Introduction to information systems T. Cornford, M. Shaikh is1 060 2013


 The value and cost of information



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T. Cornford, M. Shaikh-13

3.2.2 The value and cost of information
We value information, we seek it out and we use it. However, the 
information we use in our daily lives is not in general freely available 
or free in terms of direct cost to us. We expect sometimes to pay for 
information (for example, to buy a newspaper to find out what is on 
at the cinema), although sometimes the cost is hidden. (Ask yourself: 
is the information you can obtain by using Google searches absolutely 
free to you?) If we look up on the internet what is on at the cinema this 
information may appear to come at zero cost, but remember, somebody 
paid for your smartphone, the network and the web design of the cinema 
site – probably you in some way or other. So too businesses and other 
organisations will spend considerable resources on ensuring that they 
have the information they need and that their use of information supports 
their business objectives. This leads them to build up suitable information 
resources and develop information systems.
Activity 
Why do we speak about our society becoming an ‘information society’? What do you 
understand as the primary characteristics of an information society? Is it just about the 
use of computers or does it signify more?
Provide, in your own words, a definition of the concept of a knowledge worker. Give four 
carefully chosen and contrasting examples and explain how each of these people work 
with information and suggest what formal information systems they might use.


Chapter 3: Core concepts: information, data and systems
37
Reading activity
Review the three contemporary approaches to information systems given in Section 
1.3 of Laudon and Laudon (2013). Which one of these do you feel is closest to your 
understanding as you start this course?
Above we suggest that information has some value, and that it is hence 
worthwhile spending resources to improve the availability of information 
and its quality. The value of information may be based on a number of 
characteristics – whether the information is:
• reliable and accurate
• accessible
• up-to-date or timely
conveniently presented
• at an appropriate level of detail
• reduces our uncertainty
• exclusive
• pleasing (for example, in the sense of a story, a cartoon or a song that 
evokes a direct response from the receiver)
• enables some other valued task.
In general, the cost of producing and delivering information will be 
significant. An organisation will need to use various types of resources, 
including people and technology, to produce, manage and distribute 
information. In this way, too, our approach to information systems is 
‘socio-technical’ – a combination of concern and consideration for people – 
what they do and what they want – and concern for the technologies.

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