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LECTURE 1
Basic concepts understanding information
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Learning objectives
After this lecture, you should be able to:
distinguish between data, information and
knowledge; describe and evaluate information quality in terms of its characteristics; classify decisions by type and organisational level; identify the information needed to support decisions made at different organisational levels.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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sources into information and to communicate that information, in an appropriate form, to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the the activities for which they are responsible.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
Data?
Lucey, T. (2005) MIS p16
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Data are facts, events, transactions and so on which have been recorded. They are the input raw materials from which information is produced. Examples?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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What is data?
Data are raw facts or observations that are considered
to have little or no value until they have been processed and transformed into information.
Example definitions:
(a) a series of non-random symbols, numbers, values or words; (b) a series of facts obtained by observation or research and recorded; (c) a collection of non-random facts; (d) the record of an event or fact.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
Information?
Lucey, T. (2005) MIS p16
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Information is data that have been processed and communicated in such a way that they can be interpreted and understood by the recipient. Examples?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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What is information?
Information: Data that have been processed so
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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So relevant information
purpose
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information
Why is the effective and efficient management of information important? 1. Expensive to provide 2. Time-consuming to provide 3. Must lead to correct decision making
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information summary
Information:
involves transforming data using a defined
process; involves placing data in some form of meaningful context; is produced in response to an information need and therefore serves a specific purpose; helps reduce uncertainty, thereby improving decision behaviour.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information classifications ?
By source By nature
By level
By time By frequency By use By form By occurrence By type
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information classifications
By source, for example Internal External Primary Secondary Government
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Primary source
Primary data is gathered by you (or
your team) for your own purposes. It could include survey results, commissioned reports and notes of meetings with consultants etc.
Specific examples?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Secondary source (Desk research) Secondary data has been gathered by other people for their own purposes. It includes, among many other things, journals, published reports, internal sales figures and commercial databases. Specific examples?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information classifications
By nature, for example Quantitative Qualitative Formal Informal Bring examples for next week!
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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to make use of figures, such as statistics. Hard data are often collected in order to measure or quantify an object or situation.
Soft data, often known as qualitative data, tend to
focus on describing the qualities or characteristics of an object or situation. Interviews, for example, are often used to collect qualitative data related to a persons opinions or beliefs.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Quantitative information
Quantitative information involves
amounts, such as the average number of customers who come into a shop at various times in a day. This information is objective.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Quantitative
Adcock, D. et al. 1993 Marketing Principles and Practice, Pitman
expressed using a numerical measure is considered quantitative. It include not only numerical data such as obtained from sales and accounting records but also the numerical aspects of other data such as opinion polls ..
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Qualitative information
Qualitative data involves descriptions, which may be
This sort of information is more difficult to categorise/measure, and because it is based on thoughts it is subjective
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Qualitative
Adcock, D. et al. 1993 Marketing Principles and Practice, Pitman
research that cannot be quantified or subject to quantitative analysis. designed to produce a depth of understanding, context and insight.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information classifications
By level, for example Strategic Long-term, Non-routine; Non-repetitive Tactical Medium-term, Non-routine, Non-repetitive Operational Short-term, Routine, Repetitive
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Management issues
From a managerial perspective, this session
knowledge as a key organisational asset; the transformation process from data to information of high quality; the process and constraints of decision making; the different kinds of decisions that managers make and how these affect the organisation.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Technology
Technology
Information
The industries that have moved into the centre of the economy in the last forty years, have as their business, the production and distribution of knowledge and information rather than the production and distribution of things.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Activity
What types of information processing are
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Classification: This involves placing data into categories, for example, categorising an expense as either a fixed or a variable cost. Rearranging/sorting: This involves organising data so that items are grouped together or placed into a particular order. Employee data, for example, might be sorted according to last name or payroll number. Aggregating: This involves summarising data, for example, by calculating averages, totals or subtotals. Performing calculations: An example might be calculating an employees gross pay by multiplying the number of hours worked by the hourly rate of pay. Selection: This involves choosing or discarding items of data on the basis of a set of selection criteria. A sales organisation, for example, might create a list of potential customers by selecting those with incomes above a certain level.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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which of the following might be examples of information? Which might be examples of data?
(a) the date (b) a bank statement (c) the number 1355.76 (d) a National Insurance number (e) a balance sheet
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information value
Tangible value:
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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many of the improvements listed below. State and explain why each of the items listed illustrates a tangible or intangible value of information. (a) improved inventory control; (b) enhanced customer service; (c) increased production; (d) reduced administration costs; (e) greater customer loyalty; (f) enhanced public image.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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well-structured information that is transmitted by informal means, such as casual conversations between members of staff.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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INFORMATION CRITERIA
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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INFORMATION CRITERIA
RelevanceTimelinessAccuracyCurrency Applicability Is it what the recipient wants? Is it provided on time? Is the information correct? Is it current and up to date? Is it based on reality and is it useful? Completeness Is all the required information provided? Comprehensibility Is it easy to understand? Level of detail Is it in sufficient detail?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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INFORMATION CRITERIA
Extra ones identified by Lucey: From a source in which the user has Confidence Communicated to the Right Person Communicated by an appropriate Channel of Communication
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Additional characteristics Confidence in source Reliability Appropriate Received by correct person Sent by correct channels
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Figure 1.2 The business environment of an organisation and the main factors that influence it
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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and communications technologies (ICTs) into its operations, potentially redesigning its business processes around ICT or completely reinventing its business model e-business is understood to be the integration of all these activities with the internal processes of a business through ICT. DTI Definition
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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definition of management that is still widely used in both industry and academia.
To manage is to forecast and plan, to organise,
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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decisions and the factors that influence them. Structured decisions: Situations where the rules and constraints governing the decision are known. Unstructured decisions: Complex situations, where the rules governing the decision are complicated or unknown. Cognitive style: This describes the way in which a manager absorbs information and reaches decisions. A manager's cognitive style will fall between analytical and intuitive styles.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Information Management level Strategic Tactical Operational Wide Narrow Infrequent Frequent External Internal Less certain Wide Summarised Time period Frequency Source Certainty Scope Detail
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Knowledge management
The European Guide to Best Practice in Knowledge
added expert opinion, skills and experience to result in a valuable asset which can be used to make decisions. It is the essential factor in adding meaning to information. Knowledge may be explicit and/or tacit, individual and/or collective Mekhilef et al., 2003
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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Competitive intelligence
The Competitive Intelligence handbook
(www.combsinc.com) presents different definitions of CI, for example: The objective of competitor intelligence is not to steal a competitors trade secrets or other proprietary property, but rather to gather in a systematic, overt (i.e., legal) manner a wide range of information that when collated and analysed provides a fuller understanding of a competitor firms structure, culture, behaviour, capabilities and weaknesses.
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing
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creation of a competitive intelligence system. Its aim is to capture and disseminate information about 30 key competitors and also existing or potential customers served by account representatives. You are designing the system. Working in groups, agree on an approach for:
1. Capturing data (who is involved, what information they need to collect). 2. Entering data (who is responsible for this, how they evaluate and categorise the different types of information entered). 3. Output requirements. Using the framework for quality of information in Table 1.1, what are the requirements in terms of types of content, frequency, who can access the data and filtering according to different criteria? 4. What types of hardware and software may be required for the system (reference to later parts of the course may be needed to answer this)?
Lecture Slides for CMI Diploma unit 5002-Edited and prepared by Dave Dearing