Mis Lecture 8 Information

8/2/2019 Mis Lecture 8 Information

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Information, Knowledge,Bussines

Intelligence


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Information concept

Characteristics Of Information

Improves rep of an entity

Update the level of knowledge Has a surprise value

Reduce uncertainty

Aids in decision making


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The quality of information could be called

good or bad depending on the mix of these

characteristics


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Information Presentation

Presentation is an art.

The data may be collected in the best possible manner and

processed analytically ,bringing lot of value in the information.

Communication of information is also important. The information and then sends reports to the various

receivers, which is decoded or interpreted by the receiver at

the destination.

A good MIS communicates the information without noise ordistortion to the user.


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The degree of communication is affected by the method of

transmission ,the manner of information handling and the

limitation and constraints of a receiver as the information

processor and the organization as the information user.

The degree of communication can improved by message

routing .

This principle here is to distribute information to all those

who are accountable for subsequent action and decision

making.

It helps to spread of info to appropriate quarters.


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Bias Information

While choosing the appropriate method of communication

should take care that information is not biased.

The presentation of information may create bias and may

influence the user.


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Information A quality Product

Information is a product of data processing.

The quality of information is measured by a manager based

on degree of motivation provides for an action and the

contribution it provides for effective decision making

Quality of information ( Four Dimensions are:-)

1. Utility

2. Satisfaction

3. Error4. bias


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The utility dimension has four facets-

The Form

The Time

The Access

The Possession


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The common key for measuring the quality could be

satisfactory of the decision maker.

An error is the third dimension of the quality. It may be

because various reasons,

1) An incorrect data measurement

2) An incorrect collection method

3) Failure to follow the prescribed data processing procedure

4) Loss of data or incomplete data5) Poor application of data validation and control system

6) A deliberate falsification.


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Parameter Impacting Quality

Impartiality

Validity

Reliability Consistency

Age.


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Classification of Information

Action Versus No action Information

Recurring Versus Non- recurring Information

Internal Versus External Information Planning Information

Control Information

Knowledge.


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More Classifications are

Organization information

Database information

Functional or Operational information.


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Method of Data and Information

Collection

Observation

Experiment

Survey

Subjective estimation

Transaction Processing Purchased fromoutside

Publication

Government agencies.


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Value of the Information

The decision maker feels more secured when you get

additional information in the time of uncertaininty or a risk.

The information is called Perfect Information. It wipes out all

the risk and uncertain situation.

The decision theory stipulates that the value of the additional

information is the value of the change in the decision

behavior resulted by the information, less the cost of

obtaining the information . If the additional info does not any

change in the decision behavior then the value of the

additional info is zero.


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Value of the Information

The value of the additional information making the existing

information perfect(VPI)

VPI=(V2-V1)-(C2-C1)

Where Vis the value of the information and C is the Cost of

obtaining the information.V1and C1 relate to one set of

information V2,C2 relate to the new set. If VPI is very high

,then it is beneficial to serve the additional info need.


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General Model Of a Human as an Information

Processor

A manager or a decision maker uses his sensory receptor,

normally eyes and ears to pick u information and transmit

them to brain for processing and storage. The result of this

processing will be a response which may be a decision , an

action or a least a recognition of the event for future use.

Hence manger is said to be information processor.


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Method Of filtering

It is observed that when too much of info is

overloaded then the manger will have constraints to

take decision hence you need a method of filtering.

In method of filtering it can be of frame of referenceto your knowledge and experience.

And universally acclaimed normal decision

procedure. Or db from proven methods. Such break

even analysis, Pricing selection technology etc.


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Mangers' Individual Difference

The manager's may come to some decision in a given

situation but they may not follow the same decision process.

This is because of the cognitive style of each manager.

Each manager has his own style, a method to perceive the

data, organize and process the same as per his frame of

reference, confidence in the decision procedures and the time

available for the decision making.

The managerial ability, skills and tools pay a considerable role

in the cognitive style of the manager.

These styles affect the information system design and the

satisfaction of the manager.


