The Value & Importance Of Information

Question 1

What are 4 characteristics of good quality information.

Answer 1

• Up to Date
  Data is not too old to be useful
• Relevant
  Data has to be related to the task at hand
• Complete
  Data must be complete, if it is incomplete it isn’t valid
• Understandable
  The meaning of any information should be clear to the user
• Correctly Targeted
  The question should be targeted at the people who will use it
• Accurate
  Information must be accurate

Question 2

Describe two ways in which good quality information can add value to an organisation.

Answer 2

• Help Decision Making
  Good quality information can lead to effective decision making which can make a company more successful
• Using resources effectively
  Advertising and marketing product should only be aimed at people likely to buy it, information about customer buying habits is therefore effective.
• Monitoring Progress
  Information can help an organisation stay informed on how well it is doing
• Gaining advantage over competitors
  Information can tell an organisation how well it is doing compared to other competitors.

Question 3

What are the 3 categories of information cost.

Answer 3

Financial

Time

Human

Question 4

Name 2 costs involved with producing good quality information

Answer 4

• Collecting the data
  The company may have to buy the information or pay a third party to gain access to data

- Data Entry
Data entry (keying in) takes time and staff will have to be paid to do it

• Data Processing
  This requires hardware and software resources and will cost money
• Data Maintenance
  Have to keep in touch with customers to make sure data stays accurate and up to date, this takes time and staff