Data, Information and Knowledge

Introduction
We live in the information age. In the same way that the development of industry created the
industrial age, the development of information technology systems, and especially the internet,
has created the information age. It has been a long-held belief by many philosophers that
knowledge is power and that knowledge stems from understanding of information;
information, in turn, is the assigning of meaning to data. To develop learners' understanding
of information technology, we start by defining these three related concepts. The topics are
hierarchical in that:

Data

becomes

Information

becomes

Knowledge

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Data
The concept of data as it is used in the syllabus is commonly referred to as ‘raw’ data – a
collection of text, numbers and symbols with no meaning. Data therefore has to be
processed, or provided with a context, before it can have meaning.

Example :
• 3, 6, 9, 12

• cat, dog, gerbil, rabbit, cockatoo

• 161.2, 175.3, 166.4, 164.7, 169.3

These are meaningless sets of data. They could be the first four answers in the 3 x table, a
list of household pets and the heights of 15-year-old students but without a context we don’t
know.

Information
It is important that students learn the concept of what ‘information’ is as used in information
technology. Information is the result of processing data, usually by computer. This results in
facts, which enables the processed data to be used in context and have meaning.
Information is data that has meaning.

When does data become information?

Data on its own has no meaning. It only takes on meaning and becomes information when
it is interpreted. Data consists of raw facts and figures. When that data is processed into
sets according to context, it provides information.

Data refers to raw input that when processed or arranged makes meaningful output.
Information is usually the processed outcome of data. When data is processed into
information, it becomes interpretable and gains significance.

In IT, symbols, characters, images, or numbers are data. These are the inputs an IT system
needs to process in order to produce a meaningful interpretation. In other words, data in a
meaningful form becomes information. Information can be about facts, things, concepts, or

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anything relevant to the topic concerned. It may provide answers to questions like who,
which, when, why, what, and how.

If we put Information into an equation it would look like this:

Data + Meaning = Information
Example
Looking at the examples given for data:
• 3, 6, 9, 12
• cat, dog, gerbil, rabbit, cockatoo
• 161.2, 175.3, 166.4, 164.7, 169.3

Only when we assign a context or meaning does the data become information.

It all becomes meaningful when we are told:

• 3, 6, 9 and 12 are the first four answers in the 3 x table

• cat, dog, gerbil, rabbit, cockatoo is a list of household pets

• 161.2, 175.3, 166.4, 164.7, 169.3 are the heights of 15-year-old students.

Knowledge
When someone memorizes information this is often referred to as ‘rote-learning’ or ‘learning
by heart’. We can then say that they have acquired some knowledge. Another form of
knowledge is produced as a result of understanding information that has been given to us,
and using that information to gain knowledge of how to solve problems.

Knowledge can therefore be:

• acquiring and remembering a set of facts, or
• the use of information to solve problems.

The first type is often called explicit knowledge. This is knowledge that can be easily passed
on to others. Most forms of explicit knowledge can be stored in certain media. The
information contained in encyclopedias and textbooks are good examples of explicit
knowledge.

The second type is called tacit knowledge. It is the kind of knowledge that is difficult to pass
on to another person just by writing it down. For example, saying that Paris is the capital of
France is explicit knowledge that can be written down, passed on, and understood by

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someone else. However, the ability to speak a foreign language, bake bread, program a
computer or use complicated machinery requires additional pieces of knowledge (such as
that gained through experience) that are not always known explicitly and are difficult to pass
on to other users.

How are data, information and knowledge linked?

