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Value of Good Quality Information - Coggle Diagram
Value of Good Quality Information
How Information can Add Value to a Company
Helps to monitor progress
A shop analyses the information from its POS terminals to monitor the performance of its till operators and warns operators who are too slow or make too many mistakes.
Gain an advantage over competitors
Using information on products to set prices which will under cut their competitors but still maintain high profits
Help decision-making
A manager could use information on sales to determine if they would benefit from opening another store
Target resources more effectively
A company buyer will analyse information on sales and buy more of a certain product because sales are high
The Cost of Information
The Cost of Getting Good Quality Information
Data Entry Costs
Someone will have to be paid to operate the equipment (Human Resource Cost & Time Cost)
The required equipment (Scanners) will need to be purchased (Financial Cost)
If entered via a keyboard data entry operators will need to be paid (Human Resource Cost)
Data Processing Costs
Staff and their time to use process data. (Human Resource Cost)& (Time Cost)
Processing the data into a useable/useful format will require the purchase of hardware and software (Financial Cost)
Data Maintenance Costs
Paying for an expert to design questionnaires for data collection (Financial Cost)
Cost of printing / sending out the questionnaires (Financial Cost)
Market researchers/staff will need to be paid to carry out interviews (Human Resource Cost) & (Time Cost)
Data Collection Costs
Regular backups of the data will need to be carried out (Human Resource Cost), (Financial Cost), (Time Cost)
Information ages quickly and will need to be continually updated to remain relevant. (Human Resource Cost), (Time Cost)
Types of Costs
Human Resource Cost
Time Cost
Financial Cost