MCIK week3

8/13/2019 MCIK week3

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Managing communications ,

Information and KnowledgeWeek 3

07/12/2013Business Information Management by Dave Chaffey & Steve Wood/By Meenakshi Handa 1


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Sources: Internal and external, primary and

secondary, formal and informal, team workers,Customers and other stakeholders

LO1: Understand how to assessinformation and knowledge needs



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Information economy that is highly dependent upon

the collection , storage and exchange of information.

Many Business services now deal exclusively withmanaging and adding value to data and by selling

information derived from the data.


Information economy


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Examples are:

Financial Times(business news and information at

www.ft.com)

Factiva (detailed information about the businessperformance at www.factiva.com)

ScienceDirect.com(online journals access for scienceand business researchers at www.sciencedirect.com)


(cont)
http://www.ft.com/http://www.factiva.com/http://www.sciencedirect.com/http://www.sciencedirect.com/http://www.factiva.com/http://www.ft.com/


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Evans and Wurster, 1997: Every business is aninformation business.information is the glue thatholds together the structure of all businesses. Thecharacteristics are:

1. Reach

2. Richness : Richness is determined by the degree towhich information can be customised. It has to deal

with effective communication.

3. Affiliation: Refers to the link with the partners


Characteristics of Information


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Add value

Reduce cost

Manage Risks

Create new reality


Use Information to create value


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How the information is acquired , recorded and stored

Where information resources are located in theorganisation and who has responsibility for them

How information flows within the organisation andbetween the organisation and the outside world

How the organisation uses it

How people who handle it apply their skills and co-operatewith one another.


Managing Information


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How information technology supports the users of

information

What information costs and the value it contributes

How effectively all these information-relatedactivities contribute towards achievement of theorganisations objectives.


(cont)


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Business data and information comes from multiple

sources. The challenge for a business is to captureand use information that is relevant and reliable. Themain sources are:


Sources: Internal and External


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Business Intelligence: Internal information about the

performance of an organisation reviewed at either adetailed or summary level.


Internal Information


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Accounting records are a prime source of internal

information. They detail the transactions of the business inthe past - which may be used as the basis for planning forthe future (e.g. preparing a financial budgetor forecast).

The accounting records are primarily used to record whathappens to the financial resources of a business. For

example, how cash is obtained and spent; what assets areacquired; what profits or losses are made on the activitiesof the business.

However, accounting records can provide much more thanfinancial information. For example, details of the products

manufactured and delivered from a factory can provideuseful information about whether quality standards arebeing met. Data analysed from customer sales invoicesprovides a profile of what and to whom products are beingsold.


Internal Information
http://www.tutor2u.net/business/ict/intro_information_sources.htmhttp://www.tutor2u.net/business/ict/intro_information_sources.htmhttp://www.tutor2u.net/business/ict/intro_information_sources.htm


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Records of the people employed by the business (personal details; whatthey get paid; skills and experience; trainingrecords)

Data on the costs associated with business processes

Data from the production department (e.g. number of machines; capacity;repair record)

Data from activities in direct contact with the customer (e.g. analysis of

calls received and missedin a call centre)

Internal Company Informatione.g. sales, orders, customer profiles,stocks, customer service reports


(cont)
http://www.tutor2u.net/business/ict/intro_information_sources.htmhttp://www.tutor2u.net/business/ict/intro_information_sources.htmhttp://www.tutor2u.net/business/ict/intro_information_sources.htmhttp://www.tutor2u.net/business/ict/intro_information_sources.htm


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A lot of internal information is also providedinformally. For example, regular meetings of staff andmanagement will result in the communication of

relevant information.


(cont)


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Marketing intelligencethis is a catch-all term to include all theeveryday information about developments in the market thathelps a business prepare and adjust its marketing plans. It can beobtained from many sources, including suppliers, customers and

distributors. It is also possible to buy intelligence informationfrom outside suppliers (e.g. Mintel, Dun and Bradstreet) who willproduce commercial intelligence reports that can be soldprofitably to any interested organisation.

Market Research existing data from internal sources may notprovide sufficient detail. Similarly, published reports frommarket intelligence organisations cannot always be relied uponto provide the up-to-date, relevant information required. Inthese circumstances, a business may need to commissionspecific studies in order to acquire the data required to supporttheir marketing strategy.


External information


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As the term implies, this is information that is obtainedfrom outside the business.

There are several categories of external information:

- Information relating to way a business should undertake

its activities: Needs to keep records so that they cancollect taxes on the behalf of the government.

Information about the markets in which a businessoperates:This kind of external information is criticallyimportant to a business. It is often referred to as "market"

or "competitive intelligence". Most of the external information that a business needs can

be obtained from marketing research.


(cont)


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Market research can help a business do one or moreof the following:

1. Gain a more detailed understanding of consumersneeds

2. Reduce the risk of product/business failure

3. Forecast future trends


(cont)


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The End!!!

Documents

MCIK week3