BSBINM601A - Manage

knowledge and information

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BSBINM601A - Manage knowledge and
information

Obtain information
relevant to business issues

Analyse information and

knowledge

Take decisions on
business issues identified

Disseminate information
to the organisation

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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.

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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

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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

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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
 Such research can be conducted externally or internally

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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.

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 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
 The four States of Information are:
 Information a business knows it has

 Information a business knows it should have

 Information a business doesn’t know it has

 Information a business doesn’t know it doesn’t have

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 Types of information needed for
decision making
The type of information needed depends on
the problem at hand
 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:
 Information about a business’s own capabilities

 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

 Information about customer reactions

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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.

 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.

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Internal information
 Internal information is any information that one gathers from inside an
organization. This sort of information does not necessarily have to be hard to
find.
 The most common types of internal information are:
 Sales Performance

 Production Performance

 Manufacturing Cost

 Packaging Cost

 Advertisement Costs

 Research and Development Information (R&D)

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External information
 External information is a bit different than internal information, not just because it
has to do more with the markets, but also because the amount of information is
simply gigantic
 External information includes information such as:
 Customer Information

 Market Information and Statistics

 Research and Development Information (R&D)

 Information on competing firms and the likes

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 Test information for reliability and
validity, and reject where
contradictory or ambiguous
Introduction
 Now that you know how to source and gather information, the next step is
learning how to test the integrity of the information

 Manual method of data validation

 What exactly is data validation? Well, data validation is simply checking
the facts.

 Electronic method of data validation

 We live in the computer age. It is then only logical that we use all that
current technology has to offer to aid us in our various endeavours

 Concluding points
 Data collection and data verification are not two separate things

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 Utilise formal and informal networks to
access corporate knowledge/memory not
held in formal systems and review
appropriately

Introduction
 By now you should have a fair understanding of the information sourcing,
collecting and sorting process. As said before, in this day and age,
information is power. Businesses try to find or obtain information any way
they can.

 How to use formal (as well as informal) networks to gather information

 The previous chapters talked about data sourcing and collection as well
as data interpretation and analysis, along with sorting. It is suggested that
you read the previous chapters (if you haven’t already)

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TOPIC 2 - ANALYSE INFORMATION AND
KNOWLEDGE

Ensure objectives for analyses are clear,

relevant and consistent with the decisions
required
 The previous chapter dealt primarily with sourcing information related to
business issues
 It also provided information on the topic of information handling which included
sorting, validating certain information and rejecting irrelevant and unreliable
information
 This is of utmost importance for a business aiming to maximise revenue and
be better than the competition

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Identify patterns and emerging
trends correctly and interpret as to
cause and effect
Cause and effect are both
extensively used in both the
academic world as well as the
business world
 Studying a cause requires you to study the effect and
studying the effect requires close examination of the cause
 There are numerous examples of cause and effect
that can be taken from the academic world

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 Utilise statistical analyses and
interpretation where appropriate
So what exactly is statistical analysis? The
aim of this subsection is to provide you with
information regarding just that, along with
the implementation of some of the most
useful analysis techniques.
 The steps involved in statistical analysis (it does not matter what type of analysis
is used) can be summarised as follows:
 Understand and specify the nature of data being analysed

 Determine if the data has any relation with the desired result

 Create a data model using the available data sample

 Validate the data model or reject it

 Use analytics to extrapolate data to forecast future actions

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 Undertake sensitivity analysis on
any proposed options
As discussed and mentioned throughout this
chapter, statistical analysis and future trend
forecasts are not always accurate
 The result could sometimes even be entirely the opposite of what was expected
 There are multiple scenarios where the use of sensitivity analysis can change the
outcome of the entire analysis:
 Testing robustness of results

 Uncertainty reduction

 Searching for model errors

 Model simplification

 Enhancing communication

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

Once all your analysis has been

completed, it is time to check your
work and present it. This subsection
is more of a reminder
 Double-check all your calculations and the data samples
that were used for the analysis and calculation
 Once that has been done, your next step is to
digitize your findings so that computer software such
as Microsoft excel can be used for further analysis,
such as sensitivity analysis

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 Adjust management information
systems /decision support systems to meet
information processing objectives

Subsection 2.6 is related to subsection 2.5.

