1. RobertTaylor
Understand how organisations use business information
P1: explain how organisations use information
P2: discuss the characteristics of good information
Part 1:
Purposes of Information
Operational support(e.g.monitoringandcontrolling activity)
Operational supportisusedtomonitorproceedingsinside of acompany.The businessuses
operational supportinseveralways,one of whichistomonitoranydata or informationthat
isreceivedviatelecommunicationdevicessuchasan e-mail ora telephonecall.Itisusedto
manage the informationandsortthe material througha networkinventoryoranotherform
of cataloguing.
Analysis(e.g.to identifypatterns ortrends)
The analysisof the informationisvital forthe businessasitallowsthemtofindany
anomaliesortrendsinthe consumptionof aproduct. The data collectfromcustomerre-
viewsandthe dispatchingstoreswillshow how muchissoldandwhentheyare soldfor
example red-bullenergydrinkissoldinhigherquantitiesonaMondaymorningthan ona
Sundayafternoon.Byusingthisdatafrom the storestheycan sell more red-bulltothe
companiessothat theywill arrive instoresbeforeMondaymorning.
Decisionmaking(e.g.operational,tactical,strategic)
Decisionmakingisanimportantaspectof a manager’sjob. The managerwill have tomake
difficultchoicesforthe benefitof the company.Inan organisationthere are three key
categoriesof decisionmakingmade bythe differentranksof the managementstaff.
Firstlythere isoperational decisions whichisthe simplestformof decisionmaking.
Operational decisionsusuallyconsistof the dailydecisionsmade bythe juniormanagement
and are typicallystraightforwardandcarriedoutfrequently. One of the operational
decisionsfrequentlymade bythe juniormanagementwouldbe the orderingof provisions
for the organisationoreventhe constructionof the employee timetables.
The nextformof decisionmakingisthe tactical decisions whichare generallyharderthan
the operational decisionsandare accomplishedbymiddle management.The Tactical
decisionsare usuallychoicesthathave longtermeffectsonthe companyandinvolve
complex decisionsnotdissimilartothe strategicdecisions. Forexamplesothata business
becomesmore successful andsellsmore merchandise the firm mayhave torelease new
products or opennewbranches.
Strategicdecisionslike tactical decisionsconsistof verycomplicatedand longterm
resolutions,thistypesof decisionsisusuallydirectedbyseniormanagement.These
judgments willaffectthe entiredirectionof the organisation.Thismayinvolvethe company
decidingtoupgrade newproductsor concentration itseffortsonincreasingthe volumeof a
currentproduct. Strategicdecisionsestablishcompanypolicyandthese decisionsare often
complicatedbecause the future isuncertainandaccurate informationisoftenlimited.
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Marketingandsales
Marketingisthe methodof recognising,expectingandthenmeetingthe needsand
requirementsof clientsinordertomake a suitable profit,whilesellingconsistsof
encouragingcustomersthatyourbusinessprovidesthe bestservice orproductscompared
for themto rivalledcorporations. Marketingplacesthe requirementsof the clientsabove
otherneeds. Marketresearchcan helpthe organisationidentifywhatthe customer’s
requirementsare. Selling takes place once marketing has concluded what sort of
goods that customers are looking to buy. Then they can sell the product or service to
the customers so that they can make a profit.
Communication
Communicationisthe transferonof information.Inbusiness itisvital tohave good,clear
communication.The interaction maybe betweenpeople,organisationsorplacesandcan be
ina multitude of forms,suchas writing,gestures, speechandactions. Businesses needtobe
organised insucha way as to maximise the benefitsof aneffective communicationsystem.
Teamsof workersbecome very efficientif theyhave goodcommunication becausethey
allowforseveral transfers of informationaroundthe workplaceatanyone time.There are
several differenttypesof communicationthatcanbe usedinan organisationtheyinclude:
downwardscommunication, upwardscommunication, multi-channel communicationand
several othersmallerformsof communicationsystems. Downwardcommunication
comprises of the passingof directives fromthe higherranksina hierarchyto lowerlevels.
