Introduction to Information Systems

Management Uses of Information

Data versus Information

Information is data presented in a form that is useful in a decisionmaking activity. The information has value to the decision maker because it reduces uncertainty and increases knowledge about a particular area of concern. Data are facts or figures in raw form. Data represent the measurements or observations of objects and events. To become useful to a decision maker, data must be transformed into information. The most basic function of an IS, then, is to transform data into information that is useful in decision making. What attributes give information its utility value?


Review Question

What factors distinguish data from information?