In addition, the observable results can be used to provide feedback into the system. This feedback can be used to help improve knowledge. The improved knowledge can then be used in two ways. First, it can be used to determine what (if any) changes are needed in the way data are transformed into information. For example, it might be decided that summarizing sales data by product category and time period is not adequate, and that a breakdown by geographic region is also needed. If such a determination is made, the result could be a change to a computer program to provide sales reports in a new format, showing information that was previously hidden within the raw data.
The second way that knowledge can influence the information system is that it can be used by decision makers to help them interpret information, influencing future decisions and actions. An example could be a review of outstanding debts in the light of prevailing or expected changes in interest rates. In this way, the quality of the decisions reached should hopefully improve over time, leading to more effective actions.
Organizations do not operate within a vacuum; they interact continuously with their environment. As such, organizations need to constantly adjust to changes in their environment. Similarly, information systems should not be viewed as being static. As new knowledge is obtained, information systems are modified, updated and expanded to address challenges or to take advantage of opportunities.
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