Page 53 - F1 - AB Integrated Workbook STUDENT 2018-19

Information technology and information systems in business

Data and information

1.1 Data

Data consists of numbers, letters, symbols, raw facts, events and
transactions, which have been recorded but not yet processed into a
form that is suitable for making decisions.

1.2 Information

Information is data that has been processed in such a way that it has
meaning to the person that receives it, who many then use it to
improve the quality of their decision-making.

Information is vital to an organisation and is required both internally and externally.
Management requires information to:

 provide records, both current and historical

 analyse what is happening in the business

 provide the basis for decision-making in the short- and long-term

 monitor the performance of the business by comparing actual results with plans
and forecasts.

This information will be used by various third parties, including:

 the shareholders or owners – who will want to know how their investment is
performing

 customers and suppliers – who will want to know how stable the business is
and therefore whether it will be a reliable trading partner

 employees – who will have an interest in the performance of the organisation
and how it impacts on the job security and pay

 government agencies – such as tax authorities.

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