Topic 2 - The value and importance of information

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Topic 2 - Why is information needed?

Decision Making

  • The more relevant information there is to making the decision, the less risk there is
  • Simulations can be performed using what if scenarios using the information to arrive at a decision

Monitor Progress

  • See how performing against targets set
  • Sales staff can judge their performance using info from previous years
  • Monthly sales figures can be compared with previous monthly sales figures
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Topic 2 - Why is information needed?

Targeting of Resources

  • Creating production schedules
  • Planning projects
  • Stock control systems - ensure that stock is always available

Competitive Advantage

  • Use market research from customers to see why they choose the company
  • Ensure that customer orders are always satisfied - accurate stock info
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Topic 2 - Costs

Data Collection

HRC - The cost of employing people to design the data collection forms

TC - The setting up of questionaires to collect data

FC - Costs of specialist staff to collect data from other systems

Data Entry

HRC - The cost of training staff to enter the data

TC - Entry of data, especially using keyboards slows down the whole process

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Topic 2 - Costs


HRC - Staff will be needed to oversee the batch processing using OMR for the questionaires and deal with rejected forms

FC - Data may need to be transferred from one place to another usign expensive communciation

TC - Processing takes large amounts of time and takes staff away from doing other jobs


HRC - Staff have to be employed to keep the hardware running and update software when there are bugs or when legislation changed

FC - Consumable costs such as printer paper and ink cartridges

TC - The backing up of large amounts of data is needed but takes time

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