In order to appreciate the value of information it is vital to understand what information is. Information is basically data that has been processed into a form that makes sense to the receiver (Davis & Olsen, 1985).
If this process does not occur then you have ‘data’ which is raw facts and of no real use to the recipient.
The clip attached will give a brief practical example of the meaning of ‘information’.
The information helps the receiver in some way. For example a business can use it to improve its operations and to make better decisions. I will explore this in my future posts. The value of information is directly linked to how it helps decision makers achieve their organizations goals (Stair & Reynolds, 2010). However if the information is not relevant, not accurate, too complicated and not delivered to the decision maker on time, it won't have much value for the organisation. Also producing information can be costly and the decision makers should compare the value of information to the cost of producing it (Stair & Reynolds, 2010).
I intend to elabourate on this topic week by week and hopefully aid your understanding.
Stair & Reynolds, 2010. Principles of information systems: 9th edition.
Davis & Olsen , 1985. Management information systems: conceptual foundations, structure and development: 2nd edition.