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Understanding Information

"Companies  run  on  information,  not data."and life moves on. But there is little point
in having information if it is not acted upon
- Bryce's LawINTRODUCTIONI have been doing aat the time it is received. It means
lot of reading lately regarding the latestactions/decisions will not be performed as
fads in the industry, particularly in therequired.This brings up a point, information
area of "Agile Methodologies," "Businessis consumed by human beings, not by machines.
Rules," "Information Architecture," andTrue, machines process data but only humans
"Enterprise Architecture." There is arequire information. I get into a lot of
considerable amount of material to wadearguments over this concept. Let me see if I
through. Of interest, I have noticed allcan clarify it. Let's imagine a totally
stress the importance of requirements andautomated company (what I like to call a
warn of the consequences if they are not"company in a closet") whereby customers
defined properly. This sounds nice, but Iinteract with a computer through a network
found them all to be very evasive in terms ofconnection to place orders for a product or
describing the inherent properties ofservice that can be delivered electronically.
information and how to document them. IThe owner of the company is retired and
guess this shouldn't come as a surprise asspends most of his time playing golf and
the industry for years has been wallowing inchecks on his stocks and other investments.
how to define information requirements.ManyI  contend  the  machine  is  just
think it is nothing more than a set of data
or output specifications; others see it asprocessing data and will continue to do so
nothing more than a programming spec.until there is some sort of mechanical
Rarely, does anyone want to take the time tomalfunction. However, under this scenario
truly understand information requirements andthere is still a need for information by such
prefer, instead, to get down to the businesspeople  as:
of programming where they feel more
comfortable. It should, therefore, not comeCustomers who want to check prices, product
as a surprise that requirements definition isservice availability, terms and conditions,
left to the interpretation of the individual.order status, and to report problems.Vendors
Inevitably, this leads to inconsistencieswho offer upgrades or additional
and errors. For something that is supposedsupport.Government regulators who need to
to be so critical for success, informationknow about sales volumes and taxes.And the
requirements definition is too often takenowner himself who needs to know about how his
for granted.Let's see if we can clear this up"company in a closet" is performing, thereby
by describing the characteristics ofmaking decisions regarding modifications to
information and end with a definition. Thisthe  business.
may all seem very elementary, but the problem
of requirements definition is very real.Processing data is one thing, making
Perhaps a simple description of thebusiness decisions and taking actions is
properties of information may provide thesomething entirely different. Until such
insight needed to adequately perform thistime as machines become true freethinking
vital task.CHARACTERISTICSFirst, informationentities, they will only need data, not
is not synonymous with data. Data representsinformation.D. Information is not stored, it
the facts and events of a business consistingis produced.Information is produced and
of primary values (such as "Customer Number,"consumed as required. On the other hand,
"Unit Price," "Name," etc.) and generateddata can be stored and retrieved as required.
values ("Percent Complete," "Net Profit,"We have long touted the concept
"Total Ordered," etc.). By itself, data isthat:INFORMATION = DATA + PROCESSINGThis
meaningless. It  is  onlysimply means there are two basic variables in
the production of information; data (the
when it is put into a specific context, at afacts to be processed) and the process itself
specific point of time, and delivered to a(the logic). Assuming this is correct, if
specific human-being, does data transformthe data remains the same, but we change the
into information. From this perspective,processing,  then  the
let's consider the fundamental
characteristics of information:A.information will be changed. Conversely, if
Information supports actions and/or businessthe processing remains the same, but we
decisions.This is a critical characteristicchange the data, then the information will
that is vital to define. If an action and/oralso be changed. This means it is important
business decision cannot be made from theto manage the resources needed to produce
data presented, it is not information, it isinformation, which is the premise of
just raw data. In this world of applicationInformation Resource Management (IRM). If
development there is a tendency to producewe can control the resources, we can
too much data and not enoughmanipulate them accordingly to suit the
information.During my "PRIDE" classes Iinformation needs of the business.
