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Paper 6: Management Information System

Module 8: Data & Information Management

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Prof. Manu Sood

Paper Coordinator Chairman, Department of Computer Science
Himachal Pradesh University, Shimla.

Dr. Ashish Saihjpal

Content Writer Assistant Professor,
University Business School, Panjab University (RC),
Ludhiana.
Items Description of Module
Subject Name Management
Paper Name Management Information System
Module Title Data & Information Management
Module Id Module No.-8
Pre- Basic understanding of what is Data and how information is derived.
Requisites
Objectives To understand management of Data and Information processed.
Keywords Data Processing, Electronic Data Processing, Qualitative Data, Quantitative Data, Value
of Information.

QUADRANT-I
Module-8 Data & Information Management
1. Learning Outcome
2. Introduction
How do we define Data, Information & Knowledge
3. Data Processing
3.1 Stages of Data Processing Cycle
3.2 Kinds of Data Processing
Case: Dominos - Serving the digital pizza slice
4. Classification of types of Data and Information.
4.1 Classification of types of Data
4.2 Classification of types of Information
5. Methods of Data Collection.
6. Data and Information Management
6.1 Value of Information.
7. Summary

1. Learning Outcome:
After completing this module the students will be able to:
 Define what is data and how is it different from information.
 Understand the stages involved in conversion of data to information.
 Understand the various stages of Data Processing Cycle and kinds of Data Processing.
 Classify types of Data and Information.
 Understand methods of Data Collection.
 Understand the concept of Data and Information Management and Value of Information.

2. Introduction

Data in the simplest form refers to the different set of values, a variable may take. These values could be
numeric, alphanumeric or special characters. In computer language, each corresponds to a certain
‘American Standard Code for Information Interchange’ (ASCII) code comprising of 8 bits in binary form.
This binary format (in form of 0 & 1) is well understood by the computer. Data when processed
corresponds to information. This may be in the form of text documents, images, audio clips, software
programs, or other types of data. Computer data is processed by the computer's Central Processing Unit
(CPU) and is stored in files and folders on the computer's hard disk.
Data

Data can be stated analogous to ‘oxygen’ or ‘blood’ that runs in the human body. Data is at the locus of
various systems and databases. Organizations function more efficiently when data flows freely between
various systems, processes and departments. The highest performing organizations pay close attention to
data. Making diligent use of data empowers the organization to attain competitive advantage over its
rivals in the marketplace.

In today’s world it is equally critical for organizations to back up and store historical data for retrieval and
safety. Data management is just as important as the means to obtain it. Competitive organizations ensure
that the data captured is coherent with processes and accessible to individuals who need it well within the
necessary timelines.

Figure 1: The DIK Pyramid

Image Source: https://goo.gl/images/36WmfD.

Information

Information refers to a collection of facts from which inference may be drawn. Information is data which
is extracted, processed or transformed and presented to draw insights. Information, today, includes
electronic and physical information (data, paper documents, electronic documents, audio, video, etc.)
Referring to the DIK Pyramid shown in Figure 1, data finds its place at the bottom of the pyramid. When
the data is organized, processed and filtered it yields information and accumulation of this information
leads to knowledge. Information helps improve the representation of an entity as it aids in decision
making and reduces uncertainty in the organization.

Knowledge
Knowledge refers to know- how and expertise. Knowledge possessed by an individual is a product of his
premise and experience. As per the definition given by Gamble and Blackwell (2001), “Knowledge is
convergence of values, contextual information, expertise, and grounded intuition that provides an
environment and framework for evaluating and incorporating new experiences and information. It
originates and is applied in the mind of the knower’s. In organizations it often becomes embedded not
only in documents or repositories, but also in organizational routines, practices and norms.”

3. Data Processing: Converting Data to Information

Data processing refers to the derivation of useful information from unstructured data. Figure 2 is
representative of numeric data. However, giving a context to such a data i.e. date, time or monetary value
adds meaningful information about the data.

16062016
Data

Information Time Money

Date
derived from 16:06:16 $16,062,016
16/06/2016
data

Figure 2: Information derived from Data

Other Data Processing Examples can be understood as under:

 The examination branch hands over examination answer sheets to the concerned teacher. The
teacher marks the answer sheets and enters corresponding scores on a score sheet subject-wise.
The teacher calculates the total and average score for each student. Report card for each student is
prepared and a master report sheet is prepared and kept for each student.