Thisis mayalso be referredtoas top-downcommunication. Upwardcommunication
involvesthe feedbackof ideasfromlowerdowninthe business tothe higherranks.Thissort
of communicationflowis significantinthe consultationof employees,and allowsmanagers
to gainbeneficialideasfromthose employed atthe frontlineof the organisation. Multi-
channel communication includes avariety of flowsof information.Information&
Communicationstechnologyandthe subsequentnetworkingsystemsenableeffective multi-
channel communication.There manyformsof organisingeffective communicationsbetween
membersof an organisation,anexample is Teambriefings:thisenable teamleadersand
managersto communicate andconsultwiththeirstaff. Anotherformisformal meetings:
that enablesamore formalisedapproachtocommunicationbetweenthe seniorstaff and
the lowerranks,alsoone of the mostusedformsis face-to-face communications:thisform
of communication enablesafree andfrankexchange of ideas.
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Flow(e.g. internallyandexternally)
The information flowof abusiness includesmanyfactorsuchas financial statementsand
riskassessments.The informationmustbe collectedandanalysedandcanbe tracked
throughits“flow”.There are two maintypesof flow that an organisationwill have todeal
with,firstlythere isinternalflow thatconsistsof all the informationthatistransferred
withinthe company.Thisincludes informationlike the workrotathatneedto be trackedso
that the employeesknowwhentheyare workingshifts. The nextformof informationflowis
external thatconsistsof informationfromoutside the organisation.Thisincludesdatasuch
as figuresfromthe retail outletsandlowermanagementdetailingif theirproductorservice
isbeingsoldto a profitable quantity.
Categories of Information:
Sales
Everybusinessneedstohave anideaof the amountof salestheygetin-ordertodecide
on the amountof productstheyshouldbe supplying.Salesare necessarysothatthe
businessdoesn’twaste moneyonattainingextraproducts.A company’ssaleswillalso
decide the amountof profitthatthe businesswill receiveonaregularbasisas the
consumersmaywanta large and regulardemandatcertaintimesof the year or within
specificcountries.
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Purchasing
Purchasingisdirectlylinkedwiththe salesinabusiness.The amountof salesaffectthe
amountof suppliesboughtbya business,asthenthe businesswon’tlose moneybyover
orderingonproducts.Purchasingiskeyinthe survival of bothsellerandthe buyerof the
merchandises.
Competitor
Competitorsare vital inthe businessindustrysothatthe pricesof productsdon’tincrease
or decrease rapidlyon a regularbasis.Everybusinesshasa competitorof some sortthat
wantsto make sell more productsandmake a largerprofit.Some companiespressure
smallerfirmstoreduce the price of theiritemsortheywill refuse tobuythe company’s
productsin the future. Thisallowsforthe competitive businessestolowertheirprices
and beginsellingtheirproductstothe largercompany.The smallercompanymaythen
not be able to sell theirproductsfora profitandbecome overdrawnandendupclosing
theircompany.
Manufacturing
Manufacturinginformationisvital toanybusinessthatproducesproducts.This
informationincludesthe processof creatingaproductas-well asthe legal implications.In
the creationof products the organisationwillneedtohave a factory to manufacture the
merchandiseswithin,thisfactorywill have tocomplywiththe local government
legislationsuchasinBritaintheywouldneedadequate hygiene andhave amaximum
workinghourrota. The manufacturinginformationwouldalsohave tobe keptsecretasto
stopother companiesfromstealingthe schematicstothe product.
Marketing
The collectingof appropriate andup-to-date dataiscrucial forbusinessprocess.Information
involves the organisation of factsandstatisticsthathave meaningwheninterpreted by
analyststaff. Therefore informationis avaluedbusiness resource,andregularly many
businesses oftenpaymoneyforupto date andrelevantinformation. The information
gatheredcan thenbe analysed usingcomputersorbymanual methods suchas usingan
employeetolookatthe information.Databasesandspreadsheetsmake itveryeasyto
analyse information.Forexample,informationaboutthe marketgrowth&marketshare can
be enteredusingaspreadsheetpackage.Thisinformationcanthenbe showninbar charts,
line graphs, pie charts,histograms andmanymore methods sothat it iseasyto swiftly
understand the information.Thenthe managerswillbe able tochoose if theirproduct
shouldchange andwhat the mosteffective change wouldbe.
