Information V/S Data

Definition of data: Data is a collection of known facts, that can be recorded and that is meaningful.
Definition of Information: It can be defined as data that has been converted into meaningful and useful
form for specific context used by a specific user.
OR
Information consists of data, images, text, documents and voice organized in a meaningful context.
Difference between Data and Information
Data
1. Data is the raw fact
2. It is input
3. It is unorganized
4. It cannot add anything to knowledge
5. It does not contain an element of surprise.
6. It is the base of starting an activity
7. It is unrelated, uninterpreted
8. It cannot lead to an action

Information
It is the processed data
It is output
It is organized
It enhance the knowledge
It contain a n element of surprise.
It is the end product of an activity.
It is related and can be interpreted
It leads to an action.

Information Cycle
Data are processed through models to create information. The recipient receives the information and then
makes a decision and take an action. This triggers other actions or events, which in turn will generate
large amounts of scattered data, that are captured and serve as input & the cycle starts all over again.
Input
Data
Data
captured

result

Process
model

output
information

Data
base

Action

decision

Data Processing:
The execution of a systematic sequence of operations performed upon data to transform it into
information.
Information Processing
A concept that covers both the traditional concept of processing numeric and alphabetic data, and the
processing of text, images and voices.
It emphasizes that the production of information products for users should be the foces of processing
activities.
Characteristics of Information
The important characteristics of useful information are as follows
1. Relevance: Information is good only it its is relevant is meaningful to the decision maker.
2. Subjectivity: The value and usefulness what is information for one person may not be for another.
Example: Even small changes in the price of a stock can be meaningful to a stock brocker because
these changes may influence buying and selling decisions. To a layman, the stock price may just be a
not with little or no meaning.
3. Timeliness: information must be delivered at the right time, and right place to the right person.
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4. Mode and format: The mode of representation of information is either visual, or in written form.
Format of information should be so designed that it assist in decision making and solving problems.
5. Completeness:- It is said to be complete if the decision maker can satisfactorily solve the problem at
hard using that information.
6. Accessibility:- Information is useless if it is not readily accessible to decision makers, in the desired
format when it is needed. If information is easily accessible it may fall into wrong hands. Hence there
should be balance between accessibility and security information.
7. Accuracy:- Information must be free of errors, because erroneous information can result in poor
decisions.
8. Value of Information:- It is defined as the difference between the values of the change in decision
behavior caused by information and the cost of the information i.e given a set of possible decisions a
decision maker may select one, on the basis of the information at hand.
INFORMATION PROCESSING
The process of acquiring, retaining Information processing.
Environment

Executive control

Response
Generator
Register

Working memory

Long term memory

Fig A model of Information processing.

The Information comes from the outside world into the sensory registers in the human brain. This
input consists of things received by our senses.
We become aware of them only if we consciously direct our attention to them when we do four
our attention on them, they are placed in our working memory.
Another name of our working memory is short term memory. It has a very limited capacity. We
can attend to only about seven items at a time.
We must take one of the following actions with regard to each piece of information.
1 Continuously rehearse it, so that it stays there
2 Move it out of this area by shifting it to long term memory
3 Move it out of this area by forgetting it.
Long term memory- stores information for a long term.
There is no restrictive limit on the amount of information we can store in long- term memory.
In long term memory, we must move it back to our working memory, using a process called
retrieval.
Information processing as parallels to the way in which an executive manages a business.
Information comes into the business across the executives desk- mail, phone calls, personal
interactions, problems etc( This is like short term)
Some of information goes into the waste basket is some of it is failed ( in long term).
Represents an imperfect model an oversimplification of human thought processes.

DATA PROCESSING
Data processing method includes the tasks of classification, sorting of data, data verification, data
manipulation in order to finally obtain meaningful information.
First data is classified based on its characteristics
Eg:- students are classified based on class or combination.
Next step is sorting of data i.e arranging the data in the required form.
Eg:- Students are arranged in alphabetical order.
Data is then verified and checked to eliminate duplication and inconsistencies. Duplication of
data may occur during data input stage.
Inconsistencies in data may occur due to various values entered during different times, and
improper modifications done.
Finally data can be manipulated to obtain the required information.
Arithmetic calculations are done which generate intermediate results. these results are to be
stored so that they may be used for further processing.
The result of calculations can be summarized so that it can be organized into a desired form.