If we put Knowledge into an equation it would look like this:
Information + application or use = Knowledge
Example
Looking at the examples given for data:
• 3, 6, 9, 12

• cat, dog, gerbil, rabbit, cockatoo

• 161.2, 175.3, 166.4, 164.7, 169.3

Only when we assign a context or meaning does the data become information. It all
becomes meaningful when we are told:

• 3, 6, 9 and 12 are the first four answers in the 3 x table

• cat, dog, gerbil, rabbit, cockatoo is a list of household pets

• 161.2, 175.3, 166.4, 164.7, 169.3 are the heights of the five tallest 15-year-old
students in a class.
If we now apply this information to gain further knowledge we could say that:
• 4, 8, 12 and 16 are the first four answers in the 4 x table (because the 3 x
table starts at three and goes up in threes the 4 x table must start at four
and go up in fours)
• The tallest student is 175.3cm.

• A lion is not a household pet as it is not in the list and it lives in the wild.

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 Information Systems Management
Information Systems Management are applying computer-base for managing information in
organizations for management roles such as interpersonal roles, informational roles and decision
based roles. Information Systems Management compound of theories of computer science and
management science. These theories build systems and program utilization. Normally, MIS are
integrated systems of users and machines (computers) with aiming to provide organizations’
information for operation, management and decision-making. The 5Cs are process to change data
into information. They consist of capturing information, conveying, creating, cradling and
communicating.

The information systems management must be accuracy and verification, completeness, timeliness
and relevance. Information Systems Management can be divided with respect to the organization
levels like operational – level systems, knowledge – level systems, management – level systems
and strategic – level systems.

Data Processing
When data have been recorded, classified, and organized, related or interpreted within a framework
so that meaning emerges, they become information. There are activities involved in turning data into
information, and these activities are known as process. In briefly, information means outputs of
processed data. Therefore, users can apply it. For example, an executive require total sales of each
product in the last year as a chart. Because he need summarized data for planning sales (It’s easier
and quicker to understand the chart information than raw data of each product). In another
example, teachers are grading each student by using total scores. The figure 1 illustrates the data
and information.
Process is the procedure that convert data into required information. In technical, these procedures
are fast done by a computer (both hardware and software). We can select a appropriated computer
program for process. There are many computer programs to process like word processing,
spreadsheet and database management system. They organize and manipulate data and
information. The process tasks are 5 activities called the 5Cs.

1. Capturing. This processing is originally obtaining information by using IT tools like a mouse,
keyboard and bar code reader. Simplify, inputting data at the original point. Selecting IT tools
for inputting depends on capturing information and/or commands and its form.

2. Conveying. This processing is showing the most useful information by using IT tools like a
screen, printer, speaker and monitor. Simplify, outputting data. Selecting IT tools for outputting
depends on forms of users’ needs.

3. Creating. This processing is creating new information by using IT tools like CPU and RAM. This
is the most important process in 5Cs. It’s done by the central processing unit (CPU) executing
software instruction and interact all the other hardware devices. The random-access memory
(RAM) or an internal memory is temporary storage of on-working information, on-
working application software and operating system.

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 4. Cradling. This processing is storing information for a later time by using IT tools like a hard
disk, CD-ROM and DVD. It’s permanently storing information which users can change or erase.
Selecting IT tools for storage depends on users’ need for updating and information size.

5. Communicating. This processing is distributing information to other people or other location by

using IT tools like a modem, a satellite and a digital pager. When we say communicating, it
concerns telecommunications technologies. One of them is a computer network. It’s
connecting at least two computers to communicate like sharing information, software,
peripheral devices and/or processing power.

Information Systems Management attributes comprise of accuracy and verification,

completeness, timeliness and relevance.

1. Accuracy and Verification. The obtained information must come from facts by using procedures
like observations, questionnaires and measurements. The expectation may give false data.
When you get facts, it’s processed to be appropriating for implementation or users’ needs. For
example, an executive requires information for making decision. If information is wrong, an
organization will get damage. Information has to have references, so they let users tracing.
Actually, users will get confident to use information, if they know the sources of information.

2. Completeness. Users have to receive completed information. Especially, executives need

completed information for making decision.

3. Timeliness. The best information has to be always updated, not outdated.

4. Therefore, users can apply it for present situation. Particularly, business organizations need
updated data for competition. The outdated data can take disadvantages of any business
organizations.

