The Value of Information (Chapter 1, Edition 5.1)

IntroductionIn this episode, we hit the high points of Chapter 1 - The Value of InformationFocusing Story OverviewChapter 1's focusing story tells about a time long ago when one of us, Craig, should have done more research before going to a job interview. The story is 100 percent true; many years later, Craig still remembers the lesson he learned the hard way!Purpose of the ChapterThe main purpose of this chapter is to drive home the importance of information. The whole point of studying information systems is to help us, as individuals and organizations, use information more effectively. Information systems are systems that help us deal with information, and information technology is technology that helps us deal with information. Those are not technical definitions, but they are accurate statements. We deal with a torrent of information every day; information systems help us manage the flood and put information to use. Improving your understanding of information systems will help you manage and use information more effectively, which is an important skill now and into the future.Brief Overview of the ChapterThe chapter starts with an overview of three important emerging technologies: 5G, the Internet of Things, and artificial intelligence. You've probably heard a lot about AI recently because of the rise of generative AI systems such as ChatGPT. Generative AI creates content, including text, images, video, and audio. ChatGPT may be the best-known generative AI system, but it is far from the only one. People are still working out how to use these systems responsibly (and we suspect that conversation will continue for quite a while). Learning Activity 1.3 offers some useful guidance.Although AI is getting most of the attention right now, 5G, the Internet of Things, and AI all matter. Individually, these technologies are already affecting you, whether you realize it or not. Their effects become even more consequential when they work together; the chapter calls this convergence. As these and other technologies improve and become better integrated, they will literally (and we mean literally literally) change life as we know it. Their importance comes from their ability to gather, transmit, and process information. The technologies matter because of their connection to information.The chapter goes on to discuss the DIKW hierarchy. DIKW stands for data, information, knowledge, and wisdom. Data consists of raw symbols or facts. Information is data that’s been processed so that it’s useful. When we apply information to a decision or action, we create knowledge. Wisdom is the use of knowledge for the greater good. One reason that it’s important to understand this hierarchy is that it loosely describes how information systems have progressed, from data processing, to information systems, and more recently to knowledge management systems. Because of the importance of information, it’s important to be information literate. Information literacy is the ability to figure out what information you need, then access, evaluate and use that information. One aspect of information literacy is being able to judge information quality, which is harder than it sounds. The chapter discusses four important categories of information quality: intrinsic quality, contextual quality, representational quality, and accessibility quality. The first two are most important for us. Intrinsic quality matters regardless of context, while contextual quality may differ depending on what you're doing. Poor-quality information is more than an inconvenience; it can be extraordinarily expensive. Stats Box 1.2 gives you a useful sense of those costs, and Table 1.1 goes into more detail about the quality dimensions.The final two sections of the chapter cover how businesses use information and how information affects your career. Main PointsHere are the main points made in Chapter 1:Information is REALLY important, both personally and professionally. Much of what you do every day revolves around information, whether it's checking for text messages, sneaking a quick peek at social media, or enduring ... we mean enjoying a lecture.Emerging technologies such as 5G, the Internet of Things, and artificial intelligence are important because of how they help us deal with information. Convergence occurs when these technologies work together; it helps enable applications such as automated vehicles and augmented reality.Because information is so important, information literacy is a critical skill. Those who are better at finding, evaluating, analyzing, managing, and communicating information have an advantage over those who are not. Evaluating quality is part of that skill; poor-quality information can impose substantial costs on individuals and organizations.Businesses, regardless of their size, use information for three main purposes: communication, supporting processes, and decision-making. A business process is a set of coordinated activities that leads to a specific goal or outcome. We cover processes in more detail in Chapter 10.Things to RememberHere are a few key things to remember.Information affects you far more than you probably realize. It’s at the center of much of modern life. (That’s why so many of us seemingly can’t survive without our phones!)This isn’t going to change, even if we have a zombie apocalypse. Won’t you want to know where the zombies will attack next? That’s information!Since information is so critical, it’s worthwhile to become literate in dealing with information, and to understand more about information systems and information technology.It doesn’t matter what you do with your professional life. You’re going to be dealing with information systems and technology. So, you need to understand them.