BSBINM601 Manage

Knowledge and
Information – Learner
Resource
Student Name

Student Id
 TABLE OF CONTENTS
Table of Contents..................................................................................................................................3
APPLICATION...................................................................................................................................6
UNIT SECTOR...................................................................................................................................6
ELEMENTS AND PERFORMANCE CRITERIA ..........................................................................6
FOUNDATION SKILLS ....................................................................................................................8
TOPIC 1 – OBTAIN INFORMATION RELEVANT TO BUSINESS ISSUES 10
REVIEW STAFF AND CUSTOMER FEEDBACK AND BUSINESS PERFORMANCE DATA 10
HOW TO REVIEW FEEDBACK AND PERFORMANCE DATA ............................................................11
IDENTIFY, DEFINE AND ANALYSE BUSINESS PROBLEMS AND ISSUES ....................12
PROBLEM IDENTIFICATION RESEARCH – THE BEST TOOL TO SPOT ISSUES .......................13
IDENTIFY INFORMATION REQUIRED TO REACH A DECISION ON PROBLEMS/ISSUES 15
THE FOUR STATES OF INFORMATION ...............................................................................................15
TYPES OF INFORMATION NEEDED FOR DECISION MAKING ......................................................16
SOURCE AND GATHER RELIABLE INFORMATION ............................................................17
INTRODUCTION TO INFORMATION SOURCING AND GATHERING..........................................................17
INTERNAL AND EXTERNAL INFORMATION (SOURCES AND COLLECTION METHODS).........................18
INTERNAL INFORMATION.....................................................................................................................18
EXTERNAL INFORMATION.....................................................................................................................18
CONCLUDING POINTS.................................................................................................................................19
TEST INFORMATION FOR RELIABILITY AND VALIDITY, AND REJECT WHERE
CONTRADICTORY OR AMBIGUOUS .........................................................................................20
INTRODUCTION...........................................................................................................................................20
MANUAL METHOD OF DATA VALIDATION................................................................................................20
ELECTRONIC METHOD OF DATA VALIDATION.........................................................................................21
CONCLUDING POINTS.................................................................................................................................21
UTILISE FORMAL AND INFORMAL NETWORKS TO ACCESS CORPORATE
KNOWLEDGE/MEMORY NOT HELD IN FORMAL SYSTEMS AND REVIEW APPROPRIATELY
.............................................................................................................................................................22
HOW TO USE FORMAL (AS WELL AS INFORMAL) NETWORKS TO GATHER INFORMATION 22
T O P I C 2 - A N A L Y S E I N F O R M A T I O N A N D K N O W L E D G E ..........................24
ENSURE OBJECTIVES FOR ANALYSES ARE CLEAR, RELEVANT AND CONSISTENT WITH
THE DECISIONS REQUIRED .......................................................................................................24
IDENTIFY PATTERNS AND EMERGING TRENDS CORRECTLY AND INTERPRET AS TO
CAUSE AND EFFECT .....................................................................................................................25
UTILISE STATISTICAL ANALYSES  AND INTERPRETATION WHERE APPROPRIATE 27
UNDERTAKE  SENSITIVITY ANALYSIS  ON ANY PROPOSED OPTIONS ........................28
ENSURE DOCUMENTATION REFLECTS A LOGICAL APPROACH TO THE EVALUATION OF
THE EVIDENCE AND CONCLUSIONS DRAWN ......................................................................29
ADJUST MANAGEMENT INFORMATION SYSTEMS  /DECISION SUPPORT SYSTEMS  TO
MEET INFORMATION PROCESSING OBJECTIVES ..............................................................30
