P1 P2 P3
Explain how organisations use information
The way they use information is so that they can plan better and also exploit the business better monitoring and controlling on how they run the business and by using certain types of activities
Some organisations use business information to help them become more effective for them.
Four of the most important ways are operational support, analysis, decision making and gaining advantage.
There is a bit of information on these types down below in the table
PURPOSE OF INFORMATION
USED FOR
Operational support
Is used for monitoring and controlling is activities when a business can make use of the information from its operational support system so that it makes a minute by minute or even hour by hour decisions
Analysis
This is used to identify patterns or trends also to monitor the business
Also the business could produce a weekly sales and a costs report.
For example, if a restaurant chain uses analysis to compare the performance of similar restaurants
Analysis can be a powerful tool to predict sales and demand in the future
This would show a trend of whether profits are increasing
Decision making
Information systems can support decision making when a problem or issue arises and management needs to take action to resolve it has this is how the bigger companies achieve their gaols
This is typically done on an ad hoc basis as problems arise.
Management can also take these decisions at various levels operational, tactical or strategic.
Gaining Advantage
This is the opposite to resolving a problem in a business that is about taking advantage of external or internal events.
This is done on an ad hoc basis as and when opportunities arise.so not when they say it has to be done.
This also is used to identify patterns or trends, this time with the aim of making decisions to benefit from these events
Discuss the characteristics of good information
Characteristics of good information –
Valid- it should be representative,
The way they use information is so that they can plan better and also exploit the business better monitoring and controlling on how they run the business and by using certain types of activities
Some organisations use business information to help them become more effective for them.
Four of the most important ways are operational support, analysis, decision making and gaining advantage.
There is a bit of information on these types down below in the table
PURPOSE OF INFORMATION
USED FOR
Operational support
Is used for monitoring and controlling is activities when a business can make use of the information from its operational support system so that it makes a minute by minute or even hour by hour decisions
Analysis
This is used to identify patterns or trends also to monitor the business
Also the business could produce a weekly sales and a costs report.
For example, if a restaurant chain uses analysis to compare the performance of similar restaurants
Analysis can be a powerful tool to predict sales and demand in the future
This would show a trend of whether profits are increasing
Decision making
Information systems can support decision making when a problem or issue arises and management needs to take action to resolve it has this is how the bigger companies achieve their gaols
This is typically done on an ad hoc basis as problems arise.
Management can also take these decisions at various levels operational, tactical or strategic.
Gaining Advantage
This is the opposite to resolving a problem in a business that is about taking advantage of external or internal events.
This is done on an ad hoc basis as and when opportunities arise.so not when they say it has to be done.
This also is used to identify patterns or trends, this time with the aim of making decisions to benefit from these events
Discuss the characteristics of good information
Characteristics of good information –
Valid- it should be representative,