MSS Chapter 02-

Information Concepts

• Definition –
• Types of Information
• Quality of Information
• Value of Information
• Information needs of managers at
different levels
 Definition : Information
• Data that has been processed into a
meaningful form to recipient and is of
real perceived value in current or
prospective actions or decisions.
 Types of Information
• Internal Information
• External Information

• Strategic
• Tactical
• Operational
 Characteristics
• Improves representation of an entity
• Updates the level of knowledge
• Has a surprise value
• Reduces uncertainty
• Helps in decision making
 Quality of Information

• Parameters of Quality
– Reliability
– Consistency
– Age
– Validity
– Impartiality
 Value of Information
• Parameters to ensure quality
information-
– Timeliness
– Accuracy
– Content
– Frequency
– Clarity
– Communication
 Information needs of managers at
different levels
• Strategic Level (TOP LEVEL)
– Strategic decisions
– Need information related to
environment change
• General, social, economic, political etc.
• Information needed is mostly external
• Tactical Level (MIDDLE LEVEL)
– Managerial Decisions
• Information related to various functional
areas,
• Information needed is mostly Internal
information
• Operational Level (LOW LEVEL)