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1. I.T. for Management
Section2
Chapter 1
Key Definitions

2. Management information
systems(key Definitions)
Data:
Data is fundamentally any information of interest, but these
days, the word data implies a binary (base 2 arithmetic),
machine-readable representation of information.
Literally, "that which is given", data refers to raw facts,
measurements, numbers, and so on. Data can exist in
any form, but is commonly identified with electronic
digital signals.
Data can exist in a variety of forms -- as numbers or text
on pieces of paper, as bits and bytes stored in electronic
memory, or as facts stored in a person's mind.

3. Management information
systems(key Definitions)
Information:
Information is the result of processing,
manipulating and organizing data in a way that
adds to the knowledge of the person receiving it.
Data is raw material to process information
Data that has been processed to add or create
meaning and hopefully knowledge for the person
who receives it. Information is the output of
information systems

4. Management information
systems(key Definitions)
System
A system is an assemblage of inter-related elements
comprising a unified whole. From the Latin and Greek,
the term "system" meant to combine, to set up, to place
together. A sub-system is a system which is part of
another system.A system typically consists of
components (or elements) which are connected together
in order to facilitate the flow of information, matter or
energy. ...
A combination of interacting or interdependent
components, assembled to carry out one or more
functions
Cont…..

5. Management information
systems(key Definitions)
System
An integrated composite that consists of one or
more of the processes, hardware, software,
facilities and people, that provides a capability to
satisfy a stated need or objective.
The systems are classified as deterministic Vs
Probabilistic and Close Vs open
Systems have goal it can take various paths to
take that goal,Subsystems must be aligned to to
the organizational goals

6. Management information
systems(key Definitions)
Information & Uncertainty:
Information reduces uncertainty
Information reduces risk in decisions.However many
decision are time critical
Even many organizations who have made huge investment
in IT find that many of there decision makers are still
starved of right information at right time.This will set a
objective for the information system in terms of
correctness,completeness,accuracy& time response

7. Management information
systems(key Definitions)
Value of Information
• It’s the difference between the project
value with the information and the
project value without the information,
minus the cost of acquiring the
information
• These implies that:
– there must be alternative outcome,
otherwise no information could add value,
which again is the same as to say that
there must be uncertainty

8. Management information
systems(key Definitions)
Value of Information
• If there is uncertainty
– there must be choices, if there is no
choices – there is no decisions to be
made, and information is in fact worthless
• In other words given a set of possible
decisions,a decision maker will select
on eon the basis of information at hand

9. Management information
systems(key Definitions)
Value of Information
• If a new information does not cause the
different decisions to be made the value of
new information is zero
• Since the information reduces risk,The
probability of the risk multiplied by the value
of the decision would give expected value of
the decision
• Any information which eliminates the risk
would therefore have a value of the decision

10. Management information
systems(key Definitions)
Value of Information
Utility of information & therefore value of
information can be expressed in terms of
form,time & place
Hence the emphasis on providing the right
information to the right person,at right time & in
right form.If any of this is not fulfilled,the value of
information so supplied tends to be diluted
In the context of the media ,information also has a
surprise value

11. I.T. for Management
End of Chapter 1