1. MIS 2000 Class 2: Basic Concepts Updated May 2015

2. Basic Concepts Outline Data, Knowledge, Information Data, Knowledge, Information in Organizations Information System (IS) IS User Information Technologies Summary 2 of 16

3. Information Is this information: Treuliodd y rhif cwsmer ١٨ bron i dri chant o ddoleri mewn un pryniant - gwerthiant mwyaf y mis diwethaf! - Why yes/no? Is this information: The customer number 18 spent nearly three hundred dollars in one purchase -- the largest sale last month! - Why yes/no? * 3

4. Data Basic Concepts 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). 4 of 16

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. DATA KNOWLEDGE INFORMATION - MEANING 5

6. 1. DATA organized into a SALES REPORT COMPUTER delivers: 2. Manager observes Report Process of informing MANAGER UNDERSTANDS: Customer number 18 spent about 300 dollars in one purchase, which is the largest sale last month. 4. INFORMATION is understood (Manager “gets it”.) 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… 3. KNOWLEDGE selects & interprets DATA Information Information to occur takes a whole process, process of informing. An example: 6 of 16

7. 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! Basic Concepts 7

8. Knowledge Basic Concepts 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.* 8

9. 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. Basic Concepts Information Knowledge Data 1 processes… 3 advances 2 to create 9

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

11. 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. Basic Concepts 11

12. Information System (IS) Basic Concepts 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.* ENVIRONMENT keyboard, mouse Hardware Data storage; Processors (Hardware) ; Application Software (works with data) System Software (works with hardware) screen, printer Hardware Data Transformed & Organized Data User Procedures (know how-to-do) INPUT part PROCESSING part OUTPUT part Data are the heart of an IS. Inputted data are different than outputted data. 12 of 16

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

14. Information Technologies (IT) Electronic IT are machines and devices for managing data. A machine works on its own and performs 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 Basic Concepts 14

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. 15

16. 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. Basic Concepts 16 of 16