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LESSON 1: BASIC INFORMATION

CONCEPTS

INFORMATION
- can be defined as meaningfully interpreted
data.
- is "Knowledge communicated or received,
concern in a particular fact or circumstance"
- cannot be predicted and resolves DATA - The raw material of information.
uncertainty INFORMATION - Data organized and
presented by someone.
INFORMATION SYSTEM - gathers data and KNOWLEDGE - Information read, heard, or
disseminates information with the sole seen, and understood.
purpose of providing information to its users. WISDOM - Distilled and integrated
knowledge and understanding.
Management Information System - an
information system that evaluates, analyzes, DATA - A Fact, a piece of information, or a
and processes an organization's data to series thereof.
produce meaningful and useful information INFORMATION - Knowledge discerned from
based on which the management can make data.
the right decisions to ensure the BUSINESS INTELLIGENCE - Information
organization's future growth. Management pertaining to an organization's
policy or decision-making, particularly when
DATA tied to strategic or operational objectives.
- can be described as unprocessed facts and
figures. INFORMATION/DATA COLLECTION
- plain collected data as raw facts TECHNIQUES
- groups of non-random symbols in the form ● Surveys - a questionnaire is
of text, images, and voice representing prepared to collect the data from the
quantities, actions, and objects field.
● Secondary Data Sources or
INFORMATION Archival Data - data is collected
- is interpreted data; created from organized, through old records, magazines,
structured, and processed data in a company website etc.
particular context. ● Objective Measures or Tests - an
experimental test is conducted on the
According to Davis and Olson: subject and the data is collected.
"Information is a data that has been ● Interviews- data is collected by the
processed into a form that is meaningful to system analyst by following a rigid
recipient and is of real or perceived value in procedure and collecting the answers
the current or the prospective action or to a set of pre-conceived questions
decision of recipient." through personal interviews.
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LESSON 2: CLASSIFICATION OF information and is used to ensure

INFORMATION proper conduction of specific
operational tasks as
INFORMATION CLASSIFICATION - the planned/intended.
process of classifying information into
relevant categories and organize. CLASSIFICATION BY CHARACTERISTIC
● Action Information - the Information
Steps on Classifying Information which induces action
•Know your Information Assets and assign ● Non-Action Information - the
value to each one of them. Information which communicates
•Label each Information Asset only the status of a situation.
•Method of handling each Information Asset ● Recurring Infomation - the
Information generated at regular
KINDS OF INFORMATION intervals such as Monthly Sales
● Confidential Information - is any Reports, the Stock Statements, and
information that is preserved as the Trial Balance
confidential by all parties included or ● Non-Recurring Infotmation - the
affected by that information. Financial Analysis or the Report on
● Restricted Information - represents the Market Research Study are the
all the Information that is available to best example.
most of the employees, but not to all ● Internal Information - information
of them. generated through the Internal
● INTERNAL INFORMATION - is Sources of the organization.
information that all employees have ● External Information - information
access in the company. generated through the Government
● Public Infromation - is information Reports which are sources of the
that everyone in the organization and data are outside the organization.
outside has access.
The Prime Areas of Computerization
CLASSIFICATION BY MANAGEMENT - Action Information
HIERARCHY - Recurring Information
● Strategic Infomation - is concerned - Internal Information
with long term policy decisions that
defines the objectives of a business CLASSIFICATION BY APPLICATION
and checks how well these objectives ● Planning Infomation - information
are met needed for establishing standard
● Tactical Infomation - is concerned norms and specifications in an
with the information needed for organization
exercising control over business ● Control Information - needed for
resources, like budgeting, quality establishing control over all business
control, service level, inventory level, activities through feedback
productivity level mechanism
● Operational Information - is ● Knowledge Information - acquired
concerned with plant/business level through experience and learning, and
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collected from archival data and ● CONTEXTUAL − Relevancy, Value-

research studies
● Organizational Information - deals Added, Timeliness, Completeness,
with an organization's environment, Amount of information
culture in the light of its objectives
● REPRESENTATIONAL −
Karl Weick's Organizational Information Interpretability, Format, Coherence,
Theory emphasizes that an organization
reduces its equivocality or uncertainty by Compatibility
collecting, managing and using these ● ACCESSIBILITY − Accessibility,
information prudently
Access security
● Functional/Operational
Information - is operation specific
information ex. daily schedules in a
manufacturing plant that refers to the A list of the most essential characteristic
detailed assignment of jobs to features for information quality:
machines or machines to operators
● Database Information - construes • RELIABILITY − It should be verifiable
large quantities of information that and dependable.
has multiple usage and application

