Chapter: TWO Lecture: TWO

DATA and INFORMATION

This lecture will cover following topics:

•Data and Information

•Difference Between Data and Information
•Qualities of a Good Information
•The process of Converting Data into
Information
 Data and Information
DATA
Data is the raw materials from which
information is generated. Data are raw facts or
observations typically about physical phenomena
or business transactions. It appears in the form of
text, number, figures or any combination of these.

According to Laudon and Laudon-

“Streams of raw facts representing events
occurring in organizations or the physical
environment before they have been organized
and arranged into a form that people can
understand and use.”
 Data and Information……….Contd.
INFORMATION
When we process data and convert into a form that is
useful and meaningful to the decision maker, it
becomes information.
 
According to James O’Brien-
Information can be defined as data that has been
converted into a meaningful and useful context
for specific end users. Information is usually
subjected to a “value-added” process where-
•Its form is aggregated, manipulated and organized.
•Its content is analyzed and evaluated, and
•It is placed in a proper context for a human user.
 Data and Information……….Contd.
So, we should view information as processed data
placed in a context that gives it value for specific
end users.
Data Information
Tk. 35,000
Sales Person: Md. Rahim
12 units
Sales Territory: Rajshahi
Region
Tk. 12,000 Data
Md. Rahim Processing Current Sales: 147 units
Rajshahi Region Tk. 1,47,000
Tk.100,000
135 units

Figure : An Example of Data and Information

 Difference between Data and
Information
Data Information
We can define data as “Streams of Information can be defined as data
raw facts representing events that has been converted into a
occurring in organizations or the meaningful and useful context for
physical environment before they specific end users.
have been organized and arranged
into a form that people can
understand and use”.
Data appears in the form of text, After process data into a meaningful
numbers, figures, audio, video, form, then data becomes information.
images or any combination of these
 Difference between Data and Information..Contd.

Data Information
Data may not be useful to the Decision makers use
decision maker and data must information to make decision.
be processed to become
useful.

All data may not become All Information must be based

information, because not all on factual data, but only data
data or facts can be relevant that are relevant to the
at a given moment. situation are information.
 Difference between Data and Information..Contd.

Data Information

There are many ways to collected

data, i.e. surveys, interviews, the use Human beings apply facts, principle,
of sensors, the reading of documents knowledge, experience and situation
and even the monitoring of the brain to convert data in to information.
waves.

We can compare data as a raw We can compare information as

material to produce information. finished goods.

Data expresses in disorganized and Information expresses as an

inconsistent way. organized and arranged way.
Qualities of a Good Information
Good information has three dimensions of
its characteristics or attributes:
•Time Dimension
•Content Dimension, and
•Form Dimension
Qualities of a Good Information..Contd.

THE TIME DIMENSION

Timeliness Information should be provided when
it is needed

Currency Information should be up-to-date

when it is provided

Frequency Information should be provided as

often as needed

Time Period Information can be provided about

past, present and future time periods.
Qualities of a Good Information..Contd.

THE CONTENT DIMENSION

Accuracy Information should be free from errors.
Relevance Information should be related to the
information needs of a specific recipient for a
specific situation.
Completeness All the information that is needed should be
provided.
Conciseness Only the information that is needed should be
provided
Scope Information can have a broad or narrow
scope, or an internal or external focus.
Performance Information can reveal performance by
measuring activities accomplished, progress
made, or resources accumulated.
Qualities of a Good Information..Contd.

THE FORM DIMENSION

Clarity Information should be provided in a
form that is easy to understand.
Detail Information can be provided in detail
or summary form.

Order Information can be arranged in a

predetermined sequence.
Presentation Information can be presented in
narrative, numeric, graphic, or other
forms.
Media Information can be provided in the
form of printed-paper documents,
video displays, or other media.
The Process of Converting Data
into Information
The process of converting data into
information may include the following
process:
•Collection
•Classification
•Sorting, adding, merging, and so on
•Summarizing
•Storing
•Retrieval
•Dissemination
 The Process of Converting Data into Information
Business Functional Competitor
Customers Suppliers Others
units departments s

Data Collection

Classify

Sort

Process

Store

Retrieve

Duplicate

Disseminate

Decision Decision Maker 2 Decision

Maker 1 Maker 3
ACTION

Goals and Mission

Figure : Figures show how data is collected and processed
before it becomes information