While 2.5 (Ensure documentation reflects a
logical approach to the evaluation of the
evidence and conclusion drawn) deals with
rechecking the analysis and reaching a
sound conclusion, this subsection deals
more with the computer software that is
doing all the calculating
 Computers do only what they are told. They are incapable of making decisions
 It is therefore the duty of the user (the analyst in this case) to tell the
computer what to do.

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TOPIC 3 - TAKE DECISIONS ON BUSINESS ISSUES
IDENTIFIED

Ensure sufficient valid and reliable

information/evidence is available to support
a decision
 Throughout chapters one and two, you learned how to source information, sort
it (filter the information), analyse it and draw conclusions from the obtained
results
 This chapter and the subsequent chapters will help you understand the
steps that follow

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 Utilise risk management plans to
determine acceptable courses of
action
A business issue is anything that is affecting
the future of your business. It could be
declining viewership of your programs (if you
run a television channel) or it could be
something along the lines of fraud or
embezzlement by one of your employees
 Running a business involves planning ahead and being prepared when disaster
strikes.
 This disaster could take a number of shapes and forms. It could be in the
form of damage to your property due to a natural disaster (like an
earthquake or a hurricane) or in the form of falling stock prices.

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 Utilise appropriate quantitative
methods to assist decision making
Sometimes you have a gut feeling about a
certain business decision (probably from
years of experience) and you act on it
 This is called a qualitative analysis. However, it is often helpful, in case of vital
business decisions, that you also incorporate quantitative analysis methods
before making a decision.

 Some of these methods include:

 In-depth analysis of markets

 In-depth sales analysis

 In-depth budget analysis

 Going over human resource data

 Employing regression analysis

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Regression analysis
 “…regression analysis uses complex statistical equations to estimate the
impact of one or more factors, known as predictors or independent
variables, on an outcome of interest, known as a dependent variable. A
company manager or business economist could use regression analysis to
estimate the effect of advertising expenses on the company's profits.”

Linear programming
 “All businesses face limited resources, including facility space, production
equipment, supplies and labour. This makes optimal allocation of these
resources a challenge for any manager. Linear programming, a popular
technique in operations research and management analysis, is a
mathematical method for determining how to achieve an optimal
outcome, such as highest profits or lowest operating costs, subject to
certain constraints, such as limited labour and supplies”

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Consult specialists and
other relevant groups and
individuals
 If you find yourself out of your depth,
it is always a good option to seek
help. Maybe there is a problem with
your overall analysis of a certain
business model. Seek the help of your
colleagues and co-workers.
 Sometimes, certain analyses and decisions are so
complex (i.e. they involve multiple factors that need to
be considered before finalising a decision) that you are
simply not equipped to handle the task. At this point, you
should consider consulting a specialist.

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Ensure decisions taken are within the
delegation/accountability of the
group/individual responsible

After all due analysis has been

completed, the last step in the
process is to make a logical and
rational decision. Before making a
decision, it is better to check with
your superiors or co-workers if the
responsibility is in fact yours.
 One of the hallmarks of high-performance organizations is
that they make steadfast decisions
 For achieving that, better-coordinated decision-
making process is the ultimate key

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 Make decisions in accordance with
organisational guidelines and
procedures

Before making the aforementioned

decision, it is always recommended to
check your business’ guidelines regarding
making decisions, which affect the financial
stability and future of the business.
 For that, you must be entirely clear on one thing that is the difference between
an organizational policy and a strategy
 Business-owners may use both of these vital components while taking up a
new course of action for their prevailing scenario but having a clear
assortment of roles is what one should always take into account

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Ensure decisions taken are
consistent with organisational
objectives, values and standards
The decision making process is of
vital importance to the business
since it determines the direction
that the company is moving in
 Every business or organisation has its own set of objectives
that it strives to achieve
 Make sure that the decision you are taking is
beneficial to your firm and does not negate any of
the objectives, values or standards of the institution.

