INFORMATIONAL

TECHNOLOGY AND
INFORMATION IN
BUSINESS
CHAPTER 4
DATA and INFORMATION

• Data consists of numbers, letters, symbols, raw facts, events and

transactions, which have been recorded but not yet processed into a
form that is suitable for making decisions.
• Types of data
Quantitative data is that which is capable of being measured
numerically, e.g. the standard labour hours required to produce one
unit of output.
Qualitative data is not capable of being measured numerically but
may reflect distinguishing characteristics, e.g. the grade of labour
used to produce the unit of output.
Data is said to be discrete when it can only take on specific fixed
values, e.g. the actual number of vehicles through a car wash per day
could be 35 but not 35.3
• Primary data is collected for a particular enquiry, for example by
observation, employees would be observed performing a ‘value
adding’ activity when establishing a standard time for the activity.
• Data collected by a trade association from a number of firms and
comprising trade association statistics would become secondary data
• Information is data that has been processed in such a way that it has
meaning to the person that receives it, who may then use it to improve
the quality of their decision-making. Information is vital to an
organisation and is required both internally and externally.
• ‘Good’ information helps in the decision-making process, is useful to
the recipient and can be relied upon. To be ‘good’, information should
have the following characteristics (which you can remember using the
acronym ACCURATE).
ACCURATE

• Accurate – information should be sufficiently accurate for its intended

purpose and the decision-maker should be able to rely on the information.
• Complete – the more complete information is, the more reliable it will be.
• Cost – the information should not cost more to obtain than the benefit derived
from it.
• Understandable and user friendly information is much more readily acted
upon.
• Relevant – the information provided should concentrate on the essentials and
ignore trivia.
• Adaptable – information should be tailored to the needs and level of
understanding of its intended recipients.
• Timely – information that is out-of-date is a waste of time, effort and money.
• Easy to use – information should be clearly presented and sent using the right
medium and communication channel.
Information technology and information
systems
• Information systems (IS) refer to the management and provision of
information to support the running of the organisation.
• Information technology (IT) describes any equipment concerned with
the capture, storage, transmission or presentation of data.
TYPES OF INFORMATION SYSTEM

• Management structure and information requirements

• The strategic level of management requires information from internal

and external sources in order to plan the long-term strategies of the
organisation
• The tactical level of management requires information and
instructions from the strategic level of management, together with
routine and regular quantitative information from the operational
level of management
• The operational level of management requires information and
instructions from the tactical level of management. The operational
level is primarily concerned with the day-to-day performance of tasks
and most of the information is obtained from internal sources
• Transaction processing system (TPS)
A TPS records all the daily transactions of the organisation and
summarises them so they can be reported on a routine basis.
Transaction processing systems are used mainly by operational
managers to make basic decisions
• Management information systems (MIS)
Management information systems convert data from the TPS into
information for tactical managers. This information will be designed
to help them monitor performance, maintain co-ordination and
provide background information about the organisation’s operations.
• Decision support systems (DSS)
A DSS is a computer system that helps decision-makers deal with
semi- or unstructured decisions, where there is a high degree of
uncertainty, or unknown factors that may affect the decision.
• Executive information systems (EIS)
These systems provide strategic managers with flexible access to
information from the entire business, as well as relevant information
from the external environment
• Expert systems (ES)
Expert systems hold specialist (expert) knowledge and allow non-
experts to interrogate the system for information, advice and
recommended decisions.
Software Applications

• Spreadsheets - are designed to analyse data and sort lists of items, not
for long-term storage of raw data. A spreadsheet should be used for
‘crunching’ numbers and storage of single lists of items. They also
include graphing functions that allow for quick reporting and analysis
of data.
• Database - To store large amounts of raw data, it is best to use a
database. This is especially true in circumstances where two or more
users share the information
• Accountancy Packages - Many businesses choose to utilise
specialised software packages that record and process the individual
transactions within the business, rather than relying on manual
records. These accounting packages are often designed to
automatically produce yearend accounts and management reports
when requested.
Advantages of Computerisation

• Speed
• Accuracy
• Volume
• Complexity
• Cost
• Presentation
ALSO GO THROUGH THE ENTIRE CHAPTER

Cloud computing
Artificial intelligence
Machine learning
Big Data
Block chain
Cyber security
Types of cyber attacks