INFORMATION SYSTEMS
It is an organized combination of people, hardware, software communications networks and data
resources that collects, collates, transform and disseminates information in an organization it consists of
three elements People, Producers and Data
People follow producers to manipulate data to produce information.
The information may be classified into the following categories
1 Strategic Information
2 Tactical Information
3 Operational Information
4 Statutory Information
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Strategic Information
This is the information needed for long range planning
The store owner may want to decide whether to expand his business by stocking new varieties of
items in his store, whether to open a new branch.
Information regarding sales trends, affect of discounts, offered, effects of reduction in price of
some items are obtained.
The volume of strategic information than can be obtained is very less.
Tactical information
This type of information is needed to take short range decisions to run the business efficiently.
It requires specially designed processing of data.
The volume of tactical information is larger than that of strategic information it is essential for
daily operations.
ex:- Information on fast and slow moving items may be used to take the tactical decision to stock
more fast moving items and give discount on slow moving its.
Operational Information
This type of information is needed for day to day operations of a business organization.
Volume of operational information is more than that of tactical information.
ex The list of customers unpaid bills beyond due date would be used to send reminders.
Statutory information
This is the information required by law to be sent to government authorities.
It requires straight forward processing of data.
As long as organizations are small and have limited operational goals, manual information
systems are satisfactory.
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Developments in industry and commerce have made computer- based information systems
essential to efficiently run organizations.

DECISION MAKING
Decision making is an integral part of every managers day to day activities at work place. Due to this
fact managers are also known as decision makers in business organizations.
Decision
The world decision is derived from the latin word Decide, meaning to cut off or to come to a
conclusion. Decision means a resolution, a settlement, a judgement etc.
Decision making process
It is a managerial process of choosing a particular course of action out of several alternatives courses for
the purpose of achieving the given objectives
It is a goal oriented process
It is an ongoing process
It is a complex process
Decision making is called a managerial process because it is a combination of several steps.
Identification phase: Definition of problem as well as its diagnosis is analyzed.
Development phase: In this, identify the constraints and opportunities and develop alternatives
Selection phase: Evaluate each alternative and choose the best one.
Implementation phase: The decision is implemented and acceptance of the decision by others taken
and follow up monitoring is also done by the decision maker.
Identification phase

Development phase

Implementation phase

Selection phase

Information needs at Different Levels of Decision Making.

Each organization is made up of several levels. These could be classified at least in three main groupstop, middle, and lower levels.
The top level is primarily interested in strategic planning and would thus require the other two
levels to provide a support in the form of processed information.
The middle level would be interested in tactical planning and operational control and would need
information to support these managerial functions so that the organization runs smoothly.
The lower level involved in day- today information transactions and needs information for its
working the process being called as operational control.
TOP

MIDDLE
LOWER LEVEL

1
2
3

STRATEGIC

TACTICAL MANAGEMENT CONTROL

OPERATIONAL CONTROL

Strategic: It establishes the policies, plans and objectives of the organization as well as a budget
framework under which various departments will operate.
Management control: It has the responsibility of implementing the policies and over plans of the top
managements
Operational control: It has responsibility of implementing day-to day operations and decisions of
middle level management to produce goods and services and meet the revenue and other goals which
in turn enables the organizations to achieve its overall plans and objectives.

SOURCES OF DATA
It is divided into two types
1. Sources of primary data
2. Sources of secondary data
Sources of primary data:The sources of generating primary data are
1. Observation method
2. Survey method
3. Experimental method
Observation method
It involves human or mechanical observation of what people actually door what events take place during
a buying or consumption situation. Information is collected by observing process at works. The
following are a few situations:1. Service stations:- pose as a customer, go to a service station and observe.
2. To evaluate the effectiveness of display of Dunlop pillow cushions- In a departmental store,
observer notes
a) How many pass by
b) How many stopped to look at the display
c) How many decide to buy.
3. Super market: which is the best location in the shelf? Hidden cameras are used.
4. To determine typical sales arrangement and find out sales enthusiasen shown by various
salesman- Normally this is done by can investigation using a concealed tape recorder.