2. Unit 3.3 How do businesses use information?

3. 2 What is information? Information is a collection of facts or data which has been organised in such a way as to be useful to the user. Information can take many different forms, eg: written numerical verbal graphical/pictorial electronic

4. 3 Where does information come from? Videos Television CDs Computers Letters CD Roms Market Research Newspapers Radio World Wide Web Government Reports

5. 4 The flow of information INPUT Data is fed into the organisation from internal and external sources PROCESS Data is processed to make it meaningful OUTPUT Output is information which is used to make decisions Data is a collection of raw facts and figures which have not been processed in any way.

6. 5 Internal Sources of Information StrengthsWeaknesses Internal Information is data that has been taken from the organisations’ internal records: Sales reports Financial information Internal e-mails Minutes of meetings Company newsletter Employees’ views Internal information is cheap to gather Accurate records can help set and achieve targets by revealing past performance. New organisations may not have internal information to access. Accurate records need to be kept. Costs of setting up and producing records may be high.

7. 6 Information and decision making Financial Information allows comparisons to be made between different years, different departments and sometimes comparison of different companies. Allows decisions to be made affecting costs, suppliers, amount of profit to be paid out, new assets to be bought etc. Sales Records enables actual sales to be compared with targeted sales and decisions based on this result can be made, eg new targets set. Break-even information helps to decide on selling prices, production levels etc

8. 7 External Sources of Information StrengthsWeaknesses External Information is gathered from sources outside the organisation: from market research, government reports, newspapers, competitors’ annual accounts. Television and radio World Wide Web Information from suppliers Can give an organisation useful information about PEST factors, eg the age distribution of the population, laws which affect business, changes in fashions, sources of financial help, information about competitor’s products. Time-consuming and expensive to gather. May be out of date. Information gained may be unreliable or biased. Information is also available to competitors.

9. 8 Information and decision making Customer surveys once data is collected and processed the information can be used to improve the quality of service/product provided. Information from suppliers, eg catalogues and price lists enables decisions to be made about the supplier to choose. Do you decide on price only? Government legislation cannot be ignored otherwise businesses risk breaking the law. New legislation on health & safety might have cost implications; an increase in the minimum wage will increase costs and decisions about number of staff may have to be made.

10. 9 Value of information HIGH QUALITY INFORMATION Timely ( available when needed and up-to-date) Relevant ( for the purpose it will be used) Accurate Cost-effective ( the cost of gathering the information should not outweigh its usefulness) Available (easy to obtain) Objective ( free from bias) Concise (to the point) Complete

11. 10 How does information technology help businesses to manage information? Many software programs are available to help businesses manage their information. Information is produced more quickly than traditional methods. Information can be amended to suit particular needs. A greater volume of information also becomes available. More people have easier access to both internal and external information

12. 11 Using computers to generate information o oWord Processing - letters, reports, notices, and any other pieces of written information. o oSpreadsheet - used for numbers and to calculate figures very quickly o oDatabase - store large amounts of data electronically eg customer records, employee records, stock records o oGraphics - charts, graphs, diagrams and pictures o oDesktop Publishing - produce leaflets, newsletters, magazines, and sometimes newspapers o o Presentation Package, eg Powerpoint – present information to customers and staff, used in training

13. 12 Using computers to generate information MarketingHuman Resources Word Processing Databases Spreadsheets Graphics Desk Top Publishing Presentation Package Creating market research questionnaire Results of market research findings Enter numerical info and make graphs Create promotional leaflets Adverts for promotional campaign Present new campaign ideas to management Letters to applicants inviting for interview Personal info records for each employee Records of holidays taken Make health & safety posters Adverts for jobs Used for training – teach new methods

14. 13 Using computers to generate information FinanceOperations Word Processing Databases Spreadsheets Desk Top Publishing Presentation Package Writing reports to senior management Names and addresses etc of debtors & creditors Recording all financial information, eg Final Accounts. Chart/graph financial information Produce Reports for shareholders Present financial information to AGM Reports on wastage/quality to senior management Access info about parts to be used, eg serial numbers Time sheets for employees; used to record no of goods produced, faulty etc Posters re health & safety; Used for training on new equipment/system

15. 14 Using computers to generate information A modem will allow the computer to connect to the Internet: The Internet - a series of connected networks which share and exchange information worldwide The World Wide Web - contains millions of pages of information from many different sources Internet Website – promote business by providing product information, services, special offers, selling direct etc Electronic Mail - communicate with computers all over the world, with no time restrictions. Messages sent to individuals or groups with reports, pictures attached.

16. 15 Using computers to generate information WEBSITES Most businesses have created websites to: promote business with information about products, services, special offers, etc. sell directly from their website to end consumer or BtoB reduces costs by having fewer retail premises and sales staff Receive orders from anywhere in the world at any time of the day or night

17. 16 Using computers to generate information Features of a useful website: Prices and pictures of products Colourful Easy to read font/size font List of contents easily visible to enable easy navigation of site Sound and animation Information on the company Ability to order and pay on-line Efficient search engine within the site Hyperlinks to related pages or other relevant web sites

18. 17 What are the features of good communication? In simple terms, communication must be: a 2-way process accurate easy to understand and free of jargon sent to the right person sent by an appropriate method complete

19. 18 Methods of Communication Written Letters, Memos, Repors, Minutes Spoken (Oral) Telephone, Face-to-face, Meetings, Interviews, Video-conferencing Communication Methods Visual (Graphics) Notices, Posters, Leaflets, Adverts Electronic E-mail, Fax, Software, Networks Body Language Making faces, hand signals, head movements

20. 19 Communication using ICT Computer networks (Intranet) – links parts of a business together through computers. Can be split into local area networks (within a building) or wide area networks that link different parts of an organisation together, eg Thomas Cook branches. Fax machines - letters, reports, notices, and any other pieces of written information, eg place an order for goods; need machine and telephone line. Video conferencing – enables people in different locations to have meetings without the need to travel. A computer link is set up between people at 2 or more different locations, who can then meet via computer to speak to and to see each other.

21. 20 Communication using ICT Telephone – verbal communication for one-to-one conversation, intercom use and conference facilities; Answering machines – records messages to be accessed later; may require password to access. Voice mail – a specialised type of e-mail using pre-recorded voice messages; callers offered a menu of choices; messages are spoken and left in a ‘voicemail box’ Mobile telephones/text messaging – portable and allows people on the move to be contacted; message inbox, text messages, security access, phone book, internet access, camera. Pagers – carried in pocket or belt; vibrates or bleeps to alert owner when there is a message; used by people on the move who need to be contacted quickly

22. 21 Barriers to effective communication There are a number of factors which prevent a message being received and understood: Message too complex or full of jargon Wrong choice of communication channel or medium Information not being passed on Length of chain of command Wrong target for the message The skill of the sender and receiver

23. 22 Methods of Communication Written Spoken (Oral)

24. 23 Methods of Communication Visual (Graphics) Electronic Body Language