 An organization compiles the data of daily check-in and check-out time of all employees from
biometric sensors connected to the Human Resource Database. This device maps the unique
finger prints of each employee with his employee ID. The employee ID further is linked to the
employee profile with all relevant information of an employee. This is used to calculate the
number of hours worked. These details are then fed into the database of employees against their
compensation slab. At the end of the month, the salary is computed by totaling the total hours
worked multiplied by compensation per hour to credit the salary.

 The Library Management Systems of schools and colleges provide faster issuance and record
keeping. Each book carries a unique bar code which is mapped to the database. The database is a
repository of total books and those issued with the unique identification of the reader. It carries
data of past details of issue and return dates. The optical reader reads the bar code and feeds the
relevant information at the time of issuance and due date of returning the book. Sensors can
detect any infringement.
3.1 Stages of Data Processing Cycle

Different stages of a data processing cycle are represented in Figure 3 and explained below:

Collection of Preparation
Data Input of Data
Stage

Output and Processing

Storage
Interpretation Stage

Figure 3: Stages of Data Processing

Image Source: http://www.sfcc.edu.hk/academic_subjects/cs/teaching_notes/CIT_theory/01_data_pro.pdf

1. Collection of Data – Collection of data is a very important step in the process, since the quality of
data collected largely defines the quality of the output. Once the problem is well defined, it gives
a better estimate of the data required. The process involved in data collection can be quantified
better on account of what and how much data is to be captured. The collection process needs to
ensure that data gathered are both well defined and accurate.

2. Preparation Stage - Raw data cannot be used for processing. Preparation stage is the modification
of data into format that the computer understands. This process includes classifying, coding,
rearranging of edited raw data.

3. Input of Data – This stage includes data to be converted to a machine readable form. Data is fed
via input devices such as keyboard, scanner or data entry from an existing source. The data needs
to follow a pre-defined format due to complexity and the cost involved. Many businesses tend to
outsource this stage to third parties.

4. Processing Stage – The data is manipulated by sorting, calculating, updating etc. Usually a set of
procedures or instructions are followed. Numerous software programs are usable in case of large
volumes of data to be processed within very short periods.

5. Storage – This stage involves the backup created for usable information for future reference. It
further allows fetching data as per business needs, allowing it to be passed on to the next stage
directly. Every computer uses storage to hold system and application software.

6. Output and Interpretation - This is the final stage where the user receives the processed
information. The output may be viewed by the user either onto the monitor of the computer or
could be held in the form of a report along with an audio, video file. The output is the processed
information that guides the future decisions and meets the business needs.
3.2 Kinds of Data Processing

Figure 4 highlights the three distinct techniques of data processing. These are:

Electronic
Data
Mechanical Processing
Data
Processing
Manual
Data
Processing

Figure 4: Types of Data Processing

1. Manual Data Processing – It implies when data is processed solely by human experts without any
intervention of automated tools. All the calculation upon data is performed manually. This is a time
consuming and slow method and the chances that error may occur are much higher.

2. Mechanical Data Processing - The mechanical process is faster and more reliable than the former.
Mechanical devices such as calculator or type writer helps to process calculations faster; the mechanical
billing system generates a bill faster than a corresponding manual one. This leads to fewer errors in
computation.

3. Electronic Data Processing – It is the fastest and a very accurate mode of data processing today using
computer generated set of instructions. Electronic data processing has industry vide applications.
Enterprises, public and private offices, banking, financial and academic institutions etc commonly use this
methodology.

Case: Dominos: digitizing the pizza slice

Exhibit 1: Dominoes AnyWare Implementation

Image Source: http://www.dominos.com
Domino’s, an everyday name in fast food restaurants, is serving nearly 85 markets across the globe.
Domino’s AnyWare (refer Exhibit 1) implementation was an ambitious initiative to allow customers to be
able to place orders from multiple access points. These ranged from placing orders by using texts,
Twitter, Amazon Echo, a car/TV or smart-watch app, a voice-activated mobile app, to name a few. This
application enabled Domino’s to capture a lot of data which can further enhance customer service and
generate revenue.

