Information,Knowledge,Business intelligence
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This document discusses concepts related to information, knowledge, and business intelligence. It defines data, information, and knowledge; information is processed data that is meaningful, while knowledge represents analyzed information. Business intelligence refers to gathering, processing, and maintaining live, relevant data and information to support timely decision-making. The document also covers information presentation, quality, classification, value, and knowledge management.
Information,Knowledge,Business intelligence
- 2. Introduction Differentiate between data, information and knowledge Effective Information presentation Quality of information Classes of Information Application of value concept to information Value of Additional information Human as information processes Differentiate between tactical and explicit knowledge Page 2
- 3. Information Concepts Information mean process on data Data is raw material and information is finished goods Information has a value in decision making Information brings clarity and creates an intelligent human response in mind Information is a data that has been processed into a form that is meaningful to the recipient Information is a real value Page 3
- 4. Characteristics of Information Improves representation of an entity Updates the level of knowledge Has a surprise value Reduces uncertainty Aids in decision-making Page 4
- 5. Characteristics of Information Improves representation of an entity:- Data is combination of meaningful and non meaningful values where information is always subject oriented and it has created for meaningful purpose so it is effective data representation tool. • Update level of knowledge:- Information is useful to update knowledge of decision maker by providing complete base in which decision maker will take vital decision with use of those information • Information has a surprise value: Information is useful with some meaningful purpose with this it can contain surprise value which is useful in other projects and other departments in organizations Page 5
- 6. Characteristics of Information Reduces uncertainty:- Information reduces uncertainty by providing complete overview of system and providing effective platform to decision maker in which decision maker will make vital decision. Aids in Decision-Making:- With this concept information provides something extra with knowledge and subject oriented description which is helpful to decision maker. Page 6
- 7. Conceptual Model of Communication Whether an entity is data or information it must be transferred threw communication from source to destination with out loss of content. With the use of general model content is travels from source to destination. Source Transmitter Receiver Encoder Channel Destination Decoder Noise and Distortion Page 7
- 8. Information Presentation It is an art which is use to analytically transmitted value from data to information Degree of communication is effected in information presentation One of the method is Information Summarization Generally it has done in tabular format For Example Key For Focus on Information Operations Summarization Management Position Responsibility GM, Divisional Head of Marketing,Materials Mgmt function levels in Performance,Goals,Ta Production Target, the org selective on rget Manager’s condition performance evaluations Page 8
- 9. Information Presentation Another method is effective communication to prevent this one should avoid misuse of information. Here some of methods into beloved table: Method Reason Example Delayed delivery of A possibility of immediate Sales report or copy of information action reduced. It will invoice of sales have knowledge value. representative Change format and Provide only that Sales report to operation content of report information which is mgmt,Sales report to top needed mgmt Superstition and filtering Avoid risk and achieve Price, cost information of information goal Suppress detail and Make it difficult to collect Stastical report with no reference of data and for others and secure references information them Truncated presentation Make it difficult to read Production details Page 9 and secure them
- 10. Attributes of information Attribute Explanation The accuracy in It depends on situation and degree of precision will representation decide accuracy in information The form of presentation Format should be either numeric or graphical, summarized or detailed, printed or displayed in short it should be proper. The frequency of reporting Information should be proper and updated The scope of reporting The coverage of information in terms of entities, area and range will be in terms of decision maker wants. The scope of collection Internal or external according to org’s structure The time scale Related with past, current and future in short entire time oriented The relevance to decision Depend on situation and relevance to decision making making Complete for decision making Information should be completed according to decision making aspects. The timelineness of reporting Information should focus on time late information can Page 10 not acceptable for organization
- 11. Information: A quality product Information is quality product mean it should be error free and helpful to decision maker Reason for occurring errors in information are - An incorrect data measurement - An incorrect collection method - Failure of data processing procedure - Loss of data - Incompleteness of data - Poor application of data validation - Poor data control systems - A deliberate falsification Page 11
- 12. Information: A quality product Points which is useful to maintain quality of information - Parameters impacting quality - Impartiality - Validity - Reliability - Consistency - Age Page 12
- 13. Parameters impacting quality Impartiality:- It has no bias and has been collected without any destroyed view of situation and data should be collected with some motive. Validity:- It is related with purpose of information. If information is able to fulfill the purpose of decision then it is consider as a valid information • Reliability:- It is connected to the representation and what the accuracy of described data and it is based on analysis of system Page 13