5. Relevance. The obtained information has to be related to users’ activities. Users have not to
get overloaded information.

In the past, business competitions are not intensive. An executive could wait for getting enough
information, then, he made decision. Nowadays, information is considered as valued property of an
organization. It can maintain organization competitiveness. If an organization quickly and precisely
gets information, the executive can quickly and precisely make decision or solve a problem. As a
result, the organization can stand in intensive competition. Information systems A system means a
set of elements which are interactive by operating as a group to meet a purpose. A system may
consist of people, tools, equipment, supplies and methodologies for finishing the same purpose. For
example, a supply chain system has a purpose for delivering products to end customers.
Now, we can conclude that an information system means all components involving with getting
information which is started from finding data, inserting data, storing date, processing data, storing
information, distributing and showing information following users requirements.

Nowadays, information systems are computer-based. So, they involve computer hardware and
software technology. As a result, computers are tools for information systems. They can effectively
store, process and distribute data and information. Therefore, an information system has 6
components. There are hardware, software, telecommunications, people, process and data or
information.

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 IS vs ORGANISATIONAL MANAGEMENT
For the better part of our productive life, most of us are a part of one organization or another.
The organization that we are part of may be very structured, like the armed forces or
corporate entities or it may be loosely structured like a neighborhood cricket team. Even
though organizations may be of different types, they have some common characteristics like
the existence of a common goal/mission towards which each member of the organization
works for, a plan or an agenda to make the goal/mission a reality and the utilization of
resources to achieve the goal.

Management is the practice of shaping organizations and its people to achieve its goal/s and
mission. Management generally involves the following activities or techniques,

1. Planning: Making informed decisions about what to do in the future.

2. Organizing: Making arrangements to fulfill the plan requirements.
3. Staffing: Employing the right people for the right job.
4. Leading: Influencing the members of the organization to move towards the
commongoal of the organization.
5. Controlling: Making checks to find the deviations/hold ups and taking corrective
action/s.

A manager in the course of his duties performs the above activities effectively to do justice
to his profession. However, it will be worthwhile to mention here that management itself is
an evolving concept. Some consider it as an exact science and others consider it as art.
Actually, it is based on practice. The practice of management makes it what it is. The other
important criterion for defining management is that management as a profession is
associated with the most important activity of an organization and that is decision-making.
The only distinguishing attribute of a manager in an organization is his authority and
capability to take decisions. This quality makes the profession distinct.

Decisions however cannot be taken in isolation. To take a decision a manager

needs information on the problem on which decision is required, information to help
generate alternatives, information about the different alternatives and also information
about the implications of choosing the alternative. At each phase of the decision-making
process, a manager needs information and this is the vital link between management and
information. Without information a manger's ability to take decision is seriously impaired.

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Levels of Management in IS
Management however, is not a monolithic entity. Every manager has a distinct role and even
though all managers take decisions, some managers take more important decisions than
others, which have a greater impact on the entire organization. Management actually is itself
divided into levels. Each level of hierarchy has got specific roles, a level of authority,
responsibility, accountability and deliverables. Decision-making therefore is of different
levels of complexity and impact at the different levels of management. Hence, information
requirement is also different for each level.
Antony (1965) has suggested a framework that is widely accepted in which management is
divided into three levels-top, middle and operational. Each level has a distinct role and
responsibility and the structure is pyramidal. This means that in middle management there
are less number of managers than at the operational level and in the top level there are still
lesser number of managers than even the middle level. However, the responsibilities grow
exponentially as one move up the ladder of the pyramid.
The top level managers are responsible for planning and other strategic activities. Ideally
this top management constitutes the CEO, the board and other heads. The top management
decision would include strategic issues that will have a lasting impact on the whole
organization like the decision to open a factory in say China or the decision to launch a new
product, etc. The middle level works on tactical issues. They are responsible for the smooth
functioning of the company and also to pass on critical information to the top management
about markets and competitors, etc. The middle level managers take decisions regarding
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say, whether to have a preventive maintenance in the factory or have breakdown
maintenance. As can be understood their impact even though important, is not a lasting
impact. In different organizations this middle level function is handled by different
designated people. In a large firm a Vice President may also perform the role of a middle
level manager and in some cases the General Manager may perform a middle level role. The
operational management takes decisions on operational issues like taking decisions on
which worker will be deployed for what work, etc. They are basically implementers of broad
decisions taken by the higher tiers of management. For example, if the top management has
decided to make a new product using the same assembly line of the organization then the
middle level managers have to completely reschedule the production planning and
scheduling. This new production plan will then pass on to the supervisors at the operational
level whose job will be to see to it that the broad objectives of the plan remain intact. They
can however decide (like decisions on floor level action, decisions on manpower decision on
overtime) on the best way to make the plan a reality.

