Chapter-7: Information, Knowledge, Business Intelligence <br /><ul><li>Information Concepts:
 The word information is used commonly in our day to day working. The information has a value in decision making while dat...
 Information brings clarity and creates an intelligent human response in the mind.
 Data is like a raw materials while the information is equivalent to the finished goods produced after processing the raw ...
 Improve representation of an entity.
 Updates the level of knowledge.
 Has a surprise value
 Reduces uncertainty.
 Aids in decision-making.
 Here is a sales report which shown in table will highlight the point that the quality of information could be called good...
<ul><li> In this example sales data is processed with the budget data and further some results are computed, providing inf...
 The sales data progressively becomes an information when processed with other data such as the budget and the new product...
Davis and Olson defines “information as a data that has been processed into a form that is meaningful to the recipient and...
Conceptual model of communication</li></li></ul><li><ul><li> Communication model is used in the MIS. The MIS is equivalent...
 The poor quality of an information due to various factors would create confusion and misunderstanding, which is equivalen...
  A good MIS communicates the information without a noise and distortion to the user.</li></li></ul><li><ul><li> Informati...
 Presentation of the information is an art.
 The data may be collected in the best possible manner and processed analytically, bringing lot of value in the information.
 If it is not presented properly it may fail to communicate anything of value to the receiver.
 The degree of communication is affected by the method of transmission, the manner of information handling and the limitat...
The information can be summarized in a number of ways which shown in Table.</li></li></ul><li><ul><li>Information Summariz...
 The summarization contains the noise and the distortion.
 Another method of improving the degree of communication is through message routing. The principle here is to distribute i...
 The principle of the message routing achieves the spread of information to the appropriate quarters.
 Knowledge is a power and an intelligent person in the organization can misuse this power to achieve personal goals underm...
 In order to control the misuse of information, a control is exercised on the content of information and its distribution....
Upcoming SlideShare
Loading in …5
×

Book 2 chapter-7

643 views

Published on

Management Information System
Chapter-7

Published in: Technology, Education
  • Be the first to comment

  • Be the first to like this

Book 2 chapter-7

  1. 1. Chapter-7: Information, Knowledge, Business Intelligence <br /><ul><li>Information Concepts:
  2. 2. The word information is used commonly in our day to day working. The information has a value in decision making while data does not have.
  3. 3. Information brings clarity and creates an intelligent human response in the mind.
  4. 4. Data is like a raw materials while the information is equivalent to the finished goods produced after processing the raw material.</li></li></ul><li><ul><li> The characteristics of information are:
  5. 5. Improve representation of an entity.
  6. 6. Updates the level of knowledge.
  7. 7. Has a surprise value
  8. 8. Reduces uncertainty.
  9. 9. Aids in decision-making.
  10. 10. Here is a sales report which shown in table will highlight the point that the quality of information could be called good or bad depending on the mix of these characteristics.</li></li></ul><li><ul><li> Sales Information Table</li></li></ul><li>Sales Information Table<br />
  11. 11. <ul><li> In this example sales data is processed with the budget data and further some results are computed, providing information of an exceptional nature, that is the sale of new product in the total sales.
  12. 12. The sales data progressively becomes an information when processed with other data such as the budget and the new product sales.
  13. 13. Davis and Olson defines “information as a data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in the current or the prospective actions or decisions of the recipient”.</li></li></ul><li><ul><li> Whether an entity is a data or an information, it must be transferred through communication from the ‘source’ to the ‘Destination’ without loss of content.
  14. 14. Conceptual model of communication</li></li></ul><li><ul><li> Communication model is used in the MIS. The MIS is equivalent to the transmitter which provides information and sends through reports (channel) to the various receivers, which is decoded or interpreted by the receiver at the destination.
  15. 15. The poor quality of an information due to various factors would create confusion and misunderstanding, which is equivalent to a ‘Noise’ and ‘Distortion’ in the communication model.
  16. 16. A good MIS communicates the information without a noise and distortion to the user.</li></li></ul><li><ul><li> Information Presentation:
  17. 17. Presentation of the information is an art.
  18. 18. The data may be collected in the best possible manner and processed analytically, bringing lot of value in the information.
  19. 19. If it is not presented properly it may fail to communicate anything of value to the receiver.
  20. 20. The degree of communication is affected by the method of transmission, the manner of information handling and the limitations and constrains of a receiver as the information processor, and the organization as the information user.</li></li></ul><li><ul><li> The method used for improving communication are</li></ul>summarization <br />Message routing.<br /><ul><li>The concept of summarization is used to provide information which is needed in the form and content.
  21. 21. The information can be summarized in a number of ways which shown in Table.</li></li></ul><li><ul><li>Information Summarization</li></li></ul><li><ul><li> The principle behind summarization is that too much information causes noise and distortion. i.e., confusion, misunderstanding and missing the purpose.
  22. 22. The summarization contains the noise and the distortion.
  23. 23. Another method of improving the degree of communication is through message routing. The principle here is to distribute information to all those who are accountable for the subsequent actions or decisions in any manner.</li></li></ul><li><ul><li> That is the information is generated with a certain purpose for a primary user, then such information may have secondary purposes to some other users in the organization.
  24. 24. The principle of the message routing achieves the spread of information to the appropriate quarters.
  25. 25. Knowledge is a power and an intelligent person in the organization can misuse this power to achieve personal goals undermining the functional and organizational goals.
  26. 26. In order to control the misuse of information, a control is exercised on the content of information and its distribution. The methods shown in table.</li></li></ul><li> Methods to Avoid Misuse of Information.<br />
  27. 27.
  28. 28. <ul><li>Bias in Information :
  29. 29. While choosing the appropriate method of communicating information, a care has to be taken to see that it is not biased.
  30. 30. For example, while using the techniques of classification or filtering the information, it should not happen that certain information is to be avoided.
  31. 31. This bias enters because people try to block a sensitive information which affect them.
  32. 32. To overcome this problem, a formal structure of organization should be adopted and the type of information and its receiver should be decided by the top management.</li></li></ul><li><ul><li> Many times the data and the information are suppressed but the inferences are informed, with no or little possibility of verification or rethinking.
  33. 33. In this case one who draws inferences may have a bias in the process of collection, processing and presentation of data and information.
  34. 34. Organizations have departments like corporate planning, Market Research, R and D, HRD and so on, which collect the data and analyze for the company and communicate the inferences.
  35. 35. In all these cases personal bias, organizational bias and management bias may be reflected in the entire process of collection, processing and communication inferencing.</li></li></ul><li><ul><li> The presentation of the information will generate a bias and may influence the user. For example, if the information is presented in an alphabetical order and if it is lengthy, the first few information entities will get more attention.
  36. 36. If the information is presented with a criteria of exception, the choice of exception and deviation from the exception creates a bias by design itself.
  37. 37. For a quick grasp, the information is presented in a graphical form. The choice of scale, the graphic size and the colour introduces a bias in the reader’s mind.</li></li></ul><li><ul><li> The attributes to increase information's utility which are following:</li></li></ul><li>
  38. 38.
  39. 39. <ul><li> Redundancy is the repetition of the parts or messages in order to avoid the distortions or the transmission errors.
  40. 40. Redundancy is considered as an essential feature to ensure that the information is received and digested.
  41. 41. Information: A Quality Product:</li></li></ul><li>

×