13.4 Information and Data

Characteristics and Classifications of Information There are many ways in which information can be classified, this can be according to: The source of the information The level of the information The time the information relates to The nature of the information The frequency with which the information is supplied The use to which the information will be put The form of the information. The type of information.

The Source of the Information Whether Internal or External – depends from whose point of view the information is being considered. Egs of Internal:  Staff rotas  Customer credit limits  Details of overdue accounts  Forecast of next year’s profit. Egs of External:  Marketing information from a questionnaire sent to all customers  Budget information on changes to the tax system.  Details of the Data Protection Act

The Level of Information Operational Information Record of daily events and transactions, employees pay, orders, invoices, payments and stock level. To enable day to day operation of the company. Tactical Information Middle Managers need to know how fast items move, how quickly stock can be replenished, how well a new product is selling, when store is most crowded. To help them management more effectively Strategic Information Senior Managers – historical, environmental and local information may be used to built computer models, which help to forecast future changes or needs.

The Time the Information Relates to Historical Current Future

The Nature of the Information Primary Collected directly from an information source. Secondary Collected indirectly Quantitative Can be measured in numerical terms Qualitative Tends to be concerned with opinions Formal Formal procedures Eg, computerised information systems/videoconferencing/formal letters, minutes/memos, intranet etc Informal Face to face/Telephone conversations/Reading newspapers/Listening to radio & television/Internet (forget quickly)

Frequency Daily Weekly Monthly

The Use Planning Control Decision Making

The Form Written Visual Oral

The Type of Information Detailed If dealt with at an operational level Aggregated If needed to be collected from several sources Sample Used to represent the population as a whole

The Characteristics of Good Information & Delivery Must be relevant Must be accurate Must be complete Must be presented at the right time Must be presented in the right detail Must be understandable

Information Flows In a manufacturing company, there are typically the following functional areas: Sales and marketing Purchasing Production, stores and distribution Accounts and finance Research and development Personnel

Methods of Data Capture The ideal method would: Be accurate to ensure the integrity of the data stored Be fast Not involve high labour costs (automatic?) Need only cheap equipment

Accuracy Checks Verification Proof reading (if original incorrect, won’t notice error) Second entry (identical errors unnoticed) Validation Range checks Data type checks Existence checks Consistency checks

Effective Presentation of Information All information should be conveyed in such a way that the intended audience is able to understand it. The presentation of the information must be appropriate to the level of those who are to use it.

Presentation of Database Reports Only selected information should be supplied This should be grouped logically (in alphabetical/numerical/date order etc) Should be printed using easy to read font and be of high quality

Operational Reports Needed on a day to day basis – essential for the successful running of the organisation. Usually provided at regular intervals and include: Daily work in progress Weekly sales figures Daily stock reports List of debtors etc

Summary Reports Provide a summary of data held in a database (nearly all management reports are summary reports) Eg: Sales figures for a certain product List of customers who owe money at a certain date

Exception Reports Usually required by management to help with decision making. To be able to make forecasts, senior managers need to know about current trends – more unusual than usual. Eg List of customers who have exceeded credit limits Sales beyond those forecast List of good in stock for more than a year List of customers with overdue payments

Data Grouping in Reports Takes data from a variety of sources and groups together in a single report. Eg. Ten best customers in North England

Presentational Graphics Text Charts Ideal for making comparisons or presenting benefits and drawbacks of a particular issue. Present as a bulleted list. Graph Charts Mainly used for numerical information  Bar Graph – used to show trends at a glance  Line Graph – may highlight seasonal sales figures  Pie Chart – shows how the total is made up Slide Shows Pictures

Presenting Management Information On Computer Printouts  Using the principle of exception reporting for conciseness and clarity. On a VDU  A report of a ‘slide show’ produced using a presentation graphics package. Desktop Published  Incorporating company logo, graphs, diagrams, photographs etc. Orally  ‘over the grapevine’ by telephone or in formal presentations. Videoconferencing  Enables several people at separate locations to participate in meetings and information exchange. Over a company-wide Intranet.