ACF 211 – EXAM NOTES Part 1
ACF 211 – Session 2 – Data, information and business processes
1) Distinguishing Between Data and Information
Data are facts collected, recorded, and stored in the system
A fact could be a number, date, name, and so on.
For example:
2/22/14 ABC Company, 123, 99, 3, 20, 60
2) Distinguishing Between Data and Information (cont)
The previous slide just showed data, if we organize the data within a context
of a sales invoice, for example, it is meaningful and considered information.
3) Decision Quality
Information helps us make ‘better’ decisions. A ‘better’ decision is one
that improves the outcomes for the organization based on its own goals
and objectives.
Too much information causing information overload can reduce decision
quality.
Information Technology (IT) is used to help decision makers more
effectively filter and condense information.
Note that an IT system should be designed with decision quality at its
heart
4) Value of Information
Information is valuable when the benefits exceed the costs of gathering,
maintaining, and storing the data.
Benefit (i.e., improved decision making) Minus Cost (i.e., time and resources
used to get the information) = value of information
Value of information = Benefit - Cost
, 5) What Makes Information Useful?
There are seven general characteristics that make information useful:
Relevant:
Information needed to make a decision (e.g., the decision to extend
customer credit would need relevant information on customer balance
from an A/R aging report)
Reliable:
Information free from bias
Complete:
Does not omit important aspects of events or activities
Timely:
Information needs to be provided in time to make the decision
Understandable:
Information must be presented in a meaningful manner
Verifiable:
Two independent people can produce the same conclusion
Accessible:
Available when needed
6) Information Needs and Business Processes
- Business organizations use business processes to get things done. A
business process is a set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve
a specific organizational goal.
- Key information needed for effective decisions often come from these
business processes.
7) Basic Business Processes
ACF 211 – Session 2 – Data, information and business processes
1) Distinguishing Between Data and Information
Data are facts collected, recorded, and stored in the system
A fact could be a number, date, name, and so on.
For example:
2/22/14 ABC Company, 123, 99, 3, 20, 60
2) Distinguishing Between Data and Information (cont)
The previous slide just showed data, if we organize the data within a context
of a sales invoice, for example, it is meaningful and considered information.
3) Decision Quality
Information helps us make ‘better’ decisions. A ‘better’ decision is one
that improves the outcomes for the organization based on its own goals
and objectives.
Too much information causing information overload can reduce decision
quality.
Information Technology (IT) is used to help decision makers more
effectively filter and condense information.
Note that an IT system should be designed with decision quality at its
heart
4) Value of Information
Information is valuable when the benefits exceed the costs of gathering,
maintaining, and storing the data.
Benefit (i.e., improved decision making) Minus Cost (i.e., time and resources
used to get the information) = value of information
Value of information = Benefit - Cost
, 5) What Makes Information Useful?
There are seven general characteristics that make information useful:
Relevant:
Information needed to make a decision (e.g., the decision to extend
customer credit would need relevant information on customer balance
from an A/R aging report)
Reliable:
Information free from bias
Complete:
Does not omit important aspects of events or activities
Timely:
Information needs to be provided in time to make the decision
Understandable:
Information must be presented in a meaningful manner
Verifiable:
Two independent people can produce the same conclusion
Accessible:
Available when needed
6) Information Needs and Business Processes
- Business organizations use business processes to get things done. A
business process is a set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve
a specific organizational goal.
- Key information needed for effective decisions often come from these
business processes.
7) Basic Business Processes