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Ensure decisions are taken in a
timely manner

There a few things that one should

be aware of before actually
making a final decision based on
the statistical (quantitative and
qualitative) analysis.
 Here is a list of all the things that you should consider when
taking the final step:
 Check with your superiors

 Always check whether the decision

 Do not take too long making decisions

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TOPIC 4 - DISSEMINATE INFORMATION TO THE
ORGANISATION

Ensure advice/information needs are

documented and are specific to location,
format and time line requirements
 When a company takes steps towards creating a better environment for
business, in order to set itself up for a better financial future, it usually starts with
hiring people to help point out and analyse business related problems.
 “The key to effective dissemination is to match the means to the message
and needs of the audience.”

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Document information and
update databases regularly

As mentioned at the beginning of

this book, information is power.
 It is, therefore, entirely necessary to store this documentation
and information in an easily accessible and safe manner to
have quick access to it when need be.
 Information was stored in the form of logbooks or
ledgers, but with advancements in technology, it
has been mostly digitized

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The amount of information
 If a company is only dealing with small information, which usually has a
direct relationship with the size of the business, a paper-based filing system
may be cheaper.

 The size of the workplace

 A business should choose digitized systems for bigger workplaces

 The type of work being conducted

 The type of work that a business does often determines the type of filing
system used

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Amount of storage space
 The amount of storage space should always be considered. Businesses
should always plan ahead

 Type of information being stored

 With all the security concerns, deciding what type of filing system to use is
essential. If a business handles mostly confidential information, keeping it
secure is the top priority.

 Cost
 The costs of both systems can vary. Digital systems are expensive initially,
but are highly favoured for their ease of use.

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Design and test systems to meet
information requirements of
decision makers
For any digitised information, filing
system to work efficiently, a
properly organized and structurally
sound database is needed
 It is therefore your job to ensure that the information being
analysed and processed is stored and presented in a viable
and easily accessible format.
 People should be able to access this information
24/7 and should be able to do so with ease.

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 Ensure information is up-to-date,
accurate, relevant and sufficient for
the recipient
This subsection expands on the information
provided by subsection 4.1.
 Information (the results of the analysed information) should be relevant to the
needs of the recipient
 This means it is your job to ensure that the entire process is seamless in terms of
the overall quality of the final analysis. This would require you to follow all the
instruction presented in chapters one and two
 Each step, from information sourcing and sorting to dissemination of
information should be accurate, relevant, sufficient and up-to-date.

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 Develop communication plans and
disseminate information
What exactly does information
dissemination mean? Well, simply put,
information dissemination means to
transmit/broadcast
 It may be disseminated for:
 Judgement

 Awareness

 Response

 Collaboration

 Promote results

 Optimise exploitation

 Promote technology/information transfer

 Support supply of new information

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 Adhere to confidentiality/privacy
policies in the transmission/release
of information/advice
Every business has its own
privacy/confidentiality rules and regulations.
You should be familiar with these policies
before sharing information with anyone
 It is impossible to outline all of the confidentiality clauses (primarily because, as
mentioned, they vary from business to business)
 However, a few precautions that you can take include checking with your
superiors to know which information is to be shared with whom and
checking the safety and privacy of in-office information management
systems.

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Review and update
communication plans regularly

Communications plans need to be

reviewed on a regular basis to test
the reliability of the said plans
 This is important since it can help you assess the effectiveness
of your communication plan
 Is your feedback/advice being considered? Is it
being implemented? Are people paying attention
to it? These are the types of questions you need to
ask yourself.

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Utilise technology which provides
optimum efficiency and quality

Technology changes at an
overwhelming rate nowadays.
 Every day, every hour, a new and improved method for
doing something is created. This includes those used for
analysis and transmission of data.
 Any business that wants to survive in the 21st century
needs to follow the latest trends in technology

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Maintain corporate
knowledge and ensure security

Corporate knowledge is what

separates successful businesses
from the not-so-successful ones
 Your job is to secure this corporate knowledge/information
using the latest and best that technology has to offer
 Whether it is a digitized system or a physical one,
there are multiple safeguards you can use to ensure
the safety and confidentiality of corporate
information.

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SUMMARY

Now that you have completed this

unit, you should have the ability to
manage knowledge and
information.

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