The Value of Information

1 Mar

This blog will go through the Value of Information , list out its characteristics and then go through the first characteristic.

information2In order for me to first discuss the Value of Information, it is necessary to give a definition. Information can be defined as the ” maximum price one should pay for knowing the actual value of an uncertainty, before deciding on a course of action”. Information itself can be viewed as raw facts, which have been gathered to explain a certain topic or person. Gathering good clear information is essential for an organisation. However over time the value of gathered information decreases.

information

For Information to be labeled as “good information”, it must first contain five charactheristics. These are as follows:

  1. Accurate
  2. Timely
  3. Relevant
  4. Just Sufficient
  5. Worth Its Cost

This next section will  deal with Accuracy.

Information must be accurate and relevant for the person using it in order to make good effective decisions. Making these good decisions will allow an organisation to meet the needs of the consumers. Organisations which are able to collect accurate information and use it effectively will always stay one-step ahead of their competition, which will allow them to make the most profit.

In my next couple of blogs I will go onto discuss the other charactheristics.

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