ICTE 1053 Lesson 1:

Information and IT
 Relevance of Information

Information has become increasingly valuable for

business entities in general, because of:
1. Stiff competition,
2. Rapid globalization and free trade,
3. Propriety and Confidentiality
ICTE 1053
 DATA vs. INFORMATION

A string of text, numbers, word, can be called a DATA. A data alone

is meaningless.

If data is formatted in a manner that is useful, it becomes an

INFORMATION.

A collection of information is KNOWLEDGE.

ICTE 1053
 DATA vs. INFORMATION

Age
Age: 25 She is a mother in her
25 mid-twenties. Being a
Summarize Interpret
Mother of 3 mother of three, she
Mother
children needs energy for the
3 children job. We can give her a
Has Lactose dairy-free calcium-rich
Lactose
intolerance milk.
allergy Information
Data Data Set
ICTE 1053
 DATA vs.
INFORMATION

Illustrative Example:

Suppose “Red TV”

company has
presented its
financial statement
for its first year of
operation in 1989:

ICTE 1053
 DATA vs. INFORMATION

In its bare form, these numbers may be meaningless. This is just a

data set containing values such as the amounts of each asset,
liability and the equity.

Now, suppose Taylor, the controller of the company, made use of

the values to get something useful, and summarized it in a report
as follows:

ICTE 1053
 DATA vs. INFORMATION

“Considering the first year of operations, the current ratio,

calculated by dividing total assets over total liabilities, stands at
5.00, well above the prescribed industry average of 3.74. This
means that the company
is able to pay its currently maturing obligation on time and with no
difficulties.”

Taylor took a meaningless string of data and summarized it into

something more useful for the business. ICTE 1053
 Attributes of a Good Information

1. Accurate 6. Authoritative
2. Complete 7. Timely
3. Cost-beneficial 8. Easy to use
4. User-targeted
5. Relevant

ICTE 1053
 Information and Primary Activities

1. Inbound Logistics
2. Operations
3. Outbound Logistics
4. Sales/Marketing
5. Service

ICTE 1053
 Information and Support Activities

1. Firm Infrastructure
2. Human Resource Management
3. Procurement

ICTE 1053
 IT in Business Over the Years

1. ERP – Enterprise Resource Planning

2. Cloud Computing
3. Mobile Device Management (MDM)

ICTE 1053