Finance
The finance branchof a businessgeneratesavariationof financial informationthatis useful
for decisionmaking.Businessesoftenuse profitandlossaccounts thatprovide detailsof
whetherthe businessisbeingefficientwiththeiruse of financialresources. Anorganisation
may use a balance sheetprovidingdetailsof abusiness’sassetsandliabilities information,as
well asthe cash flow of the company.The salesandpurchasesinformationsets out
particulartypesof transactionsbetween accountswith certaincustomersandsuppliers.
Businessesalsoneedinformationaboutthe purchase of assetsandliabilitiesas-wellas
informationaboutthe salaries paidoutandthe costsof the business. If the companycan
provide asteadyand upto date movementof information,abusinessshouldbe able to
make suitable decisionsabout how toreduce cost and increase theirproductsalesorraise
profitability byfindingthe bestsourcesof finance.
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Operations
A company'soperationssegmentisthe elementthatmanagesandsupportsthe
organisation. These workers take care of all of the backgroundactivitiesthatkeepa business
runningefficiently frombehindthe scenes.Operations staff don'tusuallycome indirect
contact withcustomers,thoughtheyare responsible for ensuringthatcustomers eventually
receive the product/service thatthe organisation sells.
Personnel
Everybusinesskeepsrecordsof theirpersonnel fromtheirnationalinsurance numberto
theirmedical records.Itisnecessary forthe businesstokeeppersonal dataontheir
employee’ssothatthe companycan make transactionsif necessary.The dataprotection
act 1998 isusedto safeguardanypersonal informationregardingacompany’sstaff.The
data protectionactstates: Personal dataprocessedforany purpose orpurposesshall not
be keptfor longerthanisnecessaryforthat purpose or those purposes. Informationon
the employee hastobe keptina secure locationto avoidany breachof legislation with
the data protectionact.The Data an employercanholdabouttheirworkersincludestheir
name,address,date of birth,gender,education&qualifications,workexperience,
national insurance number,tax code,details of anymedical conditions/disabilitiesand
emergencycontactdetails. The businesswouldhave todecide how longthisinformation
shouldbe keptonrecord to use in-case theyare confrontedwithanyliabilities.
Administration
Everybusiness made upof overone personwill needa formof organisational
structure/chainsothateveryworkerhasa manageror advisorthattheycan query.
Differentcompaniesmayhave differentstylesof administrationtoorganise theircompany
ina unique andspecificway. Some companieswill be ownedbyshareholdersthatpick
directorstolistentotheirinterests andthenchange the companydependingontheirviews.
The directorsthen assignmanagersto runthe businessona daily basistakingintoaccount
the interestsof the shareholders.The ManagingDirectorhasthe foremostresponsibilityfor
runningof the company,includingsetting business goalsandobservingall departments to
make sure that theyare doingtheirjobseffectively.The circulation Managerisresponsible
for monitoringthe movementof goodsinandoutof the warehouse, directingdriversand
supervisingthe transportof products to and fromthe firm. The ProductionManageris
accountable forkeepingaconstantsupply of workflowingtoall manufacturingstaff and
alsofor arrangingthe workforce tomeetthe customer’sordersonthe deadline. The Sales
Manager isaccountable formakingcontact withcustomersand gettingthe clientstobuythe
organisationsproducts/services. The CompanyAccountant organisesall the financial
transactions of the companyand is responsible for creatingmanagementaccountsand
financial reports.
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Sources of Information:
Internal (e.g. financial reports,marketanalysis)
Internal sources of informationisonlyavailable tothe business itself.Thissource
informationwill be private butreliableand accurate.Internal information hasmanyforms
and mayappear as salesfigures,personnel records,customerrecords,andfinancial
documentssuchas trading,profit& lossaccountsand the balance sheet. Salesfigureswill
indicate tothe businessof howmanyitemstheyare sellingandif they have ahigh
enoughincome tomake a profit. Thisisvital forany organisationasif theyaren’t able to
make a product,they beginto lose money andthe businesswill have tomake cuts.