Exhibit 2: Dominoes Zero Click Ordering

Image Source: http://cdn.ndtv.com/tech/images/dominos_zero_click_app_screenshot_google_play.jpg.

Data captured is fed into the Domino’s Information Management Framework. This is intelligently
mapped with Geo-code information that derives coordinates of customers and associates with postal
service demographic and competitor data, to allow in depth customer segmentation and profiling. The
“zero click ordering” options by Domino’s works on a similar know-how (Ref Exhibit 2).

Information gets collected via multiple touch points and gets accumulated both in the structured and
unstructured format, pouring into the system every day. Domino’s serves up a good example of how
enterprises can leverage customer data and roll out information that enhances cross-selling and up selling.
The store house of information allows Dominoes to offer a basket of options unique to the customers
buying history and choices.

4. Classification of types of Data and Information

4.1 Classification of types of Data

At the highest level, two main types of data exist namely Qualitative and Quantitative Data, as shown in
Figure 5.
 Qualitative Data

Quantitative Data

Figure 5: Types of Data

Quantitative data deals with data that can be numerically stated and measured such as weight, length,
height etc. On the other hand, qualitative data comprises of those parameters that can't be easily measured
such as suitability, color, applicability etc.

 Quantitative Data: It can further be classified as continuous and discrete data.

- Discrete data implies that the values are not included in decimal points or in fraction. It only
deals with whole numbers or integers. E.g., the number of patients in a hospital is discrete
data, since we count whole, indivisible entities. They cannot be stated in values such as 2.5 or
1.6 but whole values.

- Continuous data on the other hand can be fragmented further or reduced to finer levels. For
example, measuring the fetal growth during the pregnancy by an ultra-sound i.e. length
(inches) and weight (grams) of the baby. Therefore, height, weight, length width etc. are
example of continuous data.

Continuous Data

Discrete Data

Figure 6: Categorization of Quantitative Data

 Qualitative Data: Nominal, Ordinal, Interval and Ratio Data

While classifying or categorizing something, we create qualitative or attribute data. There are
four main kinds of qualitative data as shown in Figure 7.
 Nominal Data Ordinal Data Interval Data Ratio Data

Figure 7: Categorization of Qualitative Data

Exhibit 3: Categories of Qualitative Data

Image Source: http://www.kdnuggets.com/wp-content/uploads/statistics-levels-measurement.jpg

- Nominal Data – The word 'Nominal' is derived from the Latin nomen, meaning
'name', Therefore, nominal data deals with assigning a label or a nomenclature to
any variable. The data does not have a rank significance but is only for the purpose
of identification. Nominal basically refers to categorically discrete data. For
example: jersey numbers printed on back of player’s tees are merely to identify them
better when they are on the field. Another example can be, labeling of items in a
grocery store that are purchased only once in 2 months by customers. Exhibit 4
illustrates few of the other examples.

Exhibit 4: Examples of Nominal Scale

Image Source: http://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/

- Ordinal data – Ordinal data is not only placed in an order but carries a particular rank to be
identified. Though the ordinal data refers to quantities that have a natural ordering but, the
 differences among two values may not be clearly stated. Percentile scores of students,
assigning grades to students in their performance are examples of ordinal Scale. Exhibit 5
gives another example of ordinal data.

Exhibit 5: Example of Ordinal Scale

Image Source: http://www.emeraldgrouppublishing.com/research/img/ordinal_data.gif

- Interval Data – It not only states the ranked order but also specifies the exact differences
between variables so that data can be computed and stated clearly. There is no natural zero
point because the value of zero is arbitrary. For example when referring to the twelve hour
format/ twenty-four hour format as shown in Exhibit 6 the difference between each interval
can be stated in exact terms.