• TIMELY − It must be current and it must

LESSON 3: QUALITY OF INFORMATION
reach the users well in time, so that
INFORMATION - is a vital resource for the important decisions can be made in
success of any organization. Future of an
time.
organization lies in using and disseminating
information wisely.
• RELEVANT − It should be current and
GOOD QUALITY INFORMATION − valid information and it should reduce
QUALITY is a value that would vary
according to the users and uses of the uncertainties.
information.
• ACCURATE − It should be free of
According to Wang and Strong, the
following are the dimensions or elements of errors and mistakes, true, and not
Information Quality: deceptive.

● INTRINSIC − Accuracy, Objectivity,

• SUFFICIENT − It should be adequate
Believability, Reputation
in quantity so that decisions can be

made on its basis.

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• UNAMBIGUOUS − It should be quality. Only if the information is

reliable is it of any use. The
expressed in clear terms. In other understanding of reliability comes
words, it should be comprehensive. from past experience.

INFORMATION OVERLOAD
• COMPLETE − It should meet all the
- It is a condition where there is more
needs in the current context.
information than one can handle

• UNBIASED − It should be impartial, - a huge problem for managers as it

affects the quality of their decision-
and free from any bias. In other
making.
words, it should have integrity.
- leads to both psychological and
physiological problems for the
• EXPLICIT − It should not need any
receiver and brings down the quality
further explanation. of decision-making.

• COMPARABLE − It should be of

uniform collection, analysis, content, CAUSES OF INFORMATION OVERLOAD

and format. - too much information

- difficult to manage information
- irrelevance or unimportance of
• REPRODUCIBLE − It could be used information
- multiple sources of information
by documented methods on the
- lack of time to understand information
same data set to achieve a consistent
Tips to Solve Information Overload
result. Problem

1. Focus and specialize in one thing

The attributes of quality of information
2. Take control
are: 3. Follow only valuable sources
4. Unsubscribe form unwanted
● TIMELINESS - The speed at which subscription
the information is received. The 5. Organize your time well
faster the information better is its
quality. Techniques in Managing Information
● APPROPRIATENESS - is the Overload
suitability matching of the receiver - Data Summarizing
and the information, more the - Message Modification or Filtering
suitability of the information to the - Inferences
receiver, better its quality. - Message Routing
● RELIABILITY – the reliability of
information is a key attribute of
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LESSON 4: INFORMATION NEED & • Use of information processing in

OBJECTIVE reduction of energy consumption,
reduction in pollution and a better
INFORMATION NEED & OBJECTIVE
ecological balance in future.
Information processing beyond doubt is the
dominant industry of the present century. • Use of information processing in land
Here are few common factors that reflect on record managements, legal delivery
the needs and objectives of the information system, educational institutions,
processing: natural resource planning, customer
relation management and so on.
• Increasing impact of information
processing for organizational In a nutshell:
decision making.
INFORMATION is needed to survive in the
modern competitive world.
• Dependency of services sector
including banking, financial INFORMATION is needed to create strong
organization, health care, information systems and keep these systems
entertainment, tourism and travel, up to date.
education and numerous others on
information

• Changing employment scene world Implications of Information in Business

over, shifting base from manual
agricultural to machine-based From a business perspective, there has been
manufacturing and other industry a huge shift towards increasingly automated
related jobs. business processes and communication.
Access to information and capability of
• Information revolution and the overall information processing has helped in
achieving greater efficiency in accounting
development scenario.
and other business processes.
• Growth of IT industry and its strategic
A complete business information system,
importance.
accomplishes the following
functionalities:
• Strong growth of information services
fueled by increasing competition and • Collection and storage of data
reduced product life cycle. • Transform these data into business
information useful for decision
• Need for sustainable development making.
and quality life. • Provide controls to safeguard data.
• Automate and streamline reporting.
• Improvement in communication and
transportation brought in by use of Five Main Uses of Information by
information processing. Businesses and Other Organizations:
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• PLANNING - Information is the most Expert systems and artificial

important ingredient in decision intelligence
making. Information at planning • Information theory
stage includes that of business
resources, assets, liabilities, plants Following factors arising as an outcome
and machineries, properties, of information processing help speed up
suppliers, customers, competitors, of business events and achieves greater
and market. efficiency:

