You should consider at least three internal and two external functional areas which provide sources of information that an organisation might use to inform its decision making. Types of information
There are two types of data qualitative and quantitative. Qualitative data is written out and quantitative data is numerical data. The advantages of qualitative data is that you can get a more depth and detail about a topic and therefore you can analysis it better and it is has a lot more validity about it. Qualitative information that could help you against your competitors could be financial reports. This would be useful because it would tell why they have made financial decisions and possibly how they’ve cut down on overhead. The advantages about quantitative data is that you can make graphs and compare the data a lot more easily and get statistics. This may help your business because you can compare where your finance is going towards and how other businesses have spent their money. This will allow you to evaluate your performance to your competition. However, it is important to do this with similar sized companies otherwise the financial data would be irrelevant.
Purpose of information
Businesses use information for different reasons to make the business perform better. I am going to explain how the business use it for operational support, monitoring and improving performance, identifying trends, decision making support and gaining competitive advantage.
Operational support. The business needs to know how, what and when products are going to be made or bought. They use an operational support system to help them gain this data The method of doing this is by EPOS – electronic point of sale. The data of what and how much people buy goes into this and this means people can evaluate it. It can monitor the stock which will inform the people running it when stock is low and what is in high demand....
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