1. Chapter 1 – The Value of Information Information Systems, First Edition John Wiley & Sons, Inc by France Belanger and Craig Van Slyke Contributor: Brian West, University of Louisiana at Lafayette Copyright 2012 John Wiley & Sons, Inc.1-1

2. Learning Objectives Compare and contrast data, information and knowledge Explain the concepts of connectedness and usefulness as they relate to information Name the skills required for information literacy Discuss the importance of information literacy in a business career Name and describe the three main uses of information in businesses Compare and contrast information systems careers and information analysis careers Copyright 2012 John Wiley & Sons, Inc.1-2

3. Focusing Story One of my clients wanted to expand their use of computers to a new department and needed someone with my capabilities. The company and its needs were a good match for me, so I discussed the possibilities with the President of the company. He asked me my salary requirements. I knew what salary I needed to meet my living expenses and I gave him a figure. He immediately agreed; I immediately knew I’d make a mistake, one that would cost me quite a bit of money. Copyright 2012 John Wiley & Sons, Inc.1-3

4. Focusing Questions What were the consequences of not having competitive salary information? Suppose I did have information on competitive salaries, but that information was inaccurate. What are the possible consequences of having poor quality information? Copyright 2012 John Wiley & Sons, Inc.1-4

5. A Day in My Technology-Free Life blog Go on-half day without using any information technology, then write a short paper reflecting on the experience. Here are a few of the things you won’t be able to use. You will not be able to: Use Facebook, email or the Web Text your friends Use your debit or credit card Copyright 2012 John Wiley & Sons, Inc.1-5

6. A Day in My Technology-Free Life blog What did you learn from your experience? What technology was the most difficult to live without? What kinds of tasks were the most difficult to complete without technology? Copyright 2012 John Wiley & Sons, Inc.1-6

7. Is 62 good or bad? This is a meaningless question 62 is an item of This is presented with absolutely no context, but what if... Copyright 2012 John Wiley & Sons, Inc.1-7

8. Information Let's combine 62 with some other bits of data. 62 is the number of computers your company sold this month, which is 10 more than last month and 15 more than the same month last year. When we combine the original data with other, related data, we now have ___________ that helps us interpret whether 62 is good or bad. Copyright 2012 John Wiley & Sons, Inc.1-8

9. Knowledge Once we have the meaningful information, we need to interpret it in order to determine what actions should be taken. (In our example, lets decide to keep doing what we’ve been doing, since it seems to be going well.) When we apply information to some decision or action, we have _________________. Copyright 2012 John Wiley & Sons, Inc.1-9

10. Wisdom _______________ involves using knowledge for the greater good. Because of this wisdom is deeper and more uniquely human. It requires a sense of good and bad, right and wrong, ethical and unethical. Copyright 2012 John Wiley & Sons, Inc.1-10

11. DIK Hierarchy Data - raw symbols (unconnected facts) Information – data that has been processed so that it is useful Knowledge – information that is applied to a decision or action Wisdom – the use of knowledge for the greater good. Copyright 2012 John Wiley & Sons, Inc.1-11

12. DIK Hierarchy T.S. Elliot’s poem, The Rock: … Where is the Life we have lost in living? Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information? Copyright 2012 John Wiley & Sons, Inc.1-12

13. DIK Hierarchy Copyright 2012 John Wiley & Sons, Inc.1-13 Figure 1.1 Data, Information, Knowledge, Wisdom Hierarchy

14. Value of Information ___________________– the hardware, software and media used to store, organize, retrieve and communicate information __________________– an organized combination of hardware, software, infrastructure, data and people that is used to accomplish a specified organizational or personal objective Copyright 2012 John Wiley & Sons, Inc.1-14

15. Information Systems In the early days, the focus was on processing data for relatively straightforward tasks, such as processing payrolls or bookkeeping. This evolved into information systems, which enabled users to connect and process data to help with management decision making Copyright 2012 John Wiley & Sons, Inc.1-15

16. Managing Wisdom More recently there has been movement towards being able to manage knowledge. Although it is hard to imagine, it is possible that we may see a day when technology helps us manage wisdom. This is debatable since many consider wisdom to be uniquely human. Copyright 2012 John Wiley & Sons, Inc.1-16