External (e.g. government,suppliers,tradebodies)
External informationisstatisticsanddatathat has come fromoutside the business.Thisis
collected usually throughsecondaryinformationmethods.Organisationsuse external
sourcesfor the same reasontheyuse internal sources,sothatthe companycan make
betterdecisionsfortheirproductsbasedonthe informationreceivedfromthe external
source. A formof external sourceswouldinclude the newspapers,where the company
can see the viewsthattheircustomershave ontheirproducts.Anotherformof external
sourcesare magazines thatwill allow the organisationtosee whattheirtargetaudience
desiresmostoutof theirproducts.The most convenient formof external datawouldbe
obtainedfromthe internet wheretheycanlookat writtenreviewsbybothcustomersand
professionalabouthowwell theytake care of theirproduct.
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Primarydata
Primarydata isinformation collectedfirsthandbythe organisationwhere the statistics
and factshave come straightfromthe source.The data gatheredfromthese sources will
be fitfor purpose and current inthe market,but some formsof data will be hardto
obtainand thusbe expensive. There are several approaches tocollectingprimary
information thisincludes:surveys,interviews,observations,focusgroupsandhall tests. In
relationtoa businessenvironmentsurveyscanbe takento helpthe organisation
understandwhatdecisionsneedtobe made tohelptheirproductsell more andfor their
companyto make a larger profit,byusingsurveystheycanidentifywhatfeaturesof their
productare attractive for theirtargetaudience andhow theyneedtoimprove their
productso that it appearsmore attractive to theircustomers.
Secondarydata
Secondarydata isinformationthathasalreadybeencollected andthenispublishedagain
but froma differentpointof view.Secondarydatatypicallyresemblesthe primarydata
but usuallyisslightlyadaptedtosuitthe currentpublisher. Anadvantage tousing
secondarydata isthat the informationischeaperto locate andwill have countless more
sources than primarydata.The disadvantagesof usingsecondarydatahoweveristhatthe
information collectedmaynotbe suitable orrelevanttothe business’s needs,andmaybe
outdated,renderingthe datauselesstothe organisation.Methods relatingtoa business
environmentincludethe collectingof secondaryinformationinclude the internet,
newspapersandmagazines,marketresearchreportsandgovernmentpublications. The
internetisagreat source for secondarydataas it’sveryconvenient andhasa lot of
informationstoredonagreat deal of websitesmakingitthe most available formof data.
Researchreportssuchas governmentpublicationsare one of the mostreliable formsof
secondarydata as theyare veryformal and are oftenmade byprofessionals.
Types
In the contemporary businessworld,informationcanbe shown indifferentforms.
Oral informationusessoundto transferthe information, thisisone of the mostusedforms
of informationtransferandisthe easiestwaytotransferinformationquicklyandeffectively
not countingelectronicmail.Anexample isa presentationwhere the hosthastovocally
communicate aboutthe informationinhisproduction.Otherforms are speechesandmusic
clips. Writteninformationuseswordsto explainorstate facts witha formal andfirsthand
approach.The commonestformof written communicationare Lettersothermuchused
methodsof writteninformation wouldinclude memosandbusinessreports.
Graphical information describes datainthe style of graphsand charts.Graphs and charts are
oftenusedtoportray informationmore vividly.Numerical information displaysdataina
mathematical arrangementorina table, forexample accountingdocumentssuchasthe
tradingand profit& lossaccount or the balance sheet. All formsof the numerical
informationusuallyare displayedonspreadsheetsandhave clearformulatedgraphstohelp
displaythe situationof the organisation. Anotherformof informationis Pictorial,thisuses
images,picturesorphotographstohighlightinformation. Thisisusefulwhentryingto
conveya pointacross toan employee thatisa visual learner.
Quantitative data
Quantitative informationisdatathat isdefinable,measurableandisdisplayedinanumerical
format.Quantitative informationcanbe obtainedfromobservations,surveysandfactual
informationsuchas salesfigures. Inrelationtoabusinessenvironmentquantitative
researchmainlyusesmethodssuchassurveysand questionnaires withsetquestionsand
answersthatrespondentstickfroma predefinedselection.Answerscanbe measuredin
ranks of agreementfrom“stronglyagree”to“disagree”ora numerical system suchas
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rankingout of 10. Thisform of researchisvery adaptable intermsof how itcan be carried
out suchas through the post,online orevenoverthe phone.
