowledge
accumulated throughout an organization. Such knowledge may include the texts and images
contained in patents, design methods, best practices, competitor intelligence, and similar sources,
with the elaboration and commentary included. Placing the organization’s documents and
communications in an indexed and cross-referenced form enables rich search capabilities.
Management reporting systems
Information systems support all levels of management, from those in charge of short-term
schedules and budgets for small work groups to those concerned with long-term plans and budgets
for the entire organization. Management reporting systems provide routine, detailed, and
voluminous information reports specific to each manager’s areas of responsibility. These systems
are typically used by first-level supervisors. Generally, such reports focus on past and present
activities, rather than projecting future performance.
Decision support systems and business intelligence
All information systems support decision making, however indirectly, but decision support
systems are expressly designed for this purpose. As these systems are increasingly being
developed to analyze massive collections of data (known as big data), they are becoming known
as business intelligence, or business analytics, applications. The two principal varieties of decision
support systems are model-driven and data-driven.
In a model-driven decision support system, a preprogrammed model is applied to a relatively
limited data set, such as a sales database for the present quarter. During a typical session, an analyst
or sales manager will conduct a dialog with this decision support system by specifying a number
of what-if scenarios. For example, in order to establish a selling price for a new product, the sales
manager may use a marketing decision support system. It contains a model relating various
factors—the price of the product, the cost of goods, and the promotion expense in various media—
to the projected sales volume over the first five years on the market. By supplying different product
prices to the model, the manager can compare predicted results and select the most profitable
selling price.
Role of Information Systems
he goal of an information system is to transform data into information in order to generate
knowledge that can be used for decision making. In order for information to add value to a business
and the decision maker it must possess characteristics to ensure quality. The following
characteristics are necessary to add value.
 Information
systems play a central role in data processing and can significantly impact profitability. If you are
thinking of introducing information systems in your business, this guide offers some insight into
what you need to know.

Role of in formation system in Business

Information Systems Training

The best information system may not yield much without the right skills. That’s why you need to
consider hiring persons with experience in information systems. Alternatively, you can provide
training opportunities for your existing employees, which can be an excellent morale booster.
If you play an active management role in your organization, you may also need to get training on
information systems. The best option for getting information systems training for you or your
workforce would be from a recognized institution.
While it is possible to get training in small packages, it will be more advantageous and cost-
effective if you enroll in a Bachelor of Science in Management Information Systems to ensure that
you or your employees have a comprehensive understanding of information systems.

Why Information Systems in Business Is Important

Data Storage and Analysis

The most critical role of business information systems is data processing. Today, it is rare to find
a business that uses hard copy registers and records to manage its data. If that’s how you do it, you
may be losing out on a lot of potential held by your business’s data.
Information systems help organizations make sense of their comprehensive and sophisticated data,
which helps advise decision-making. A reliable information system should allow the user to
analyze company data comprehensively to pinpoint appropriate solutions to present and future
challenges.

Improved Internal Communication and Collaboration

Communication is critical to an organization’s success, and it is one area that information systems
address. Information systems achieve this by allowing for the storage of files and documents
accessible by employees and employers, making collaboration easier.
For example, if a particular document needs changes, the team leader will only need to add a
comment on the document, which reflects on the other end in real-time. Also, revisions and updates
happen in real-time, ensuring that every team member works on the latest version of a document
or file.

Planning With Competition in Mind

The best thing about information systems is that they do more than gather internal company data
to include external and competitor data.
Many information systems come with a competitor analysis feature. That way, users can
understand industry trends and competitor strengths and weaknesses such as pricing, strategy,
reach, etc.
This kind of information allows business managers and owners to make informed decisions based
on internal and external data to put their organization ahead of the competition.

Data Control
While data is a great resource for business, having access to customer data calls for a high level of
responsibility. This means that not everyone should have access to sensitive customer data.
Thankfully, a reliable business information system helps achieve data control by limiting the
number of people accessing company data.
In other words, you can set user privileges to allow different employees access to only the items
they need, making it easy to protect the most sensitive information at the top management level.