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:

FeatureDescription
1. Value-addedConversion from raw data to information adds value to it.
2. Specific costInformation has a specific cost that must be acquired and utilized efficiently.
3. Meant to be sharedAll those associated with the attainment of company goals should contribute to the corporate stock of information.
4. Security risksAppropriate security policies and procedures must be implemented to protect information.
5. Organization-specificThe value of information depends on its use by the decision maker.
6. High rate of obsolescenceInformation must reach the user as early as possible, and redundant information must be weeded out.
Table 1: Features of Information as a Corporate Resource

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.