Data and Information

Data and Information
Session 1 and Session 2
Instructor: Charlie Thomas V
Creating borderless
opportunities
Content
● Data
● Information
● Unstructured and semi-
structured data
● Mechanism to collect and
store data
Creating borderless
opportunities
Data
 Data are raw
facts and
figures that on
their own have
no meaning
 These can be
any
alphanumeric
Note the “are” bit above? What does this
characters i.e. mean?
text, numbers,
Data Examples
 Yes, Yes, No, Yes, No, Yes,
No, Yes
 42, 63, 96, 74, 56, 86
 111192, 111234
 None of the above data sets

have any meaning until they
are given a CONTEXT and
PROCESSED into a useable
Data Into Information
 To achieve its aims the organisation will
need to process data into information.
 Data needs to be turned into meaningful
information and presented in its most
useful format
 Data must be processed in a context in
order to give it meaning
Information
 Data that has been processed within a
context to give it meaning
OR
 Data that has been processed into a

form that gives it meaning
Examples
 In the next 3
examples
explain how the
data could be
processed to
give it meaning
 What information
can then be
derived from the
Suggested answers are given at the end of this presentation
data?
Example 1
Yes, Yes, No, Yes,

Raw Data No, Yes, No, Yes, No,
Yes, Yes
Responses to the
Context market research
question – “Would
you buy brand x at
Processing price y?”
Information ???
Example 3
111192, 111234
Raw Data
The previous and

Context current readings of a
customer’s gas
meter
Processing
Information ???
Knowledge
 Knowledge is the understanding of rules
needed to interpret information
“…the capability of
understanding the
relationship between pieces of
information and what to
actually do with– www.teach-ict.com
Debbie Jones the
information”
Knowledge Examples
 Using the 2 previous examples:
• A Marketing Manager could use this information to
decide whether or not to raise or lower price y
• Looking at the pattern of the customer’s previous gas

bills may identify that the figure is abnormally low and
they are fiddling the gas meter!!!
Knowledge Workers
 Knowledge workers have specialist
knowledge that makes them “experts”
• Based on formal and informal rules they have
learned through training and experience
 Examples include doctors, managers,

librarians, scientists…
Expert Systems
 Because many rules
are based on
probabilities
computers can be
programmed with
“subject knowledge”
to mimic the role of
experts
 One of the most

common uses of
expert systems is in
medicine
• The ONCOLOG
system shown here
analyses patient data
to provide a reference
for doctors, and help
Summary
Information = Data + Context + Meaning
Processing
Data – raw facts and
figures
Information – data that has been processed (in a context)
to give it meaning
Unstructured Data
Creating borderless
opportunities
Unstructured Data
Creating borderless
opportunities
Sources of Unstructured Data
Creating borderless
opportunities
Storing Unstructured Data
Creating borderless
opportunities
Extract Information from Unstructured Data
Creating borderless
opportunities
Semi-structured Data
Creating borderless
opportunities
Sources of Semi-structured data
Creating borderless
opportunities
Storing Semi Structured Data
Creating borderless
opportunities
Extracting Information
Creating borderless
opportunities
Structured Data
Creating borderless
opportunities
Sources of Structured Data
Creating borderless
opportunities
Retrieving Structured Data
Creating borderless
opportunities
Structured Data
Creating borderless
opportunities
Combination of data
Creating borderless
opportunities
Information Tech and
System
Creating borderless
opportunities
Content
● Information Technology
● Information System
Creating borderless
opportunities
Information Technology (IT)
IT
Manipulat
Store Retrieve Transmit
e data
Creating borderless
opportunities
Need
Anytime anywhere access

Learners
Technological
Information
Illiteracy
and
and
therefore
explosion
poverty
literacyIT
Creating borderless
opportunities
Importance
Access to variety
Immediacy to
of learning Anytime learning
information
resources
Multimedia
Anywhere Collaborative
approach to
learning learning
education
Authentic and up Teaching of

Access to online
to date different subjects
libraries
information made interesting
Access to the
Educational data
source of
storage
information
Creating borderless
opportunities
Introduction – Information System
People
Computer
Process Information
Creating borderless
opportunities
Importance
To control the To improve

