Information Systems and Knowledge Management, Information, data and Intelligence, The Characteristics of Valuable Information, Relevance, Quality, Timeliness, Completeness, Knowledge Management, Global Information Systems, Decision Support Systems, Databases and Data Warehousing, Input Management, Computerized Data Archives Networks and Electronic Data Interchange, The Internet and Research

1. CHAPTER 2:
INFORMATION SYSTEMS AND
KNOWLEDGE MANAGEMENT
- ASST. PROF. MEENAKSHI
PAUL
- G. N. KHALSA COLLEGE

2. CONTENT
2.1 Information, data and Intelligence
2.2 The Characteristics of Valuable Information
2.2.1 Relevance
2.2.2 Quality
2.2.3 Timeliness
2.2.4 Completeness
2.3 Knowledge Management
2.4 Global Information Systems
2.5 Decision Support Systems
2.5.1 Databases and Data Warehousing
2.5.2 Input Management
2.5.3 Computerized Data Archives
2.5.4 Networks and Electronic Data Interchange
2.6 The Internet and Research

3. 2.1 INFORMATION, DATA AND INTELLIGENCE
 Data are simply facts or recorded measures of certain phenomena (things or
events).
 Information is data formatted (structured) to support decision making or
define the relationship between two facts.
 Business intelligence is the subset of data and information that actually
has some explanatory power enabling effective managerial decisions to
be made.
 So, there is more data than information, and more information than
intelligence.
 Ex. Home Depot

4. 2.1 INFORMATION, DATA AND INTELLIGENCE

5. 2.2 CHARACTERISTICS OF VALUABLE
INFORMATION
 Not all data are valuable to decision makers. Useful
data become information and help a business manager
make decisions.
 Useful data can also become intelligence.
 Four characteristics help determine how useful data
may be:
 Relevance
 Quality
 Timeliness
 Completeness

6. 2.2.1 RELEVANCE
 Relevant data have the characteristic of pertinence to the situation at hand.
 The information is useful.
 Relevance is the characteristics of data reflecting how pertinent these
particular facts are to the situation at hand.

7. 2.2.2 QUALITY
 Data quality is the degree to which data represent the true situation.
 High-quality data are accurate, valid, and reliable,
 High-quality data represent reality faithfully and present a good picture of
reality.

8. 2.2.3 TIMELINESS
 Timeliness means that the data are current enough to still be relevant.
 Timely information is obtained at the right time.
 Computerized information systems can record events and present
information as a transaction takes place, improving timeliness.

9. 2.2.4 COMPLETENESS
 Information completeness refers to having the right amount of
information.
 Managers must have sufficient information about all aspects of their
decisions.

10. 2.3 KNOWLEDGE MANAGEMENT
 Knowledge is a blend of previous experience, insight, and data that
forms organizational memory.
 Knowledge management is the process of creating an inclusive,
comprehensive, easily accessible organizational memory, which can
be called the organization’s intellectual capital

11. 2.4 GLOBAL INFORMATION SYSTEMS
 A Global Information System is an organized collection of computer
hardware, software, data, and personnel designed to capture, store, update,
manipulate, analyze, and immediately display information about worldwide
business activities.
 A global information system is a tool for providing past, present, and
projected information on internal operations and external activity.
 Using satellite communications, high-speed microcomputers, electronic data
interchanges, fiber optics, data storage devices, and other technological
advances in interactive media, global information systems are changing the
nature of business.

12. 2.5 DECISION SUPPORT SYSTEM
 Decision Support System : A computer-based system that helps decision makers
confront problems through direct interaction with databases and analytical software
programs.
 The purpose of a decision support system is to store data and transform them into
organized information that is easily accessible to marketing managers.
 Modern decision support systems greatly facilitate customer relationship
management (CRM).
 A CRM system is the part of the DSS that addresses exchanges between the firm and
its customers.
 It brings together information about customers including sales data, market trends,
marketing promotions and the way consumers respond to them, customer preferences,
and more.
 A CRM system describes customer relationships in sufficient detail so that financial
directors, marketing managers, salespeople, customer service representatives, and
perhaps the customers themselves can access information directly, match customer
needs with satisfying product offerings, remind customers of service requirements, and
know what other products a customer has purchased.