T O P I C 3 - M A K E D E C I S I O N S O N B U S I N E S S I S S U E S I D E N T I F I E D . . .32
ENSURE SUFFICIENT VALID AND RELIABLE INFORMATION/EVIDENCE IS AVAILABLE TO
SUPPORT A DECISION .................................................................................................................32
UTILISE RISK MANAGEMENT  PLANS TO DETERMINE ACCEPTABLE COURSES OF ACTION
.............................................................................................................................................................33
UTILISE APPROPRIATE  QUANTITATIVE METHODS  TO ASSIST DECISION MAKING 35
REGRESSION ANALYSIS............................................................................................................................36
LINEAR PROGRAMMING.........................................................................................................................36
CONSULT SPECIALISTS AND OTHER  RELEVANT GROUPS AND INDIVIDUALS ......37
ENSURE DECISIONS TAKEN ARE WITHIN THE DELEGATION/ACCOUNTABILITY OF THE
GROUP/INDIVIDUAL RESPONSIBLE ......................................................................................38
MAKE DECISIONS IN ACCORDANCE WITH ORGANISATIONAL GUIDELINES AND
PROCEDURES .................................................................................................................................39
ENSURE DECISIONS TAKEN ARE CONSISTENT WITH ORGANISATIONAL OBJECTIVES,
VALUES AND STANDARDS .........................................................................................................40
ENSURE DECISIONS ARE TAKEN IN A TIMELY MANNER ...............................................41
T O P I C 4 - D I S S E M I N A T E I N F O R M A T I O N T O T H E O R G A N I S A T I O N 43
ENSURE ADVICE/INFORMATION NEEDS ARE DOCUMENTED AND ARE SPECIFIC TO
LOCATION, FORMAT AND TIME LINE REQUIREMENTS .................................................43
DOCUMENT INFORMATION AND UPDATE DATABASES REGULARLY ........................44
THE AMOUNT OF INFORMATION ........................................................................................................45
THE SIZE OF THE WORKPLACE............................................................................................................45
THE TYPE OF WORK BEING CONDUCTED .........................................................................................45
AMOUNT OF STORAGE SPACE..............................................................................................................45
TYPE OF INFORMATION BEING STORED ............................................................................................45
COST............................................................................................................................................................. 45
DESIGN AND TEST SYSTEMS TO MEET INFORMATION REQUIREMENTS OF DECISION
MAKERS............................................................................................................................................46
ENSURE INFORMATION IS UP-TO-DATE, ACCURATE, RELEVANT AND SUFFICIENT FOR
THE RECIPIENT.............................................................................................................................47
DEVELOP  COMMUNICATION PLANS  AND DISSEMINATE INFORMATION ................48
ADHERE TO CONFIDENTIALITY/PRIVACY POLICIES IN THE TRANSMISSION/RELEASE OF
INFORMATION/ADVICE.............................................................................................................49
REVIEW AND UPDATE COMMUNICATION PLANS REGULARLY ...................................50
UTILISE TECHNOLOGY  WHICH PROVIDES OPTIMUM EFFICIENCY AND QUALITY 51
MAINTAIN CORPORATE KNOWLEDGE  AND ENSURE SECURITY .................................52
S U M M A R Y ....................................................................................................................................53
R E F E R E N C E S .............................................................................................................................54
 APPLICATION
This unit describes the performance outcomes, skills and knowledge required to develop and maintain
information processing systems to support decision making, and to optimise the use of knowledge and
learning throughout the organisation.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of
endorsement.