· Directly and immediate linkage to the

• RECORDING - It involves recording
system
information about each transaction or
event. This information is collected,
· Faster communication of an order
stored, and updated regularly at the
operational level. · Electronic transfer of funds for faster
payment
• CONTROLLING - A business need
to set up an information filter, so that · Electronically solicited pricing (helps
only filtered data is presented to the in determining the best price)
middle and top management.
MIS Need for Information Systems
• MEASURING - A business
measures its performance metrics by Managers make decisions. Decision-making
collecting and analyzing sales data, generally takes a four-fold path:
cost of manufacturing, and profit
earned. 1. Understanding the need for decision
or the opportunity,
• DECISION-MAKING - MIS is
primarily concerned with managerial 2. Preparing alternative course of
decision-making, theory of actions,
organizational behavior, and
underlying human behavior in 3. Evaluating all alternative course of
organizational context. actions,

In short, this multi-dimensional 4. Deciding the right path for

information evolves from the following implementation.
logical foundations:

• Operations research and

management science MANAGEMENT INFORMATION SYSTEM
• Theory of organizational behavior - is an information system that provides
• Computer science: information in the form of
Data and file structure standardized reports and displays for
Data theory design and the managers
implementation
Computer networking
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- broad class of information systems Data Item - is considered to be atomic or the

designed to provide information simplest element of data organization that
needed for effective decision making. cannot be divided any further.

Data and Information created from an The hierarchal nature if a data model is
accounting information system and the based on the fact that data element is
reports generated there on are used to grouped of data items and consequently a
provide accurate, timely and relevant data structure is a logical collection of data
information needed for effective decision elements
making by managers.

MANAGEMENT INFORMATION SYSTEMS

provide information to support management
decision making, with the following goals:
1. Pre-specified and preplanned
reporting to managers.
2. Interactive and ad-hoc support for
decision making.
3. Critical information for top
management.
In this data model logically organized
MIS is of vital importance to any constructs of fields (data items), records
organization, because (data elements) and files (data structures)
are used to organize data.
It emphasizes on the management
decision making, not only processing of data The structure (or so called syntax) of a
generated by business operations. typical record comprises of a set of data
items that generally represent a meaningful
It emphasizes on the systems entity.
framework that should be used for organizing
information systems applications ASCII - American Standard Code for
Information Interchange
LESSON 5: INTRODUCTION TO - has become a default standard character
INFORMATION MANAGEMENT sets used on most personal computers and
workstations.
INFORMATION MANAGEMENT - is the
process of controlling, organizing, and PIXEL originated from PICTURE
disseminating information resources within ELEMENT
an organization or system.
Kbytes (kb): 1 thousand bytes
Data Model - provides a set of principles for Mbytes (mb): 1 million bytes
organizing data Gbytes (gb): 1 billion bytes

Database - a structured approach to

information storage. The corporate database
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often becomes the center of business - usually controls medium term

operations and decision making. scheduling, forecasting and
budgeting operations.
● Senior Management - focus on
general, or strategic, issues related to
overall business development in the
long term such as restructuring,
major financial investments and other
strategic undertakings related to
company’s future rather than present.

INFORMATION STRATEGY
- is a planning document usually created at
the strategic level by the Chief Information
Without an organization-wide plan and data Officer (CIO), possibly together with a Chief
administration procedures in place business Technology Officer (CTO) and IT manager.
may encounter such problems as: - is developed to support the overall business
strategy of an organization and explains how
DATA REDUNDANCY - data becomes information should be captured, processed,
duplicated and stored at several locations in used and disposed of throughout its lifecycle.
more than one file.
POOR DATA AVAILABILITY - data INFORMATION POLICY DOCUMENT
becomes isolated and available only to the - document is extremely important when an
owner of a particular file in a file system. organization handles security sensitive data
POOR DATA SECURITY - data spread or is subject to government guidelines
across business in various forms and related to information processing.
locations reduce the ability of a business to
set proper security controls and ensure
authorized access to information. ERROR-
PRONE DATA - when same data exists at
multiple locations it become more vulnerable
to human errors introduced by different
employees and mistakes tend to go
unnoticed for longer.

STRATEGY AND INFORMATION SYSTEM

● Operational Level - decisions are
made to ensure smooth running of
operational processes or day to day
business. DATA PROCESSING SOFTWARE IN AN
● Management Level - has a typical ENTERPRISE
timeframe ranging from weeks to
several month or a year. Business organizations use a wide variety of
software tools to help the business run. From
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spreadsheets to complex enterprise

resource planning systems, information
processing tools help business firms derive
value from their information assets.