MIS LECTURE 3

DATA and INFORMATION, DATA PROCESSING AND INFORMATION

SYSTEM

Data
 Data consist of unprocessed facts and statistics.
 They are collected and processed to produce information
 It has no meaning until processed to produce information.
Information
 Information has a meaning and a purpose
 It is produced from data
 It is processed data that has relevance to a particular useful purpose.
All information is produced from data but not all data can produce information.
Data Processing
Data Processing is the process of converting raw data into meaningful information. As
raw materials are transformed into finished products by a manufacturing process, so t
oo, are raw data transformed into information by data processing operations.
Data Processing according to R.G.Anderson “ Consists of those activities concerned
with the systematic recording, arranging, computing, updating, displaying, and printin
g of details relating to business transactions” Other definition are as follows:
1. It is seen as an activity concerned with the systematic recording, arranging, fil
ling, processing and dissemination of facts relating to the physical events occ
urring in the business.
2. It is the conversion of basic or raw data into information for management deci
sion making.
Purpose of Data Processing
The purpose of data processing is to evaluate and bring order to data and place them i
n proper perspective or context so that meaningful information will be produced.
Data Processing Stages
To derive information from data ,all data processing methods follows the same basic f
low paths:
Input----------Processing---------------Output
Input Phase
Data must be originated and prepared before processing, Data can be initially recorde
d on paper source documents such as deposit slips and can then be converted into mac
hine readable form.
Inputs involves Steps Data must be collected, Verified and Coded.
Collection: Data should be gathered from various sources e.g Time Sheets, bank teller
s, etc
Verify: After data has been gathered the accuracy and completeness must be checked.
Coded: Data must be converted to machine readable form for it to be processed.
Processing Phase
Classifying : Identifying and arranging data items into groups e.g Debtors owing less t
han N1m, Sales classified by product or customer
Sorting: Arrangement into a predetermined sequence to facil itate processing e.g payr
oll sorted out by employee name.
Calculating: Arithmetic manipulation of data.
Summarizing: Condensement of data into concise form. e.g total sales of a particular
branch.

Output Phase
Communicating : Information must be in a useable form and must be communicated t
o the user. This could be in soft of hard form.
Storing: Placing data or information into files for reference purposes e.g paper, disket
tes,etc
Retrieving: Recovering stored data or information when needed.
Reproducing: Copying or duplicating information or data.
Sources of Data
The input data required to produce meaning information originates from internal m an
d external sources.
Internal Sources
Internal sources are the generators and distributors of data located within an orga
nization. It consist of individuals and departments within an organization. They fur
nish facts on a regular and planned basis ( I.e. on a formal basis) to support decision
making.
Internal data gathered on a formal basis typically relates to events that had taken plac
e in an organization, its represents feedback to managers on the effectiveness and acc
uracy on earlier plans. Once the need for the data is established, a systematic data gath
ering procedure is designed to produce the facts. Data may also be received on inform
al basis through casual contracts and discussions.
External Sources
External or environment sources are the generators and distributors of data located
outside the business. It includes competitors, government agencies, customers, busin
ess publications, etc. Such sources provide the organization with environmental and/o
r competitive data could help in strategic planning.
Government agencies furnish business with a lot of governmental statistics valuable f
or planning e.g population growth estimates, number of students in universities in Nig
eria.
DATA HIERACHY
This is the systematic organization of data. Below is the hierarchy from the least to th
e highest rank
Bit Byte Field Record File Database Data Ware
house
Bit
A bit is an acronym for binary digits, 0’s and 1’s which is the computer language. A bi
t ( short form of binary digit) is the unit of data in a computer. A bit has a single binar
y value, either ‘0’ or ‘1;.
Byte (Character)
A byte is a collection of related bits. The byte is a unit of digital information that most
commonly consists of eight bits. Historically the byte was the number of bits used to e
ncode a single character of text in a computer and for this reason it is the smallest add
ressable unit of memory in many computer architecture e. STOP in ASCII (American
Standard Code for Information Interchange) code is S= 01010011 T = 01010100 O= 0
1001111 P= 01010000.
Field
A combination of related characters smallest e.g. name, LGA
Record
A combination of fields pertaining to the same entity. E.g A record of a 300L Accounti
ng student, O.Okon
REG No Name Gender LGA State
11/AC/BA/1111 O. Okon Female Onna Akwa Ibom

File
A combination of related records with same fields e.g A file of 300 level Accounting S
tudents
REG No Name Gender LGA State
11/AC/BA/1111 O. Okon Female Onna Akwa Ibom
11/AC/BA/1112 S. Peters Male Uyo Akwa Ibom
11/AC/BA/1113 T. Garuba Male Nasarawa Kano

Database
An integrated collection of related files about a firm, serving as a pool of information
for many users.
Data Warehouse
This is a logical collection of information from different databases that are used to sup
port business analysis and decision making activities.

Qualities of good information. (TV C3AR)

Understandable: Information should be understandable to the individuals who use it.
Information is understandable if it is presented clearly and properly explained.
Relevant : Information must be relevant to the purpose it is intended to serve.. Infor
mation is relevant if it reduces uncertainty, improves decision makers’ ability to make
predictions, or confirms or corrects their prior expectations.
Reliable :. Information is reliable if it is free from error or bias and accurately represe
nt the events or activities of the organization.
Timely: Information is timely if it is provided in time for decision makers to make de
cisions.
Verifiable: Information is verifiable if two knowledgeable people acting independentl
y would each produce the same information.
Accessible: Information is accessible if it is available to users when they need it and i
n a format they can use.
Complete: Information is complete if it does not omit important aspects of the underl
ying events or activities that it measures. Information that completely details what you
want to know
Comparable: Information should be prepared on the same basis, using the same meth
od and same rules.
Communicated: Information should be communicated to a proper person. That is the
person who has the authority to make a decision on the basis of the information. Hard
form or Soft form.
Cost effective. Information costs must not out way its benefits,

1.3.2 Information technology versus information system

INFORMATION TECHNOLOGY
This is the application of computers and telecommunication equipment to store, retrie
ve, transmit and manipulate data.

INFORMATION SYSTEM
All systems and procedures involved in the collection, storage, production and distrib
ution of information. An organized combination of hardware, software, infrastructure,
data and people that is used to accomplish a specified organizational or personal objec
tive

 Levels of Information in Business

Information systems assist employees across all levels of Business
Strategic Information
 Strategic information relates to long term decision making. Over 3-5 y
ears
 Useful for senior management for establishing the overall goal
 Incorporate internal and external information
 Largely informal sources
 Forward looking qualitative information
 Wide ranging
 Precision unimportant
Tactical Information
 Ttactical information relates to medium term decision making. Betwee
n 1-3 years
 Useful for middle management
 Incorporate internal and external information
 Formal and informal sources
 Quantitative and qualitative information
 Medium ranging e.g discounts, fees, switching suppliers
 Precision unimportant
Operational Information
 Useful for lower management
 Largely internal, historic
 Largely formal sources
 Quantitative information and detailed
 Comprehensive, narrow in scope, often critical
 Precision important
 Short ranging e.g customer complaint, inventory levels, daily sales rep
ort
Roles of Information System
Planning: Planning means setting objectives and making plans to achieve these objecti
ves
Controlling: To ensure processes are implemented as planned
Decision Making: Making a choice among alternative courses of action
Recording Transactions: IS are used to record transactions
Performance Measurement: Compare actual versus planned activity to identify varian
ces and take corrective action.