To reduce
creation and efficiency and
operating Cost
growth of records productivity
To assimilate new
To ensure
records To minimize
regulatory
management litigation risk
compliance
technologies
To support better
To safeguard vital To preserve
management
information corporate memory
decision making
Creating borderless
opportunities
Evolution
Mobile
Data Computing
Warehousing
Intelligent
Support
System
DSS
MIS
Creating borderless
opportunities
Kinds of Information Systems
IS
Organizational Organizational Information

Hierarchy Levels Systems
Creating borderless
opportunities
Four General Kinds of IS
Operational Level Systems

Knowledge Level
Systems
Management Level
Systems
Strategic Level
Systems
Creating borderless
opportunities
Other Level Systems Operational
Strategic
Level
Decision Support Knowledge Work

Systems (DSS) Systems (KWS)
Management Transaction
Information Processing
Systems (MIS) Systems (TPS)
Executive Support Office Automation

Systems (ESS) Systems (OAS)
Creating borderless
opportunities
Information Systems in
Business Today
Learning Objectives
• Understanding the effects of information systems on

business and their relationship to globalization. (Flat World
– Time & Space immaterial)
• Explain why information systems are so essential in

business today.
• Define an information system and describe its management,

organization, and technology components.
Contd…
Learning Objectives
• Define complementary assets and explain how they ensure

that information systems provide genuine value to an
organization.
• Describe the different academic disciplines used to study

information systems and explain how each contributes to
our understanding of them.
The Role of Information Systems in
Business Today
• How information systems are transforming business

Increase in wireless technology use, Web sites
Increased business use of Web 2.0 to Web 5.0
technologies
Cloud computing, mobile digital platform allow more
distributed work, decision-making, and collaboration
• Globalization opportunities
Internet has drastically reduced costs of operating on
global scale
Presents both challenges and opportunities
Business Today
Business Today
• In the emerging, fully digital firm

Significant business relationships are digitally enabled and
mediated
Core business processes are accomplished through digital
networks
Key corporate assets are managed digitally
• Digital firms offer greater flexibility in organization and

management
Time shifting, space shifting
Business Today
MIS IN YOUR POCKET
Read the Interactive Session and discuss the following questions
• What are the advantages of using mobile handheld

devices? What are the disadvantages?
• What features are needed in a mobile to make it a business

solution?
• What business functions can be performed by using

handhelds alone? How have companies utilized handhelds?
Business Today
• Growing interdependence between ability to use information

technology and ability to implement corporate strategies
and achieve corporate goals
• Business firms invest heavily in information systems to

achieve six strategic business objectives:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
Business Today
• Operational excellence:
Improvement of efficiency to attain higher profitability
Information systems, technology an important tool in

achieving greater efficiency and productivity
Walmart’s RetailLink system links suppliers to stores for

superior replenishment system
Sales for Walmart/sqft – Rs.27,000
Sales of Target/sqft – Rs. 20,000
Sales of Apple Store/sqft – Rs. 3,68,000 (A Question? Do

this numbers really mean something?)
Business Today
• New products, services, and business models:
Business model: describes how company produces,

delivers, and sells product or service to create wealth
Information systems and technology a major enabling tool

for new products, services, business models
 Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s
Android OS, and Netflix
 Which was the first smartphone?
 Which was the first Android smartphone?
Business Today
• Customer and supplier intimacy:
Serving customers well leads to customers returning,

which raises revenues and profits
 Example: High-end hotels that use computers to track
customer preferences and use to monitor and customize
environment
Intimacy with suppliers allows them to provide vital inputs,
which lowers costs
 Example: J.C.Penney’s information system which links
sales records to contract manufacturer
Business Today
• Improved decision making
Without accurate information:

 Managers must use forecasts, best guesses, luck
 Leads to:
 Overproduction, underproduction of goods and services
 Misallocation of resources
 Poor response times
 Poor outcomes raise costs, lose customers
 Example: Airtel Web-based digital dashboard to provide
managers with real-time data on customer complaints, network
performance, line outages, etc. (ZERO Questions – Campaign)
Business Today
• Operational excellence:
Improvement of efficiency to attain higher profitability
• New products, services, and business models:

