ITFM – Preparation for Prelim
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Transcript ITFM – Preparation for Prelim
The Role of Information in
Decision Making
ITFM – Outcome 1
What is information?
ITFM – Outcome 1
What is information?
Information is the end-product of processed data
Data: a collection of facts that has been interpreted and
organised in some way
Information: data that has ben processed to help decisionmaking and planning
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The Data Processing Cycle
Collecting: from various sources inc email, internet etc
Checking: validity of source, currency and sufficiency of data
Organising: sort/group with other information
Analysing: summary calculations, comparisons
Storing: file electronically or manually
Distributing: send via email, publish on website etc
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Sources of Information
ITFM – Outcome 1
Sources of Information
Primary: information collected first hand
for a specific purpose eg surveys, customer
focus groups
Secondary: information collected from
existing sources eg newspapers,
government statistics
Internal: information from within the
company eg sales records
External: information from outwith the
company eg information from other
companies
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Primary Information
Strengths
Weaknesses
Up-to-date
Expensive to collect eg using
a market research common
Know the source
Sample might be too small,
Specific for the purpose
or questions ambiguous or
misleading
Respondents may lie
Researcher may be biased
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Secondary Information
Strengths
Weaknesses
Wide range of potential
Could be out of date
sources
Competitors have access too
Relatively cheap to access
Hasn’t been gathered
specifically for the purpose
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Internal Information
Strengths
Weaknesses
Easy to access
Good systems required for
accurate data collection
Shows past performance eg
Information systems need
sales (targets and trends)
managed (training and
salaries)
Benchmark for current
performance
New companies are at a
disadvantage (no info)
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External Information
Strengths
Weaknesses
Easy to access
May be out-of-date
Relatively cheap
Takes time to gather
Provides information on
Available to competitors
PESTEC
Potentially biased or
unreliable
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Types of Information
ITFM – Outcome 1
Qualitative Information
Information which is expressed in words
Involves opinions or judgments
Often used in customer satisfaction surveys
eg How do you rate customers service – excellent, good,
acceptable, poor, unacceptable
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Quantitative Information
Information can be counted or measured
Usually expressed numerically
Used to identify trends and make forecasts
eg sales figures, exam results, number of staff
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Written Information
Advantages
Disadvantages
Re-read when necessary
Takes time to produce (up-to-
date?)
Permanent Record
Difficult to get clarification
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Oral Information
Advantages
Disadvantages
It is instantly received
Interpretations can be
different: “But I thought you
said…”
Allows for discussion
Can ask questions/get
Easily forgotten
clarification
Should be backed up with
Quick method of spreading
written record
information
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Numerical Information
Advantages
Disadvantages
Allows comparisons to be
Many people find figures
made
difficult to understand
Useful for
forecasting/projecting trends
Graphs can be produced
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Graphical/Pictorial Information
Advantages
Disadvantages
Often easier to remember
Skill needed to produce an
than full notes
effective chart
Graphs show
Special equipment is needed
trends/comparisons
to produce an image
Organisation charts show the
Training staff can be costly
structure of the organisation
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Features of Good
Information
ITFM – Outcome 1
Features of Good Information
CccOAaaT
Accurate
Complete
Objective
Appropriate
Concise
Timely
Available
Cost-effective
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Types of Decision Making
ITFM – Outcome 1
Decision Making
Management is about making decisions
The decision can be routine or affect the long-term
direction of the company
Decisions should be made to meet the objectives of the
business
Decision
making is about
a choice from
the different
options
available
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Strategic Decisions
Made by senior managers for the long-term eg 5-10 years,
concerned with strategic aims
The scope of the decisions is wide and far reaching
Most of the information will come from external sources eg
competitors activities, financial institutions on investing
profits
High risk decisions – takes a long time to implement and
costly to correct
Examples: to expand the business or to improve profitability,
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Tactical Decisions
Made by middle managers for the medium term
Tactical decisions are about organising resources to achieve
strategic objectives
Use information from weekly or monthly reports to monitor
activities and check that targets are being met.
Medium risk decisions – poor decisions take time to change,
but won’t jeopardise the organisation
Examples: to train staff to use more effective working
practices (in order to improve efficiency)
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Operational Decisions
These are day-to-day decisions
Usually made by Department Managers or Supervisors.
The scope is limited to the immediate resolution of problems.
Information will come from internal sources.
Low risk decisions – wrong decision should be easy to fix, or not
take much time
Examples: arranging temporary cover for an absent member of
staff
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Impact of ICT on
Workflow
ITFM – Outcome 1