Understanding Data, Knowledge, and Information in Organizations

1. MIS 2000 Class 2: Basic Concepts Updated 2018

2. Basic Concepts Outline • Data, Knowledge,Information • Data, Knowledge, Information in Organizations • Information System (IS) • IS User • Information Technologies • Summary

3. Information • Is this information: ಗ್ರಾಹಕರ ಸಂಖ್ಯೆ ಹದಿನೆಂಟು ಒಂದು ಖರೀದಿಯಲ್ಲಿ ಸುಮಾರು ಮೂರು ನೂರು ಡಾಲರ್ ಖರ್ಚು ಮಾಡಿದೆ, ಇದು ಕಳೆದ ತಿಂಗಳು ಅತಿ ದೊಡ್ಡ ಮಾರಾಟವಾಗಿದೆ. - Why yes/no? • Is this information: The customer number eighteen spent nearly three hundred dollars in one purchase, which is the largest sale last month. - Why yes/no? *

4. Basic Concepts Data • Symbols created by people for communication purposes (voices, letters, numbers, pictures). • Data are organized at different levels: • letters  words  text  report • Data quantity can be precisely measured (bits, bytes, kilobytes… or the number of words). Information quantity is harder to assess.* • Information systems help to organize and transform data (sorted text, tabulated numbers, structured report).

5. Information • We will define information from the process perspective taken in this course* in this way: • Information is a result of interpreting data by using knowledge. Or, information refers to data that are understood by a person. • Understanding data refers to grasping a meaning of data, which happens in the human brain. So, information is the meaning of data. INFORMATION - MEANING DATA KNOWLEDGE

6. Information • Information to occur takes a whole process, process of • informing. An example: MANAGER KNOWS: - Language, to read text, numbers, graphs, sales report… - Concepts of customer, purchase, time, salesperson, how these relate to each other… -- What parts of report to look at… COMPUTER delivers: 2. Manager observes Report 3. KNOWLEDGEselects &interprets DATA MANAGER UNDERSTANDS: Customer number 18 spent about 300 dollars in one purchase, which is the largest sale last month. 1. DATAorganized into a SALES REPORT Process of informing 4. INFORMATION is the understanding of report (Manager “gets it”.)

7. Basic Concepts Information (more) • The term “information” is overused today. It comes as a handy choice for any content. This causes confusion in communication as it is not clear what exactly different people mean by “information.” • It is better to name the content that is addressed. Example: customer address or phone number, or customer record (details) for all this - instead of “customer information” * • Particular problem is with the economy of screen space in mobile devices where the word information unnecessarily clutters the screens. ** • Every MIS 2000 student who can replace the word “information” with an appropriate term gets a participation credit! 

8. Basic Concepts Knowledge • Complex structures in human memory. • Knowledge implies understanding • What something is (concepts, relationships, taxonomies) • Why something is (cause-effect relationships between concepts) • How to do something (procedures, experience) • Knowledge can be represented in talk, books, information • systems, and other forms.*

9. Basic Concepts Data Knowledge Information Knowledge, Data, & Information • Knowledge uses data to create information, i.e., enables interpreting of data to grasp the meaning of it. • New information advances knowledge, adds to it, changes it. 2 to create 1 processes… 3 advances

10. Basic Concepts Data Knowledge Information Data, Information, Knowledge in Organizations • Most of work in modern organizations is about data, knowledge and information. • Occupational groups: Managers, Professionals, Clerks Clerks Manipulate data Professionals Use knowledge to analyze & resolve professional problems & advance knowledge. Managers Interpret data in reports and elsewhere to get informed for managing.

11. Basic Concepts Systems and Information Systems (IS) • Any system is a set of related parts with a common purpose to produce some output from inputs.* (see Note) • Systems are differentiated on the purpose – the outputs they produce. • Purpose of educational system is to produce graduated students.* • Purpose of IS is to organize and/or transform data for system’s users.

12. Basic Concepts Information System (IS) • Definition: An IS is a system that outputs transformed and organized data for informing the user. • A computer-based IS is a whole that consists of (1) data, (2) computer hardware and software (information technologies), and (3) procedures applied to data, software & hardware.* Data storage; Processors (Hardware) ; Application Software(works with data) System Software (works with hardware) screen, printer Hardware keyboard, mouse Hardware Data Transformed & Organized Data User Procedures (know how-to-do) PROCESSING part OUTPUT part INPUT part ENVIRONMENT • Data are the heart of an IS. Inputted data are different than outputted data.

13. Basic Concepts Information System User IS User is a person that uses an IS by manipulating it or by interpreting its output. Secondary User: indirect use, interprets outputted data Primary User: direct use, manipulates data & IT Information System Data Transformed & Organized Data • Many higher level managers are (still) secondary users of IS. IS for Management

14. Basic Concepts Information Technologies (IT) • Electronic IT are machines and devices for managing data. • A machine works on its own and may perform multiple functions. Examples: computer,* smart phone. • A device works under control of people or machine and performs usually a single function. Examples: hardware & software making computer input and storage devices; cell phone.* • In a computer-based IS, each part (input, central unit, output…) is made from particular kinds of IT: • hardware parts (monitor, motherboard with main circuitry, keyboard) • software: Application Software (Application) vs Systems Software

15. Basic Concepts Summary 1/2 • Data are symbols created by people for communication purposes (voices, letter, numbers, pictures). Data can be recorded in various ways. • Knowledge is complex structures in human memory that make a person understand what something is, why something is, and how to do something. Knowledge is in human brain and it can be represented in complex data structures. • Information is the data that are understood by people, or the meaning of data. There is no understanding of data without knowledge. Information is created in human brain, although people often assume that external data is already "information." • In organizations, clerks mostly deal with data, managers with information, and professionals with knowledge. • Any system is a whole made of related parts with a common purpose to produce some output from inputs. Systems are differentiated on outputs, that is, purpose.

16. Basic Concepts Summary 2/2 • The purpose of information system is to store, organize and transform input data. • A computer-based IS is a whole that consists of data, computer hardware and software (information technologies), and procedures applied to data, software & hardware. • Data are the heart of IS. System procedures are often work procedures (the way tasks and job are done). • The IS user can be primary or secondary user. Most managers are secondary users. • Electronic information technologies are machines (computer, smart phone) and devices (computer storage, keyboard) for managing data.