Information plays a crucial role in decision-making processes and is recognized as one of the most important corporate resources. In this article, we will discuss the importance of information in reducing uncertainty and its value as a source of competitive strength. Additionally, we will examine the features of information as a corporate resource.
Reducing Uncertainty through Information
Information helps managers reduce uncertainty about alternative courses of action, which increases the odds of making a correct decision. Therefore, the availability of information regarding alternatives is critical in the decision-making process.
Value of Information as a Corporate Resource
Information is a value-added resource, just like any other resource in a company. Its conversion from raw data to information adds value to it. Furthermore, information has a specific cost, which means it must be acquired and utilized efficiently. It is a source of competitive strength that can give a company an edge over its rivals.
Features of Information as a Corporate Resource
The following are the features of information as a corporate resource:
|1. Value-added||Conversion from raw data to information adds value to it.|
|2. Specific cost||Information has a specific cost that must be acquired and utilized efficiently.|
|3. Meant to be shared||All those associated with the attainment of company goals should contribute to the corporate stock of information.|
|4. Security risks||Appropriate security policies and procedures must be implemented to protect information.|
|5. Organization-specific||The value of information depends on its use by the decision maker.|
|6. High rate of obsolescence||Information must reach the user as early as possible, and redundant information must be weeded out.|
In conclusion, information is an essential corporate resource that helps managers reduce uncertainty, make better decisions, and gain a competitive edge. The features of information as a corporate resource highlight the need for efficient acquisition, utilization, protection, and sharing of information. Therefore, companies must develop strategies to manage and maximize the value of information as a resource.