Business Information and ICT Int 2 Slides

Wednesday 15 November 2006

Uses of Information in Business

There are 4 main uses of information in organisations.

Monitoring and control
Decision-making
Measuring performance
Identifying new business opportunities

Monitoring and control

Businesses will compare actual performance against its predicted (budgeted) performance. Then they will act upon it.


Decision-making

When managers are ready to make tough choices (decisions) they need good, accurate and up-to-date information. If they act without relevant information it could lead to disaster, and failure.


Measuring performance

Organisations can compare their sales figures with their competitors or indeed against their own previous years.


Identifying new business opportunities

Organisations are always on the lookout for gaps in the market. They fill these gaps with suitable products or services to satisfy customer needs.

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