usually illustrate this point by describing aTherefore, "Information Management" is a
"bookmaker" or "bookie" (slang for someonefallacious concept; we are not truly managing
who accepts wagers on sporting events).information as much as we are managing the
Among the bookie's actions/decisions includeresources  needed
paying  off  bets,  and  collecting  on
to produce it.E. Information changes.The
bets. Using a blackboard, I would writeactions/decisions of the business are greatly
down  the  following  scores:6influenced  by  such  things  as:
54Customers  and  Vendors
3I would then ask the students to play theGovernment/political  changes
role of a bookie and asked them if what I
wrote on the blackboard could support theirEconomics  and  competition
actions and decisions. Of course they said,
No, that they needed more data; to which IMarket  expansion/contraction
wrote  down:New  York  -  6
As an example, suppose the government
Chicago  -  5Cincinnati  -  4decides to impose a new regulation on a
company's manufacturing process or institutes
Los Angeles - 3Still not satisfied, theya trade embargo on a country the company does
wanted to know what sport I was describing;business in. Inevitably, this will cause a
to which I added:Sport: BaseballNew York - 6change in the actions/decisions of the
business, thereby affecting information
Chicago  -  5Cincinnati  -  4requirements.Let's also consider the affect
new shipping methods might have on keeping
Los Angeles - 3Since a city can have morethe company competitive. Again, this will
than  one  team,  they  also  wanted  theundoubtedly affect the company's information
requirements.In a static world, information
team names.Sport: BaseballNew York Yankeesrequirements would not change. The reality
-  6is we live in a dynamic world. The more we
know about our external influences, the
Chicago  White  Sox  -  5Cincinnati Reds - 4better we can adjust and adapt our
information requirements.F. Information is
Los Angeles Dodgers - 3They also needed toconveyed through outputs.Media such as
know who the bettor was, so I added:Sport:screens, printed reports, and audio/video
BaseballNew  York  Yankees  -  6represents the human interface by which
information is transmitted. Hence, the
Chicago  White  Sox  -  5Cincinnati Reds - 4temptation  by  a  lot  of  developers  to
Los  Angeles  Dodgers  -  3Bettor:think of outputs as the starting point for
specifying information requirements. The
John Doe - $30 - New York Yankees - Odds:business rationale for the information is
3:1much more important than physically how it
will be delivered. If we do not understand
123 Main Street, Tel: 123/456-7890They thenthe rationale for the information, we will
said they had the information needed toinevitably make erroneous conclusions
fulfill their actions or decisions (e.g.,regarding the outputs. Also consider this,
they would pay $90 to John Doe for betting onthere is not necessarily a one-to-one
the Yankees).This example demonstrates tworelationship between information requirements
things; first, information is data that isand outputs. One information requirement may
arranged in a specific context, and; second,be  implemented  by  multiple  outputs,
it is based on the actions and decisions to
be supported. This means we must first haveand one output may be used to satisfy
a clear understanding of the actions and/ormultiple information requirements.Knowing the
decisions to be supported before we canrelationship between information requirements
determine the required data elements (primaryand outputs, existing screens, reports, etc.
or  generated). This  is  an  area  commonlyprovide a convenient road map for documenting
requirements. Simply ask the user what the
overlooked in application development. Ifbusiness purpose of the output is and what he
we cannot act on it, than it is notshe will do with the information (better yet,
information, it is just raw data.B.ask him/her what would happen if you took the
Information is a perishableoutput away).A DEFINITIONOkay, now that we
commodity.Information has value at a specificunderstand the characteristics of
point in time. This is because we must makeinformation, let's try to devise a
certain actions/decisions on a timely basis;definition:Information - the understanding or
e.g., daily, weekly, monthly, quarterly,insight gained from the processing and/or
annually, or upon request. Using our exampleanalysis of data. Information is created as
above,  the  bookie  requires  hisa result of the collection, processing and
analysis of data in a prescribed manner.
information daily; having it deliveredInformation supports specific business
weekly, monthly, or annually will notrelated actions and decisions. The accuracy
satisfactorily support his actions/decisions.of information depends on the validity and
It thereby becomes important to definecompleteness of the data and the processing
"when" actions/decisions have to belogic used. CONCLUSIONIt is true that
made.There are three attributes todefining requirements is the Achilles heel of
timing:Frequency - specifies how often theany development project, but a lot of people
actions/decisions have to be made; e.g.,4D -are vague or have different interpretations
four  times  dailyof what this means. In the "PRIDE" world, it
means supplying the end-users with the
1W  -  once  a  weeknecessary intelligence to support the actions
decisions of their end of the business. The
2Y  -  semiannuallymore we know about the business, the better
we can service it; see:No. 77 - "Enterprise
R - Upon Request (anytime the user wantsDecomposition"  -  May  29,  2006
it)Offset - specifies when the cycle should
begin;  e.g.,on output specifications is nice but it
doesn't supersede the need for accurately
8H  -  on  the  8th  hour  (8:00am)defining information requirements. Frankly,
users do not particularly care what physical
7D  -  on  the seventh day (end of the week)form outputs come in; it is immaterial to
them. All they are interested in is: Do
Note: There is no scheduled offset when thethey have the necessary information to
Frequency is "Upon Request").Response Time -support their actions/decisions; is it
specifies the maximum amount of time totimely, and is it accurate?It is fallacious
deliver  the  information;  e.g.,to believe, "Users do not know what they
want." They may not know how it physically
5S  -  Five  Secondsshould look or be delivered, but they most
definitely know what they want. You're just
1D  -  One  Daynot asking the right questions.For more
information on this subject, see:No. 4 -
Note: This should not be confused as a"Defining Information Requirements" - Dec 27,
measure of machine throughput.These timing2004
attributes will ultimately influence the
design of the system and software. For29 - "Using Information Strategically" -
example, if information is needed "UponJune  20,  2005
Request" with a five second response time,
than in all likelihood it will be anBryce is the Managing Director of M. Bryce
"interactive" type of application.& Associates (MBA) of Palm Harbor, Florida, a
Conversely, a weekly process with a one hourmanagement consulting firm specializing in
response time will likely result in a "batch"Information Resource Management (IRM). Mr.
process (maybe even a manual process).C.Bryce has over 30 years of experience in the
Information is a consumablefield. He is available for training and
commodity.Information is received, acted on,consulting on an international basis.



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