Qualitativedata
Qualitative dataisinformationwhichismore aboutattitudes,beliefsandfeelings.Itis
descriptive.Qualitativeinformationisusuallycollectedviafocusgroups,hall testsand
surveys. Inrelationtoa businessenvironmentqualitativeresearchis mainly directedby
discussionaround particularconceptsorideaswithopen queryinginameeting.Attendees
are encouragedto clarify ordescribe theirreasonsforhavingspecific responseswhichcan
divulge theirbasicincentives,foranorganisationthiswill helpthe companytoidentifywhat
aspectsof the productneedstobe improved.The mostcommon methods of qualitative
research comprise of focusgroupsrelevanttothe target audience orsingle interviews
betweentwopeople,conductedinperson orthrougha videoconference/telephone.
Handling of Information:
Data v information
Data is unprocessedinformationandisn’tveryusefuluntil itisprocessed.Dataisoften
displayedinverysimplisticformssuchastransactions,eventsandfacts. Informationisdata
that has been processed sothatitis seenas significanttothe personwhoreceivesit. Datais
basicallyfactsor figures orjustbitsof information,butnotinformationitself.Whendata is
processed,interpreted,organized,structuredorpresentedso thatitisdeemedas
meaningful orusefultothe reciprocate,thenitiscalledinformation.Informationoffers
contexttothe data.
Collectionandstorage
There are countless forms of collectinginformationanddatafrombothprimaryand
secondarysourcesincluding orderforms,enquiries,complaints,customersatisfaction
surveys andfeedbackcards.Organisations muststore informationcautiouslyandin
agreementwith privacyguidelines andgovernmentlegislation.Anygathered customer
informationisconfidential andneedstobe storedsecurely. A planshouldbe made to
explainhow any customerinformation shouldbe stored. A simple waytostore clientdatais
to use an electronicspreadsheet.
Manipulation
Digital datacan be easilyerased,changedandmanipulated. It’sanorganisations
responsibilitytoensure andverifythattheirelectronicbusinessrecordsare accurate and
reliable. Thiscovershowdataiscaptured,verifiedandstoredforeffectiveuse.A business
shouldalsobe able to prove that the manipulation,processing anddistribution of
informationiskept secure andcan’tbe stolen.
Retrieval
Retrieval, the processof gatheringandlogginginformationsothattheycan be foundand
displayedonrequest withease. There are numerous basictypesof information storage and
retrieval systems. Documentretrievalsystems catalogue andstore entire documents which
are usually locatedby name orby keywordsassociatedwiththe document.Insome
systems,the writingindocumentsisstoredasdata,thisallowsafull textsearch,permitting
retrieval of the documentif there are anymatchingkeywordswithin the document.The
data isstoredinside the computer,eitherinmainstorage orauxiliarystorage allowingfor
convenientaccess. Reference retrieval systems store referencestodocumentsratherthan
the documentsthemselves. Whenasearchfor a particulardocumentusingareference
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revival systemisopeneditwill provide the namesof appropriatedocumentsand their
physical locations.Suchsystemsare effective whenlarge quantities of diverseprinteddata
mustbe stored.
Analysis
Informationhastobe thoroughlyanalysedsothatit can be eitherdeemedusefulor
impractical.Anorganisationcanspendalot of moneyoninformationespeciallyif it’s
primarydata. Asinformationisveryuseful toacompanytheymustbe able toanalyse itfor
itsworth.If the informationanalysedisuseful thenitcanbe usedto helpthe company
endorse theirproductsandmake a largerprofitby growingintheirbusinessmarket.
