ICAB - ITK Chapter 1 class 1 - Information within Organization

IT KNOWLEDGE
CA Professional Stage - Knowledge Level, ICAB
Tutor: Mohammad Abdul Matin
Chapter 1
Information Within Organization

My Introduction
MOHAMMAD ABDUL MATIN
Chief Information Officer, Expolanka Group
Chief Executive Officer, Innoweb Limited
Previous Roles:
• Chief Information Officer, Rangs Group
• Head of Business IT, Rahimafrooz Group
• Country Infrastructure Manager, BOC Bangladesh Ltd.
• Project Manager, Prolific Software Ltd.
SlideShare: http://www.slideshare.net/mamatin
LinkedIn Profile: http://bd.linkedin.com/in/mamatin
Email: abdul.matin@gmail.com

Some (Binding) Ground Rules
For the benefit of all participants….
(1) Your ATTENTION in the WHOLE session
(2) Please avoid MOBILE phone calls
(3) Please avoid CROSS DISCUSSIONS
(4) Please take NOTE as required

Chapter Outline
 What is Information?
 Difference Between Data and Information
 Why Information is a Key Resource in Organization?
 Attributes of Information
 What is an Organization?
 Characteristics of Decision Support System
 Information System and Different Levels
 Information Systems Between and Within Organizations
 What is Financial Reporting System and Role of IT in FRS

Data Vs Information
• Raw Facts
• Unorganized
• Unprocessed
• Chaotic or Unsorted
• Input to a Process
Data
• Useful & Relevant
• Organized
• Processed
• Ordered or Sorted
• Output of a Process
Information
Process

Data Vs Information
 Examples….. (Data or Information?)
– End of month bank balances of last four months
– Current total payable to vendor “X”
– Receiving entry of a product supplied to your store
– Your photograph 

Data, Information & Knowledge
Data
Customer data (name,
age, brand choice,
etc.) is gathered and
recorded
Information
Customer data organized
and placed in the context
of the company to make it
relevant to the business Knowledge
Analyzed and established
customer buying behavior
and pattern of brand
retention

Information is a Key Resource
 Effective business decision making
 Identifying opportunities or threats (e.g. PEST, SWOT)
 Understanding the current status to set proper goal
 Rewarding or nurturing “good” and addressing “bad”
 Responses to economic events or changes
 And, many more…

Attributes of Information
 Availability
Useful only when required
 Purpose
Needs to have an objective.
To inform, evaluate, persuade
and organize
 Mode and format
Sensory (5 senses).
Can have different formats.
Formats must help clarity.
 Decay
Value of information decays
with time / changes
 Rate
Characters or volume against
time (e.g. 50 word per minute
or 2 mbps)
 Frequency
Daily sales report

Attributes of Information
 Completeness
Incompleteness may lead to
wrong decisions (e.g. ROI
without the assumptions)
 Reliability
Repeated correctness
establishes reliability
 Cost Benefit Analysis
Benefits sometime may fall
short compared to cost /
involvement
 Validity
Contextual applicability (e.g. a
normal Vs exceptional
observation)
 Quality
Correctness, more logical
estimates, etc.
 Transparency
Says what it needs to say
 Value of Information
Impact

Organization
An organized group of people with a particular purpose,
such as a business or government department.
 For Profit Vs Not for Profit
 Businesses or Industry wise diverted:
– Financial
– Manufacturing
– Retail
– Logistics & Transportation
– Service, etc.
 Can also be Divisional or Departmental Organization

How Organizations Differ
 Ownership structure
 Control / Management
 Activity / Industry
 For Profit or Not for Profit
 Size (e.g. fortune 500, large, SME, etc.)
 Legal Status (e.g. company, association, club, etc.)
 Sources of Fund (e.g. borrowing, shares, Govt. !)
 Technology (e.g. auto and conventional rice mills)
 Geographical disparity (i.e. local, multinational)

DSS
DSS = Decision Support System
 Decisions are two types:
– Programmed (e.g. inventory replenishment)
– Non-programmed (e.g. investing in a new technology)
 Where does DSS come into play?
– Generally in non-programmed decisions
 Why?
– It’s flexible, adaptive, applies to various levels of management,
can be intense, analytical, easy to use, etc.

DSS
 Who uses DSS?
– Generally, the mid level Management
– Can be used by anybody in the organization
 Examples:
– Budget Variance Analysis
– Production Costing Analysis
– Attractive Customer Segment Analysis

Exam Questions
 What is Information? Narrate the importance of
Information.
 Write in brief, the important attributes of Information.
 What is DSS?

Thank You
Next Class
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ICAB - ITK Chapter 1 class 1 - Information within Organization

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