Data and Information

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Data and Information
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What is data?

• data is the raw material for data processing.
• it relates to facts, events, transactions, etc.
• it can be obtained from both inside and outside
  the organisation

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What is information?

• In its simplest sense, it is
• data which has been processed
• data which is meaningful to the person who
  receives it

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Processes which convert data to information

• Classifying
• Sorting
• Calculating
• Summarising

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What is information - how can it be classified?

• By source internal, external, primary, secondary
• By nature quantitative, qualitative, formal,
  informal
• By level strategical, tactical,operational
• By time historical, recent, present
• By frequency continuous (real time), hourly,
  daily, monthly, annually
• By use planning, control, decision-making
• By form written, aural, visual
• By occurrence planned intervals, occasional,
  random sampling
• By type detailed, summarised, abstracted

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Data
Information
Process
Data
Data
One persons information is another persons data
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Considerations

• data collection
• quality of source data (GIGO)
• data formats -
• written, oral, visual, subconscious,
• storage and retrieval

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Data recorded within an organisation

• Approximately only 5 of data available in an
  organisation is recorded and processed using an
  Information System.
• Examples of data collected
• quantities of products sold each month
• stock levels of particular products
• minutes of meeting held by staff at all levels
• forecasts of future market demand

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Multiple-use data

• data may be processed to provide information for
  more than one business activity

accounts
management
warehouse
product sales data
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Good Information

• relevant
• complete
• accurate
• clear
• give confidence
• communicated to right person
• manageable volume
• timely
• communicated via appropriate channel
• cost should not exceed benefit

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Levels of Information - relevance

• individual
• departmental
• corporate
• national
• international

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Levels of Information Relevance and Time
Strategic Policy, Planning, Direction
Tactical - Control, Implementation
Operational - Collation, Reaction
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Perfect information is not possible Management
need to balance Cost Benefit - Risk
Cost / Value
Cost
Value
0
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What is the value of information?

• The value of information lies in the action taken
  as a result of receiving it.
• Highlighting situations
• Improving opportunities
• Reducing costs
• Mitigating risks
• GAINING COMPETITIVE ADVANTAGE

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The End