- 14. Parameters impacting quality Consistency: Information should follow certain standard regarding consistency and format in short the flow of information should be subject oriented and consistent • Age:- Age should be low or information age not as old as that it becomes an unuseful product in short information should be updated format. Page 14
- 15. Classification of Information According to Prof John Dearden of Harverd university information is classificied of following ways: - Action versus No Action information - Recurring Versus Non Recurring Information - Internal Versus External information - Planning Information - Control Information - Knowledge Page 15
- 16. Classification of Information Action Versus No-Action Information: Example of action information is Maintain a stock ledger and example of no action information is stock balances • Recurring versus non recurring information: The information generated at regular intervals is a recurring information for example monthly sales report. • Internal versus External information: The information which contain internal part of organization is internal for example schedule of employee The information which contain external part is called external information for example government records etc Page 16
- 17. Classification of Information Planning information:- Information which is useful for planning is called planning information the time standard, the operational standards etc • Control Information: The information reporting through a feedback mechanism is called the control information • Knowledge::- A collection of information through the library reports and the research studies build a knowledge base as a source for decision- making. Page 17
- 18. Organization and Information External Low Top Mgmt Middle Mgmt Organization Mgmt Internal High Page 18
- 19. Methods of Data and Information Collection Observation Experiment Survey Subjective Estimation Transaction processing purchased from outside Publications Government Agencies Page 19
- 20. Value of the Information The information has a perceived value in terms of decision making Value should be wiped out uncertainty in decision making Value should be count using following formula VPI= (V2-V1)-(C2-C1) Where V is value of information and C is cost of obtaining information V1 and C1 Is related with one set of information and V2 and C2 is related with new set of information , VPI is value per information This formula is useful to count value of information which includes the cost factors so it provides the perfect idea to count information It is useful tool for manager to make decision regarding use of this information Page 20
- 21. General Model of Human as Information Processor A Manager generally use eyes, ears to pick up information Information should process using filtering method The filtering process generally blocks the unwanted or inconsistent data or the data which does not match the frame of references Filtering is one kind of error correction process which applies on information Filtering is based on manager’s experience, Knowledge, Skills, Choice, Amount of urgency, Confidence in particular method of decision making etc General model is as given belove Page 21
- 22. General Model of Human as Information Processor Brain,Use of Stored Knowledge And Experience Mental Application Input Filtering Output Processing Selection Page 22
- 23. Manager’s Individual Differences The points which effects while collecting information regarding manager’s individual differences are - Internal and External situation of Firm - Personal dogmatism - Risk propensity - Tolerance for ambiguity - Manipulative Intelligence - Experience in Decision Making - Knowledge of Task, tool and Technology - The management level from lower to higher Page 23
- 24. Summary Of information Concepts and their implications Understanding of information concepts is very important and relevant to the system designer and information user the concepts are - Filtering - Simon Model and Applications - Codes and representation - Highlighting - Stastical Analysis - Format - Referencing and Adjustments - Cognitive style - Learning theory - Feedback Loop - Perceived Value of Data - Information Absorption Page 24 - Individual Differences
- 25. Summary Of information Concepts Filtering:- This process take place after information collection this is generally correction of errors in information • Simon model and its application:- The designer should attempt to provide that clearly defines the problem space and decision should provide solution of problem • Codes and representation:- The system designer should evolves such coding system that is easy for user and easy for manager to understand. Page 25
- 26. Summary Of information Concepts Highlighting:- The designer should provide information such a way that a significant differences between standard and performance, The budgets and actual are highlighted * Stastical analysis:- Information should be meaningful best way is provide in stastical format so decision can easily been concluded from them • Format:- Format of information should have completed and easy to understand by user and it should have consistent. • Referencing and adjustments:- Page 26 Designer should able to generate information with references to other system and adjust information according to others
- 27. Summary Of information Concepts Cognitive Style:- Each user have their own style to resolving information so styles of representing information should be easy to implement and useful to other users too. • Learning Theory:- The designer will able to ready to learn something new which is useful to maintain appropriate information and information has not overload with bunches of data and that thing is known by him • Feedback Loop:- While providing information designer will make a feedback loop where users will give their suggestions that can be useful to correction and Page 27 increase quality of system.
