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Value & Importance of
Information
www.ICT-Teacher.com
• Understand that information is a commodity and as such,
can have a monetary value, the level of which depends
on its accuracy, its potential use and its particular
intended use.
• Describe the overheads involved in ensuring that
information is up-to-date and of use to an
organisation/individual.
Importance
• Information has become a valuable resource,
just as much as capital infrastructure and
people. Name some organisations where the
collection of data is essential for their
continued running?
• Information is collected on any amount of
different items and used by managers to make
strategic decisions concerning the organisation.
• Can you think of a situation where
information was not used wisely and an
organisation has suffered the
consequences?
Examples
• Clico
• Diagnose with incorrect illness
• Add your experiences
Importance of Information
• Information technology is fundamental to the success of any
business
• The information that is collected and/or assembled in any
business is as valuable a resource as capital or people
• Information may cover:
– Market trends
– Buying preferences
– Customer profiles
• It may be processed, summarised, and analysed by
computers before being used by managers as the basis for
decision-making
• As discussed earlier, information must be:
– Accurate
– Complete
– Up-to-date
The Value of Information
• How does the following information have
value:
– a list of current account customers whose
account have a large credit balance,
– a list of customers who have bought new cars
from a garage over the past three months,
– an on-line database on CD ROM of all the
post-codes in the UK,
– a list of credit card customers who have not
kept their accounts in order (late payers etc).
Information as a Commodity
• Have you or your family been targetted for
particular mail advertisements?
– Consider: making a credit card purchase, a
mail order purchase, a telephone order
purchase, information about you and the
product you buy goes into a database. The
information can be used to target you with
advertisements on products that you are most
likely to buy!
• Why may you get advertisements from many
other different organisations?
Usefulness of Data
• Companies that sell products by mail order need
to keep up-to-date lists of name and addresses
of customers who may be interested in making a
purchase. This data is very valuable and can be
sold to other ‘like’ companies. What would
make this list become of little value?
• What could be added to the data so that it
can be kept up-to-date?
• Is the cost of keeping data up-to-date,
accurate, and complete worthwhile to the
company?
Overheads
• Collecting the data
• Data conversion / input into a database
• Frequency of collection / up to date
• Control, protection and secrecy
• Validation checks and manual entry
• Frequency of processing
• Output lists, use of paper and ink.
Quality Of Data
• To be useful, data must be:
– Accurate
– Up-to-date
– Complete
• How can data held be accurate?
• How can data be kept up-to-date?
• How can it be known that data is complete?
• Data held by organisations has been collected
using time and money, how can they know that
the data collected will be relevant tomorrow?
• Would it be sensible to date stamp every entry?
The benefits of ICT
• Speed of processing
• Vast storage capacity
• Ability to search and combine data in many
different ways
• Instant response
• Accurate results
• Communication
• Improved company image
Limitations of ICT
• New systems nearly always have some drawbacks.
These could include:
– Job losses among employees
– New or redesigned accommodation may be needed for
the setup
– Faults in the software may mean the new system does
not work as planned
– Inadequate hardware may lead to bottlenecks in the flow
of data around an organisation
– Hard to extract information in the right form
– Output only as good as input
• (GIGO – Garbage In Garbage Out) **important jargon

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Lesson 6 value & importance of information

  • 1. Value & Importance of Information www.ICT-Teacher.com
  • 2. • Understand that information is a commodity and as such, can have a monetary value, the level of which depends on its accuracy, its potential use and its particular intended use. • Describe the overheads involved in ensuring that information is up-to-date and of use to an organisation/individual.
  • 3. Importance • Information has become a valuable resource, just as much as capital infrastructure and people. Name some organisations where the collection of data is essential for their continued running? • Information is collected on any amount of different items and used by managers to make strategic decisions concerning the organisation. • Can you think of a situation where information was not used wisely and an organisation has suffered the consequences?
  • 4. Examples • Clico • Diagnose with incorrect illness • Add your experiences
  • 5. Importance of Information • Information technology is fundamental to the success of any business • The information that is collected and/or assembled in any business is as valuable a resource as capital or people • Information may cover: – Market trends – Buying preferences – Customer profiles • It may be processed, summarised, and analysed by computers before being used by managers as the basis for decision-making • As discussed earlier, information must be: – Accurate – Complete – Up-to-date
  • 6. The Value of Information • How does the following information have value: – a list of current account customers whose account have a large credit balance, – a list of customers who have bought new cars from a garage over the past three months, – an on-line database on CD ROM of all the post-codes in the UK, – a list of credit card customers who have not kept their accounts in order (late payers etc).
  • 7. Information as a Commodity • Have you or your family been targetted for particular mail advertisements? – Consider: making a credit card purchase, a mail order purchase, a telephone order purchase, information about you and the product you buy goes into a database. The information can be used to target you with advertisements on products that you are most likely to buy! • Why may you get advertisements from many other different organisations?
  • 8. Usefulness of Data • Companies that sell products by mail order need to keep up-to-date lists of name and addresses of customers who may be interested in making a purchase. This data is very valuable and can be sold to other ‘like’ companies. What would make this list become of little value? • What could be added to the data so that it can be kept up-to-date? • Is the cost of keeping data up-to-date, accurate, and complete worthwhile to the company?
  • 9. Overheads • Collecting the data • Data conversion / input into a database • Frequency of collection / up to date • Control, protection and secrecy • Validation checks and manual entry • Frequency of processing • Output lists, use of paper and ink.
  • 10. Quality Of Data • To be useful, data must be: – Accurate – Up-to-date – Complete • How can data held be accurate? • How can data be kept up-to-date? • How can it be known that data is complete? • Data held by organisations has been collected using time and money, how can they know that the data collected will be relevant tomorrow? • Would it be sensible to date stamp every entry?
  • 11. The benefits of ICT • Speed of processing • Vast storage capacity • Ability to search and combine data in many different ways • Instant response • Accurate results • Communication • Improved company image
  • 12. Limitations of ICT • New systems nearly always have some drawbacks. These could include: – Job losses among employees – New or redesigned accommodation may be needed for the setup – Faults in the software may mean the new system does not work as planned – Inadequate hardware may lead to bottlenecks in the flow of data around an organisation – Hard to extract information in the right form – Output only as good as input • (GIGO – Garbage In Garbage Out) **important jargon
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