Information Technology Reference
In-Depth Information
layout begins to emerge (see Figure 1.1a, top). Data and information work the same way.
Rules and relationships can be set up to organize data into useful, valuable information.
The type of information created depends on the relationships defined among existing
data. For example, you could rearrange the pieces of track to form different layouts. Adding
new or different data means you can redefine relationships and create new information. For
instance, adding new pieces to the track can greatly increase the value—in this case, variety
and fun—of the final product. You can now create a more elaborate railroad layout
(see Figure 1.1b, bottom). Likewise, a sales manager could add specific product data to his
sales data to create monthly sales information organized by product line. The manager could
use this information to determine which product lines are the most popular and profitable.
Figure 1.1
Defining and Organizing
Relationships Among Data
Creates Information
(a)
(b)
process
A set of logically related tasks
performed to achieve a defined
outcome.
knowledge
The awareness and understanding
of a set of information and ways that
information can be made useful to
support a specific task or reach a
decision.
Turning data into information is a
process
, or a set of logically related tasks performed
to achieve a defined outcome. The process of defining relationships among data to create
useful information requires knowledge.
Knowledge
is the awareness and understanding of a
set of information and the ways that information can be made useful to support a specific
task or reach a decision. Having knowledge means understanding relationships in informa-
tion. Part of the knowledge you need to build a railroad layout, for instance, is the
understanding of how much space you have for the layout, how many trains will run on the
track, and how fast they will travel. Selecting or rejecting facts according to their relevance
to particular tasks is based on the knowledge used in the process of converting data into
information. Therefore, you can also think of information as data made more useful through
the application of knowledge.
Knowledge workers (KWs)
are people who create, use, and
disseminate knowledge, and are usually professionals in science, engineering, business, and
other areas. A
knowledge management system (KMS)
is an organized collection of people,
procedures, software, databases, and devices used to create, store, and use the organization's
knowledge and experience.
In some cases, people organize or process data mentally or manually. In other cases, they
use a computer. In the earlier example, the manager could have manually calculated the sum
of the sales of each representative, or a computer could have calculated this sum. Where the
data comes from or how it is processed is less important than whether the data is transformed
into results that are useful and valuable. This transformation process is shown in Figure 1.2.
Figure 1.2
The transformation process
(applying knowledge by
selecting, organizing, and
manipulating data)
Data
Information
The Process of Transforming
Data into Information
The Characteristics of Valuable Information
To be valuable to managers and decision makers, information should have the characteristics
described in Table 1.2. These characteristics make the information more valuable to an or-
ganization. Many shipping companies, for example, can determine the exact location of
inventory items and packages in their systems, and this information makes them responsive
to their customers. In contrast, if an organization's information is not accurate or complete,