Presentation
Once all the data have beencataloguedandanalysed,the followingstepistopresentthe
resultsinthe formof a presentation,areport,oranythingthatis mostrelevanttothe
research.The purpose of presentingthe dataisto persuade the clientsthatsignificantand
industriousinformationhasbeencreated.Consequently,the explanationof the resultsmust
be clearlysupportedbythe data as evidence.Whenreportingdata,itis vital to presentthe
information evidently.Some formsof presentationinclude: Diagrams,photographs,tables,
maps,graphs or othervisual representations. Allformsof imagerypresentationmustbe
accurate and be ina respectable manor. The amountandvariety of informationpresented
will depend vastly onthe targetaudience ormarketthat itis intended.
10. RobertTaylor
M1: assess the improvements which can be made to an identified
organisation’s business information systems
Part 2: Standard of information
Differenttypesof informationhave differentstandards thatwill needtobe met.Inany
organisationthe informationshouldbe of the highestqualitysothatthe manufacturescan
create the bestproduct possible. The standardof informationplaysavast role inany
effectivebusiness,especiallynow that countlessorganisations have takentheirbusiness
online,havingwebsitesandsocial pages suchasFacebook.
Reliability
All businessesneedreliableinformationtofunctionproperly.Everycompanyshouldmake
sure that theirdata isas reliable aspossible,althoughmoststatisticscanbe classedas
reliable evenwithsome anomalousresults.If anorganisationcanobtainreliable information
thentheywill be able toadaptto the everchangingbusinessenvironment,thiswill allow
theirproducts/servicestobecome more successful inthe marketif theyadaptproperly.
The reliabilityof informationisnecessarywithanypiece of information,in-orderforthe
informationtobe classifiedas“good”and useful theybothhave tobe bothrelevantand
accurate. If the informationisreliable then acompanyisable touse the data without
concernthat theymay be usingdistortedmaterial.
Validity
Validityisnotdissimilartoreliabilitybutinsteaditconcernsthe relevance andaccuracyof
information.The accuracyof the informationshouldbe of highquality sothatits
informationisseenasuseful tothe company,the informationcollectedshouldalsobe
professionalsandinformative thusallowingthe companytobetterunderstandthe validity
of the information collected.
The validityof information allowsabusinesstouse consistentandprecise information
rather thaninformationthatisunreliable anddoesn’thave anylegitimate associations. The
validityof anyinformationshowshow reliable acompanycanbe as theirinformation
standardshave to be maintainedin-ordertokeepupa decentreputation.
Relevance
The relevance of the informationdependsonwhatpurpose itpossesses,if the informationis
not founduseful tothe companythenithas little relevanceandthe informationisfound
insignificant.If the dataacquiredisrelevantthenitisconsideredappropriatetothe
circumstancesandthusis able to contribute toa resolution.
If informationisrelevanttoanorganisationthenitwill be consideredworthyforthe
companyto use.The relevance of informationallowsbusinessestouse the information
accuratelyintheirwork, the informationisable tobe usedeffectivelywhenthe information
has relevance.
Timeframe
A time frame isthe representationof how farintothe future the organisationhas planned
for the business. A company wantstheirbusinesstogrow successfullyfor many yearsinto
the future,the time frame howeverisonlymeanttolastfor a specifiedperiod. Every
businessplancovers theirown planningtime.Sometime frames are intended togetthe
organisation toa distinctlevel in saleswhile otherstrytogetthe businesstoa certain
amountof fundingorthe achievementof adifferentdevelopmentgoal.A decenttime frame
isone that has an achievable startandfinish,with several checkpointsinbetween the
overall time frame.
By havinga time frame an organisationisable tomanage whataspectsof the company
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shouldbe improvedonandwhichcan be cancelled.A time frame will allow forbetter
communicationof the informationthroughoutaworkingenvironment.The information
usedin a time frame isaffected asitischangedoftento match the currenttrendsinan
organisationandallowforbettermodernisation.
Accessible
The accessibilityof abusinessdependsonhow easilythe informationinthe company
computerscan be retrieved bythe membersof staff.The accessibilityof informationisn’t
justabout howquicklythe datacan be accessed,buthow accessible the dataitself is. There
are twoaspectsto the accessibilityof the information,one isthe technological aspect,
where the datashouldbe easyto locate and theneasyto interpret.The otheristhe Physical
aspect,where there shouldbe acomputertoaccess and itshouldbe able to fitthe user’s
needs.Suchas if theywere blindthenthe keyboardcouldbe writteninbrail andthe
appropriate proceduresshouldbe takenforall disabilities.The technological aspectcanbe
takencare of by makinga computerlinkednetworktoallow filestobe stored/shared
betweenthe computers.
