Moore’s Law

 Professed in the 1960s by Gordon Moore, one of the founder of Intel

 States that the storage density of integrated circuits on a silicon chip doubled about every year

 By 1970s the rate of doubling the capacity had slowed to 18 months, a pace that continues today

Characteristics of valuable information

Accessibility:

Information should be easily accessible to those who need it. Information that is hard to obtain or
understand diminishes its value.

Accuracy:

Information should be correct and free from errors. Inaccurate information can lead to poor decision-
making and erroneous conclusions

Timeliness:

The information must be up-to-date and available when needed. Outdated information can be
misleading and result in missed opportunities or incorrect conclusions.

Relevance:

Information should be pertinent to the specific needs and context of the user. Relevant information helps
in making informed decisions and ensures that the user’s time and resources are not wasted on
extraneous data. Irrelevant information, even if accurate, is not useful.

Completeness:

Valuable information provides a comprehensive view of the situation, including all necessary details.
Incomplete information can lead to misunderstandings and incomplete analysis

Consistency:

Information should be presented in a consistent manner, without contradictions. Consistency in

information allows for reliable comparisons and helps in building trust.

Clarity:

The information must be clear and understandable. It should be presented in a way that is easy to
comprehend, avoiding unnecessary jargon or complexity that can make the message ambiguous.

Credibility:

The source of the information must be trustworthy and authoritative. Information from unreliable
sources can be suspect and lead to incorrect decisions.

Economical:
The value of information should justify the cost of obtaining it. Information that is too expensive to
gather may not be valuable in a cost-benefit analysis.

Information System:

 An information system (IS) is an interconnected set of components (people, hardware, software,

data, and processes) that collect, store, process, and distribute information to support decision
making and control in an organization.

 Examples: ATMs, Airline Reservation System, POS, Human Resource Management Systems,
Online Banking, ERP etc.

INFORMATION CLASSIFICATION

 process of classifying information into relevant categories

 Classification ensures that information is handled and protected appropriately

o Making it easier to be found when needed

o Making information available to individuals who are authorized to access it

Factors Influencing Information Classification:

 Value: What is the value or importance of the information to the organization?

 Level of Sensitivity: How sensitive is the information?

 Impact of disclosure: What would be the impact on the organization if the information were
disclosed?

 Impact of Modification: What would be the impact if the information were altered?

 Impact of Destruction: What would be the impact if the information were destroyed or lost?

Best Practices for Information Classification

 Develop a Classification Policy: Establish clear guidelines and criteria for classifying information

 Train Employees: Ensure that all employees understand the classification levels and how to
handle information appropriately

 Use Access Controls: Implement access controls to restrict access to classified information based
on need-to-know.

 Regularly Review and Update: Periodically review classification levels and update them as
necessary.

 Implement Security Measures: Use encryption, monitoring, and other security measures to
protect classified information.
Types of Information System

Transaction Processing Systems (TPS):

 A TPS is used by businesses to process the day-to-day (routine) business transactions

o such as payroll processing, sales, purchases

 Used by users at the operational management level

o Cashier at a Point of Sale, Bank teller

Examples:

o Point of Sale Systems – records daily sales

o Payroll systems – processing employees salary, loans management, etc

Management Information Systems (MIS):

 MIS are used by middle managers to monitor organization’s routine operations

 MIS Collect operational information from different sources, including from a TPS, and convert
them into a summarized form, usually in a report format

o provide managers with the information they need for making decisions

Decision Support Systems (DSS):

 DSS are designed to help managers make complex decisions by providing them with ana lytical
tools to gain insights into complex business problems

 DSS gather information from both internal (TPS, MIS) and external sources (trends within
industry, cost with other companies or suppliers)

 DSS use sophisticated mathematical models, data mining, machine learning, and statistical
techniques (probability, predictive modeling, etc.)

o To provide insights into an organization’s operations

o To make predictions based on historical and real-time data

Example:

o Bank loan management systems: to verify the credit of the loan applicant and predict
the likelihood of the loan being recovered
Executive Information Systems (EIS):

 EIS are designed for senior executives to monitor their companies and to make appropriate
decisions

 They provides easy access to internal and external information relevant to organizational goals
and transform into useful reports

 EIS emphasizes graphical displays and easy-to-use user interfaces for reports

o summaries, graphs, charts

Benefits of Information Systems

 Data Management: Organizes and secures large amounts of data, making it easily accessible
and manageable

 Increased Efficiency: Automates routine tasks and processes and better data management
reducing the time and effort required, resulting increased operational efficiency

 Accuracy: Minimizes errors through standardized data entry and processing

 Improved Decision-Making: Provides timely and relevant information, to help managers make
better-informed decisions

 Strategic Planning: IS supports long-term planning by providing insights into market trends,
customer preferences, and internal performance metrics

BIG DATA

 Organizations store large amount of data in their computer-based information systems because
they conduct so many business transactions

 This data is very significant for organizations

o Contain past information about organization’s operations (ups and downs)

o Future insights (identify trends)

o Decision making

 Such large amount of data is useless for business if not efficiently organized

 Traditional data management technologies do not have sufficient power to store and analyze
big data
DATABASE

 Shared and organized collection of interrelated data designed to meet the information needs of
an organization

o Raw data and Metadata (data about data / description of data)

 Databases are essential for storing all / large amounts of data in one place

o Very much like a library that houses a wide range of books of different types

o Think of data as books

 Data is stored in such a way that it can be easily accessed, retrieved, managed, and updated

Database Management System (DBMS)

 A software package to facilitate the creation and maintenance of database, generally through
an interface. (e.g. MySQL, SQL Server, Oracle)

o Manages Database structure: view and change the design of the database

o Controls access to data: registering and monitoring users

o Contains query language: to create queries for insert, delete, update, retrieve actual
data

o Develop reports

Database system:

 The DBMS software together with the data itself

o Sometimes, the applications are also included

 People (five users)

o System administrator: hardware system support

o Database administrator: manage DBMS use

o Database designer: design database structure

o System analyst and programmers: implement application programs

o End users

 Procedures

o Instructions and rules that govern the design and use of the database system
 Data

o Data used by the organization and a description of this data

 A Database is a collection of organized data

 How that data is organized determines what type of database it is

 Over the history of computers there have been different types of databases –hierarchical and
network, for example – but relational database has been the most prevalent since 1980’s