business information & ict - information

PM 2000PM 2000 BUSINESS MANAGEMENT - HBUSINESS MANAGEMENT - H 11

Information and ITInformation and IT

• Second outcome in first unitSecond outcome in first unit

• Should take 10 – 12 periods to coverShould take 10 – 12 periods to cover

• You have already covered – Business in Contemporary You have already covered – Business in Contemporary SocietySociety

• Still to do in this unit – Decision MakingStill to do in this unit – Decision Making


Outcome 2 - Information and IT

Sources of information Types of information Value of different types of

information Uses of information in business Uses of ICT Costs and Benefits of IT Current legislation


INFORMATION? INFORMATION? DATA?DATA?

WHAT’S THE DIFFERENCE?WHAT’S THE DIFFERENCE?

DATA - a collection of facts which have DATA - a collection of facts which have assembled in a logical mannerassembled in a logical manner

INFORMATION - data that has been processed into INFORMATION - data that has been processed into a form that will assist in decision making and a form that will assist in decision making and planningplanning

WHAT IS INFORMATION?WHAT IS INFORMATION?


Information from Information from different sourcesdifferent sources

•PrimaryPrimary - first hand data, - first hand data, gathered by organisation for a gathered by organisation for a specific purposespecific purpose

•SecondarySecondary - collected for one - collected for one purpose and used for anotherpurpose and used for another


Where is this Where is this information held?information held?• internalinternal - data and info which comes - data and info which comes from the organisation’s own recordsfrom the organisation’s own records

• external - external - from sources outside from sources outside organisation, used to analyse organisation, used to analyse factors over which they have no factors over which they have no direct controldirect control


TASK - When John Smith was considering replacing his TASK - When John Smith was considering replacing his car he used the following information. Identify car he used the following information. Identify whether the information is primary or secondary.whether the information is primary or secondary.

he went to his local garage and asked the opinion of the he went to his local garage and asked the opinion of the mechanics – their information was based on feedback from their mechanics – their information was based on feedback from their customers and what they actually had to deal with in workshop customers and what they actually had to deal with in workshop repairsrepairs

he read the current edition of he read the current edition of What Car?What Car? magazine magazine he took the car on a 48-hour test drivehe took the car on a 48-hour test drive he listened to his neighbour and a friend who used to drive a he listened to his neighbour and a friend who used to drive a

RenaultRenault he researched information on the internethe researched information on the internet he looked at various models in the car showroom he looked at various models in the car showroom he studied the car manufacturer’s leaflets containing prices and he studied the car manufacturer’s leaflets containing prices and

technical specificationstechnical specifications he read a newspaper article written by Jeremy Clarksonhe read a newspaper article written by Jeremy Clarkson


2 main types of 2 main types of information:information:QuantativeQuantative

information that is definableinformation that is definable number basednumber based information which can be measuredinformation which can be measured useful for making comparisonsuseful for making comparisons

QualitativeQualitative information that is descriptiveinformation that is descriptive concerned with peoples feelings/opinionsconcerned with peoples feelings/opinions useful when analysing people’s views on a productuseful when analysing people’s views on a product


PRESENTATION OF INFORMATION

WRITTEN - memos, letters, reports, notices, etc

ORAL - face- to face, telephone, interviews, meetings, etc

PICTORIAL - photographs, drawings,etc

GRAPHICAL - charts, graphs, etc

NUMERICAL - financial statements, statistics


THE VALUE OF INFORMATIONTHE VALUE OF INFORMATION

HIGH QUALITY INFORMATION HAS THE FOLLOWING HIGH QUALITY INFORMATION HAS THE FOLLOWING CHARACTERISTICSCHARACTERISTICS

accurateaccurate timelinesstimeliness

completenesscompleteness appropriateness appropriateness

availabilityavailability cost effectivenesscost effectiveness

objectivityobjectivity concisenessconciseness


Quality vs QuantityQuality vs Quantity

• If an organisation wishes to make the right If an organisation wishes to make the right

decisions and in order to achieve its aims and decisions and in order to achieve its aims and

objectives then it objectives then it mustmust use quality information. use quality information.

