Business Information Management

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Module: Business Information Management
Topic 2: You are an Information Management Consultant. You have been invited to prepare a report for a light engineering company that has no information management experience. Your report should explain the importance of information to a business; the ways in which it should be managed; how technology may be harnessed and, in conclusion: what the benefits will be of adopting your recommendations, as well as the risks of not doing so. ___________________________________________________________________________ In the 21th century, businesses are strongly linked with information and it has become increasingly important to an organization. Within a company, there are numbers of information that have to be processed; for example, information about suppliers, markets, customers, products and human resources. In business operating processes, the information gathered not only enables an organization to understand the business environment at that specific time so that it can responses to it by building up strategies or amending the policies being carried out, but also allows an organization to monitor and control the entire operation processes. The information also helps an organization to know the demand for new products when exchanging and communicating the information with people involved (Chaffey and White, 2011, p.10); therefore, it is one of the most important asset in an organization. If these information are manage in an effective way, business will be benefit from enhancing the business performance such as improving quality of products and reducing the operation costs. Hence, implementing information strategy can help to manage information and to formulate the corporate strategies effectively. In order to make the information strategy into practice, it is crucial to understand the transformation of information, characteristics of information and how technology can help to manage information. To being with, transformation of information is vital for an organization to make more money and to improve their performance. The three sources of information in a company are data, information and knowledge. Data are the objective facts about a business event such as transactions or retailers’ information. In a clock manufacturing company, data are, for example, the records of the number of raw materials needed, the prices of the components, the sales figures of different types of clock and the number of clocks being manufactured. As there are many trading activities and lots of enquiries every day, data itself do not contribute much to the decision making level; therefore, these data have to be organized and transformed to information that are meaningful to the managers in making decisions and building up strategies. Data are transformed to information using information system. With this transformed data, the managers are then able to answer questions about the whole business processes according to specific information. In a clock manufacturing company, questions such as “Which is the most popular product?” and “Which suppliers provide quality but low price raw materials?” will be answered. Managers are then required to apply their skills and experiences on this information and therefore, result in valuable knowledge to improve the business performance by increasing competitive advantage. It should be aware that not all information is helpful to an organization. The quality of information can affect the effectiveness of business information management. If the information does not fit the purposes, the tasks might not perform well. Hence, the managers should ensure all the information obtained is valuable and related to the businesses. First and the most important characteristics of quality information is relevance. For instance, not all the customers’ information has to be gathered. Knowing the names of the customers does not help managers in the clock manufacturing company to develop...
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