The word data is the plural of datum. Data consists of raw or basic facts, such as employee’s name and number of hours worked in a week.OR

Data consists of raw facts — that have little value beyond its existence. OR

Data are facts, events, and transactions and so on, which have been recorded. OR

Data are facts obtained by reading, observation, counting, measuring, weighting, etc. which are then recorded.

Data Information and Knowledge

Types of data:

Alphanumeric Data → Numbers, Letters and other characters

Image Data → Graphic images and pictures

Audio Data → Sound, noise and tones

Video Data → Moving images or moving pictures

When these facts are organized or arranged in a meaningful manner, they become information. Information is one of an organization’s most valuable resources.

Information have additional value beyond the value of the facts themselves. OR

e.g.: Consider data as pieces of railroad track in a model railroad kit. In this state, each piece of track has little value beyond its inherent value as a single object. However if some relationship is defined among the piece of track in a certain way, a layout begins to emerge as shown in fig (a).

The type of information created depends on the relationships defined among the existing data.

e.g.: The pieces of track could be arranged in a different way to form different layouts as shown in fig (b). Changing new data or different data means relationships can be redefined and new information can be created.

Knowledge: The process of defining relationships among data to create useful information requires knowledge. Knowledge is an awareness and understanding of a set of information and ways that information can be made useful to support a specific task or reach a decision. Having knowledge means understanding relationships in information.

Knowledge Workers (KWs) are who create, use and disseminate knowledge, that are usually professionals in science, engineering, business and other areas.

Following figure shows process of transforming data into information.

Figure 1: The process of transforming data into information

Data Representation

Computers represent data in the form of binary digits called bits. A bit is simply a number that has one or two values 0 or 1. Computers use bits for storage. They are easy to represent electronically. Bit can be used to retnts data in a no of ways.

e.g.: groups of bits are collected & a character code is used to translate the resulting group of bits into character. A bit pattern 01000001 represents the character ‘A’. A group of bits that represents a character is called a byte.

The characteristics of Valuable Information / Data / Information System:

The following are the characteristics of information.

1. Accurate

Accurate information is error free. In some cases, inaccurate information is generated because inaccurate data is fed into the transformation process (GIGO)

It means that information is free from mistakes and error, is clear, and accurately reflects the meaning of data on which it is based.

2. Complete

Complete information contains all the important facts.

Information that is complete means information that covers all key issues and is sufficient at hand without critical omissions.

The more complete a body of information, is obviously the more expensive it is to develop and maintain.

3. Economical

Information should also be relatively economical to produce. Decision makers always balance the value of information with the cost of producing it.

4. Flexible

Flexible information can be used for a variety of purposes.

e.g.: information on how much inventory is on hand for a particular part can be used by the sales representatives in closing a sale, by a production manager to determine whether more inventory is needed and by the financial executives to determine the total value the company has invested in the inventory.

5. Reliable

Reliability is the measure of performance of information. Reliable information is dependent on the reliability of the data collection method or the source of the information.

A rumor from an unknown source that oil price might go up, may not be reliable.

6. Relevant

Relevant information is important to the decision makers. Information that stock price might drop, may not be relevant to a computer chip manufacture.

Extraneous information distracts the decision maker from the assigned task and information overload frustrates the decision maker.

7. Simple

Information should also be simple, not overly complex. Sophisticated and detailed information may not be needed. In fact, too much information can causes information overload, whereby a decision maker has too much information and is unable to determine what is really important.

8. Timely

Timely information is delivered when it is needed. Knowing last week’s weather condition will not help when trying to decide, what coat to wear today.

9. Up-to-datedness

At first sight, timeliness and up-to-datedness look like similar information attributes but they are not.

E.g.: A manager wants the report by the 4th date of every month.

MIS may provide the manager with the timely report i.e.: by the 4th of the month but it is not necessary that the report carries information which is up-to-date. i.e.: till the last day of the previous month.

10. Format Clarity

MIS of an organization should provide reports in such formats as are simple to read and simple to fill in.

The heading, codes, columns, rows and structure of the report format should be meaningful.

A manager should be required to devote the minimum time to follow the report.

11. No Duplication

The information provided by an MIS of an organization should be fee from any duplication.

Reports with duplicate or overlapping information reduce the effectiveness of MIS as managers get a lot of information which is either already available with the manager or is just a repetition of some of the parts / contents of the report.

12. Verifiable

Information should be verifiable. This means that you can check it to make sure it is correct, perhaps by checking many sources for the same information.

13. Accessible

Information should be easily accessible by the authorized users to be obtained in the right format and of the right time to meet their needs.

14. Secure

Information should be secure from access by the unauthorized users.

The Value of Information

Value of information is directly linked to how it helps decision makers achieve their organization’s goals

e.g.: value of information might be measured in:

→ Time required to make a decision

→ Increased profits to company