Information and System Concepts

Unit 4
 DATA
No Character & No Value

INFORMATION
Has a character & Value

KNOWLEDGE
A information set built using principles, laws, experience
etc. It is an asset of high value.
Know how: Ability to apply knowledge in practice
Wisdom: Judicious Use of know how & knowledge

BUSINESS INTELLIGENCE
A set of Information & knowledge entities, backed by systems,
tools & technology, organized to provide insight in the scenario.
Facts without context is ‘Data’
Data processed in context is ‘Information’
Information processed in context is ‘Knowledge’
Knowledge in context of application is ‘Know-How’
Know-how in context of right use is a ‘Wisdom’
Data/Information/ Knowledge/ Knowledge Assets
& supporting infrastructure of systems, and Tools
to use it is a ‘Business Intelligence’
Data: Data comes about through research, creation,
gathering, and discovery and through transaction
processing.
Census data, market research, Purchase sales transactions.

Information: Data, when processed with context, is an

Information. Data is turned into information by organizing
it so that we can easily draw conclusions. Data is also
turned into information by "presenting" it, such as making
it visual or auditory.
Census data on education processed with gender attribute gives
information on education divide.

Knowledge: Knowledge is built from scratch by the

learner through experience of application of information
or by its analysis. knowledge is dynamic as it lives within
us and changes with experience.
On analysis of this information, we come to know the reasons of
education divide between genders.
 Rainfall statistics: Data
 Analysis of data by seasons : Information
 Rainfall Pattern Model: Knowledge
 Knowledge & Models used for rain
forecast: Business Intelligence,
1. Observation
2. Experiment
3. Survey
4. Estimation
5. Processing of Data/Transactions/ Events
6. Purchase
7. Source from Publications: Govt & Private bodies
Vehicle sales by month

Jan 10,000
Feb 9,000
Mar 12,000
Apr 13,000
May 12,000
 Vehicle sales by month: Context: Model

Sales by Month/Model Indica Indigo Sumo

Jan 10,000 4000 3000 3000
Feb 9,000 3000 2000 4000 How would you
Mar 12,000 6000 3000 3000 increase the
value further?
Apr 13,000 7600 4400 1000
May 12,000 5000 3000 4000

This is ‘Information’
Context is model
Gives sales by model x month
A better representation of sales
Generates Mental Response
Has a value for marketing
• Vehicle sales by month: Context: Model & Previous year sales

Sales by How would you

Month/Model Indica Indigo Sumo improve the value of
sales Information?
Jan - 10,000 5000 3000 2000
Total Sales
Feb - 9,000 3000 2000 4000
30000
Mar - 12,000 6000 3000 3000
25000
Apr - 13,000 7600 4400 1000 20000

May- 12,000 5000 3000 4000 15000

10000
Total 26,600 15,400 16,000
5000
Last Year 30,000 11,000 16,000
0
Indica Indigo Sumo

Jan to May Pre Year

 More meaningful due to comparison
 More revealing on model
 Evokes managerial response
The information value increased by adding
comparative dimension by customer segment.
This information evokes mental response,
may prompt action.
Information processed with wider context by including
competition Provides better insight in the car market in terms
preferences & perceptions of customers. Information value is
increased tremendously.
This information when linked to marketing strategy, it reveals
that Positioning strategy of Indica as a family car is failing. Needs
re- look into strategy. Information is elevated to knowledge.
 Low value
 Improves representation of an entity
 Updates the current Information &
knowledge of the user
 Has an element of surprise( value)
 Reduces uncertainty. Brings clarity in
expectations, belief, perceptions
 Evokes a mental response. Triggers
thinking. May lead to action
 Supports strategic and tactical
decision making
High value
 External Low

Source of Structured
Information Information

Internal High
1. Accuracy in representation
2. Complete in content
3. Form of presentation to grasp quickly
4. Frequency of generation & reporting
5. Scope of coverage/contents
6. Sources of input data
7. Time: Past, Current & Future
8. Relevance & utility for DM
9. Availability when needed
10. Accessibility to the user
 Types of Information
• Strategic Information
required by the managers at Strategic level
managers
• Tactical Information
required by the managers at Management
control level managers
• Operational Information
required by the managers at Operational
control level managers
 Information Quality
• Refers to the fitness for use, or its reliability.
Some of the attributes, which influence the
quality of information, are:
1. Timeliness
2. Accuracy
3. Relevance
4. Adequacy
5. Completeness
6. Explicitness
7. Exception-based, etc
 Dimension of Information
• Economic dimension
– Cost of information
– Value of information

• Business dimension
• Technical dimension
Key: Application: How it is used?
 Planning: ‘Information’ enabling the planning of
business entity
Marketing Planning: Segment, Forecast, Preferences
 Control: Information which aids performance measure,
tracking & control: Benchmark, Budget, Targets, & KPIs
 Decision Making: Information demanding the
decision action: Decisions Options, Cost & Benefits,
Probabilities of occurrences
 Strategy Development: Information that builds
strategy. Goals, Competition Information, Strength &
weakness, emerging markets
Key: Users or User Groups
 All users: Organisation: Telephone Number,
Product specifications, Employee lists
 Function managers: Functional:
Production, sales, Payables, Receivables, Capacity
 Line managers: Operational: Pending
Orders, Customer complaints, Material awaiting
inspection, stocks, queries
Key: Character/Nature
 Confidential: Authorized access to few in a small
group. Process design, Knowledge assets, R&D plans
 Confidential: Restricted Access: Price, Stocks,
Order book, HR profiles
 Not confidential: Accessible to all: Web site
information, Product literature
 Not confidential but restricted access: Instruction
manuals, engineering drawings
Time: Current versus Futuristic
Frequency: Recurring versus Non recurring
Source: Internal versus External
Too much information creates confusion

