Question

What role does information play in a company's strategy?

Answer 1

Information is processed data that are arranged and organized. It is very important to maintain high quality information as it helps in taking important business decisions.

The characteristics of information that affect quality include:-

• Information should be accurate and contain data's that can be used appropriately to make important decisions. If the information is inaccurate, the outcome will be ineffective. Example - accurate sales information will help the organization to make effective marketing strategy to improvise the sales.

• Information should be complete and provide all details required to make important decisions. Participle information may not give accurate results. Example - complete information about code of conduct and guidelines of an organization help the employees to act accordingly.

• Information should be consistent and should maintain accuracy. Consistent information will provide clear direction on taking the decision. Example - consistent information on the total number of sales made and demand for the procucts will help the operation team to manufacture the products accordingly.

• Information should be unique and must not be repetitive. Unique information provides accurate results.

• The important characteristic of information is timeliness. Outdated information will prevent the organization from achieving the goals. Hence information should be fresh and current for surviving in this competitive world. Example - information on current market trends or customers’ needs will help the organization to manufacture products accordingly.

The role information play in a company strategy are: -

• It help the organization by providing information that is essential for proper functioning of the organization.
• Organization requires information about different things. Information plays key role in any business. For example customer information, sales information and product related information are used to develop effective marketing strategies.
• Success of the organization depends on the research done prior to taking any big decision or gaining knowledge about all aspects of the business.
• Information is never ending. Information can be extracted from different sources but that will become complicated and time taking.
• information helps in decision making process by providing useful information.
• Information helps in enhancing the management control over business operations by making the business transaction data available.