The document discusses the distinction between data and information, emphasizing that data consists of raw facts without context, while information is processed data that provides meaning. It outlines the properties of good information, which include accuracy, completeness, relevance, and timeliness, among others. Additionally, it highlights the importance of analyzing and organizing data to derive valuable insights for decision-making.
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Lesson 2 - Data and Information
The document discusses the distinction between data and information, emphasizing that data consists of raw facts without context, while information is processed data that provides meaning. It outlines the properties of good information, which include accuracy, completeness, relevance, and timeliness, among others. Additionally, it highlights the importance of analyzing and organizing data to derive valuable insights for decision-making.
Data and Information Systems convert data into information. Hence they are fundamental concepts in information systems. Many daily activities either involve the use of or depend on information from computer technology. Example As shown in Figure below, for example, computers at the till in a supermarket collect data of the items that are being bought and process various calculations to print out information in the form of a receipt. What is Data? This refers to raw facts, figures, and symbols that have no meaning on their own without context. 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 (Cont’d) Data is a raw form of knowledge and, on its own, doesn’t carry any significance or purpose. 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, e.g. weight, volume, or cost of an item. Qualitative data is descriptive, but non-numerical, e.g. name, sex, or color. What is Information? Information is processed data that has been organized, structured, and presented in a meaningful context. It is a result of analyzing and interpreting pieces of data. Information is knowledge gained through study, communication, research, or instruction. The Key Differences • 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. Key Differences (Cont’d) • 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 sufficient for decision-making, but you can make decisions based on information. Examples Consider a dataset comprising temperature readings in a specific location spanning several years. Without additional context, these temperatures lack significance. Yet, through analysis and organization of this data, one can discern seasonal temperature patterns or even broader climate trends. It's only when the data is methodically organized and compiled in a meaningful manner that it can yield valuable insights beneficial to others. A single customer's response to an individual customer service survey represents a single data point. However, when you aggregate that customer's responses over time, and furthermore, combine responses from multiple customers over time, you can gain valuable insights into areas for improvement within your customer service team on a larger scale. Properties of Good Information Properties of good quality information can be defined as an acronym ACCURATE. These characteristics are interrelated; focus on one automatically leads to focus on other. • ACCURATE • COMPLETE • COST-BENEFICIAL • USER-TARGETED • RELEVANT • AUTHORITATIVE • TIMELY • EASY TO USE Properties (cont’d) Accurate Accurate information is error free. Sometimes inaccurate information is generated because inaccurate data is fed into the system. Garbage In Garbage Out(GIGO). Information should be fair and free from bias. It should not have any arithmetical and grammatical errors. Users of the information should be told if assumptions have been made. Complete Accuracy of information is just not enough. It should also be complete which means facts and figures should not be missing or concealed. Telling the truth but not wholly is of no use. No missing gaps. E.g an investment report that does not include all import costs is not complete. Properties (cont’d) Cost-beneficial Information should be analysed for its benefits against the cost of obtaining it. The information should be worthwhile. Data and information costs a lot of money to collect, process, analyse and report, hence the benefits must outweigh the costs In business context, it is not worthwhile to spend money on information that even cannot recover its costs leading to loss each time that information is obtained. In other contexts, such as hospitals it would be useful to get information even it has no financial benefits due to the nature of the business and expectations of society from it. Properties (cont’d) User-targeted Information should be communicated in the style, format, detail and complexity which address the needs of users of the information. Example senior managers need brief reports which enable them to understand the position and performance of the business at a glance, while operational managers need detailed information which enable them to make day to day decisions. Properties (cont’d) Relevant Information should be relevant to the current task at hand or the decision being made. Relevant information is important to the decision maker. Authoritative Information should come from reliable source. It should come from person with some sort of authority, or is qualified to provide that information. It depends on qualifications and experience of the person communicating the information. Properties (cont’d) Timely Information should be available when needed. Timely information can be acted upon promptly. Information should be communicated in time so that receiver of the information has enough time to decide appropriate actions based on the information received. END