Value and importance of information

Question 1

When does information have value?

Answer 1

When it:

• Aids decision making and planning
• Monitors progress
• Aid targeting and strategy making / Gives a competitive advantage
• Spots trends

Question 2

What is an example of: “Aids decision making and planning”?

Answer 2

If a manager of an electrical wholesalers knows a customer owes a great deal of money then he/she may ensure they pay in full before allowing any more goods on credit to that customer.

Question 3

What is an example of: “Monitors progress”?

Answer 3

Call centres measuring the speed and quality of call centre operators to see how may orders they can process or how many problems they can solve. Slow or inefficient operators could be given the sack and good efficient operators could be given productivity bonuses.

Question 4

What is an example of: “Aid targeting and strategy making to give a competitive advantage”?

Answer 4

A company decides to spend money on advertising in Area A because sales are slow and they want to revitalise the market. Companies like Cadbury World use postcodes of visitors to analyse where they are coming from. They then advertise in areas where few visitors are coming from, therefore hopefully expanding their customer base.

Question 5

What is an example of: “Spots trends”?

Answer 5

A company could use historical records of barbeque food sales in hot weather to ensure they do not sell out in a current hot spell.

Question 6

What are characteristics of good quality information?

Answer 6

• Accurate
• Correctly targeted
• Understandable
• Complete
• Relevant
• Up to date

Question 7

What does it mean for information to be accurate?

Answer 7

Accurate information is error free and a true reflection of what it represents.
Example: Wrong delivery dates could cause items to be delivered when customer is not available.

Question 8

What does it mean for information to be correctly targeted?

Answer 8

Correctly targeted information should be presented to the people who need it.
Example: giving information about state pensions to young children; giving information about meat cutting techniques is no good for vegetarians.

Question 9

What does it mean for information to be understandable?

Answer 9

Understandable information means the meaning of the information should be clear to the user.
Example: The level of detail and language used should reflect the user. If statistics in a report are too complicated for a manager they may make the wrong decisions about future sales strategies

Question 10

What does it mean for information to be complete?

Answer 10

Complete information should include all the data needed to make a decision.
Example: Missing postcodes will delay delivery.

Question 11

What does it mean for information to be relevant?

Answer 11

Relevant information should not be included if it has no bearing on the user’s needs
Example: No point in collecting details on potential markets for sushi in Newcastle if you are going to open a sushi restaurant in London.

Question 12

What does it mean for information to be up to date?

Answer 12

Information changes with time so it needs to be date stamped.
Example: If you use 10 year old mailing lists then letters may be sent to people who are dead this may upset their families.

Question 13

When does direct data collection happen?

Answer 13

Direct data collection happens when a company gathers it’s own information. This data may be gathered automatically or manually.

Question 14

When does indirect data collection happen?

Answer 14

Indirect data collection happens when a company buys its information from another source, or pays a third party to collect the data.

Question 15

What is automatic collection?

Answer 15

• Transaction of bar-coded item at an EPOS terminal
• Automated sensors gathering patient’s vital signs in a hospital
• Automated school attendance register

Question 16

What is manual collection?

Answer 16

• A customer completing a customer satisfaction survey form

- After voting at election time

Question 17

How can information be found?

Answer 17

Information can be found through a Non-ICT source and an ICT source.

Question 18

What are some examples of non-ICT sources?

Answer 18

Many organisations still use lots of paper-based information.
Examples include:
- A doctor’s surgery, lots of patients data is still kept in large paper files the cost of transferring it to digital format would be prohibitive.
- Newspapers still provide much information about current affairs and comment from respected, educated journalists.
- Scientific journals inform about new directions in research, new forms of medical treatments and the results are published in journals that fellow scientists then can use as he basis for their research.
- Text books, a school may use text books to guide and assist students allowing them to read ahead if they want.

Question 19

What are the advantages of paper based material?

Answer 19

• Often well researched and authoritative as much money and time has been invested in creating them.

Question 20

What are the disadvantages of paper based material?

Answer 20

• Can go out of date very quickly

- Environmental impact of printing and moving the paper from location to location. Example: supplier to school.

Question 21

What are some examples on ICT sources?

Answer 21

• Email experts or teacher: books may not include the required information.
• Using an internet search engine: keyword searches will reveal huge amounts of information
• Intranet: teachers may have put specialist/ useful information not found in textbook
• CD ROM: compiled by a subject expert

Question 22

What are the advantages of ICT sources?

Answer 22

• Up-to-date information available very quickly
• large amounts of information, you should be able to find information at correct level
• Can copy and paste images (if copyright allows) to enhance your work
• Videos can help explain difficult ideas

Question 23

What are the disadvantages of ICT sources?

Answer 23

• Some web pages may be too detailed and end up confusing people/students
• Some web pages may contain incorrect information
• Too much information can make people/ students feel overloaded and confused about where to start

Question 24

What are the three main cost categories?

Cost and Human Resources

Answer 24

• Money
• Time
• Human resources

Question 25

Information about what there is cost in.

Answer 25

• There are direct costs in obtaining information
• There are costs in processing data
• There are costs in ensuring that data is up to date

Question 26

Information on: Financial (money) - data collection

Answer 26

New staff have to be employed to go an ask people questions or a market research company has to be employed.
The company often pays for an incentive is given to encourage people to respond.
Example: Your name being entered into a free prize draw if the form is completed and returned

Question 27

Information on: Time - processing

Answer 27

Time taken to enter data/ time taken to check data on the system.
Example: Entering datasheets of school registers into OMR scanner.

Question 28

Information on: Human resources - maintenance and updating

Answer 28

Staff need to be trained to maintain and update data.
Example: A supermarket’s customer database will only remain accurate and up-to-date if changes to customers’ details are reported and then updated. Staff will be trained to periodically check that customer details are up to date.