UNIT ONE

INFORMATION
SYSTEMS
AND
ITS APPLICATIONS
• This unit discusses concepts of data,
information, knowledge, and wisdom as well
as their relationships and differences. It also
discusses information system and its
components, and the application of
information systems in areas such as e-
banking, e-government and e-learning.
 Data, Information, Knowledge, and
Wisdom
• Data is raw facts that cannot give meaning
on its own. It is a representation of what we
see and perceive using things like letters and
numbers. Facts such as 100, 250, age, and
Ethiopia are considered as data. Each of
them does not give meaning on its own. For
example, 100 can be the weight of a person
or the measurement of a distance.
 Cont…
• Data is recorded and stored using
numbers, texts, and images. Some data
can be represented better by numbers
than texts. For example, age is better
represented by numbers than texts.
 Information
• Information is data processed in a
meaningful way to the end users.
Registering daily sales data may not
give meaning. information is a
processed data that is used to answer
certain questions.
 Knowledge
• Knowledge is an understanding which is
acquired by further processing and
integrating different sets of information. It
includes both understanding and skill. For
example, when you tell a child how to ride a
bicycle, you are giving information.
 Example
• when you tell a child how to ride a bicycle, you are
giving information. This helps the child to
understand how to ride a bicycle. When a child
applies the information in riding a bicycle, the child
acquires the skills necessary to properly ride a
bicycle (see Figure 1.3). Then the information
becomes knowledge. Therefore, knowledge is
acquired by integrating information from different
sources such as reading books, engaging in different
activities, discussing with other people, and
observing when something happens.
 Wisdom
Wisdom is the ability to make wise
decisions and judgments using one’s
knowledge. It is the highest level of
human understanding.