13. 2.5 DECISION SUPPORT SYSTEM
 Data collected in business research
projects are a major source of this
input
 Useful information is the output of a
DSS.
 A decision support system requires
both databases and software.
 The DSS becomes part of its global
information system

14. 2.5.1 DATABASES AND DATA WAREHOUSING
 A database is a collection of raw data arranged logically and organized in a
form that can be stored and processed by a computer.
 Data warehousing is the process allowing important day-to-day operational
data to be stored and organized for simplified access.
 A data warehouse is the multitiered computer storehouse of current and
historical data.
 Data warehouse management requires that the detailed data from
operational systems be extracted, transformed, placed into logical partitions
(for example, daily data, weekly data, etc.), and stored in a consistent
manner

15. 2.5.1 INPUT MANAGEMENT
 Input includes all the numerical, text, voice, and image data that enter the DSS.
 Systematic accumulation of pertinent, timely, and accurate data is essential to
the success of a decision support system.
 Input data can also come from external sources.
 Five major sources of data input:
 Internal records,
 Proprietary business research
 Salesperson input
 Behavioral tracking
 Outside vendors and External distributors of data.

17. 2.5.3 COMPUTERIZED DATA ARCHIVES
 STATISTICAL DATABASES
 Statistical databases contain numerical data for analysis and forecasting.
 demographic, sales, and other relevant business variables are recorded by
geographical area
 FINANCIAL DATABASES
 Competitors’ and customers’ financial data, such as income statements and
balance sheets
 VIDEO DATABASES
 Movie studios provide clips of upcoming films and advertising agencies put
television commercials on the Internet

18. 2.5.4 NETWORKS AND ELECTRONIC DATA
INTERCHANGE
 Networking involves linking two or more computers to share data and
software.
 Electronic data interchange (EDI) systems integrate one company’s
computer system directly with another company’s system.
 Much of the input to a company’s decision support system may come
through networks from other companies’ computers.

19. 2.6 THE INTERNET AND RESEARCH
 The widespread usage of the Internet is perhaps the single biggest change
agent in business research.
 The Internet are useful in understanding business research.

20. 2.6.1 WHAT EXACTLY IS THE INTERNET?
 The Internet is a worldwide network of computers that allows users access
to data, information, and feedback from distant sources.
 A domain is typically a company name, institutional name, or organizational
name associated with a host computer.
 A host is where the content for a particular Web site physically resides and
is accessed.
 For example, Forbes magazine’s Internet edition is located at
http://forbes.com.

21. 2.6.2 HOW IS THE INTERNET USEFUL IN
RESEARCH?
 The Internet is useful to researchers in many ways
 ACCESSING AVAILABLE DATA
 COLLECTING DATA

22. 2.6.3 NAVIGATING THE INTERNET
 World Wide Web (WWW)
 A portion of the Internet that is a system of computer servers that organize information into
documents called Web pages
 content providers
 Parties that furnish information on the World Wide Web.
 uniform resource locator (URL)
 A Web site address that Web browsers recognize.
 search engine
 A computerized directory that allows anyone to search the World Wide Web for information
using a keyword search.
 keyword search
 Takes place as the search engine searches through millions of Web pages for documents
containing the keywords.

23. 2.6.4 INTERACTIVE MEDIA AND
ENVIRONMENTAL SCANNING
 Interactive medium
 A medium, such as the Internet, that a person can use to communicate with and interact
with other users.
 Environmental scanning
 Entails all information gathering designed to detect changes in the external operating
environment of the firm.

24. 2.6.5 INFORMATION TECHNOLOGY
 Pull technology
 Consumers request information from a Web page and the browser then determines a
response; the consumer is essentially asking for the data.
 Push technology
 Sends data to a user’s computer without a request being made; software is used to
guess what information might be interesting to consumers based on the pattern of
previous responses.
 Smart agent software
 Software capable of learning an Internet user’s preferences and automatically searching
out information in selected Web sites and then distributing it.
 Cookies, in computer terminology, are small computer files that record a user’s
Web usage history.

25. 2.6.6 INTRANET
 Private data network
 Uses internet standards and technology
 Firewalls for security

26. SUMMARY
 Know and distinguish between the concepts of data, information, and intelligence
 Understand the four characteristics that describe data: The usefulness of data to
management can be described based on four characteristics: relevance, quality,
timeliness, and completeness.
 Know the purpose of research in assisting business operations: A computer-based
decision support system helps decision makers confront problems through direct
interactions with databases and analytical models. A DSS stores data and transforms
them into organized information that is easily accessible to managers.
 Know what a decision support system is and does: Business data come from four
major sources: internal records, proprietary business research, business intelligence,
and outside vendors and external distributors.
 Recognize the major categories of databases.