Importance of managing knowledge and information for a successful business Success of a business depends on the information that business going to use and the decisions that going to take using that information. business use information In order to identify the market, customers ,SWOT analysis, etc . This information has to be accurate. In order to make proper decisions, it is important to use accurate and reliable information. Not only information but also knowledge also essential to make effective decisions. When it gets to decisions there are three main decision types. Such as operational decisions, tactical decisions, strategic decisions. Decisions are different to organization to organization. Even different teams in a same organization have different needs of information. Usually firms make decision such as, to increase sales, to increase production, to improve quality of product, to improve marketing. Not only decisions like this but also decisions like cost cutting, decrease cost, has to be made. When making these kinds of decisions it is very important to have proper knowledge. Decision like improving sales, in order make this decision, first organization should gather necessary information regarding it. And also these information should be reliable. So the company should go through their previous records about sales. Company should not take data to make decisions. They should consider processed data, which is information. The information types are depends on the decision type. If its strategic decision, company should consider studies such as demographics, government policies. Knowledge and information need to make decision is different from each decision type. And also the company should seek information from the media, competitors, market. After gathering information from necessary parties, company can make the decision. But also when it get to decision, the party (Which is management) who making this decision should have proper knowledge about it. They must have experience about decision making. And also able to identify and filter the necessary information relevant to their decision. When it gets to information it can be divided into two parts. As internal information and external information. In order to make a decision companies use both information. All organizations generate a substantial amount of information relating to their operation. This internal information is vital to the successful management of the organization. The information may be available from a number of sources within the organization. And as examples marketing and sales information on performance, revenues, markets shares, distribution channels. And also Production and operational information on assets, quality, standards. These are the internal information. And when it gets to external information, An external source of information is concerned with what is happening beyond the boundaries of the organization. This covers any documentation relating to a subject area produced as a summary or detailed report by an agency external to an organization. Such information may be obtainable from government agencies or private information providers. And as examples the Internet, trade journals, computer users’ yearbook, telephone directories. Whenever a company makes a decision they consider both information sources. Or it might depends on the decision type. Organizations require information generally to planning, monitoring and controlling, performance measurement. And when it gets to quality of internal information comparing to external information is higher. And also reliability also higher in internal information than external information.
Stakeholders contribute for decision making process within an organization. Decision making can be regarded as the mental processes resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be...
Please join StudyMode to read the full document