IT KNOWLEDGECA Professional Stage - Knowledge Level, ICABTutor: Mohammad Abdul Matin

Chapter 1Information Within Organization

My IntroductionMOHAMMAD ABDUL MATINChief Information Officer, Expolanka GroupChief 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.

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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

Data InformationProcess

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

DataCustomer data (name, age, brand choice, etc.) is gathered and recorded

InformationCustomer 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

PurposeNeeds to have an objective.To inform, evaluate, persuade and organize

Mode and formatSensory (5 senses).Can have different formats.

Formats must help clarity.

DecayValue of information decays with time / changes

RateCharacters or volume against time (e.g. 50 word per minute or 2 mbps)

FrequencyDaily sales report

Attributes of Information Completeness

Incompleteness may lead to wrong decisions (e.g. ROI without the assumptions)

ReliabilityRepeated correctness establishes reliability

Cost Benefit AnalysisBenefits sometime may fall short compared to cost / involvement

ValidityContextual applicability (e.g. a normal Vs exceptional observation)

QualityCorrectness, more logical estimates, etc.

TransparencySays what it needs to say

Value of InformationImpact

OrganizationAn 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 ClassTopics: Rest of Chapter 1