Data: Data is defined as the raw facts and figure

Information: The data after being process and shaped into something meaningful for human
understanding is known as information.

In information system: Input is the activity of meeting and taking raw data. Processing is the action
of converting or converting data into useful outputs. Output the manufacture of useful information
generally in method of documents or reports. Feedback is the output that is used to make changes
to input or processing activities.

CHARACTERISTICS OF VALUABLE INFORMATION

Accurate: Accurate information is error free. In some cases, imprecise information is produced
because inexact data convert into the transformation process (this is commonly called garbage in,
garbage out).

Complete: Information contains all the significant facts. For example, an asset account that does not
include all-important costs is not complete.

Economical: Information should also be relatively economical to produce. Decision makers must
always balance the value of information with the cost of producing it.

Reliable: Information can be depended on. In many cases, the reliability of the information depends
on the reliability of the data collection method.

Relevant: Relevant information is important to the decision maker. Information that lumber prices
might drop may not be relevant to a computer chip manufacturer.

Simple: Information should also be simple, not overly complex. Sophisticated and detailed
information may not be needed

Timely: Timely information is delivered when it is needed. Knowing last week ‘s weather conditions
will not help when trying to decide what coat to wear today.
Proprietary Software

Made for the company or organization in their terms and what they needed for the organization and
owned by themselves is known as Proprietary Software.

Pros:

 They have unlimited options

 Have complete ownership.
 Changes and maintenance made up quickly
 Solutions will be designed to your recommendations

Cons:

 They are expensive

 Takes more time to develop
 Risk of hiring fraud software company
 This software is not tested for all business problems

Off-The-Shelter- Software

Software that are already exist in the market and purchased by the company or organization is
known as off-the-shelter-software.

Pros:

 It is cheaper than proprietary software

 It is easy to use and install to many people who know how to use it.
 It is more reliable than proprietary and more convenient

Cons:

 It has a higher customization cost

 It is slow to changes when needed
 It has so many irrelevant features than annoy or disturb the user too.
A database management system DBMS is system software for creating and managing databases. A
DBMS makes it possible for end users to create, read, update and delete data in a database. The
most prevalent type of data management platform, the DBMS essentially serves as an interface
between databases and end users or application programs, ensuring that data is consistently
organized and remains easily accessible.

A database management system DBMS is a software package designed to define, manipulate,

retrieve and manage data in a database.

Data hierarchy. Data hierarchy refers to the systematic organization of data, often in a hierarchical
form. Data organization involves characters, fields, records, files and so on. This concept is a starting
point when trying to see what makes up data and whether data has a structure.

In hierarchical model, data is organized into a tree like structure with each record is having one
parent record and many children. The main drawback of this model is that, it can have only one to
many relationships between nodes.

Example: A small example of Animals database model. In which Animal Entity is represented as
Parent node named as Animal. Then it has two child nodes named as Fish, Mammals. Fish has
further two child nodes named as Marine, and Fresh Water. And Mammals has two child nodes
named as Dog Cat. And Marine and Fresh Water has one child nodes. Marine has Halibut Child node
and Fresh Water has Rainbow trout child node.
Value Chain

A value chain is a business model that describes the full range of activities needed to create a
product or service. For companies that produce goods, a value chain comprises the steps that
involve bringing a product from conception to distribution, and everything in between such as
procuring raw materials, manufacturing functions, and marketing activities.

A company conducts a value-chain analysis by evaluating the detailed procedures involved in each
step of its business. The purpose of a value-chain analysis is to increase production efficiency so that
a company can deliver maximum value for the least possible cost.

Company Starbucks.

A prime example of creating value for customers is Starbucks. Through its operations, it creates
connections throughout the world, guarantees high-quality flavors and works to build a sustainable
future.

Starbucks presents its coffee as "the end of a long journey – from the land, to the farmer, to the
roaster, to your eagerly waiting hands. Each step is important in defining what that coffee will taste
like."

Information System

Starbucks uses oracle, Starbucks had built its point-of-sale data warehouse on Oracle technology.
This foundation, plus the Oracle OLAP option on Oracle Exadata Database Machine, enabled
Starbucks to scale and seamlessly migrate its existing Oracle-based data warehouse to Oracle
Exadata to expand insight and facilitate decisions, even with explosive growth in data and the user
population.