how Information Systems convert data into information.?

Question

how Information Systems convert data into information and how information is used to create knowledge within a business organisation

Answer 1

There are lots of ways data is converted into information by a Computer or an Information system. For example take a Linear Programming tool. You feed in the objective function as data and the suject functions. It uses simplex method to convert the whole data optimal results which tells us how much we need produce for optimal profitability.
Another example is the simple linear regression. You feed in the dependent variable and the independent variables and you get the linear lease square equation. You feed in any years data to this equation and you get the dependent variable for that time period which we are looking for.
Simple correlation analysis is another one. You feed in a time series data in a table and run a correlation test. It will give the correlation between each of the variables which gives us information about their associativity which independent data wouldn't have provided.
There are so many like this, like you feed in receipts and payments of an accounting year on some created ledgers which automatically gets filled up which gives information on cash, overheads, payables, receivables etc;. You can generate the company financial statements on this.
Then there are complicated information system programs like ERP, Supply chain management tool, human resource planner etc; which gives information data what a company should or should not do. Hope that suffice.