GRADE 11

UNIT ONE
INFORMATION SYSTEMS AND
ITS APPLICATIONS
1.1. Data, Information, Knowledge, and
Wisdom
1.1.1 Data
 Data is raw facts that cannot give meaning on its own.
 It is a representation of what we see and perceive using things like

letters and numbers.

 Data is recorded and stored using numbers, texts, and images.

 Some data can be represented better by numbers than texts.

 For example, age is better represented by numbers than texts.

Likewise, words such as name are only represented by text.

 With the development of satellite technology, representation of data in

the form of image has become very popular.

1.1.2 Information
 Information is data processed in a meaningful way to the end users.
Cont..
 Registering daily sales data may not give meaning.
 But when we aggregate daily sales data by weeks of the month, it

becomes information as it shows whether the sales are increasing or

decreasing.
 By asking relevant questions about ‘who’, ‘what’, ‘when’, ‘where’,

etc., we can derive valuable information from the data and make it
more useful for users.
 Therefore, information is a processed data that is used to answer

certain questions.
 Like data, information can be also represented in different forms.

 It can be represented in the form of a table, line graph, bar graph or

formulas.
1.1.3 Knowledge
Knowledge is an understanding which is acquired by further processing
and integrating different sets of information.
Cont..
 It includes both understanding and skill. For example, when you tell a
child how to ride a bicycle, you are giving information.
 This helps the child to understand how to ride a bicycle.

 When a child applies the information in riding a bicycle, the child

acquires the skills necessary to properly ride a bicycle.

 Then the information becomes knowledge.

 Therefore, knowledge is acquired by integrating information from

different sources such as reading books, engaging in different

activities, discussing with other people, and observing when
something happens.
 Knowledge is the capability to think and act to solve a problem or

accomplish a given task.

 For example, the ability to read this textbook or maintain a computer

is knowledge. Knowledge is more of a personal possession that you

retrieve and apply when you need it.
1.1.4 Wisdom
 Wisdom is the ability to make wise decisions and judgments using
one’s knowledge.
 It is the highest level of human understanding.

 It is associated with good judgment and actions that contribute to

living well.
 Wisdom is like love, intelligence, and politeness in that it is a good

thing to have. The more we have it, the better we become.

1.1.5 The Difference between Data, Information, Knowledge, and
Wisdom
 Data, information, knowledge, and wisdom can be hierarchically

arranged where data is placed at the bottom and wisdom is placed at

the top of the pyramid.
 As you move up in the pyramid, the value you get increases.

 The more data is enriched with meaning and context, the more

knowledge and insights we get from it.

 The top of the pyramid is where we have turned the knowledge and
Cont..
The difference between data, information, knowledge, and wisdom can
be further explained as follows:
Data is anything represented as numbers, texts, and images. For
example, 010101 or +251********* are data.
Information may be viewed as data put into context. It is an organized
form of data to provide meaning.
For example, when we say that +251********* is a person’s phone
number, the data becomes information.
Information is a set of data that has already been processed, analyzed,
and structured in a meaningful way to become useful.
Knowledge refers to understanding patterns, rules, or other mechanisms
that serve as a guide for our future actions.
It emerges from further processing and interaction.
Wisdom is the ability to think and act using knowledge. It is the highest
level in human intelligence. Wisdom includes intuitive thinking, logical
1.2. Introduction to Information Systems
1.2.1 Information systems
An information system (IS) is a set of interrelated components working
together to collect, process, store, and disseminate information to
potential users.
 An information system generates different types of information or

reports that are used by employees in the organization to accomplish

different organizational tasks.
 Information systems have now become an integral part of

organizations. They are used to capture data and generate summarized

reports for decision making.
 For example, a school information system captures student data

about different types of assessments such as quizzes, assignments and

final examinations.
 All these assessment data are summarized to show a student’s overall

performance. Each subject’s mark is used to calculate the average

mark of students and rank them accordingly.
1.2.2 Components of IS
Information systems can be viewed as having five major components:
hardware, software, data/information, people, and procedure.
Hardware
 Hardware includes digital devices that are required to perform core

information system functions such as data storage, data processing,

and communication
Software
 Software is a set of instructions that commands the computer

hardware to do something.
 It includes the operating system, the Database Management System

(DBMS), application software, anti-virus software, and others that are

required to be in place for the information system to operate properly.
Data and Information
 Organizations generate different types of data when they interact

with their customers and suppliers.