17. Connectedness and Usefulness The shift from data to information requires connecting data elements. Combining bits of data gives the data some context and meaning. To be useful, information is interpreted and applied (in other words, is used), leading to knowledge. Copyright 2012 John Wiley & Sons, Inc.1-17

18. Information Literacy Information literacy – abilities to know when information is needed, and to be able to locate, evaluate and effectively use that information Information literacy boils down to the ability to efficiently and effectively determine what information is needed, then access, evaluate, use, and manage that information in an ethical manner. Copyright 2012 John Wiley & Sons, Inc.1-18

19. Information Literacy In the “old days” (before the Web), if you wanted to buy a car, you might look at a couple of magazines for reviews. Today you can access multiple automobile reviews, get a good estimate of the value of your current car, and see what the pricing of dozens of dealers, all without leaving home. There’s a catch, though – you have to know what you’re doing. Copyright 2012 John Wiley & Sons, Inc.1-19

20. Information Literacy Understanding how to deal with information may well have serious benefits as you move through your business career. There are many who believe that information literacy is “the” critical skill for the future. Copyright 2012 John Wiley & Sons, Inc.1-20

21. How I use Information Take a few minutes to identify five ways in which you used information. Try to come up with a range of decisions from simple to more complex For each one rate the impact of having bad information as being a large, moderate or small impact. Copyright 2012 John Wiley & Sons, Inc.1-21

22. Use of Information All businesses, regardless of their size, use information for three main purposes; communication, process support and decision- making. When properly applied, information technology enhances all of these. Copyright 2012 John Wiley & Sons, Inc.1-22

23. Use of Information One use of information is to communicate. Organizations must exchange information for a variety of reasons including sharing ideas, coordinating actions, and transmitting information to stakeholders. Businesses also use information to support processes. Copyright 2012 John Wiley & Sons, Inc.1-23

24. Business Process _______________– set of coordinated activities that lead to a specific goal or outcome Many business processes are quite complex and involve many different parts of a business. Copyright 2012 John Wiley & Sons, Inc.1-24

25. Customer Order Process Information needed: Copyright 2012 John Wiley & Sons, Inc.1-25 Figure 1.2 Order Process

26. Customer Order Process Copyright 2012 John Wiley & Sons, Inc.1-26

27. Use of Information Businesses (and individuals) also use information for _________________. Decision making involves choosing among alternatives. Making this choice requires information about the alternatives (as well as other information). You can’t make decisions without information Copyright 2012 John Wiley & Sons, Inc.1-27

28. How Businesses Use Information Team with another student and think about a business Identify three decisions and three processes related to the business. Identify key pieces of information required to support each decision or process. Copyright 2012 John Wiley & Sons, Inc.1-28

29. Use of Information Businesses use information in several important ways. Some businesses also use information as a product. Copyright 2012 John Wiley & Sons, Inc.1-29

30. Information and Your Career Individuals in information systems careers design, build, support or manage information systems. These are the jobs that typically require a major in information systems or a related field. Copyright 2012 John Wiley & Sons, Inc.1-30

31. Information and Your Career People in information analysis careers use these systems to retrieve, report on and analyze the information contained in the systems. The results of the analyses are passed along to information consumers, who use the results to carry out transactions and make decisions. Copyright 2012 John Wiley & Sons, Inc.1-31

32. Summary Data are raw symbols or unconnected facts Information is processed data that is useful Knowledge is information that is applied to a decision or action Information literacy is an important skill professionally and personally. Being information literate requires being able to efficiently and effectively determine information needs, the acquire, evaluate, use and manage that information ethically. Copyright 2012 John Wiley & Sons, Inc.1-32

33. Summary Businesses use information for communication, process support and decision making. Information-related knowledge is important to virtually all careers. There are many careers that involve designing, building, supporting, managing and analyzing information. Copyright 2012 John Wiley & Sons, Inc.1-33

34. Copyright 2012 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein. Copyright 2012 John Wiley & Sons, Inc.1-34