The tier-wise structure of management helps in maintaining order. Even though in modern
organizations the levels have blurred a bit, the broad contours remain. However, in different
cultures the levels of management take on new meaning like in Japanese companies. In
Japanese companies the shop floor level managers have a much greater authority than in
other American or Indian companies. This has got more to do with cultural issues than
anything else.

The role of information is vital at each level. As is evident, each level takes decisions with
varying degree of complexity and impact. However, all the decisions are vital for the smooth

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functioning of the company. Each level requires a very distinct type of information. At the
shop floor level one needs operational information about people, processes, guidelines, etc.
All such information is very structured. The manager who goes through the process of taking
the decision at this operational level knows that the decision that he is going to take has been
taken by him or someone before him several times. Uncertainty about the outcome is
minimal. Even then to take the decision, he needs information in a structured format. Like
say, at the shop floor level if a supervisor has to decide on shutting down a machine after
observing deviations in the output and behavior of the machine he needs to know what the
ideal characteristics of the machine are, what the deviation characteristics are and what
needs to be done at the first onset of deviation. This information has to be made available to
him on a real time basis for him to take that simple decision of shutting the machine.
Similarly, for other levels, the same logic holds true. Without information, managerial
decision-making quality is severely impaired. In fact, at the higher tiers of management the
implications of a decision and wrong decisions at that are much more severe than at the
operational level.

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 Characteristics of Different Levels of Management
The different levels of management have different roles and responsibilities. Each such level
works within its own boundary but with the objective of attaining the overall corporate goal.

Top Management Middle Management Operating

Characteristics
Management

Planning activity Heavy Moderate Low

Control activity Low Heavy Heavy

Organizing activity Low Heavy Heavy

Leading activity Heavy Moderate Low

Decision-making Heavy Moderate Low

Complexity

Unstructured and semi Semi structured/ structured

Problems handled
structured structured

Strategic information, Tactical and Operational and

unstructured/semi structured/semi structured
Type of information information
structured from both structured information
required for decision from within the
making within the organization from within the
organization
and outside organization organization
environment

Impacts and Long-term and Medium term Short-term

outcomes organization wide

Understanding of the High Very high Medium to low

line of business

Understanding on High High to medium Low

the business
environment

Understanding on High High to medium Low

the Competition

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Types of IS Reports

At their core, management information systems exist to store data and create reports that
business pros can use to analyze and make decisions. There are three basic kinds of
reports:

 Scheduled: Created on a regular basis, these reports use rules the requestor has provided

to pull and organize the data. Scheduled reports allow businesses to analyze data over

time (e.g. an airline can see the percentage of lost luggage by month), location (e.g. a retail

chain can compare sales figures from different stores), or other parameters.

 Ad-hoc: These are one-off reports that a user creates to answer a question. If the reports

are useful, you can turn ad-hoc reports into scheduled reports.

 Real-time: This type of MIS report allows someone to monitor changes as they occur. For

example, a call center manager may see an unexpected spike in call volume, and find a

way to increase productivity or send some of the calls elsewhere.

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