This unit applies to people working in management roles who have responsibility for ensuring that critical
knowledge and information are readily available to review the organisation's performance and to ensure
its effective functioning. Knowledge and information can include business performance data, customer
feedback, statistical data and financial data.

UNIT SECTOR

Knowledge Management – Information Management

ELEMENTS AND PERFORMANCE CRITERIA

ELEMENTS DESCRIBE
PERFORMANCE CRITERIA DESCRIBE THE PERFORMANCE
THE ESSENTIAL
NEEDED TO DEMONSTRATE ACHIEVEMENT OF THE ELEMENT.
OUTCOMES.
1. Obtain information 1.1. Review staff and customer feedback and business performance
relevant to business issues data

1.2. Identify, define and analyse business problems and issues

1.3. Identify information required to reach a decision on

problems/issues

1.4. Source and gather reliable information

1.5. Test information for reliability and validity, and reject where
contradictory or ambiguous

1.6. Utilise formal and informal networks to access corporate

knowledge/memory not held in formal systems and review
appropriately

2. Analyse information 2.1. Ensure objectives for analyses are clear, relevant and consistent
and knowledge with the decisions required

2.2. Identify patterns and emerging trends correctly and interpret as

to cause and effect

2.3. Utilise statistical analyses  and interpretation where appropriate

2.4. Undertake sensitivity analysis  on any proposed options

 2.5. Ensure documentation reflects a logical approach to the
evaluation of the evidence and conclusions drawn

2.6. Adjust management information systems /decision support

systems  to meet information processing objectives

3. Make decisions on 3.1. Ensure sufficient valid and reliable information/evidence is

business issues identified available to support a decision

3.2. Utilise risk management  plans to determine acceptable courses

of action

3.3. Utilise appropriate quantitative methods  to assist decision

making

3.4. Consult specialists and other relevant groups and individuals 

3.5. Ensure decisions taken are within the delegation/accountability

of the group/individual responsible

3.6. Make decisions in accordance with organisational guidelines and

procedures

3.7. Ensure decisions taken are consistent with organisational

objectives, values and standards

3.8. Ensure decisions are taken in a timely manner

4. Disseminate 4.1. Ensure advice/information needs are documented and are

information to the specific to location, format and time line requirements
organisation
4.2. Document information and update databases regularly

4.3. Design and test systems to meet information requirements of

decision makers

4.4. Ensure information is up-to-date, accurate, relevant and

sufficient for the recipient

4.5. Develop communication plans  and disseminate information

4.6. Adhere to confidentiality/privacy policies in the

transmission/release of information/advice

4.7. Review and update communication plans regularly

4.8. Utilise technology  which provides optimum efficiency and

quality

4.9. Maintain corporate knowledge  and ensure security

 FOUNDATION SKILLS
THIS SECTION DESCRIBES LANGUAGE, LITERACY, NUMERACY AND EMPLOYMENT SKILLS INCORPORATED IN
THE PERFORMANCE CRITERIA THAT ARE REQUIRED FOR COMPETENT PERFORMANCE.

Skill Performance Description

Criteria
Reading 1.1-1.6, 2.1-2.6, 3.1,  Organises, evaluates and critiques ideas and
3.2, 3.3, 4.1-4.9 information from a wide range of complex texts.
 Draws on a broad range of strategies to build and
maintain understanding throughout complex texts.

Writing 1.2, 1.3, 1.4, 1.5, 1.6,
2.1, 2.2, 2.4, 2.5, 2.6,
3.3, 3.4, 4.1, 4.2, 4.3,
4.4, 4.5, 4.7, 4.9
 Generates complex written texts, demonstrating
control over a broad range of writing styles and
purpose
 Demonstrates sophisticated writing skills by
selecting appropriate conventions and stylistic
devices to express precise meaning

Oral 1.6, 3.4, 4.5  Encourages discussions and applies appropriate

Communication listening and questioning techniques while
consulting with specialists and other relevant
personnel
 Presents complex information in formal situations
using language, tone and pace appropriate for the
audience and purpose

Numeracy 1.1, 1.2, 1.5, 2.2-2.4,  Uses highly-developed numeracy skills to interpret
3.1, 3.3, 4.3 complex statistical and researched information,
performing calculations on data to render it usable
and reportable

Navigate the 2.6, 3.6, 3.7  Works autonomously making high level decisions to
world of work achieve and improve organisational goals
 Takes a lead role in the development of
organisational goals, roles and responsibilities
 Develops and implements strategies that ensures
organisational policies, procedures and regulatory
requirements are being met
 Monitors and reviews the organisations policies,
procedures and adherence to legislative
requirements in order to implement and manage
change

Interact with 1.6, 3.4, 4.5, 4.6  Uses a variety of relevant communication tools and
others strategies to access and share information and to
build and maintain effective working relationships
Get the work 1.1-1.5, 2.1, 2.2, 2.4-  Plans and manages activities with implications for
done 2.6, 3.1-3.3, 3.6-3.8, the whole organisation
4.1, 4.3-4.5, 4.7, 4.8,  Gathers and analyses data and seeks feedback to
4.9 improve plans and processes
 Makes high impact decisions, analysing input from a
range of sources and, where appropriate, drawing
on experience
 Explores new and innovative ideas through analysis
and critical thinking
 Uses digital technologies to manage business
operations and actively investigates new
technologies for strategic and operational purposes
 TOPIC 1 – OBTAIN INFORMATION
RELEVANT TO BUSINESS ISSUES

REVIEW STAFF AND CUSTOMER FEEDBACK AND BUSINESS

PERFORMANCE DATA

An essential part of training and development is the collection of relevant information. Without
information, a business can never really stand on its own feet. It is timely and valuable
information and data that helps a business understand the problems that affect its sales,
productivity and those that scale into bigger business issues.

