IM 201

INFORMATION MANAGEMENT

Learning Module on IM201 – Information Management

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Lesson 01. Information Concepts

Today, we live in an information economy. Information itself has value and commerce often
involves the exchange of information rather that tangible goods. To be effective manager in any area
of business, you need to understand that information is one of an organization’s most valuable
resources.

Lesson Objectives:
At the end of this lesson, you will be able to:
• Define data, information and knowledge
• Distinguish data from information
• Describe the characteristics used to evaluate the quality of data
• Define the terms information technology, information system, computer-based information, and
application.
• Identify each basic component of information system
• Identify the relevance of each basic component as pillars of an effective and successful
Information System

Getting Started:

Information is a central concept of this module. However, the term information is often confused with
data. From the list below, let’s check how well versed you are between the difference of data from
information. Classify which of the following is data and which is information. Write your answers on the
space provided.

_______________1. 28
_______________2. 12*8=86
_______________3. There are 10 people in the room.
_______________4. Bedroom
_______________5. 12/24/1992
_______________6. 1 kilo of sugar

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Discussion:

Data

• raw facts, such as an employee number, total hours worked in a week, inventory part numbers or
sales orders
• are raw facts that describe a particular phenomenon such as the current temperature, the price of
a movie rental or your age, the term data is plural and datum is singular.
• refers to an elementary description of things, events and activities, and transactions that are
recorded, classified, and stored but are not organized to convey any specific meaning

DATA REPRESENTED BY
Alphanumeric data Numbers, letters, and other characters
Image data Graphic images and pictures
Audio data Sounds, noises, or tones
Video data Moving images or pictures

Information
• refers to the data that has been organized so that they have meaning and value to the recipient
• is data that have a particular meaning within a specific context
• is a collection of fact organized and processed so that they have additional value of the individual
facts
Knowledge

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• consists of data and / or information that have been organized and processed to convey
understanding, experience, accumulated learning, and expertise as they apply to a current business
problem
• the awareness and understanding of a set of information and the ways that information can be
made useful to support a specific task or reach a decision

Example #1

Data representation
Data 95
(numeric)

Data + context +
Information My score on IM 102 final exam is 95%.
information representation

I have passed the exam with Data & information +

Knowledge
excellent remark. meaning & interpretation

Example #2

Mitsuha Miyamizu, 55,000Php, June Data representation

Data
28, 2010 (numeric)

Mitsuha Miyamizu is a sales person

whose monthly salary is 55,00Php Data + context +
Information
and whose hire date is June 28, information representation
2010.

She is a serving the company for 10

Data & information +
Knowledge years and can be considered as a
meaning & interpretation
company asset.

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Characteristics of Valuable Information

CHARACTERISTICS DEFINITIONS
Accessible Information should be easily accessible by authorized users so they can
obtain it in the right format and at the right time to meet their needs.
Accurate Accurate information is error free. In some cases, inaccurate information
is generated because inaccurate data is fed into the transformation
process. This is commonly called garbage in, garbage out. (GIGO)
Complete Complete information contains all the important facts.
Economical Information should also be relatively economical to reproduce. Decision
makers must always balance the value of information with the cost of
producing it.
Flexible Flexible information can be used for a variety of purposes.
Relevant Relevant information is important to the decision maker
Reliable Reliable information can be trusted by the users
Secure Information should be secure from access by authorized users
Simple Information should be simple not complex. Too much information can
cause information overload.
Timely Timely information is delivered when it is needed.
Verifiable Information should be verifiable. This means treat you can check it to
make sure it is correct, perhaps by checking many sources for the same
information

Information System is a set of interrelated elements or components (input), manipulate (process), store,
and disseminate (output) data and information, and that provide a corrective reaction (feedback
mechanism) to meet an objective that can be manual or computerized

Components of an Information System

Input in information systems, it is the activity of gathering and capturing raw data
Processing in information systems, it means converting or transforming data into useful outputs; can
involve making calculations, comparing data and taking alternative actions, and storing data for
future use
Output in information systems, involves producing useful information, usually in the form of documents
or reports
Feedback in information systems, it is the information from the system that is used to make changes to
input or processing activities

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FEEDBACK

INPUT PROCESSING OUTPUT

Computer-based Information System (CBIS) is a single set of hardware, software, databases,

telecommunications, people, and procedures that are configured to collect, manipulate, store, and
process data into information.
Components of Computer-based Information System (CBIS)
Hardware
• consist of computer equipment used to perform input, processing, storage and output activities;
trend in the computer industry is to produce smaller, faster and more mobile hardware
• consists of devices that accept, process, and display data and information
• input devices include keyboards, mouse, pointing devices, automatic scanning devices and
equipment that can read magnetic ink characters
• processing devices include computer ships that contain the central processing unit (CPU) and main
memory
• output devices include printers and computer screens
Software
• consists of the computer programs that govern the operation of the computer
• is a program or collection of programs that enable the hardware to process the data
• two types: system software such as Microsoft Windows which controls basic computer operations
including start-up and printing and application software such as Microsoft office which allows users
to accomplish specific task including word processing or tabulating numbers
Database
• It is a collection of related files or tables containing data
• an organized collection of facts and information, typically consisting of two or more related data
files; for example, an organization’s database can contain facts and information on customers,
employees, inventory, competitor’s sales, online purchases and much more
Telecommunications, Networks and the Internet

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• Telecommunications is the electronic transmission of signals or communications that enables

organizations to carry out their processes and tasks through effective computer networks and can
take place through wired, wireless, and satellite transmissions.
• Networks connect computers and equipment in a building, around the country or around the world
to enable electronic communications; permits different computers to share resources.
• Internet is the world’s largest computer networks, consisting of thousand on interconnected
networks, all freely exchanging information
• Intranet is an internal network based on Web technologies that allows people within an organization
to exchange information and work on projects.
• Extranets a network based on Web technologies that allows selected outsiders, such as business
partners and customers, to access authorize resources of company’s intranet.
People
• are the most important element in most CBIS because they make the difference between success
and failure for most organizations; IS personnel include all the people who manage, run program,
maintain the system, including the chief information officer who manages the IS Department, other
people who work with IS are financial executives, marketing representatives, manufacturing
operators and many others.
Procedures
• include the strategies, policies, methods, and rules for using the CBIS including the operation,
maintenance, and security of the computer
• are the instructions for combining the above components in order to process information and
generate desired output

Learning Module on IM201 – Information Management