Enabled by technology
• Customer and supplier intimacy:

Serving customers raises revenues and profits
Better communication with suppliers lowers costs
• Improved decision making

Business Today
• Competitive advantage
Delivering better performance
Charging less for superior products
Responding to customers and suppliers in real time
Examples: Apple, Airtel, Jio etc

Business Today
• Survival
Information technologies as necessity of business
May be:
 Industry-level changes, e.g. Citibank’s introduction of
ATMs
 Governmental regulations requiring record-keeping
 Which year the GST came into effect?
Business Today
The Interdependence Between Organizations and Information
Technology
In contemporary systems there is a growing interdependence between a firm’s

information systems and its business capabilities. Changes in strategy, rules, and
business processes increasingly require changes in hardware, software, databases,
and telecommunications. Often, what the organization would like to do depends on
what its systems will permit it to do.
Perspectives on Information Systems
• Information system:
Set of interrelated components
Collect, process, store, and distribute information
Support decision making, coordination, and control
• Information vs. data

Data are streams of raw facts
Information is data shaped into meaningful form
• Three activities of information systems produce information

organizations need
Input: Captures raw data from organization or external

environment
Processing: Converts raw data into meaningful form
Output: Transfers processed information to people or

activities that use it
• Feedback:
Output returned to appropriate members of organization

to help evaluate or correct input stage
• Computer/Computer program vs. information system
Computers and software are technical foundation and

tools, similar to the material and tools used to build a
house
Functions of an
Information System
An information system
contains information about
an organization and its
surrounding environment.
Three basic activities—input,
processing, and output—
produce the information
organizations need.
Feedback is output returned
to appropriate people or
activities in the organization
to evaluate and refine the
input. Environmental actors,
such as customers,
suppliers, competitors,
stockholders, and regulatory
agencies, interact with the
organization and its
information
Figure 1.4 systems.
Information
Systems are
More Than
Computers
Using information
systems effectively
requires an
understanding of the
organization,
management, and
information technology
shaping the systems.
An information system
creates value for the
firm as an
organizational and
management solution
to challenges posed by
the environment.
• Organizational dimension of information systems
Hierarchy of authority, responsibility (CIBIL, CRISIL,

Equifax)
 Senior management
 Middle management
 Operational management
 Knowledge workers
 Data workers
 Production or service workers
Contd…
Levels in a Firm
Business organizations are
hierarchies consisting of
three principal levels:
senior management,
middle management, and
operational management.
Information systems serve
each of these levels.
Scientists and knowledge
workers often work with
middle management.
• Organizational dimension of information systems

Separation of business functions
 Sales and marketing
 Human resources
 Finance and accounting
 Manufacturing and production
Unique business processes
Unique business culture
Organizational policies
• Management dimension of information systems
Managers set organizational strategy for responding to

business challenges
In addition, managers must act creatively:

 Creation of new products and services
 Occasionally recreating the organization
• Technology dimension of information systems
Computer hardware and software
Data management technology
Networking and telecommunications technology

 Networks, the Internet, intranets and extranets, World
Wide Web
IT infrastructure: provides platform that system is built
on
DTDC COMPETES GLOBALLY WITH INFORMATION

TECHNOLOGY
• What are the inputs, processing, and outputs of DTDCs

package tracking system?
• What technologies are used by DTDC? How are these

technologies related to DTDC business strategy?
• What problems do DTDC information systems solve? What

would happen if these systems were not available?
• Dimensions of DTDC tracking system
Organizational:
 Procedures for tracking packages and managing inventory
and provide information
Management:
 Monitor service levels and costs
Technology:
 Handheld computers, bar-code scanners, networks,
desktop computers, etc.
• Business perspective on information systems:
Information system is instrument for creating value
Investments in information technology will result in

superior returns:
 Productivity increases
 Revenue increases
 Superior long-term strategic positioning
• Business information value chain
Raw data acquired and transformed through stages that

add value to that information
Value of information system determined in part by extent

to which it leads to better decisions, greater efficiency,
and higher profits
• Business perspective:
Calls attention to organizational and managerial nature of