• This may mean that quantity is forsaken for This may mean that quantity is forsaken for

quality.quality.


VALUE OF INFORMATIONVALUE OF INFORMATION

• Value depends upon the use that the information Value depends upon the use that the information is to be put to.is to be put to.

• If it is to be used to control or monitor a If it is to be used to control or monitor a situation it must be quantifiable and be easy to situation it must be quantifiable and be easy to compare to other statisticscompare to other statistics

• eg comparing wastage in a production department eg comparing wastage in a production department over a 12 month periodover a 12 month period


questionquestion

• Identify two sources of information, other than a Identify two sources of information, other than a brochure, that would be useful to a person choosing a brochure, that would be useful to a person choosing a holiday. Give examples of the types of information holiday. Give examples of the types of information within these sources and discuss their value for the within these sources and discuss their value for the purpose of making a good decision in this context.purpose of making a good decision in this context.


• Friends – oral, qualitativeFriends – oral, qualitative

• Oral information from a friend may be subjective opinions, Oral information from a friend may be subjective opinions, an easy way of getting information, probably an easy way of getting information, probably first-handfirst-hand therefore valuable, trustworthy but may be therefore valuable, trustworthy but may be biasedbiased

• Travel agents – oral, written, pictorial, graphical, Travel agents – oral, written, pictorial, graphical, quantitative, qualitativequantitative, qualitative

• Travel agents’ information is relevant and wide-ranging but Travel agents’ information is relevant and wide-ranging but may be may be out-of-dateout-of-date and collected from a and collected from a secondary reference secondary reference sourcesource, cheap and easy to collect, may be , cheap and easy to collect, may be biasedbiased..

• Internet – written, pictorial, quantitative, qualitativeInternet – written, pictorial, quantitative, qualitative

• The internet will usually give a wide variety of secondary The internet will usually give a wide variety of secondary information, difficult and time-consuming to sort through, information, difficult and time-consuming to sort through, should be should be up to dateup to date, very convenient to collect., very convenient to collect.


VALUE OF INFORMATIONVALUE OF INFORMATIONSETTING STANDARDSSETTING STANDARDS

Before an organisation can decide if it is meeting Before an organisation can decide if it is meeting quality standards it must set a benchmark.quality standards it must set a benchmark.

Only when actual results are compared against pre-set Only when actual results are compared against pre-set results can a judgement be made.results can a judgement be made.

RECEIVING VALUELESS INFORMATIONRECEIVING VALUELESS INFORMATION

Job candidates may be asked to send in a CV this will Job candidates may be asked to send in a CV this will contain a lot of information but has been designed to contain a lot of information but has been designed to present the candidate in the best light but may not be present the candidate in the best light but may not be fully truthful, or some information may have been fully truthful, or some information may have been omitted.omitted.


Source Purpose required

value Reason for grade

Class registers

Identifying absent pupils

High Accurate, timely, complete, appropriate, available, cost effective, objective, conciseThe 6.30pm

weather forecast

To decide if Sports Day is to be cancelled

The Sun newspaper

To assess if the Government is keeping election promises

Which? magazine

To decide what vacuum cleaner to buy

Conversation between two men on a bus

Critical analysis of David Beckham’s football skills

A TV advert for a new car

To decide which car to buy


Uses of information Uses of information

• Monitor and controlMonitor and control – mainly finance to ensure that budgets are – mainly finance to ensure that budgets are being adhered to and that there is no overspendbeing adhered to and that there is no overspend

• Decision makingDecision making – qualitative information may back up – qualitative information may back up quantitative info gathered and help managers come to a decisionquantitative info gathered and help managers come to a decision

• Measuring performanceMeasuring performance

Finance – profits, Finance – profits,

Staffing – latecoming, absences, staff turnover, Staffing – latecoming, absences, staff turnover, productivityproductivity

Sales – units sold, comparison of sizes, design, colour, Sales – units sold, comparison of sizes, design, colour, area, etcarea, etc

• OpportunitiesOpportunities – to help identify a gap in the market, eg – to help identify a gap in the market, eg increasing sales in a product may signify a change in lifestylesincreasing sales in a product may signify a change in lifestyles