ICT AS Level - Topic 2 Value + Importance of Information

  • Created by: Dan 8888
  • Created on: 31-03-15 09:57

Importance of Up-to-date, Accurate + Complete Info

Lower Layers of Management are Responsible for:

- Day to day management of operations staff

 - Allocating work to subordinates

 - Staff rotas

 - Motivating staff

 - Department budget

Higher Levels Responsible for:

- Strategic planning

 - Market share

 - Cash flow

 - Profits

 - Growth in profits

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Importance of UTD, A + C Information Continued...

How Information Aids Decision Making:

- More relevant information

 - Information allows a manager to take remedial action

 - Simulation can be performed - 'What If' scenarios

Using Information to Monitor Progress:

- Companies can use ICT to see how well they are doing against set targets

 - Monthly sales figures can be compared with others from other years

Using Information for Targeting of Resources:

- Resources include money, human resources, time, hardware, software and materials

 - ICT can be used for creating production schedules, planning projects and stock control systems

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Importance of UTD, A + C Information Continued...

Competitive Advantage Information Gives:

 - Use market research to understand why customers choose business/products/services

 - Customer orders are always satisfied (accurate stock information)

 - Able to anticipate customer demand from previous sales information

Importance of Up-to-date, Accurate nad Complete Information:

 - Up-to-date information has to have date stamped on food and DPA (1998) for personal information

 - Consequences include prosecution under DPA + letter sent to dead person which distresses the family

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Up-to-date, Accurate and Complete Information

2) Accurate:

Errors can result in problems

- Customers being sent wrong items -> costs to sort and upsets customer

 - Misreading gas/electricity meters -> bills costing 1000s of ££££

 - Mistyping address due to mishearing on phone -> items go elsewhere

3) Complete:

Cause a number of problems if not:

- Managers getting half of sales information which leads to them having to base a decision on half of the information -> Risky

 - No postcode on letter -> letter received later than expected

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The Costs of Obtaining Good Quality Information

Costs Associated with Data Collection (Direct + Indirect) - Information will do some of the Following:

- Reduce costs

 - Eliminate losses

 - Reduce wastage

 - Use resources more effectively

 - Give better management information to help more accurate decision making

Costs Include:

- Employing an expert to design data collections forms, setting up of questionnaires, production of online forms, travelling costs and buying information from a 3rd party

 - Direct Collection (collected directly by the business) and indirect collection (3rd party)

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Costs of Good Quality Information Continued

Costs Associated with Data Entry:

Human resource costs - Costs of anything to do with staff

Time costs - Entry of data, especially by key boards, takes time

Hardware costs -Automatic methods of data entry e.g. bar coding

Costs Associated with Processing and Maintenance:

 Financial costs - Transfer using expensive communication lines, outside firms (backed up offsite) and consumables costs

Human resource costs -Processing questionnaires, specialist staff are needed to give instructions to database to process data by extracting specific details

Time costs -Processing large amounts of data takes time and backing up of large quantities of data is needed but is time consuming

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