Exhibit 6: Example of Interval Scale

Image Source: http://www.learnalberta.ca/content//memg/Division04/Interval%20Scale/TimeDifference.gif

- Ratio Data - The ratio of measurement is most accurate representation of data. Its additional
property is the indication of absolute zero. This implies absence of the quantity being
measured. Example of a ratio scale is the amount of money in a bank account. Money is
measured on a ratio scale because, in addition to having the properties of an interval scale, it
has a true zero point: if you have zero money, this implies the absence of money. The other
common examples are, distance travelled, speed, time, and weight as shown in Exhibit 7.
Exhibit 7: Examples of Ratio Scale
Image Source: http://www.sixsigmatrainingconsulting.com/wp-content/uploads/2010/10/ratio-scale.bmp

4.2 Classification of Types of Information

The information can be classified in multiple ways for a better understanding. As per John Dearden of
Harvard University information can be segregated as:

- Action vs. No-Action Information: The information which prompts an action is called action
information. E.g., “non reconciliation of accounts” reports call for an action to be initiated
and thus, called as action information. While the information which communicates only the
status is No-Action Information. The monthly statement is an example of no-action
information.

- Internal and External Information: The information compiled from internal sources of the
organization is termed as internal information while the information generated from
secondary data sources and government reports, the industry survey etc. are termed as
external information.

- Recurring vs. Non-Recurring Information: The information compiled at periodical intervals is

recurring information. The sales funnel the quarter revenues, profits, stockstatements etc and
are recurring information. While, the financial analysis or the report on the market research
study are the good examples of non- recurring information.

Further, on basis of application, information can be categorized as:

- Planning Information: The information that becomes the part or forms the foundation for
strategic or operational planning of any activity is termed as the Planning Information e g.
specification sheet, product manual, time standards etc.

- Control Information: Control as a management function means setting standards, measuring

the actual performance and taking corrective measures accordingly. Hence, when the status of
an activity is reported through a feedback mechanism it is called control information. When
 such information shows a deviation from the goal or the objective, it will induce a decision or
an action leading to control. e.g., security, tracking control systems, severs logs etc.

- Knowledge Information: A collection of information through the library records and the
research studies to build up a knowledge base as information is known as Knowledge
Information.

- Organization Information: When the information is for wide circulation and is used by
everybody in the organization, it is called Organization Information. Product manuals,
notifications, work orders are used by a number of people in an organization.

- Functional/ Operational Information: When the information is used by specific business

departments is called Functional/Operational Information. E.g., logistics information,
delivery schedules. This information is mostly internal to the organization.

- Database Information: When the information has multiple use and application, it is called as
database information. Such as, address directories, supplier information.

On basis of management hierarchy, information can be categorized as:-

- Supervisory Level – The supervisory level of information relates to operational tasks and is
required at each level of the organization. E.g., business correspondence, circulars, reports
and spreadsheets. To ensure smooth flow of information from bottom to top level, a clear and
easy to use management information system should be provided so as to fulfill operational,
business and decision making goals.

- Middle Level - Such information sharing occurs within teams, divisions, business units, etc.
This information may be critical to the day-to-day activities of the group. E.g., project
documentation, business unit specific content, meeting minutes, etc.

- Top Level Information - At the top level, corporate information is useful for whole of the
organization as it defines the direction of business. This information is generally well
addressed by the corporate intranet. Examples of corporate information include policies and
procedures, HR information, online forms, phone directory, etc.

It is imperative to note that, an information management solution is essential and be provided to staff at
each of the three levels else uniformity of problem handling and cohesion among teams cannot be
established.
The flowchart in Figure 8 gives an overview of the categories of information discussed above.

