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Data Information and Information System

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Data: Raw material Data collection costs money Collect only necessary and sufficient data Data is generally used by machines Data is useless unless it is process to create information Information: Processed data Data process by machines giving information Information is used to run an organization efficiently Information used by managers to initiate actions TYPES OF INFORMATION Operational Information - used to day to day operations Example information needed by a shopkeeper: Daily sales account List of low stock items to be re-ordered List of overstock items Long overdue payments Profit loss account Tactical information - used to improve profitability Example information needed by a shopkeeper: Slow or fast moving items Reliable supplier of items Sales trends Strategic Information - information to expand business and explore new opportunities Example information needed by a shopkeeper: Whether to stock different varieties of items Whether to diversify Whether to start a new branch in a different locality Whether to start an e-shop Statutory Information - used to provide information to the government Example information needed by a shopkeeper: Income tax account Sales tax account MANAGEMENT HIERARCHY AND INFORMATION NEEDS QUALITIES OF INFORMATION Accurate Complete Timely Trustworthy Relevant Brief Up-to-date SignificanceEnsure correct input and processing rules Include all data Give at the right time Do not hide unpleasant information Understand user needs Summarize relevant information Include all data up to present time Use attractive formats and graphical charts Information System - consists of all the components that work together to process data and produce information all contributing to the organization’s main goal. COMPONENTS OF AN INFORMATION SYSTEM Data Input that the system takes to produce information Hardware A

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