Feedback forms an integral part of the information needed by a business. Feedback comes in
many forms, and each of these need to be considered when a company collects information for
review. A very common myth that prevails in business circles disregards the need for timely
feedback if a business is performing extremely well 1.

Not only is this perception misleading, it turns feedback an optional aspect of doing business-
something it’s not. Even if a business is happy with current operations, it needs to gather
feedback on an ongoing basis to look for new ways to satisfy customers and earn bigger profits.
The most common types of feedback come from two stakeholders:

 Customers: Customers of a business are constantly giving feedback, whether a

company knows or not. When customers purchase products and avail services, they
want their opinions to be heard. While not all feedback may be appreciative, a business
should listen carefully to critiques and comments positively and try to take them into
account. Needless to say, it needs to be at the top of each communication channel at all
times.
 Employees: Feedback from employees of a business comes in the form of their
perception of how well customers are responding and what more they want to see.
Since it is the employees, and not the owners, who are at the front line, interacting

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https://avatel.wordpress.com/2010/11/14/the-importance-of-feedback-%E2%80%93-from-your-customers-
and-your-employees/
 with customers, they can report about the reaction of buyers and inquirers more
accurately2.
 Ideas pitched in by employees are very valuable. Not only do they reflect customer
choices, they also present a third party opinion, which is essential to analyse the
business’s performance.

Tied closely to feedback comments are business performance data that are collected in terms of
the number of sales, number of inquiries, dollar value of revenue and profit and the overall
turnout of products and services. Performance data figures are derived from market research
and are then analysed together with feedback comments.

HOW TO REVIEW FEEDBACK AND PERFORMANCE DATA

With the rampant use of the World Wide Web, giving and receiving feedback has become very
easy. It takes only a few clicks on a website, forum or business page to write about the
performance of the company or the service given by its staff members. While this has made
feedback viewing a piece of cake, feedback reviewing has become quite a challenge.

Thanks to the internet, a customer has numerous channels of communication, all of which can be
used to leave feedback at any time of the day or night. Hence, the collective volume of incoming
feedback has doubled and tripled over the recent years. Handling and sifting through this
feedback is a task that a business should take seriously, and train its executives at.

How can feedback and performance data be reviewed accurately and effectively? There are many
particulars to keep in mind while reviewing such valuable information.

 Take into account everything: As mentioned previously, not all feedback is positive
and appreciative. However, a caring business deals with feedback no matter what it
says. This means that everything should be taken into account. Be it good words,
encouraging remarks, disappointed and fiery comments or neutral and ignorant
customer attitudes; all types of reactions constitute feedback and should be actively
considered.

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and-your-employees/
  Establish trends and compare with past figures: It is important to compare present
feedback and performance figures with past data. Did you receive negative feedback
two consecutive times? Did that result in low performance, or was it a result of
sluggish performance? Without comparing and analyzing, the review process is
incomplete.
 Reply whenever it is needed: Never leave actionable feedback unattended. When a
customer sends feedback that requires an action, i.e. a reply; a business should get
back promptly. Responding to feedback is an essential element of the review process
because it tells customers that the business is actively listening to them and are ready
to accommodate their wishes.
 Find ways to implement feedback: What’s the point of reviewing when the feedback
won’t be implemented? Therefore, it is of the utmost importance that the conclusions
driven from the feedback are implemented, especially the ones that demand corrective
action.

References:

Avatel’s Blog, (2010), The Importance Of Feedback From Your Customers And Employees

The Marketing Donut, Listen and Learn- Increasing Sales Through Customer Feedback

IDENTIFY, DEFINE AND ANALYSE BUSINESS PROBLEMS AND ISSUES

A business does not work in isolation. It is surrounded by various factors in the external and
internal environment that affect its operations and the efficacy with which it serves its
customers. Entities around a business include competitors, government agencies, environmental
agencies and many others that try to alter the way a company works.

