Information, Data & Communication Part One

Data and Information Defined The terms “data” and “information” are used interchangeably in every day speech as meaning the same thing. However, for managers and information specialists the terms have very distinct meanings: Data are facts, events, and transactions etc which have been recorded. They are the input raw material from which information is produced. Information is data that have been processed in such a way as to be useful to the recipient. Basic data is processed in some way to form information but the act of processing does not itself produce information.

Data Characteristics Data are facts obtained by reading, observation, counting, measuring, weighing etc and which are then recorded. They are frequently called raw or basic data and are often records of the day to day transactions of organisations.  Date, amount and other details of an invoice or cheque  Payroll details of pay  N.I and tax for a person  Output for a machine or shift  No of vehicles passing a traffic survey point.

Data can be obtained from both internal and external sources Most external data is in readily usable and concrete forms (bank statements, purchase invoices etc), Internal activities can require a more appropriate measuring and recording systems in order to capture the facts. Data may be produced as an automatic by product of some routine but an essential operation such as producing an invoice would require a more defined procedure and the results recorded. Cost accounting, stock and production control, and similar systems would fall into this category. Data Characteristics Historically, a great deal of attention is given to the methods of processing data whilst the QUALITY of the source data is sadly taken for granted. If the source data is flawed any resulting information is worthless. (GIGO)

What is information? The definition of the word information in an organisational sense is more complex than the everyday understanding of the word. Information is data that has been interpreted and understood by the recipient of the message. The user not just the sender is involved in the transformation of data into information. There is a process of thought and understanding involved where as the message can have different meanings to different people. It also involves the data having been analysed, summarised or processed to produce a message or report which is deemed to be management information but only if understood by the recipient.

It is the user who decides whether a report contains information or just processed data. Therefore it is vital for the producers of such reports to be aware of the users’ needs, education, and position within the organisation, familiarity with both language and numeracy and the context of the message to increase the possibility of the information being of use. What is information?

Information in summary is knowledge and understanding that is usable by the recipient, it reduces uncertainty and has a surprise value. It must tell the recipient something not already known which could not be predicted. If such a report or message does not include the above attributes, as far as the recipient is concerned, then it contains merely data not information. Summary…. “Without an efficient means of filtering and aggregating data, a manger could be….. data rich yet information poor.” (Finlay)

By Source: By Nature: By Level: By Time: By Frequency: By Use: By Form: By Occurrence: By Type: Information Classification examples… Internal, External, Primary, Secondary, Government etc Quantitative, Qualitative, Formal, Informal etc Strategic, Tactical, Operational etc Historical, Present, Future Continuous (Real time), Hourly, Daily, Weekly, Monthly etc Planning, Control, Decision Making etc Planned intervals, occasional, on demand etc Written, aural, visual, sensory etc Detailed, summarised, aggregated etc

Having differentiated between data and information and the users’ role, the following diagram is a model outline, applicable to both manual and computerised information system: Information systems in outline

Data Capture Data Processing Data Communication Users File Storage User Processing / Understanding Actions / Decisions / Changes etc Users Memory / Knowledge base Data Processed Data Information Real World Effects of Changes and Decisions

Information has no value in itself. Its value is generated in the value of the decision change. It is assumed, the more up to date and accurate the information available the better the information but only if it improves the resulting decision otherwise it has no value. Here again the users role is paramount. Data capture, handling, recording processing elements all incur costs with no particular value. It is only when data is communicated and understood by the recipient and subsequently turns into information that a value appears, if the information is used to improve decision making.

To ensure the information does have a value, consideration to both user and the problem or decision being dealt with must be given. This can be summarised as below: Appropriate/relevance of info for problem Understanding by userValue of information None None (still data) HighNoneNone (still data) NoneSomeNone SomeGoodModerate HighGoodHigh CriticalGoodMaximum

Good information is that which is used and which in turn creates value. Experience and research shows that good information has the following qualities: Characteristics of good information Relevant for its purpose Sufficiently accurate for its purpose Complete enough for the problem From a source in which the user has confidence Communicated to the right person Communicated in time for its purpose That which contains the right level of detail Communicated by an appropriate channel of communication That which is understandable by the user