I have given you a brief Introduction about the Information systems earlier.
And this is a brief discussion about the Characteristics of Valuable Information Systems.
The
value of information depends on their usefulness in the decision making
process. This value
can be judged based on a set of features that can be identified in the
information.
They
are as follows:
Accurate:
Accurate information is error free. Errors
could occur due to different reasons. If there is some problem in the knowledge required for the process,
output (information)
may have errors. At the same time, if input (data) contains some errors, the output will not be
accurate. This is known as garbage in garbage out (GIGO).
Complete:
Complete information contains all the
important facts to make clear decisions.
For
example, an investment report may present all possible benefits and profits without details of cost that
will be required.
Economical:
Information should also be relatively
economical. Decision makers must always balance the value of information with the cost of producing it.
For example, if collecting
the data takes lots of resources and time, it is not economical.
Flexible:
Flexible information can be used for a
variety of purposes. For example, Information
on how
much inventory is on hand for a particular part can be for
- a sales representative to determine the
sales plan
- a production manager to identify possible
constraints for the production
- a financial executive to calculate the
current assets figures of inventory
Reliable:
Reliability of information describes the
correctness of the information. If there are any problems with respect to correctness of data, it will
definitely affect the reliability
of information. For example, if the reliability of data collection method is poor, it will directly affect
the information that will be produced.
For
example, prediction of prices based on rumors (not past variance information), is not reliable.
Relevant:
The relevance of information is determined
based on the usefulness of information with respect to the decision making process. For example, a drop
in timber prices
cannot be used to predict the price fluctuation in computers.
Simple:
Simplicity in the representation of
information is also a very useful feature utilized to improve the usability of
information in the decision making process. Too many information could affect the
simplicity in the presentation. Therefore, it is better to provide interactive
customization to determine simplicity. Providing too many information is known as
information overloading.
Timeliness:
Decisions should be made at the right time
to achieve effectiveness. Timely information refers to providing information at the right time. For
example, if you can get to
know today’s weather forecast before you leave home, you can decide whether to bring an umbrella or
not.
Verifiable:
If it is possible to
confirm the reliability of the information about its correctness (validate), it becomes
verifiable Information. If you are not sure about a particular information (say foreign news)
heard from a radio channel, you can search about it using the Internet.
Accessible:
Accurate information plays a major role in
the decision making process of any organization. Therefore it is essential to be able to access the
correct/ relevant information
by authorized personnel at the right time to meet their needs.
Secure:
the value of information could be lost due
to issues such as unauthorized user access or intentionally damaging its
existence. Therefore, it is important to make steps to protect valuable
data and information. For example, use of passwords to protect data and
information.
It is
important to note that the values of these quality attributes may vary from one
piece of information
to another. It affects their usefulness in the decision making process.
For example,
at the Stock Exchange, information about market forecast may not be
very accurate but if the timeliness is poor, the total value of
information will be very poor.
