Question

1. With example distinguish between data and information. Show the relationship between the
two. (10 marks)
2. Explain in detail the information system resources and products that support the functional
areas of business.

Answer 1

### 1. Distinction Between Data and Information

**Data** and **Information** are often used interchangeably, but there are significant differences between the two.

**Data**:
- Definition: Data refers to raw, unorganized facts and figures that have no meaning on their own.
- Example:
- A list of temperatures recorded over a week: 72, 75, 68, 70, 74.
- A list of employee IDs: 001, 002, 003, 004.
- Characteristics: Data can be qualitative (descriptive) or quantitative (numerical). It is the basic building block of information but lacks context.

**Information**:
- Definition: Information is data that has been processed, organized, or structured to provide context and meaning to the user.
- Example:
- If we take the list of temperatures and analyze it, we might deduce that the average temperature for the week was 71°F, indicating a mild climate. This analysis turns raw data into useful information.
- From the employee IDs, if we relate them to names and roles (e.g., 001 = John Doe, Manager), we now have useful information regarding employee identification.
- Characteristics: Information is meaningful, useful, and helps in decision-making.

**Relationship Between Data and Information**:
- Data serves as the input for information. When data is processed (analyzed, interpreted, organized), it becomes information.
- Information adds value to data by providing context, relevance, and purpose. For example, in a business setting, data about sales numbers becomes more useful when analyzed to show trends or to compare against targets.

### 2. Information System Resources and Products Supporting Functional Areas of Business

Information systems are essential for efficient operations in various functional areas of a business. Here's a detailed look at the resources and products associated with them:

#### Functional Areas of Business

1. **Marketing**:
- **Resources**: Customer Relationship Management (CRM) systems, Market Research databases, data analytics tools.
- **Products**:
- CRM software (e.g., Salesforce, HubSpot): Tracks customer interactions and manages sales pipelines.
- Marketing analytics tools (e.g., Google Analytics): Analyze customer behavior and track campaign performance.

2. **Finance**:
- **Resources**: Financial Management Systems, Accounting Software.
- **Products**:
- ERP (Enterprise Resource Planning) systems (e.g., SAP, Oracle): Integrate financial data from various departments.
- Accounting software (e.g., QuickBooks, Xero): Manage accounts payable/receivable, and payroll.

3. **Human Resources (HR)**:
- **Resources**: HR Management Systems (HRMS), performance evaluation tools.
- **Products**:
- HRMS (e.g., Workday, BambooHR): Automate HR tasks such as recruiting, onboarding, and payroll management.
- Employee performance management tools (e.g., Lattice, 15Five): Facilitate employee evaluations and feedback.

4. **Operations**:
- **Resources**: Supply Chain Management (SCM) systems, Inventory Management systems.
- **Products**:
- SCM software (e.g., Oracle SCM Cloud, SAP Integrated Business Planning): Optimize supply chain operations and logistics.
- Inventory management solutions (e.g., Fishbowl Inventory, TradeGecko): Manage stock levels and track product sales and orders.

5. **Information Technology**:
- **Resources**: IT infrastructure (servers, networks), cybersecurity tools, data storage solutions.
- **Products**:
- Cloud services (e.g., Amazon Web Services, Microsoft Azure): Provide scalable storage and computing power for businesses.
- Cybersecurity software (e.g., Norton, McAfee): Ensure the safety and security of business data and systems.

#### Conclusion

Each functional area of a business relies on specific information systems, resources, and products tailored to its needs. The integration of these systems enhances efficiency, data sharing, and ultimately, decision-making processes, leading to improved organizational performance and competitiveness. Information systems not only support operational activities but also enable strategic planning and execution across the business function.