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InformationNeeds & Role

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Contents

Introduction

Meaning

DefinitionCharacteristics

Needs

RoleConclusion

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Introduction

Information is of critical importance for

setting up, running, survival and prosperity

of a business organization.

Information isalso imperative today as it

enables an organization to gain and retain

competitive edge.

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Meaning

Information is data that is collected,

collated, processed, logically organized and

analyzed so as to be of use to the decision

maker.

In simple words, Information is processed

data that is used in decision making

process.

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Definition

Data that has been processed into a

form that is more meaningful to the

recipient and is of real or perceived

value in current or prospective actionsor decisions.

Davis & Olson

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Characteristics

Improves representation of an entity

Updates the level of knowledge

Has an element of surprise

Reduces Uncertainty

Aids in Decision Making

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Stored Data

Data(Input)

Processing Information(Output)

Fig. Information Generation

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Information Needs

Information is needed or required by

all the levels of Management for

decision making purpose i.e. at the

Strategic Level

Tactical Level

Operational Level

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Operation Management

Top Management

Unstructured

Non-Programmed

Futuristic

Approximate

External

Structured

ProgrammedHistorical

Exact

Internal

Fig. Information Needs of Different Levels of Management

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Role of Information

Information, Information Technology andthe resultant Information Revolution arechanging the rules of the game and creatingnew paradigm shifts, giving companies new

ways to outperform their rivals. Thus thenew role of information can be studiedunder :-

Functional Uses

Strategic Uses

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Functional Uses

Information helps organization to enhance:

i. Quality of their operations

ii. Quality of their products

iii. Quality of their services

Information can help simplify:

i. Products

ii. Product Processes

iii. Production Cycle Time

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Information helps lower cost in any/allparts of Value Chain.

Information enables organizations tocommand a competitive premium.

Information helps organization

i. Meet Benchmarking Standards

ii. Improve Customer Serviceiii. Improve quality and precision of design

and product.

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Strategic Uses

Information gives organization new ways to outperform work.

Information helps in making precise development ofstrategies, planning forecasting and monitoring.

Information facilitates a more comprehensive analysis andadd value for/ to: 1) Problem Solving

2) Decision Making

Information enables organizations to Think Globally and ActLocally.

Information yields strategic opportunities and enables changethe rules of competition very fast and bestows competitiveadvantage.

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Information helps organizations to acquire strategicflexibility.

Information enables organizations to restructure work-flows.

A firm can use four basic competitive strategies to deal withthe competitive forces

i. Product Differentiation

ii. Focused Differentiation

iii. Developing right linkages to customers and suppliers

iv. Developing a low cost product without compromising with

quality.

It is where Information helps an organization in gainingcompetitive advantage.

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Conclusion

Information is a strategic resource It

is scarce, has significant cost and has

alternative uses bestowing

competitive edge to the organizationwhich possesses it.

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