If the informationisaccessible thenitsaffectsseveral characterises,suchasthe time taken
to retrieve the intendedinformationas-well asthe positioningof the informationinthe
computersystem. If the informationismade more accessible thenitwillbe more prominent
for the organisationtoaccesson demand.While if the information’saccessibilityis
decreasedthenthiswill make the informationhardertolocate & retrieve,forboththe
company and outside parties.
Quality
In-ordertohave good informationthe keyfeature will needtobe itsquality.Quality
informationisaccurate,sothat the data providedisuseful tothe organisation.If the
informationprovidedisaccurate thenthe company can use that informationwell intohelp
promote theirproduct/service.If the informationqualitythenitwillneedtobe both
complete andconsistent,these traitsare vital forqualityinformationasitshowsthatthe
entire of the provideddataispresentanditwon’tmisleadthe analystswhentryingto
interpretthatinformation.The informationshouldalsobe unique sothatthe organisation
can use it for theirown productand itwouldn’tbe inviolationwithanothercopyrighted
product.
The quality of informationwillbe affectedinmanywaysdependingonhow the information
isformedand the qualityof the informationitself.The informationwill become more
effectiveatitspurpose if the qualityof the informationishigh.The organisationwill find
that the informationwillalsobe alotmore efficientfortheircompanyif ithasa high
standard.
Cost-effective
The cost effectivenessof the informationdependsonhow muchthe businessputinto
obtainingandanalysingitin-comparisontohow muchuseful informationtheygetout. If the
informationtheybuyisof lowqualityandnotanalysable thenit’sveryunproductive
informationthathaswastedpreciousmoney.
The cost-effectivenessof informationaffectshow muchmoneyanorganisationsavesfrom
the information.If the informationiscosteffective thenitwillallowthe organisationuse the
informationcausingthe companytoobtaina reimbursementfromthe information.Cost-
effectiveinformationwillbe usedinabusinessmore thanineffective information,thistype
of informationwill alsobe more accessible andhave anoverall higherqualitythanother
formsof information.
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Appropriate
If the informationanorganisationreceivesinrelevanttotheirproducts/servicesthenitmay
be deemedappropriate information,butthere are some formsof informationwhichare
classifiedasinappropriate.In-appropriate dataincludes itemssuchashumorousinformation
and pornographicmaterial,thesetypesof informationare ofteninefficienttothe company.
The informationshouldbe easytounderstandbyusinganappropriate mediumto
communicate across,suchas a presentationore-mail.
Appropriate information will alsoaffectgoodinformationbymakingthe information
useable tothe organisation,as-well asthe information won’tbe discriminatingoroffensive
to anyone workingatthe companythat has to analyse the data.
Part 3: Improvements that can be made to a business
In thispart I will accessthe improvementsthatcanbe made to an organisation’sbusiness
informationsystem.Ihave chosentolookat Tesco’sinformationsystemtoexamine what
aspectsof theircompany needimprovements.Ihave decidedthatTesconeedstoimprove
theirfinancial status,competitorranking&Communicational abilities.
Tescois an organisationinthe supermarketindustry,theyspecialise inthe sellingof a
multitude of products.Fromarange of foodsto theirownclothescompany(F&F).Tescohas
an expansive informationsystemthatwill be usedtoperformavarietyof procedures
including;safe workingpractices,staff rotas&organisational procedures.
