In this blog i will be focusing on the gathering of accurate information,this is vital for everyone especially businesses. By gathering accurate information decision making is made a lot easier and the likelihood of mistakes being made is reduced, when businesses are investing or spending money on various ventures they need to make sure there money is not being wasted “whatever technique is being used to value an investment the vital first step is to collect the right information” (Hares, Royle,1994).Hares and Royle also state that there are 3 main points to information gathering which if properly considered,will lead to a high quality of information gathered and save valuable time in that only relevant information will be sought, they are:
- Identify the costs and benefits that matter – the aim is not to waste time on data that is not relevant to the investment decision.the question is therefore what information needs to be gathered.
- Properly evaluate those costs and benefits which are relevant to the investment decision – these can be difficult to predict, particularly if the investment is radically different from any other project undertaken.
- Continually monitor the costs and benefits – all to often decisions are taken on investments and the results are not monitored when the investment has been spent and the project completed to check whether the decision was the right one.From an investment point of view,was the information gathered on the costs and benefits correct?
The importance of getting valuable information when making investment decisions is shown in programs such as dragons den, finding out what information is important and relevant can have major financial implications on people and businesses so it is important that they get the right information. http://www.youtube.com/watch?v=kQTzLJCUtjk
Hares,J. Royle,D.1994. measuring the value of information technology,guildford,john wiley and sons ltd.