Introduction to Information Systems
The "Harry Potter" example that leads off this reading provides an excellent example of pre-planning, organized business processes, and the need for flexibility in information systems. Each Potter volume increased the pre-orders exponentially, and Amazon used its prior experiences to create policies and practices designed to improve customer experience. As you will see, business processes are a blueprint for success, supported by technology, information systems, and a range of other required services.
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?