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Data versus Information
Data versus Information
Data
Data
Data are raw facts and figures that describe the characteristics of an event or object.
In isolation, data have little meaning. For example, a list of sales transactions includes date, time, product ID, quantity sold, and sales amount.
Information
Information
Information is data that has been processed and organized in a way that is meaningful and useful to the user.
For example, analyzing sales data to determine which products are selling well or poorly provides information that can guide business decisions.
Information System
Information System
An information system is a set of components that collect, process, store, and distribute information to support decision-making and control in an organization.
A good example is Walmart's Retail Link system, which collects and processes sales and inventory data, providing meaningful information for managing inventory and sales strategies.
The transformation from data to information involves processing data in a contextually meaningful way, which is critical for informed decision-making within an organization.
Information Value Chain
Information Value Chain
Discretionary and Mandatory Information
Discretionary and Mandatory Information
Discretionary information is information that is not required by law.
Using an Activity-Based Costing system to determine the overhead costs associated with each pound of chicken at Tyson Foods.
Managers must decide if the benefits of discretionary information outweigh the costs of obtaining that information.
Mandatory information is information that is required by law.
Examples include Form 10-K (Annual Reports that include Financial Statements) and Tax Returns.
See SEC EDGAR for examples of required annual and other reports required by public companies.
Since it is required, manager may choose to minimize the costs of producing this information.
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