Unit 7004: Strategic Information Management
Table of Content
What is Information Management| Page 3|
Importance of Information Sharing and Legal obligations for sourcing, storing and sharing information| Page 7| Using Information for Strategic Decision Making| Page 14| Monitoring and Reviewing Management Information| Page 17| References| Page 19|
What is Information Management
Information Management is the collection and management of information from one or more sources and the distribution of that information to one or more audiences. Chaffey, D. & Wood, S. (2005) in their book “Business Information Management: Improving Performance Using Information Systems”, explain three key elements of Management information are 1. Data: Discrete, objective facts about events. Data is transformed into information by adding value through context, categorisation, calculations, corrections and condensation 2. Information: Organised data, meaningful and contextually relevant. Used for decision-making 3. Knowledge: The combination of data and information to which expert opinions, skills and experience is added to result in a valuable asset which can be used to make decisions
Impact of Management Information on Decision Making
Management Information is an integral part of the decision making process in any business enterprise. As explained in the introduction that management information is a combination of raw data put into useful information to provide adequate knowledge to the stake holders to make relevant business decisions. There are three basic steps involved to above mentioned process. Wolstenholm, Henderson and Gavine (1993), in their book “The evaluation of management information systems” describe five attributes of management information * Accessibility: Managers need to know that the information exists and how to obtain it. They may need to call on specialists help to obtain the information. Information technology can often help facilitate speed of access and the amount of information which is accessible. In our organisation (ABC Europe Ltd) we have a dedicated module on familiarisation with Management Information tool in supervisor induction programme so that they are adequately educated about how, when and where to access management information to take timely decisions * Relevance: Management information needs to be in an effective format. It’s helpful if the information is concise but it must always be complete. It’s equally important that only relevant information is shared with relevant department to avoid departmental conflicts. Our company employs a dedicated MIS (Management Information System) department who administer the information flow, in useful formats, to other relevant departments in the organisation. This catalyses the effective decision making process * Comprehensibility: Management information needs to relate to the understanding and match the needs of the decision maker. Any compromise in this area may impact the quality of decisions made with the information available * Timeliness: This relates to how long a period of time there is between the request and the receipt of management information. Any delays may be caused by the Management Information System (MIS) itself or because of gaps in the relevance, comprehensibility and accuracy of the management information * Accuracy: This is linked to timeliness. Time factors can introduce errors. For management information this is often a measure of the gap between the manager’s perception of the state of a variable and the true state of a variable My organisation, ABC Europe Ltd, has a dedicated MIS department who is responsible for ensuring all the above mention attributes are taken into account while putting Management Information together for decision making process. If the decision making is to be informed...