Page 49 - Using MIS

Q5 What Is Information? 17
Definitions Vary

Information is one of those fundamental terms that we use every day but that turns out to be
surprisingly difficult to define. Defining information is like defining words such as alive and
truth. We know what those words mean, we use them with each other without confusion, but
nonetheless, they are difficult to define.
In this text, we will avoid the technical issues of defining information and will use com-
mon, intuitive definitions instead. Probably the most common definition is that information
is knowledge derived from data, whereas data is defined as recorded facts or figures. Thus,
the facts that employee James Smith earns $70.00 per hour and that Mary Jones earns $50.00
per hour are data. The statement that the average hourly wage of all the graphic designers is
$60.00 per hour is information. Average wage is knowledge that is derived from the data of
individual wages.
Another common definition is that information is data presented in a meaningful context.
9
The fact that Jeff Parks earns $30.00 per hour is data. The statement that Jeff Parks earns less
than half the average hourly wage of AllRoad’s Web designers, however, is information. It is data
presented in a meaningful context.
Another definition of information that you will hear is that information is processed data or,
sometimes, information is data processed by summing, ordering, averaging, grouping, compar-
ing, or other similar operations. The fundamental idea of this definition is that we do something
to data to produce information.
There is yet a fourth definition of information, which was set out by the great research psy-
chologist Gregory Bateson. He defined information as a difference that makes a difference.
For the purposes of this text, any of these definitions of information will do. Choose the defini-
tion of information that makes sense to you. The important point is that you discriminate between
data and information. You also may find that different definitions work better in different situations.

Where Is Information?
Suppose you create a graph of Amazon.com’s stock price and net income over its history, like
that shown in Figure 1-6. Does that graph contain information? Well, if it shows a difference that
makes a difference or if it presents data in a meaningful context, then it fits two of the definitions
of information, and it’s tempting to say that the graph contains information.

Amazon Price and Earnings
$1,400

$1,200
$1,000
$800
$600
$400
$200
$0
$(200)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 1-6
Amazon.com Stock Price and Net Price Earnings
Income

9 Actually, the word data is plural; to be correct, we should use the singular form datum and say, “The fact that Jeff
Parks earns $30.00 per hour is a datum.” The word datum, however, sounds pedantic and fussy, and we will avoid
it in this text.