What is information?
Information management is the most important resource of information systems. Information is an important input to achieve our goals such as helping each other and becoming an integral part of management.Information acts as fuel for any organization. Because no organization can work properly without information.
Information and data are two separate points. Information is processed data while data is incomplete and unordered facts.
Information System -
Defined as a collection of elements of an information system that captures data and converts it into information and disseminates to the decision maker in the organization.Characteristic of information
Accuracy - Accuracy means that the information is completely correct. Incorrect information given to management will result in wrong decisions. The finished manager decisions are based on the information given in the MIS Report. Therefore all managers need accurate information.Relevance - Relevant information is data that can be applied to solve a problem.The relevant concept may mean that an organization will remove less useful information from its financial reports on a regular basis and add other information
Completeness - The information that is given to a manager should be complete and all his needs should be completed. Incomplete information can result in wrong decisions and thus it can prove to be the most costly for the organization.
Timeless - Timeless means that the information should reach the recipient within the stipulated time.
Credibility - Information that can be trusted completely.
Based on the classification of characteristic
Action vs Non - Action information - Information that is induced to do something is called action information. Information that is communicated only for status. this is known as non-action information.Recurring vs Nonrecurring information - Information that is generated at a regular interval. ex - semester examination, salary of an employee.That Financial analysis and report which is done on market research study. This is known as Non-recurring information.
Internal vs External Information - The information that generates from the source inside an organization is called internal information.The information that is generated by govt like reports, industry survey.Information that is fixed outside the organization. this is known as external information
Based on Classification of management hierarchy
Strategic information (Top level) - strategic information is required by the manager at the strategic level of management for the formulation of organizational strategies. This relates to long-term planning policies of the organization as a whole.For ex - information pertaining to new technologies, new products, competitors etc.
Tactical information (middle level) - information in this category is used in short form planning and is of use at management control level. For example, for sales analysis and forecasts, production resource requirements, annual financial statement etc.
some of tactical information such as competitor information may arise from sources external to the organisation.
Operational information (Low level) - operational information applies to short period which may vary from an hour to a few days. it is generally used by decision maker at the operational level. it is often required for taking immediate action.
Ex- operational information may include current stock in hand, outstanding order from customers.