- 28. Summary Of information Concepts Perceived value of data:- Some data in information is not useful for that operation but according to its perceived value these are kept in information so this is perceived value which is useful for future. • Information Absorption:- Designer should provide only those information which user will grasp and able to understand • Individual Differences:- Information will always different according to different human being and it is highly effected on decision. Page 28
- 29. Knowledge And Knowledge Management Systems Knowledge is a set of information which provides capability to understand different situations , enables to anticipate implications and judge their effects, suggest ways or clues to handle situations Knowledge is provide a complete platform to handle complex situation and it has capability to provide complete solution to decision maker. Knowledge is best illustrated and applicable to resolve complex problem situations. It has different from data and information Data is raw material where information is process on data Knowledge is analyzed information and generate some conclusive thing which is useful for future. Page 29
- 30. Knowledge And Knowledge Management Systems For Example: - Collect rainfall record on daily bases is data - This data is processed by year and month , it is an information - When this information is analyzed using analytical tools, it revels rainfall pattern. This pattern is knowledge - Generally knowledge is useful for future and improves skill, Performance of user. - It has three components - First is visualization of strategic option to handle complex situation - Second is anticipative and assessment of result - Third is provide a complete base for decision maker. Page 30
- 31. Types of Knowledge It has three types - First is explicit knowledge which can be codified or modeled for example software product and packaging - Second is tacit knowledge which can not be codified it is intangible knowledge for example performance review, Market value of org. - Third is intellectual knowledge which is could be tacit or explicit generally this type of knowledge can be count using first two knowledge - Intellectual knowledge is exact analyzed knowledge from information - For organization point of view to manage knowledge is the key resource because it is important with us it the business economy is turn into knowledge economy. Page 31
- 32. Knowledge Management It is the systematic and explicit management of knowledge related activities. KM is comprehensive towards focusing on three perspectives of business operational, tactical and strategic KM dispels some myths which must be mentioned for correction - KM initiatives and activities lead to more work. Instead improved knowledge and usage. - KM initiatives and activities is an additional function. Instead it is an extension to existing technology driven information management function. - People are often afraid to share their knowledge. Page 32
- 33. Driving Forces behind KM The emergence of KM is a result of many forces in today’s world KM is not an alternative or luxury, But it is a necessity due to demand of customer centric business initiatives KM is steady and customer centric process. It has 2 driving Forces First is External forces which is focuses on outer world Second is internal forces which is focuses on inner thing of organization Page 33
- 34. Driving Forces behind KM External Forces: Business organizations perform environments that they can not control and success depends on how they deal with these forces and still grow. The issues related with external forces are as under - Globalization of Business - Demanding Customers - Innovative Competitors - Resourceful Vendors Page 34
- 35. Driving Forces behind KM Internal forces: Like forces in external environments this impact with internal part of organization. To control negative impact of these forces knowledge initiatives are necessary the points which are effected with this are as given beloved - Bottlenecks in effectiveness - Technological capabilities - Understanding of human cognitive functions Page 35
- 36. Key Aspects of KM There are four key aspects of KM which are importance 1)Accelerating knowledge creation and application:- Knowledge is not static it is completely change according to situation so knowledge application is completely updated format and up to date. 2) Converting tacit knowledge into explicit knowledge:- KM converts tacit into explicit by implies methods and processed which is beneficial to their future usage. 3) Build Knowledge Assets:- Some of the knowledge is strategically important so need to protect it with various types of processes on them. 4) In summary KM involves knowledge generation through creation and acquisition threw integration , pooling, Storage and indentification. Page 36
- 37. Business Intelligence BI is a term that refers to the sum total of gathering and processing data, Building rich and relevant information and maintain it live and up to date. BI is used for timely, Effective decisions and better plan for future. BI is an outcome of turning a raw data into intelligent information by analyzing and re-arranging data according to relationship between data item and actual subject oriented analysis. BI Is depended on following things - Technology and Software infrastructure - Databases, Data Warehouses. - Develops and maintains knowledge databases for all core functions and business. Page 37
- 38. Data, Information and Knowledge, Business intelligence Product Database Function DB Material Database Knowledge Business Customer DW DW Business Vendor Intelligence Database DB Engineering External DB Information Page Database 38
- 39. MIS and Information and Knowledge The main goal of MIS to provide information which has surprise value and reduces the uncertainty to help decision making process. MIS should simultaneously build the knowledge base in the org by processing data obtained from different sources in different ways. Effective communication model provide a special way to transfer data from source to destination with help of noise and distortion The information is quality produce for org. MIS provide specific attention to quality parameters MIS will provide different kinds of information with help of this decision maker can take useful decisions.. Decision maker is human so there is chance of errors but MIS help them to reduced error and also guide them towards the right way. Page 39
- 40. MIS and Information and Knowledge The MIS design should be such that it meets need of total organization. The information may be miscued if it falls if it falls into wrong hands, The mis design should have features of filtering, blocking, suppressions and delayed delivery. Modern Mis not only should provide information but also support management by providing knowledge necessary at all levels for critical decisions. KMS is now a part of MIS suite. Knowledge is a result of putting different information sets together and analyzing them and viewing them in particular manner. Data processing, Transaction processing, Application processing sytsems will give different information sets. First will give and explicit knowledge. Further application of the explicit knowledge over a period to solve the problems creates a tacit Page 40 knowledge.