Information for Decision Making, L1, By Rahat Kazmi

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Transcript of Information for Decision Making, L1, By Rahat Kazmi

Kingston College of London Information for Decision Making Unit 4 Lecture 1

ByRahat Kazmi September 2010

Overview Why Do We need Information within an organization? How can We develop, Organize, Analyse and Communicate information (including quantitative and financial information) for management? Why all organizations must manage information, just as all commercial businesses must aim to make a profit? Does Information increases knowledge, reduces uncertainty and add value? Why good decisions are virtually impossible without appropriate information? Why does every organization must collect, communicate and process information to survive in a rapidly changing, competitive environment?

How can managers within the organization make effective decisions in pursuit of the organisations objectives without relevant Information?Prepared by: Rahat Kazmi

Learning OutcomesOn completion of this unit, you will be able to: 1. Explain the need for quality information in organizations; 2. Identify the relationship between information and decision-making; 3. Use statistical tools available for presenting and interpreting business information; 4. Demonstrate how financial information enables managers to plan, control and make decision.Prepared by: Rahat Kazmi

Section 1Data Information Decision Making

Data are facts, events and transactions; information is data processed in such a way as to be useful to the recipient.Prepared by: Rahat Kazmi

Data, Information and Knowledge Data is the representation of facts as text, numbers, graphics, images, sound or video Data is the raw material used to create information Facts are captured, stored, and expressed as data Information is data in context Without context, data is meaningless - we create meaningful information by interpreting the context around data Knowledge is information in perspective, integrated into a viewpoint based on the recognition and interpretation of patterns, such as trends, formed with other information and experience Knowledge is about understanding the significance of information Knowledge enables effective actionPrepared by: Rahat Kazmi

Data Management and Project SuccessData is fundamental to the effective and efficient operation of any solution: Right data Right time Right tools and facilities Without data the solution has no purpose Data is too often overlooked in projects Project managers frequently do not appreciate the complexity of data issues

Prepared by: Rahat Kazmi

Data and Information Management Data and information management is a business process consisting of the planning and execution of policies, practices, and projects that acquire, control, protect, deliver, and enhance the value of data and information assets

Prepared by: Rahat Kazmi

Data and Information ManagementTo manage and utilise information as a strategic asset

To implement processes, policies, infrastructure and solutions to govern, protect, maintain and use information

To make relevant and correct information available in all business processes and IT systems for the right people in the right context at the right time with the appropriate security and with the right qualityTo exploit information in business decisions, processes and relationsPrepared by: Rahat Kazmi

Data Management GoalsPrimary Goals: To understand the information needs of the enterprise and all its Stakeholders To capture, store, protect, and ensure the integrity of data assets To continually improve the quality of data and information, including accuracy, integrity, integration, relevance and usefulness of data To ensure privacy and confidentiality, and to prevent unauthorised inappropriate use of data and information To maximise the effective use and value of data and information assets

Prepared by: Rahat Kazmi

Data Management Goals

Secondary Goals: To control the cost of data management To promote a wider and deeper understanding of the value of data assets To manage information consistently across the enterprise To align data management efforts and technology with business needsPrepared by: Rahat Kazmi

Data Management Principles Data and information are valuable enterprise assets Manage data and information carefully, like any other asset, by ensuring adequate quality, security, integrity, protection, availability, understanding and effective use Share responsibility for data management between business data owners and IT data management professionals Data management is a business function and a set of related disciplinesPrepared by: Rahat Kazmi

Data Management Issues Discovery - cannot find the right information Integration - cannot manipulate and combine information Insight - cannot extract value and knowledge from information Dissemination - cannot consume information Management cannot manage and control information volumes and growth

Prepared by: Rahat Kazmi

Data Management Problems User View Managing Storage Equipment Application Recoveries/ Backup Retention Vendor Management Power Management Regulatory Compliance Lack of Integrated Tools Dealing with Performance Problems Data Mobility Archiving and Archive Management Storage Provisioning Managing Complexity Managing Costs Backup Administration and Management Proper Capacity Forecasting and Storage Reporting Managing Storage Growth

Prepared by: Rahat Kazmi

Data Quality Poor data quality costs real money Process efficiency is negatively impacted by poor data quality Full potential benefits of new systems not be realised because of poor data quality Decision making is negatively affected by poor data qualityPrepared by: Rahat Kazmi

Choices

Decision Making

Decisions are required to be taken in day to day life.

No single task in our life can be done without decision making. For every assignment we undertake, there has to be a process of making choices. Whenever we are faced with choices, there is an inevitable need of selecting one particular course of action. Any task can be done in various ways, but doing it simultaneously through all possible alternatives is virtually impossible. This necessitates making a reasonable choice from all the options available.Prepared by: Rahat Kazmi

Choices

Decision Making

An example can be taken for a person who wants to go to Glasgow. He/she Can look at following options:

Use any of the local bus service available Go by train Travel by air As you can see, the decision to be made in this situation is faced with the availability of a set of combination of alternatives.

Prepared by: Rahat Kazmi

Choices

Decision Making

Every decision we take in daily life requires some sort of information about the alternatives available. For instance, in the above example certain factors need to be considered before taking a decision:

How urgent it is to reach to Glasgow How much time is available to accommodate travelling, since each mode of travelling will take different time to reach at the same destination? Whether bookings are available for the desired day and time. Is there any possibility of cancellation of booking or flight or bus service.

Prepared by: Rahat Kazmi

Choices

Decision Making

Which bus service or airline or train service to chose from, since various options available for travelling to Glasgow. Without relevant information, we cant take the right decision. Similar is the case with business. Businesses are run by organizations which are in-fact a group of people. Like individuals organizations have various alternatives on a day to day basis in operations, Decisions are made by individuals from the management.

Prepared by: Rahat Kazmi

What is Information? Information is an essential business commodity. Without information, staff at all levels in an organization would be unable to perform their duties. The organization would not achieve its objectives and, hence, would not survive. Information has no value in itself. It becomes valuable when its existence enhances the decision-making process.Prepared by: Rahat Kazmi

Information Information in all its forms input, processed, outputs is a core component of any IT system Applications exist to process data supplied by users and other applications Data breathes life into applications Data is stored and managed by infrastructure hardware and software Data is a key organisation asset with a substantial value Significant responsibilities are imposed on organisations in managing dataApplications

Information

Process

IT Systems

Infrastructure

People

Prepared by: Rahat Kazmi

Knowledge

Information

Action

Information

Data, Information, Knowledge and ActionPrepared by: Rahat Kazmi

Data

When is Information Valuable? Relevant; Complete; Clear; Accurate; Timely; Up to date; Well presented; Measures favourably against the costs of providing itPrepared by: Rahat Kazmi

Information is an Organisation Asset Tangible organisation assets are seen as having a value and are managed and controlled using inventory and asset management systems and procedures Data, because it is less tangible, is less widely perceived as a real asset, assigned a real value and managed as if it had a value High quality, accurate and available information is a prerequisite to effective operation of any organisation

Prepared by: Rahat Kazmi

Sources of InformationInternal Sources

Historical records; Internal databases; Resources capabilities; Trends; Targets; Stock availability; Customer credit rating.Prepared by: Rahat Kazmi

Sources of InformationExt