In the midst of these, a business faces a plethora of issues and problems. While some demand
immediate attention, others have to be analysed and broken down into smaller problems so that
they can be solved. Moreover, since a business operates on a day to day basis, issues and
problems arise every now and then. These have to be solved on an ongoing basis.

The first step to solving business problems is to identify them. Identification and detection of
business problems require a lot of effort and expertise. Many large scale organizations put aside
resources and trained professionals who are constantly identifying business problems that arise
in all areas of operations, marketing and human resources.

It should be remembered that business problems and issues are not as simple as personal
problems- those that can be identified simply by rummaging through a couple of recent
instances. A number of official concerns take months and years to identify because they require a
lot of research and can only be solved when a business sees them from the perspective of the
customer.

PROBLEM IDENTIFICATION RESEARCH – THE BEST TOOL TO SPOT ISSUES

What is the solution to the array of business problems and issues executives face on a daily basis?
How can they be identified? The best way to take notice of business problems is by conducting
market research. Problem Identification Research is a type of market research that focuses on
collecting data for the purpose of unearthing problems and issues 3.

Such research can be conducted externally or internally. If a problem arises within the
organization, amongst its various departments, internal research should be carried out. However,
if the same situation is seen with regional sales, product acceptance, etc., external market
research is the likely solution.

With quality research, a business is able to answer the following questions that identify and
define the problem under study4.

 What is the issue?

 What problems is it leading to?
 Why did it arise, and when?
 Has it happened in the past?
 Which stakeholders are affected by the problem?
 How can it be solved?
 How long will it take to be solved?

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http://blog.marketresearch.com/how-to-identify-solve-your-business-problems-using-market-research
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http://businessandeconomiclobalnews.tumblr.com/post/25231222561/how-to-identify-resolve-business-
problems
These questions form the crux of the research project because they break it down into smaller
parts that are easy to analyse. Problem Identification Research should always be conducted in a
very organized manner. Since this research and its findings become the input for the problem
solving stage, they need to be formalized in the form of a report that can be studied and further
analysed by business executives.

While the term ‘Problem Identification Research’ sounds daunting, it is important to remember
that this protocol is the solution to small, everyday business issues as well. Apart from using
research to solve problems related to Brand Image, Market Share, Competitor Analysis, Market
Characteristics and Market Volatility; it should also be used to solve simpler issues like satisfying
picky customers, monitoring online channels of communication and dealing with negative
feedback.

This makes Problem Identification Research a one stop solution for all types of problems that a
business faces on a regular basis. It provides a lot of insight and helps a business dig out more
problems and issues than it had on the agenda in the first place! This is the biggest advantage of
identifying and defining predicaments using research.

Unearthing problems prematurely puts a business in the pilot’s seat. It is able to take corrective
action and devise strategies before the issues become intense in nature. Therefore, timely and
ongoing problem identification research is the key to staying ahead of situations that have the
power to affect business operations adversely.

However, make note that market research should never be adhoc in nature. It should be well
planned and thought out so that the results can be validated by ample evidence. For this reason,
businesses that are particular about identifying and solving problems have separate departments
for ongoing market research. These departments receive regular training and hire expertise that
enables them to deal with business issues and problems in a very professional manner.

References:

Business And Economic Global News, (2013), How To Identify And Solve Business Problems.

Market Research Insight And Business Intelligence, (2014) How to Identify & Solve Your Business Problems Using
Market Research.
 IDENTIFY INFORMATION REQUIRED TO REACH A DECISION ON
PROBLEMS/ISSUES

A business can never have enough information- those that think they have gathered enough
simply haven’t explored their markets enough. The need for information surpasses all other
needs for a business, regardless of how big or small it is. Information that is timely and relevant is
the key to solving business problems that arise in an organization on a day to day basis.

However, not all information is necessary or valuable. A business that doesn’t put time and effort
into collecting the necessary information ends up redoing this task a number of times- hence,
wasting precious resources. Therefore, when it’s about making decisions about problems and
issues, the rules of market research necessitate the collection of highly accurate data that can be
put to use.

What type of information is needed for decision making? How can it be gathered and what are
the sources from which it comes? These are some important questions that should be addressed
by the research and development teams of a business whenever a decision making process is in
sight.

