BUSINESS�INFORMATION�SYSTEM

Unit�No.�2�–�INFORMATION�CONCEPTS

Faculty�Name�:�Dr.Shalaka.
INDEX

Definition
Difference�between�data�and�information
Quality�Of�Information
Characteristic�of�Information
Information�Needs�of�Manager�at�different�Levels

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Definition of Information

Computer is defined as
“Information is data that has been processed into a form that is meaningful to the
recipient and is of real or perceived value in current or prospective actions or
decisions.”

-�Davis�and�Olson.

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Difference between data and information

Data�:
1. Information�in�its�unprocessed�form�is�called�as�Data.
2. Data�is�generated�as�a�by-product�of�transactions�taking�place�in�the�
organisation.�

Information�:
1. The�data�is�processed�further�to�make�it�clean�and�arranged�in�a�proper�
format�and�is�called�as�information.

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Information Needs of Manager at different Levels

Types�of�Information�:

1. Strategic Information :

-Strategic�information�is�required�by�Managers�at�Strategic�Level�of�management.
-�Required�for�long-term�planning�policies�of�the�organization.
-e.g.�information�pertaining�to�new�technologies,�new�product,�competitors�etc.

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2. Tactical Information :

-���used�at�Management�Control�Level.
- used�in�short�term�planning.�
- This�type�of�information�is�generally�based�on�data�arising�from�current�activities�
of�the�organisation.�
- E.g.�for�Sales�analyses�and�forecasts,�Production�resource�requirement,�Annual�
financial�statements�etc.

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3. Operational Information :

- Applies�to�short�periods�varying�from�an�hour�to�days.
- Used�by�decision�makers�at�operational�level.
- Used�for�taking�immediate�action.�
- The�source�of�information�is�current�activity�data.�
- E.g.�–�stocks-in-hand,�work-in-progress,�outstanding�orders�from�customers�etc.

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Quality of Information

Quality�of�information�refers�to�its�reliability.�Some�of�the�attributes�of�information�
which�influence�the�quality�of�information�are�discussed�as�follows�:
1. Timeliness�:�This�refers�to�not�only�serving/providing�the�data�in�time�but�also�
providing�up-to-date�data.�

2. Accuracy�:�It�refers�to�information�which�is�free�from�error,�mistakes�and�reflects�
the�meaning�of�data�on�which�it�is�based.�It�should�be�free�from�bias.�

3. Relevance�:�What�is�relevant�information�to�one�recipient�is�not�necessarily�
relevant�for�another.�E.g.�the�customer�orders�are�of�relevance�to�people�directly�
responsible�for�processing�the�orders,�for�Personnel�in�employee�relations�the�
customer�orders�are�of�less�relevance.��

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4.�Adequacy�:
The�information�should�not�be�inadequate�or�more�than�adequate�which�leads�to�
crisis�or�information�overload�respectively.�Therefore�adequacy�of�information�
underscores�that�the�information�should�cover�all�aspects�about�a�particular�event�
or�situation�which�is�needed.

5.�Completeness�:�The�information�which�is�provided�to�the�manager�must�be�
complete�and�should�meet�all�his�needs.�Incomplete�information�may�result�in�
wrong�decisions�and�thus�may�prove�costly�to�the�organisation.�

6.�Explicitness�:�Explicitness�means�something�which�need�not�be�processed�further.�
The�manager�should�not�waste�his�time�in�further�processing�the�information.�

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7.�Exception-based�:
Today,�more�and�more�organisations�are�being�run�on�the�principle�of�management�
by�exception.�Exception�reporting�principle�states�that�only�those�items�of�
information�which�will�be�of�particular�interest�to�a�manager�are�reported.�

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Thank�You