Data and Information
What is Data?
- Defined as numbers and words without relationships
- "Facts and figures"
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Collection of text, numbers, and symbols with no meaning
What is Information?
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Defined as numbers and words with relationships
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Result of processing data, usually by computer
Relationship Between Data and Information
Data on its own has no meaning. It only takes on meaning and
becomes information when it is interpreted. When data is processed
into sets according to context, it provides information.
Importance of Data and Information in Organizations
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Innovation
- Supports adaptability and scalability
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Customer Focus
- Enables rapid response to customer needs
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Efficiency
- Streamlines operations and reduces costs
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Informed Decisions
- Data drives quick and accurate decision-making
Information Systems
Definition
A set of interrelated elements or components that collect (input),
manipulate (process), store and disseminate (output) data and
information, and provide a corrective reaction (feedback
mechanism) to meet an objective.
Core Functions
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Input
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Collect and capture raw data (e.g., work hours, grades)
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Processing
- Convert data into useful outputs
- Involves calculations, comparisons, and storing data
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Output
- Produce useful information (e.g., paychecks, reports)
- Output from one system can be input for another
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Feedback
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Information used to correct or adjust inputs or processes
- Example: Correcting errors like entering wrong data
Components of Computer-Based Information Systems
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Hardware
- Physical equipment for input, processing, and output
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Examples: Keyboards, CPUs, printers, event data recorders
(EDRs)
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Software
- Programs that control computer operations
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Types: System software (e.g., Windows) and application
software (e.g., Microsoft Office)
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Databases
- Organized collection of data
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Telecommunications
- Electronic transmission of data via networks
- Includes Internet, intranets, and extranets
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People
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Users and IT personnel who manage, operate, and use
information systems
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Procedures
- Policies and methods for system use and maintenance
- Includes security and disaster recovery
Types of Support Systems
Transaction Processing Systems (TPS)
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Collects and stores data about business transactions
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Controls decisions made as part of transactions
Types of TPS:
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Batch Transaction Processing
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Information gathered and stored but not processed
immediately
- Example: Processing bank invoices
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Real-time Transaction
- Processed immediately with online database access
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Examples: Bank widhdrawals, library loans
Management Information Systems (MIS)
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Key Features
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Organized collection of people, procedures, software,
databases, and devices
- Provides routine information to managers
- Improves operational efficiency in functional areas
- Improves operational efficiency in functional areas
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Implementation
- Provides standard reports based on TPS or ERP data
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Example: Dell's manufacturing reports saved $1 million
annually
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Developed in 1960s, now widespread throughout management
Decision Support Systems (DSS)
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Characteristics
- Computer-based system for decision-making
- Interactive, flexible, and adaptable
- Provides simulations, models, and analytical tools
- Uses internal and external data sources
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Applications
- Financial planning
- Forecasting
- Resource allocation
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Used by managers and analyst for non-routing decisions
Executive Information Systems (EIS)
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Purpose and Features
- Specialized MIS for senior executives
- Provides access to internal/external information
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Includes graphical displays and user-friendly interfaces
- Strong reporting capabilities
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Components
- Hardware: Input devices, CPU, storage, output devices
- Software: Text base, databases, graphics, models
- User Interface: Executive-system interaction
- Telecommunications: Networked data access