information systems
The Business Information Value Chain
Figure 1-7 From a business perspective, information systems are part of a series of
value-adding activities for acquiring, transforming, and distributing
information that managers can use to improve decision making, enhance
organizational performance, and, ultimately, increase firm profitability.
• Investing in information technology does not guarantee good

returns
• Considerable variation in the returns firms receive from
systems investments
• Factors:
Adopting the right business model
Investing in complementary assets (organizational and
management capital)
• Complementary assets:
Assets required to derive value from a primary investment
Firms supporting technology investments with investment

in complementary assets receive superior returns
Example: invest in technology and the people to make it

work properly
NHAI – Complementary Assets, Highway road

maintenance, fuel stations, repair facilities, tolls
• Complementary assets include:

Organizational assets, e.g.
 Appropriate business model
 Efficient business processes
Managerial assets, e.g.
 Incentives for management innovation
 Teamwork and collaborative work environments
Social assets, e.g.
 The Internet and telecommunications infrastructure
 Technology standards
Contemporary Approaches to
Information Systems
Contemporary
Approaches to
Information
Systems
The study of
information systems
deals with issues and
insights contributed
from technical and
behavioral
disciplines.
Information Systems
• Technical approach
Emphasizes mathematically based models
Computer science, management science, operations
research
• Behavioral approach
Behavioral issues (strategic business integration,
implementation, etc.)
Psychology, economics, sociology
Information Systems
• Management Information Systems
Combines computer science, management science,

operations research and practical orientation with
behavioral issues
• Four main actors
Suppliers of hardware and software
Business firms
Managers and employees

Information Tech and
System
Session 8,9
Creating borderless
opportunities
Content
● Executive Information
Systems
● Enterprise Applications
Creating borderless
opportunities
Types of Information Systems
• Executive support systems
Support senior management

Address non-routine decisions
 Requiring judgment, evaluation, and insight
Incorporate data about external events (e.g. new tax laws
or competitors) as well as summarized information from
internal MIS and DSS
Example: Digital dashboard with real-time view of firm’s
financial performance: working capital, accounts
receivable, accounts payable, cash flow, and inventory
• Systems from a constituency perspective
Transaction processing systems: supporting

operational level employees
Management information systems and

decision-support systems: supporting
managers
Executive support systems: supporting

executives
DOMINO’S SIZZLES WITH PIZZA TRACKER

• Describe Domino’s business model and business strategy.

What challenges is it facing?
• What systems have the company used or planned to use to

overcome these challenge? What types of systems are
they? What role will each play in helping Domino’s
overcome these challenge?
• What other types of system could help Domino’s overcome

its challenges?
Enterprise
Application
Architecture
Enterprise
applications
automate
processes that
span multiple
business
functions and
organizational
levels and may
extend outside
the
organization.
EIS
Market intelligence
Technology
Investment intelligence
intelligence
Creating borderless
opportunities
Importance Technology
External databases reports like patent
records etc.
Technical reports
Market reports
from consultants
Confidential Speculative
information about information like
competitors market conditions
Government Financial reports

policies and information
Creating borderless
opportunities
Augmentation of
Advantages Easy for upper
Ability to analyze managers'
level executive to
trends leadership
use
capabilities
Enhance
Enhance personal Contribution to
organizational
thinking and strategic control
competitiveness in
decision making flexibility
the market place
Increased
Instruments of Better reporting
executive time
change system
horizons.
Help improve
Improved mental
consensus building Improve office
model of business
and automation
executive
communication
Early
Reduce time for
identification of
finding
company
information
performance
Creating borderless
opportunities
Disadvantage of ESS
Functions are Hard to quantify

limited benefits
Executive may
encounter System may
information become slow
overload
May lead to less

Difficult to keep
reliable and
current data
insecure data
Excessive cost for

small company Creating borderless
opportunities
Knowledge Management System
KMS
State of An object to be A process of A condition of

Personalized Potential to
knowing and stored and applying access to
information influence action
understanding manipulated expertise information
Creating borderless
opportunities
Sources of Knowledge of an Organization
Intranet
Data warehouses and

knowledge repositories
Decision
support tools
Groupware for
supporting collaboration
Networks of
knowledge workers
Internal
expertise
Creating borderless
opportunities
Function Information
System
Session 10
Creating borderless
opportunities
Content
● Functional information System
Creating borderless
opportunities
FIS
FIS
Finance Marketing HR Operations
Creating borderless
opportunities
• Enterprise applications
Systems for linking the enterprise
Span functional areas
Execute business processes across firm
Include all levels of management
Four major applications:
 Enterprise systems
 Supply chain management systems
 Customer relationship management systems
 Knowledge management systems
 (Phone vs Smartphone) uses, purpose, calls but…..

