Basic Insight Into Information System: The Concept of Facts, Data, and Information

The phenomenon emerging in the understanding of information systems shows that the quality of data and information management is highly influenced by a correct understanding of facts, data, and information. The assumption is that if facts are understood as verified objective realities, data is well-managed, and information is processed into meaningful knowledge, decision-making will be more accurate and effective. However, in reality, there is often confusion and inaccuracy in distinguishing between facts, data, and information, resulting in misinterpretation and suboptimal decisions. Thus, there exists a gap between the ideal concepts in theory and practical understanding frequently observed in various fields, including education and organizations. The aim of this material is to provide a comprehensive understanding of the basic concepts of facts, data, and information along with their quality, serving as a reference for improving knowledge management and decision-making skills. The following is a detailed explanation of these concepts:

First, Facts are objective realities that can be observed, proven, and verified, forming an important foundation for widely trusted knowledge. In science, facts are verified observations, while theories serve to explain the relationships among facts, concepts, principles, and laws to predict natural and social phenomena. A theory itself is a collection of systematic propositions that interpret phenomena and provide structured understanding of observed events. As a tool of knowledge, theories are used to define data, summarize facts, predict phenomena, and reveal gaps in unexplained knowledge. Facts are empirically verified, whereas theories explain indirectly observed aspects, simultaneously distinguishing induction and deduction processes in the scientific method. The relationship between the two is dynamic: theories predict and clarify facts, while facts can initiate, revise, or refute theories. This synergy forms an essential foundation for the accurate and sustainable development of science.

Second, Data are raw facts that need to be processed into meaningful information for decision-making. Based on their source, data are divided into internal (e.g., finance, employees) and external (e.g., customer preferences). Based on their type, data are classified as quantitative (numerical) and qualitative (meaningful words) representing objects or events.

Third, Information is the result of processing data into something meaningful, useful, and easy to understand for knowledge acquisition, depicting real events, and supporting decision-making. Essentially, information reduces uncertainty, increases knowledge, and aids resource management. The source of information is data---facts about actual events or objects processed into meaningful knowledge for its recipients.

Fourth, Information Quality plays a crucial role in supporting accurate decision-making. Quality factors include accuracy, relevance, completeness, timeliness, currency, clarity, and effective presentation. Information is valuable if its benefits exceed the cost of obtaining it, is easily accessible, accurate, relevant, timely, clear, flexible, complete, and verifiable. Characteristics of good information include truthfulness, novelty, relevance, quality, and actuality; information should also be valuable, measurable, have a clear life cycle, and be processed according to user needs. The main benefits of information are increasing knowledge, reducing uncertainty, mitigating risk, simplifying complexity, and providing guidelines and standards for achieving objectives more precisely. Information needs are fundamental and should be identified through modern, routine, thorough, and concise approaches, considering relevance, credibility, currency, and source quality.

Summary: Facts are the foundation of knowledge, and theories explain and predict phenomena. Raw data is processed into meaningful information. High-quality information---accurate, relevant, and timely---reduces uncertainty, increases knowledge, and supports effective decision-making and resource management.

This article is a review of Part 1 of Basic Insights into Information Systems: The Concepts of Facts, Data, and Information from the teaching materials of the Management Information Systems course. Course Instructor: Prof. Dr. H. A. Rusdiana, M.M.