Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi
Data, information and knowledge – each is interlinked, dependent on the other and an integral part of another. Data is concerned with some aspects of reality and its physical representation which are in turn recorded, analyzed and communicated. This gives rise to information, higher level than data, where additional meaning is derived from data. Knowledge is the next level which is based on data and information but acquires new and additional meanings. In this writeup, I will discuss the differences between the three and explain why the data management is very important for modern businesses.
An efficient data recording, analyzing and communicating will certainly help in information gathering from which we further derive knowledge. Each level can be a potential competitive advantage if it is managed rightly.
Table 1. shows the differences between data, Information and Knowledge
Data | Information | Knowledge | |
Definition | It is either mathematical quantities, or a set of symbols or a combination of the two which represent a fact that are either natural objects, phenomena, human concepts or a combination of these (Watson, 2007, p. 161). | The meaning that we derive from the data is called the information (Watson, 2007, p. 163). | The additional meaning that we derive from information is Knowledge. This is done through observations, interpretation and analysis (Watson, 2007, p. 164). |
Example | Gabriel - India Maria - Guyana, South America | Gabriel, India – a foreign national, male Maria, Guyana – a local employee, female | Gabriel – Extrovert, friendly, jovial Maria – friendly, calm and quiet, and very focused |
Explanation | Data is always presented in a contextual form. Just a name alone will not constitute a data or meaning. Either a time, date, location, city…etc is included with the physical data. | From the names and the locations, we have derived additional meaning. This helps an organization to gather information about employees. | The characteristics of persons are obtained through observations and interpretations. |
Competitive Advantages | - efficient data storage and retrieval about employees. - Faster decision-making - improved accuracy - overall cost reduction for a business. | -efficient information gathering -better meaning is derived -better coordination and less confusion -better decisions -improved quality results -cost reduction for a business. | -results in comprehensive understanding -Informed decision-making -best accuracy -best quality results -enables a business to stand-out among competitors. -cost reduction and differentiation for a business. |
To represent the physical reality, there may be several concepts or objects that are available but an organization have to choose what is simple and efficient based on the limited time and resources. This is known as data modeling. The basic unit to represent a reality is known as an entity and the characteristics of those entities are known as attributes (Watson, 2007, pp. 165 - 166).
Bad data means confusion, increased cost, decreased efficiency, decreased satisfaction, poor quality results and a potential loss of a business. Therefore, an effective system to manage the data is vital for companies to make faster and quality decisions. Data management solutions offer competitive edge over competitors if they are used correctly.
Table 2. shows the details about data management solutions
Data Management Solutions | |
What is it? | These are softwares that help a company to manage the data efficiently |
Examples | Oracle Database Software, Microsoft Server…etc |
Benefits to an organization | -easy storage and retrieval of data -minimized human error -increased efficiency -increased satisfaction -decreased cost -faster decision-making -quality results (Blue-Pencil, 2015) |
Data is the foundation of a business on which an organisation bases its decisions and operations (Ringlead, n, d). Therefore, data management becomes crucial for the success. The modern economy is a knowledge economy and so, data is the first step on which information and knowledge is built upon. An efficient data management offers a company a competitive edge over its competitors and allows it to make faster and quality decisions both of which are essential for cost reduction and differentiation that constitute the competitive advantage of a business.
=================================================
References
Blue-Pencil (2015, Nov 23). What is Data Management and Why is it Important?. Retrieved Apr 30, 2019 from https://www.blue-pencil.ca/what-is-data-management-and-why-it-is-important/
Ringlead (n, d). The Importance of Data Management in Companies. Retrieved Apr 30, 2019 from https://www.ringlead.com/blog/the-importance-of-data-management-in-companies/
Watson, R. T. (2007). Information Systems. Global Text Project. Licensed under Creative Commons 3.0
Watson, R. T. (2007). Information Systems. Global Text Project. Licensed under Creative Commons 3.0
Watson, R. T. (2007). Information Systems. Global Text Project. Licensed under Creative Commons 3.0
Comments