1. Ch. 03 Definition and Role of Information
Rev 4: Mar., 2015
Prof. Euiho Suh
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT:
Dept. of Industrial & Management Engineering POSTECH

2. Expansion of Nature of Information (1/2)
Definition of data
Raw facts such as number, name, etc.
Definition of information
Facts that are organized and arranged in a meaningful manner
Definition of Knowledge
A justified belief that increases an entity’s capacity for effective action
Personalized information related to facts, procedures, concepts, interpretations, ideas, observations, and judgments
Data vs. Information vs. Knowledge
Data
Information
Decision Aids
Knowledge
Statistical
Analysis
Math
Reasoning

3. Expansion: Examples (2/2)
Data- User Independent: Database
Number of POSTECH students , Average age, Gender Composition, GPA
Information- User Dependent : Informationbase
For Employers: Availability of employees, Possible Candidates , etc
For BungOBbang Ajuma: Number of Possible customers, Sales per student.
Decision Aids- Decision-oriented information in Data Warehouse
What is the offer package for recruiting Postech students ?
What is the optimal production capacity for my BungOBbang store ?
Knowledge- deducible/AI oriented information in Knowledgebase
- Expert-based decision for offer package.
- Expert-based decision for optimal production

4. Properties of Information
Accuracy
Economy
Timeliness
Completeness
Information
Relevance
Simplicity
Reliability
Verifiability

5. Management Hierarchy Level and Information
Level of Information
Management Triangle
Types of
management
Problem types
to be dealt with
Political
strategic
Unstructured
Extreme
top
Strategic
Semi –
Structured
and
Top
Tactical
Middle
Operational
Structured
low
Clerical
Extreme low

6. Postech Strategic Management of Information Systems LAB
Problem Types
Structured Problem
Unstructured Problem
Semi-structured Problem
Input
Problem
Structure
Definite
Output
Input
Problem
Structure
Fuzzy
Output
Input
Problem
Structure
User dependent
Output
User Interaction
User
Postech Strategic Management of Information Systems LAB

7. Management Hierarchy Level(2/2)
Use of data&
Information
Quality
of Data
Types
of IS
Roles of IS
Strategic
Importance
Extreme top
Political decision & strategic
High-degree
decisional aids
EIS/ESS
Controller
Strategic driver
Very
important
(Strong SIS)
Little
importance
(Weak SIS)
Top
Mathematical analysis of information
Decisional aids
DSS
Middle
Statistical
Analysis of data
IPS
MIS(s)
Function
Low
Retrieval & use for
Operational purpose
Raw data
TPS
(EDPS)
Helper to
Each function
Extreme low
Data processing
OAS
Assistant to helper to each function
Postech Strategic Management of Information Systems LAB

8. TIMELINE: Information Systems
1950
1960
1970
1980
1990
2000~
TPS(Transaction Processing System)
MIS/IPS(Information
Processing System)
DSS(Decision Support Sys)
EIS(Executive Infor Sys)
ESS(Executive Support System)
ES(Expert System)
ERP(Enteprise Resource Plan) ?
This picture represents types of information system 연도순으로.
TPS appeared from 1950 to 1960.
Mis
Ips
Dss
Ess
Eis Es
I can’t define in 2000’s
Maybe I think it is erp, erp2, km and so on.

9. Decision Making and Information (1/2)
Definition
Selecting the best solution from two or more alternatives
Levels of Managerial Decision Making
Operational Management
Operating Managers and Self-Directed Teams
Tactical Management
Business Unit Managers and Self-Directed Teams
Strategic Management
Executives and Directors
Decisions
Information
Decision Structure
Information Characteristics
Unstructured
Semistructured
Structured
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope
Prespecified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus

10. Decision Making and Information (2/2)
Decision-making Process (Simon, 1947)
Organization objectives
Search and scanning procedures
Data collection
Problem identification
Problem ownership
Problem classification
Problem statement
Intelligence Phase
Formulate a model
Set criteria for choice
Search for alternatives
Predict and measure outcomes
Design Phase
Solution to the model
Sensitivity analysis
Selection of the best(good) alternative(s)
Plan for implementation
Choice Phase
Implementation of solution
Satisfaction?
END
Feedback No
Yes

11. Why do we study Information Systems?
General role of IS
Collect, distribute, analyze Data
Why?
Get information
Why?
Remove uncertainty
Why?
Make a good decision
Why?
Store knowledge
Postech Strategic Management of Information Systems LAB

12. DQ/ECQ