The financial statusisa massive partto any organisationdue tothe fact that if the company
isunable to retaincashfrom theirprofitsthenthe businessiscounterproductive.The
financial statusof a companycomprisesof the moneyflow throughoutthe business. A
majorityof majorbusinesseshave agoodfinancial statusastheyare gainingrevenue ata
constantrate and puttingmostof it back intothe organisation,allowingthe organisationto
expandandmake evenmore profit.Businessesmake profitandlossaccountstoshow what
the organisationiscapable of gaininginnetprofits.Businessesalsoneedtocreate abalance
sheettoaccess whatthe financial statusof a businessisona certaindate.All these typesof
informationwill be storedonanorganisation’sinformationsystem.Tescoislackingintheir
financial because theypourtoomuchmoneybackintotheircompany,thisleadstoa great
waistof potentiallyusefulsourcesof finance.Thismoneyisoftenwastedbytheir
employee’scausingaslowmovementintheircashflow.To improve theirfinancial status
Tescoshouldmake sub-sectionstotheirretainedcashandmake sure that all the moneyis
beingusedefficientlyandeffectively,thisisveryadvantageousforalarge scale industrythat
focusesinprofitsmade bythe general public.Anexample forthe use of financial dataonan
informationsystemwouldinclude how the companyisgoingtoconfrontanyof their
financial errors.Tescomaywantto limitthe retainedprofitfromgoingbackintotheir
supermarketsorevenstop the processentirely.
A competitorrankingis verybeneficialand essential fororganisationssuchasTesco,as they
are constantlytryingtodraw innew customersfromrival supermarkets.Competitorranking
involvesthe positioningof the companyincomparisontootherorganisationsinthe same
industry.The competitorrankingwillencompassaspectssuchastheircustomercount,sales
& profits.The customercountresemblesthe amountof customersthatgointothe
supermarketoverasetperiodof time.The salesare how many productsthat the customers
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are buyingwhile enteringthe store.The profitsare the actual amountof revenue thatTesco
receivesfromthe sales,asnotall productswill be boughtfora profitable price.These pieces
of informationare essentialininformationsystemsasthenthe organisationisable to
determine where intheircompetitorrankingthattheyneedtoimprove.Tescohasavery
unstable profitmarginwithmanyof theirproducts thatare on theirshelvesandnotbeing
sold.Thisisverydetrimental astheyare makingvery little oreven norevenue forthe
company.Tesconeedstoorganise how manyof itsproductsshouldbe on sale andmake
sure that theyare still makingadecentprofitfromthem.AnExample of competitorranking
inTesco wouldbe the comparisonsof how manysales& how much revenue their
competitorsare makingcomparedtotheirownsalesandprofits.
Tescohas to have good communicationalskillsin-ordertooperate bothresourcefullyand
successfully.The communicational skillsinvolvethe relayof informationfromthe employer
to the employees.Tescomusthave clearandconcise directionsfortheirsupermarketsand
branches,otherwisetheywouldbe unabletogettheirstaff tocooperate properly.Tesco
needstostore all the importantproceduresas-well asanyessential detailsontheir
informationsystemsothattheirstaff isable toaccuratelyworktogether. Tesconeedto
evaluate howtheyuse theircommunicationintheirsupermarketsasoftentheyare unable
to opennewtillswhentheyhave anabundance of customers.Theycanimprove their
informationsystembyhavingspecialistcommunicatorsthatallow theirstaff totransfer
informationquicklyandwithease.
It isimportantthat a company,such as Tesco, obtainsqualityinformationto puton their
managementsystemastheyoftenuse collecteddatatomake importantdecisionsregarding
the company. The organisationshouldputspecialisedproceduresinplace sothattheyonly
receive the usefulpiecesof datawhencollectinginformationtoputontotheirmanagement
system.One wayto improve the qualityof informationcollectedforaninformationsystem
wouldbe forthe managementstaff of acompanyto get a strongerpersonal involvement in
the collectionmethodsthatthe companyuses. A companysuchas Tescowoulduse
incentive schemestohelpimprovethe qualityof anydata collectedas thatwouldmotivate
the collectionprocessand promote the inputof desiredinformation.Otherwaysthatan
organisation wouldimprove theirinformation quality wouldbe toperformadata quality
audit. Thisway a company wouldbe able toexamine the datatheyobtainandas a result
theywouldbe able tomake the necessarychangestotheirsystemtocollectmore desired
information. Thesetypesof techniquescan be done throughthe formof data quality
enforcementpolicies.Bycreatingnew performance evaluationmeasures Tescowouldbe
able to obtainmore valuedinformationtoenhance the company.