Human mind does not respond

Goal oriented, specific, user specified

information does not create overload
 Filtering by levels, type of users and usage
 Grouping & coding
 Highlighting through presentation
 Analyzing for essence
 Making more and more contextual
 Use of analysis & predictive tools
Key: Application: How the information is used?
 Planning: ‘Information’ enabling the planning of business entity.
# Aircraft Procurement: Demand potential & trend in passenger
traffic. # Pilot & Crew requirement over next three years for
recruitment.
 Control: Information which aids performance measure, tracking
& control: KPIs: Number of flights vs Number of flights on time,
Average ‘checking in’ time(3minutes) vs. Actual. Desired
occupancy vs. Actual occupancy.
 Decision Making: Information demanding the decision action:
DM Information: On line Ticket Booking status by flight, Pilot &
Crew availability by date; Assigned / Not assigned.
 Strategy Development: Passenger load pattern by flight vs.
Revenue vs. Cost of flight.
Key: Users or User Groups

 All users: Organization: Telephone Number, Flight

Schedule, Employee lists & their profile.

 Function managers: Flight Manager: Daily Flight

Schedule, Passenger list, In-flight passenger service
requirements, Flight schedule of the Airport. Maintenance
Manager: Aircraft data on number of flying hours,
Replacement & repair schedule when & where.

 Operational: Flight Attendant: Confirmed Passenger

list, Ticket, charges, baggage rules, Connecting flight
informations.
Key: Character/Nature

 Confidential: Authorized access to few in a small group:

Passenger list

 Confidential: Restricted Access:

Assigned Aircraft information

 Not confidential: Accessible to all:

Flight schedule, Tariff, Baggage rules, & Security rules

 Not confidential but restricted access:

Flight ticket data, Reservation/cancellation
 System definition
• It is a set of elements arranged in an orderly manner to
achieve a goal in given environmental settings

• It has three parts: Input , Process Output

• The system performance is controlled by adding a Control

component to the base system known as Control system
……THEN WHAT IS A System?

Input Process Output

A set of inter-related elements working

towards a common objective(s).
 Control components of the System
• Sensor: to decide the quality of output by measuring key performance
indicators
• Comparison unit: a unit deciding whether output is acceptable or not &
why
• Standard/Target: A measure of the goal
• Corrective Unit: A unit responding to the feedback for appropriate action
• Feed back Mechanism: A channel of feedback communication to
corrective unit based on the the results of comparison process of target
vs output
 System and Environment
• A system is a set of interrelated elements that
collectively work together to achieve some
common goal or objective.

• All systems function within some kind of

environment.
System and Environment

Environment
Boundary
Systems
 Types of Systems
• Abstract & Physical Systems;
• Deterministic & Probabilistic systems;
• Open & Closed Systems;
 Types of Systems

• Open, Influenced by external factors or Closed, Not

influenced by external factors

• Deterministic, Outcomes of all alternatives are known

with certainty or Probabilistic, outcomes of all ( ? )
alternatives are known in probabilistic terms
 Systems related concepts
• Boundary- it is a feature of the system which defines and
delineates it. The system is inside the boundary, whereas its
environment is outside the boundary.
• Interface- A system is made up of subsystems, which are
made up of units. The interconnection and interactions
among the subsystems are called interfaces
• Black Box- A subsystems whose processes are not defined ( ie
the transformation process of a subsystem is not defined) is
called a black box system. Only inputs and outputs are known.
Cybernetic System

Input Process Output

Feed Back /Control Loop

Involves a feed back control Loop

 Handling of system complexity
• Factorization of the system into subsystems

• Simplification of the system – grouping subsystems by

functionality

• Coupling/ Decoupling of subsystems- adding interfaces

between subsystems

• Clustering of systems
 System Efficiency & Effectiveness
• Efficiency: A measure of system performance in terms
productivity
• Effectiveness: A measure of the output

deciding whether the output of the system is right by set

standard

Efficiency is about whether things are being done in right

way. Effectiveness is about finding whether the output is
right as desired. One may be efficient but not effective.
 System analysis
• Steps:
1. Set a System objective
2. Define system boundaries
3. Assess system importance in context of other systems
4. Decide the nature/type of the system
5. Define the scope of the system
6. Determine the users and stakeholders of the system
7. Assess the users requirements
8. Determine a broad requirement system design & technology platform
9. Estimate the resource & efforts requirement
10. Go for feasibility analysis. Technical, Operational, Financial
11. Make a decision on system scope, boundaries, goal, technology
12. Present the system proposal to the management
13. Obtain the approval & support from management
 System Development Models
• Waterfall Model:
Recommended when system requirements are stable ,clear,
complete & correct and not expected to change in near
future.
• Spiral Model ( Boehm's Model )
Recommended when system requirements are not stable as
they are not clear, definite, correct and complete to the
users and developers. Also some requirements need
confirmation by trying and testing.
 Structured Systems Analysis & Design:
SSAD
A Broad outline:
• Requirement analysis
• Prepare Requirement, Definition & Description ( RDD )
• Check on technology inputs
• Make a High level design
• Decide on Input , Process and Output design
• Make a modular hierarchical system structure
• Decide on development strategy
• Develop
• Test
• Implement
 SSAD:Diagrams

• System Modular Structure

• System Flow Charts

• Data flow diagrams

• Process flow Diagrams

• System Integration Diagrams

 System Performance

• System performance over a period deteriorates. This is called

Entropy

• System performance is kept up by introducing measures of

negative entropy

• Negative entropy are the set of measures,steps or methods to

identify the causes of entropy and correcting them

immediately