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What are the organizational, management and technology dimensions of

information technology?

Organizational dimensions of information


Each organization, large or small, has a specific structure or shape. The structure of an
organization is defined by levels, divisions, objectives and decision making power. Although
every organization can be structurally unique, they all share the common need for the movement
and interpretation of information.

Information never moves just one way in an organization. It can move vertically, horizontally,
inward and outward. These different directions form the organizational dimensions of
information. As information travels within these dimensions, it is filtered, manipulated and
summarized. Each direction and destination determines the final product and its purpose.

Horizontal Movement of Information: The horizontal flow of information occurs between


divisions, units, teams or groups within an organization that are working together to achieve a
common task or objective. This implies that the information is moving between people with
comparable decision making power and responsibility. This information is often very filtered and
specific to its respective division. The information directly pertains to the completion of the tasks
or projects at hand. Horizontal information in exchanged very frequently, so team members can
direct their efforts to immediate issues.

Inward-Outward Flow: Information that is sent to and from customers, business partners and
shareholders is vital to the success and survival of an organization. This is the inward and
outward flow of information. The inward flow of information often involves raw data. This
includes sales reports, competitor strategies and market information. An external event can have
a very large impact on a business, positive or negative. The sooner a company can receive the
information and react, the better.

The outward flow of information can be slightly different. Reports to shareholders happen in
quarterly or yearly increments for the most part, unless an important internal event occurs. As
well, marketing material, which is a form of outward information, is very refined. It does not
consist of raw data, but rather carefully selected pieces of information that would most often be
confusing to consumers. Ultimately, it is the purpose and destination of the information that
determines its format. Reports to shareholders, in the form of financial statements, are designed
for accuracy and uniformity. However, marketing material is designed to be appealing and
persuasive.

Information that passes between two organizations, such as suppliers, manufacturers or other
business partners, is very similar to the horizontal dimension. The purpose is to provide up to
date information that pertains to the completion of a particular task. Effective communication
between companies will result in efficient and low cost transactions.

Vertical information flow: An upward information flow is where information is transferred


from a lower level of an organization to a higher level within an organization. The upward
information flow can be outlined as information being transferred from the non-management
level to operational management, from operational management to tactical management, and
from tactical management to strategic management. At each level information becomes more and
more summarized, this is called information granularity. Granularity refers to the level of detail
that is present in information. At the non-management level, employees that deal directly with
customers, information is in a raw stage, such as a specific customer invoice. Information used
by non-management employees is of fine granularity because it deals with individual
transactions. As the information moves upward within the organization it becomes more and
more coarse. Operational management, managers and supervisors, use information that is more
summarized and may only look at how many sales were made at their location. Tactical
management, such as a regional manager, may look at revenue by store. When the information is
received by strategic management it is referred to as coarse because it is highly summarized and
has a holistic view of the organization. Strategic management, CEO's and VP's, may look at
performance by region.

Downward information flow: The downward information flow involves information being sent
down from a higher level of management. For example, strategic management sets out the goals
for tactical management, such as goals, initiatives and strategies. Tactical management then
implements these directives and sets new directives for operational management, and operational
management then sets new directives to non-management employees.

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