In my previous blog posts I spoke about the characteristics of good information which are according to Curtis & Cobham as follows:
- Just Sufficient
- Worth its cost
Within my previous posts I provided a number of examples which show how information can create value for an organisation. To further enforce this point I wish to make this post which should be considered by the reader to be supplementary to my previous post on information and the necessity that it should be worth its cost.
According to Peter Drucker information is an important asset “from being organised around the flow of things and the flow of money, the economy is being organised around the flow of information” (Moody & Walsh, 1999). This extract from one of the most influential authors in management is equally applicable to a business organisation and how information should be considered a valuable asset from an business managers viewpoint. According to Moody & Walsh the requirements for using information effectively are:
- knowing it exists
- knowing where it is located
- having access to it
- knowing how to use it
Furthermore Moody & Walsh describe information as being an asset which they apply to the definition of an asset as provided by Godfrey et al, 1997; Henderson and Peirson, 1998 who provide that an asset:
- Should provide service potential or future economic benefits
- Is controlled by the organisation
- Is the result of past transactions
According to Moody & Walsh “Information satisfies the definition of an asset much better than employees or customers, which are also commonly referred to in the literature as assets”.
Curtis & Cobham, 2001. Business Information Systems; Analysis, Design and Practice: Fourth Edition.
Moody & Walsh, 1999, Measuring The Value Of Information: An Asset Valuation Approach.
Link for further reading:
If you would like to read more about measuring the value of information and also the “laws” of information I recommend that you read the following paper which was presented at the European Conference on Information Systems, it is available at: