4.1.2 The value and importance of information The importance of up to date, accurate and complete information. Candidates should understand that: up to date, accurate and complete information adds value to organisations From the Specification

4.1.2 The value and importance of information up to date Example: The business might have out of data information about unpaid invoices (bills). They might send out warning letters to customers who have already paid. Customers may not buy again. Note: Information should be date stamped (the data record includes the date when last updated). Personal Data (e.g. data relating to customers) has to be kept up to date by law (Data Protection Act 1998) or the business can be prosecuted.

4.1.2 The value and importance of information up to date Example: If stock records are not kept up to date they do not show actual quantities in stock. Items will not be re- ordered at the right time. The business will not maintain the optimal (most efficient) stock level. (If they keep too much stock, they waste capital, if they keep too little, they lose sales.)

4.1.2 The value and importance of information accurate Example Hours worked by staff are not accurate (correct). When the wages are calculated, the staff will not be paid the correct wages.

4.1.2 The value and importance of information accurate Example A supermarket uses inaccurate weather data which predicts very hot weather. It buys in extra quantities of ice cream and soft drinks. The products do not sell. The supermarket wastes money and space on storage.

4.1.2 The value and importance of information complete Example A missing postcode might result in a quotation for a fitted kitchen arriving late. The client chooses another business. Example A missing exam result might result in a student’s application to join a college being rejected.

4.1.2 The value and importance of information information adds value to organisations by aiding decision making, monitoring progress (company and individual) and the targeting of resources so giving a competitive advantage; The wording above is from the Specification In your answer, mention the three key phrases aiding decision making, monitoring progress and targeting of resources

Add value by aiding decision making Example: A supermarket regional manager uses population data and data on transport links (e.g. new roads / rail links) to decide where to site a new store The value and importance of information

monitoring progress Add value to the organisation by monitoring progress Up to date and complete and accurate information on profits and losses for the business over several years allows the manager to monitor progress and identify trends. This helps with planning expansion or contraction of the business The value and importance of information

monitoring progress Add value to the organisation by monitoring progress Up to date, complete and accurate information on employee attendance and targets met allows managers to monitor staff performance. This can be used to decide who should get a bonus The value and importance of information

targeting of resources so giving a competitive advantage; Advertising and marketing should be aimed at people most likely to buy a product. Then the business gets the best possible return on advertising outlay. Up to date and complete and accurate information obtained by market research (e.g. a survey of a sample of shoppers in town or questionnaires sent to a sample of homes) can identify gaps in a particular market which the business can fill. The business can gain an advantage over their competitors in that market The value and importance of information

The costs in terms of money, money, time and time and human resources human resources to get good quality information. The costs are associated with data collection (direct and indirect), data collection (direct and indirect), data entry, data entry, processing and processing and maintenance. maintenance. From the Specification

Cost of Data Collection expert to design data collection forms / setting up questionnaires to collect information, handing out questionnaires / doing interviews (travelling etc), analysing results to find information, or buying information from another company

Cost of Data Entry Indirect Data Entry Data collected on paper forms has to be typed in via the keyboard. The date entry operator has to be paid. Direct Data Entry Data is entered using a machine (e.g. OCR, OMR, MICR..) is faster and cheaper and more accurate. Costs more to set system up initially.

Data Processing The business has buy software to process the data and pay staff to operate the software.

Cost of Storing Data and Maintenance Storing records in files and keeping files up to date and safe. The more up to date the data has to be, the higher the costs.

Costs of Information Financial Human Time Note: Obtaining information always uses some resources of the business. Even ‘free’ information may have a human resource cost – the staff allocated to the job – and a time cost – staff time used in looking it up on the internet / in the library. Example: A supermarket uses information about weather trends. There is a financial cost because they the retailer buys it from a Weather Centre. There is a human resource cost because someone has to organise the purchase and someone has to interpret the data and translate it into buying decisions. There is a time cost because while the staff are doing these jobs they can not do other jobs.

Task 1 Decide how your group is going to learn the keywords. (For a mini test next week.) For example, you might make up an acronym (a word whose letters each stand for one of the keywords – the letter is the first letter of the keyword). Or, you might make up a funny story containing all the keywords. Fill in your chosen method of learning on the worksheet provided.

Homework Question 1 [Jan 2010 Q2] A school’s administration system contains information about pupils. Personal details such as a pupil’s contact details, are stored as well as some very personal information such as ethnicity, religion and medical information that the school might need. A school’s administration system contains information about pupils. Personal details such as a pupil’s contact details, are stored as well as some very personal information such as ethnicity, religion and medical information that the school might need. (a) Describe why the data contained in this system must be kept up-to-date. [2x2 marks] (b) [4 marks] There are a number of costs associated with keeping data up-to-date. Describe, with the aid of distinctly different examples, two such costs in relation to the school’s administration system. [2x2 marks]

Homework Question 2 [June 2009 Q2] (a) “Up to date, accurate and complete” information adds value to an organisation by aiding decision making. Describe using suitable distinct examples two other ways such information adds value. (a) “Up to date, accurate and complete” information adds value to an organisation by aiding decision making. Describe using suitable distinct examples two other ways such information adds value. (b) There are costs involved with getting good quality information including: (b) There are costs involved with getting good quality information including: money money time time human resources. human resources. Describe with suitable distinct examples how such costs could arise. [3] Note: Do not use the examples from the Marks Scheme.