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Summary of Information Concepts

and their Implications

Understanding of information concepts is very important and

relevant to the system designer and the information user. The

concepts are summarized as follows:

Filtering

The system designer should provide an

appropriate filtering mechanism so that the information is

not suppressed and relates to the frame of reference of the

user.

Care should be taken in the process that the certain valid

information does not get blocked or over emphasized.

A filtering process is used to select and suppress


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Summary of Information Concepts

and their Implications

Simon Model and is Application

The designer should attempt to provide such

information that it clearly defines the problem space

and also takes cognizance of the user's knowledge.The design of the system should be such that an

appropriate mix of these two sources should yield a

decision, leading to a solution of the problem.


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Codes and Representation

The system designer should evolve such coding system that is

easy for the users of the code to interpret.

Secondly, the designer should report the data in such a

manner that the user can grasp it quickly.


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Highlighting

The designer should provide the information in such a way that thesignificant differences between the targets and the achievements,the standards, so that they become easily noticeable by the userwithout search.

Statistical Analysis

The designer should provide the information in such a way that theinformation not only represents something meaningfully but alsoaids in the statistical analysis by the user. The information shouldprovide the additional results such as variance, correlation,coefficients, and futuristic estimates and give a measure ofstatistical significance for the user to consider while decisionmaking


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Format

The designer should present the information in the form or

format which is complete in all respects and in which all data

is processed as per the frame of reference of the user. The user should not be required to do additional processing

with other data set through the computer systems or mentally

by using the data set from the memory.


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Referencing and Adjustment

The designer should evolve a system in such a way that it covers the

valid system boundaries and provides a reference to an acceptable

point (the year, the product, the norm, the standard, the

knowledge), giving a facility to make an adjustment to results orstatus which the information provides

Cognitive Style

Each user has his own style of resolving or reconciling his internal

view and an understanding of the problems or environment versus

the actually perceived or seen or as it exists.

In line with his individual style, he also evolves a process of the

decision making which is personal to him.


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Learning Theory

The designer should appreciate that the user inadvertently is

learning through the information and is building his

knowledge set. Hence the information should be such thatthe user is not overload with the supply of information which

is already known to him.


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Feedback Loop

The designer should provide the information feedback loop,so that the user understands that the process of decisionimplementation is smooth and the results are evaluated with

references to the norms or the expectations, giving the user asufficient motivation to change, amend or act.

Perceived Value of Data

Some data or information may not have a value or animportance in the current operations of the business butsome time in the future or in a different context some value isperceived for the information. The designer would keep thisdata out of the current processing and reporting.


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Information Absorption

The designer should provide only that amount of information

which the user to grasp and use. Any additional information,

beyond the ability of the user's absorption, will be ignored or

go unnoticed without any response.

Individual Differences

The information needs of different managers will differ based

on individual human processing ability and cognitive style.

The designer should support all such needs effectively by

making the separate information reports.


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Organization and Information

Management through decision making is a common feature to

all the organization.

Depending upon the levels in the organization, the nature and

the complexity of the job is determined.

The MIS should acknowledge the problem and difficulties in

various methods of the data gathering and their sources in

the organization.

The people organization, the business organization, the

business organization and the infrastructure of the

organization has an influence on the nature, the type and the

quality of information.


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MIS and the Information Concepts

The goal of the MIS should be to provide the information

which has a surprise value and which reduces the uncertainty.

The designer of the MIS should take care of the data problems

knowing that it may contain bias and error by introduction of

high level validations, checking and controlling the procedures

in the manual and computerized systems

While designing the MIS, due regard should be given to the

communication theory of transmitting the information from

the source to the destination.


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The presentation of information plays a significant role in

controlling the noise and distortion which might interrupt,

while communicating information to the various destinations.

The principles of summarization and classification should be

carefully applied giving regard to the levels of management.

The utility of information increase if the MIS ensures that the

information possesses the necessary attributes.

The information is a quality product for the organization.

A failure to do so would result in a wasteful expenditure in the

development of the MIS and poor usage of investment in the

hardware and software.

Mis Lecture 8 Information

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