Information is power. Information is important to people and organizations and therefore it needs to be managed well. It is important for both individuals and organizations to appreciate the role played by information in many aspects of life and business.
Management often tracks down and / or reacts to what is derived from internal or external sources. The manager processes it and disseminates the information in any of the following ways: uses it, passes it on, stores it and / or discards it. The right information can be gathered to help assess the quality of the decision that was made. The criteria for valuable information include:
It is valuable to decision makers as long as it is correct. This criterion helps in distinguishing what is valuable to information that is less valuable. Information offers a valid and reliable representation of reality. The cost of distorted or incorrect information can prove extremely high. Information that is accurate helps in making the right decision.
For example, the correct information needs to be gathered pertaining to the customer needs and preferences. This will in turn be used it coming up with the right products. An oversight can result in producing a product that fails to sell. This will in turn result in great losses.
For anything to be counted as right it needs to be made available when needed. The right information is dependent on the situation. For example in a fast paced word of travel, commercial airlines need daily updates about what other airlines are offering with their air ticket prices. Therefore, if one of the leading airlines reduces its assess on a particular route, other commercial airlines would find out about the reduction and respond accordingly.
The right information should be comprehensive, covering topics or issues of interest. Information that is complete plays an important role in telling a complete story.
Without having information that is complete, the decision maker gets a view of reality that is distorted. Therefore, incomplete information pertaining to the market can lead to a situation where the organization introduces products and / or services that the customers do not want.
It is considered relevant if it is important and can be used to a specific issue, problem or situation of interest. Therefore, thine marketing manager needs information about the advertising rates and sales projections; the operations manager will need something pertaining to productivity and cost; the Human resources manager will need information pertaining to employee turnover and hiring; top executives require something about the strategic actions of the competitors.