THE FOUR STATES OF INFORMATION

Broadly speaking, when an organisation starts the process of information collection, it comes
across four States of Information. By States of Information, we mean: information that exists in
particular forms in the market and is then recognized by the researchers 5.

The four States of Information are:

 Information a business knows it has- this is either present in a complied report, is in

the records or is classified as Work in Progress.
 Information a business knows it should have- this data needs to be collected because
its importance is known to those running the organisation.
 Information a business doesn’t know it has- this is the kind of data that is already with
a business, or within its reach, but the research teams are currently unaware of it.
When the need arises, it will be unearthed.
 Information a business doesn’t know it doesn’t have- this state of information is the
most concerning. If a business isn’t aware that it is missing out on some data that

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 should be collected, it will end up making decisions without this crucial piece of
information. In most cases, market research is conducted professionally to avoid this
state in particular.

TYPES OF INFORMATION NEEDED FOR DECISION MAKING

The type of information needed depends on the problem at hand. Different business problems
require information from a different perspective because each needs a unique set of solutions
and determinants. Hence, before reaching the information collection stage, a business should
have clearly identified and defined the problems faced by it.

Information pertaining to the following is most important 6:

 Information about a business’s own capabilities: Before looking around for

information, a business should gather as much data as it can from internal sources. For
instance, if the business problem questions the ability of the organization to develop
certain equipments needed for operations, the data required will focus on the
business’s core functions and capacity.
 Internal information is usually the starting point in the Problem Identification and
Solving process because it gives insights about the company’s own strengths and
weaknesses.
 Information about market dynamics: Since businesses work in an environment that
has multiple players, it is important to consider market dynamics before making
decisions. Again, it is market research that comes to the rescue because only when a
company scans the market and understands its particulars, does it get to know how it
works.
 Information about customer reactions: The customers of a business are its lifeline. If
they are happy, the business is happy. For this reason, information about the reactions
and perceptions of the customers is very important for decision making. Many a times,
businesses make decisions based on the facts they have, instead of the emotional and
irrational behavioral choices of consumers. When completely ignored, these emotional
behaviors often force the same business into re-analysing their strategies and redoing
expensive marketing campaigns.

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  Hence, it is extremely important that the thoughts and feelings of the consumers are
considered and acknowledged at all times.
 Information about competitors: The competition plays a huge role in the market that a
business operates in. Without adequate knowledge about competitors, a business is
unable to make decisions and implement it. For instance, if a business is faced with the
decision to either set the price of its products at par with competition or above it, it
needs to analyse how strong the competitor product is, how effective their campaigns
are and whether the competition holds a considerable market share.
References:

Hari Srinivas, Information For Decision Making.

Leigh Richards, Chron, (2005), What Types of Information Resources Does a Business Usually Need?

SOURCE AND GATHER RELIABLE INFORMATION

INTRODUCTION TO INFORMATION SOURCING AND GATHERING

With the invention of computer systems and a world wide web, information is key. Information is
power. Whether it’s a business that sells cupcakes or it’s a multinational worth billions, without
information, these businesses would surely fail in such a competitive market.

Information, accurate information, is hard to find and collect. Discovering, finding and using the
information is a tedious task to say the least. Sorting this information is the extra step required to
properly utilise the information gathered by the business.

Gathering information is a somewhat covert operation these days. With corporate espionage
being a major concern, more and more businesses and corporations are keeping their data safe.
So other than sourcing and gathering, storing this information is also a key part of this process.
What this also means is that the information (internal or otherwise external) is getting harder
and harder to collect and sort through. It may as well be like finding a needle in a haystack.

INTERNAL AND EXTERNAL INFORMATION (SOURCES AND COLLECTION METHODS)

Before we dive into further detail, one must understand the importance and difference between
good/true/accurate information and one that is, along with being good/true/accurate, up-to-
date. The value of the information to the interpreter or the business is only valid if the
information is recent. Basically, the more up-to-date a source of information is, the more value it
has. In business terms, the intrinsic value of any information is directly related to its age, so to
speak. So, with that in mind, what is internal information and what is external information and
how do we collect and process it? Let’s begin.7

7
Riley, J., 2012. ICT - Sources of information. [Online].