Information

Classification by Classification by Classification by

Characteristics Application Management Hierarchy

Action vs. Non Action Planning Supervisor

Information Information Level

Recurring vs. Non Control Middle

Recurring Information Information Level

Knowledge
Internal vs. External Information Top Level
Information Information

Organization
Information

Functional
Information

Database
Information

Figure 8: Classification of Information

5. Methods of Collecting Data

The data collection methods used by analysts are called fact- finding techniques which impact the quality
of information. Also, the design of data collection method also decides the quality of data and
information. The methods of data collection and processing become a part of the MIS. Moreover, it is
essential for an MIS expert to understand the potential problems of biasness, accuracy, precision of
various methods along with their application. The various data collection techniques are illustrated in the
following table Figure 9 along with suitable examples.
Method Explanation
Observation A useful method to observe
certain documents, processes and
the way they have been drafted.
Experiment Information is retrieved from
interaction of variables under
controlled conditions
Survey Helps to take feedback from
target audience using
questionnaire method.
Subjective estimation Collecting information by expert
opinion. .
Transaction Processing Needs a platform to capture
transaction load.
Purchase from Outside Detailed deports purchased from
market research companies.
Publication Depends upon writer’s viewpoint
Government Agencies Data is authentic but not always
available in latest form.
Figure 9: Data Collection Techniques
Examples
A jewellery brand observes
trends and preferences of
customers and collect data before
creating future designs. They are
able to analyze the price
sensitivity and preferences based
on observing trends during a
period of time.
Using the test marketing method
to experiment and check the
customer response to new
packaging styles of perfume
bottles.
Market survey, opinion polls, and
census. e.g., Survey conducted to
check the vaccination status of
children below 5 years in a city.
Cricket experts are called for
discussion on performance of
players and tournaments.
Sales reports, Payroll, Visitor
Count, and Account Statements
record no of transactions.
Market and technology studies.
Reports purchased from Gartner,
Forrester Research E.g., Number
of 4G Users in Asian Countries.
The government publications, the
industry publications, the
institutional publications such as
CRISIL, BANKS, UNESCO
The Reserve Bank of India
publications. Ministry of HRD
Reports.
6. Data Management vs. Information Management

It is important to state here that, data management is a subset of information management and given
below are the essentials of the same:

 Data is managed as a valued resource since capturing data requires both time and effort.
 The data management process is an end to end process comprising of acquisition, accumulation,
processing, security, and documentation and archival of data as per business utility and needs.
 It further includes practices on creating metadata and documentation for long term.
 Therefore, the underlying criterion of data management is to ensure the data is valid, accurate,
complete, and secure and further to develop and execute Data architectures and procedures that
manage the full data lifecycle.

No doubt, misplacing information is a big problem but having incorrect information is much bigger.
Handy information should be physically organized and easy to access. Having the right information and
being able to get it in real-time will ensure higher productivity. Once the information is captured; it must
be so stored that people can utilize it and make changes as needed. There are physical and logical views
concerning information management. The physical view deals with how information could be stored on
storage devices, while the logical view deals with that how the information could be arranged while
simultaneously working with it. Hence, giving arise to the need for Information Management in
organizations.

Hence, Information Management is defined as

 The concept of managing processes, the technology and the people who use them to control the
usage of information required for management and business intelligence purposes.
 Formulating the organizational structure for handling flow of information and its timely delivery.

6.1 Value of Information

Information has a cost for its acquisition and maintenance. Thus, before a particular piece of information
is acquired, decision maker must know its value from an economic, business, technical and risk
perspective (refer figure 10). The information has a perceived value in terms of decision making. The
decision maker feels more confident when additional information is received in case of decision making
under uncertainty or risk.

Economic Dimension Business Dimension

Value of
Information

Technical Dimension Risk Dimension

Figure 10: Matrix showing value of Information

1. Economic Dimension: This implies the cost associated with acquisition of information and the
benefits derived from it. Total cost of information is a summation of cost involved in data
acquisition, data maintenance, information processing and cost of communication. For any
system that has a low response time, the cost is high. The cost is depends on accuracy, speed of
generation etc.

Value of information = Cost to get information - benefit

2. Business Dimension: Each level of management has different information needs as the managers
have different responsibilities and functions to perform in an organization. Therefore, the value of
information is perceived on the basis of its functionality.

3. Technical Dimension: This dimension refers to the technical aspects such as database queries,
turnaround time to respond, security, validity, deriving relationships etc.

4. Risk Dimension – Handling large amount of information has its own major concerns.
Confidentiality and secrecy are of paramount importance to ensure information is not misused.
This arrangement needs various levels of security and continued monitoring via hardware and
software.

7. Summary

In any organization, data are the single most critical entity on which the knowledge blocks are built.
Extensive efforts are put in acquiring data from multiple access points to derive information. It is then that
the data are analyzed, stored and interpreted and verified from enumerable data sources. To ensure this, a
formal and structured framework needs to be put in place to handle large volume of data. This shall not
only facilitate authentication but also enable quick information search and transaction processing for
business applications. While, Information Systems and its infrastructure is that platform that enables to
store, analyze and retrieve information which is necessary and facilitates quick decision making for
industrial and academic applications.