Cont..
 For example, data is generated when a digital device selling
company sells its products such as computers and printers.
 The company must keep track of its daily sales data.

 Without such data, the company cannot properly execute its tasks and

monitor its performance.

 The data is used to prepare reports such as monthly sales reports that

are used by managers for decision making.

 Therefore, data or information is a critical resource or asset that must

be properly managed by the information system.

People
 Information systems require qualified or trained people with

knowledge to operate the technologies and identify new data that

must be captured and stored by the information system.
 Therefore, the technical people who have specialized knowledge of

the information system are integral parts of the information system of

Procedure
 Procedure is another component of information systems.
 A procedure is a series of steps followed to achieve a desired

outcome or goal.
 Procedures are the policies and methods to be followed in using,

operating, and maintaining an information system.

 It is necessary for organizations to have clear procedures that clarify:

what data should be captured by the information system; who should

have access to the data; who should have the privilege to modify data;
and many more.
 Procedures that are put in place to facilitate an effective use,

operation, and maintenance of information systems will help

organizations to get more benefits from their information systems.
1.3. Applications of Information System
 Information systems have now become the means through which
different ITenabled services are provided by organizations.
 These IT-enabled services are usually known as e-services.

 E-services are defined as the provision of public services using

technology as a mode of service delivery.

 For example, banks provide banking services through mobile phone

without the need to go to a bank branch.

The different types of e-services are discussed below.
1.3.1 E-Government
 Electronic government or e-Government is the use of information

systems to provide electronic services to citizens with the purpose of

increasing efficiency, transparency, and citizen participation.
 The appropriate application of e-Government allows for higher levels

of effectiveness and efficiency in governmental tasks.

Cont..
 It also improves efficiency of communication among different
governmental offices.
 Different organizations establish an organizational portal to facilitate

communication between the organizations and their customers.

 Citizens go to municipalities for business registrations, auto registry,

payment of taxes, issuance of birth certificates, issuance and renewal

of identification cards, etc.
 All forms of municipal services require citizens to go to the

municipalities in person.
 All these services can, however, be automated and made accessible

for citizens over the municipality’s web portal.

1.3.2 E-banking
 In the traditional banking service, customers must go to the nearby
banks to withdraw money, transfer money to families, and pay their
utility bills.
Cont..
 The traditional banking service is inconvenient and inefficient as it
demands customers to go the bank in person and wait their turns to get
a service.
 It also creates unnecessary burden on the bank.

 Electronic banking is a form of technology-based banking service that

avoids exchange of cash, checks, or other types of paper documents.

 In the banking sector, IT is mainly associated with services like

Internet banking, Automated Teller Machine (ATM) and mobile

banking.
 Like in other service sectors, IT has positively influenced the banking

industry.
 Banks make their information systems accessible over the Internet so

as to provide Internet banking services

 Some of the commonly known e-banking services include Automatic

Teller Machine (ATM), Mobile Banking, Internet Banking, Credit

cards, Debit Cards, Smart Cards, Electronic Funds Transfer (EFT)
1.3.3 E-learning
 E-learning is a form of learning delivered through the use of digital devices.
 A number of other terms are also used to describe e-learning.
 It is known by terms like online learning, virtual learning, distributed learning,
computer-based learning, etc.
1.3.4 E-commerce
 E-commerce (electronic commerce) is the buying and selling of goods
and services over the Internet.
 E-commerce is fundamentally a website deployed over Internet to
handle online transactions.
 Buyers go to the E-commerce website using their smartphones or
computers when they make an order for a product or service over the
Internet. Once the order is received by the merchant, the payment will be
processed through the Bank.
 After the whole transaction is successfully completed, the order will be
delivered to the buyer. In E-commerce transactions, many actors are
involved including merchants, buyers or customers, banks and
1.3.5 Telemedicine
 Telemedicine refers to the practice of caring for patients remotely
without the caregiver and the patient being in the same physical
location. Telemedicine was originally introduced to treat patients who
were in remote places, far away from local health facilities, or in
areas with shortages of medical professionals.
 There are now different telemedicine companies that provide online

treatment.
 A patient can simply come online and request a visit with one of the

telemedicine company’s doctors and get treatment.

 The patients pay the service fee online through their bank account.

 There are now new mobile-based medical services.

 Patients are starting to use their mobile to monitor and track their

health conditions.
 Simple home-use medical devices allow patients to gather needed

medical information for doctors