© Prentice Hall 2011
Enterprise
Application
Architecture
Enterprise
applications
automate
processes that
span multiple
business
functions and
organizational
levels and may
extend outside
the
organization.
• Enterprise systems
Collects data from different firm functions and stores data

in single central data repository, ERP (Links departments)
Resolves problem of fragmented, redundant data sets and
systems
Enable:
 Coordination of daily activities
 Efficient response to customer orders (production,
inventory)
 Provide valuable information for improving management
decision making
ERP Vendors
• Supply chain management (SCM) systems
Manage firm’s relationships with suppliers

Share information about
 Orders, production, inventory levels, delivery
of products and services
Goal:
 Right amount of products to destination with
least amount of time and lowest cost
Examples of SCM SW
• Customer relationship management

systems:
Provide information to coordinate all of the

business processes that deal with customers in
sales, marketing, and service to optimize
revenue, customer satisfaction, and customer
retention
Integrate firm’s customer-related processes

and consolidate customer information from
multiple communication channels
CRM SW
• Knowledge management systems (KMS)
Support processes for acquiring, creating, storing,

distributing, applying, integrating knowledge
Data, Knowledge, Wisdom
Tacit-in the minds, explicit – documented

 How to create, produce, distribute products and services
Collect internal knowledge and experience within firm and

make it available to employees
Link to external sources of knowledge
House of Quality, Voice of Customer, QFD

KMS SW
• E-business
Use of digital technology and Internet to drive
major business processes
• E-commerce
Subset of e-business
Buying and selling goods and services through
Internet
• E-government:
Using Internet technology to deliver
information and services to citizens,
Thank you
Creating borderless
opportunities

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Data and Information

Session 1 and Session 2

Instructor: Charlie Thomas V

 None of the above data sets

 Data that has been processed into a

Yes, Yes, No, Yes,

The previous and

• Looking at the pattern of the customer’s previous gas

 Examples include doctors, managers,

 One of the most

Information = Data + Context + Meaning

Instructor: Charlie Thomas V

Anytime anywhere access

Authentic and up Teaching of

To control the To improve

Organizational Organizational Information

Operational Level Systems

Decision Support Knowledge Work

Executive Support Office Automation

• Understanding the effects of information systems on

• Explain why information systems are so essential in

• Define an information system and describe its management,

• Define complementary assets and explain how they ensure

• Describe the different academic disciplines used to study

• How information systems are transforming business

• In the emerging, fully digital firm

• Digital firms offer greater flexibility in organization and

• What are the advantages of using mobile handheld

• What features are needed in a mobile to make it a business

• What business functions can be performed by using

• Growing interdependence between ability to use information

• Business firms invest heavily in information systems to

Improvement of efficiency to attain higher profitability

Information systems, technology an important tool in

Walmart’s RetailLink system links suppliers to stores for

Sales for Walmart/sqft – Rs.27,000

Sales of Target/sqft – Rs. 20,000

Sales of Apple Store/sqft – Rs. 3,68,000 (A Question? Do

• New products, services, and business models:

Business model: describes how company produces,

Information systems and technology a major enabling tool

• Customer and supplier intimacy:

Serving customers well leads to customers returning,

• Improved decision making

Without accurate information:

• New products, services, and business models:

• Customer and supplier intimacy:

• Improved decision making

Delivering better performance

Charging less for superior products

Responding to customers and suppliers in real time

Examples: Apple, Airtel, Jio etc

Information technologies as necessity of business

In contemporary systems there is a growing interdependence between a firm’s

• Information vs. data

• Three activities of information systems produce information

Input: Captures raw data from organization or external

Processing: Converts raw data into meaningful form