Importance of information in management

Data Data Processing Information

Information is the processed data, which is easily understandable.

y The process of planning, leading, organizing and

controlling people within a group in order to achieve goals; also used to mean the group of people who do this.

Information and management
y Information is needed for problem solving y Information is needed for decision making y Good information leads to good management which

leads to profitable business.
y Additional information's will make the existing

information perfect.

Sources of information
y Library y Internet y Past records y Survey y Market study y Observation y Experimant y Purchase from outside y Govt. Agencies

Cost Of Information
y Cost of acquiring data y Cost of maintaining data y Cost of generating information y Cost of communicating information

Information Quality
y Timeliness y Accuracy y Relevance y Adequacy y Completeness y Explicitness y Expectation based

Management with information
y Management oriented: the system development must

start from an appraisal of management needs and overall business objective. All level managers needs must be fulfilled y Business Driven: The plan of information system must be linked with overall business plans of the enterprise. The strategies of the corporation must set the information system priorities.

Management with information
y Integrated: integration of information subsystem

provides more meaningful management information. All major factors related to a process must be included. y Common data flow: which will reduce the duplication and redundancy in data gathering storage and dissemination. y Heavy planning element: The designer must avoid possibility of obsolescence before the system gets in to operation. Sound planning is required for this.

Management with information
y Subsystem concept: the system must have to be

divided in to various subsystems according to their priority. y Flexibility and ease of use: the information system must be flexible and easy to use by all levels of employees.

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