Page 15 - Information Management 3rd Edition

Chapter 1 – The role of information management within a business
Information needs of top management
Top management would need information from outside the business about the following:
• The general economic variables – this is especially true when doing business in the global market. The value of the rand against other currencies can make a huge difference if it drops while the business is in the process of buying goods from overseas. Locally, the interest rates can change and certain materials might become scarce in the future.
• Government acts and regulations – depending on the type of industry, changes concerning acts and regulations can force the business to make changes that will cost money.
• Technological changes and new developments – the most recent models of computers are usually faster and can handle more information. This can give a business advantage over their competitors.
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• Competitors in the market – top management needs to know how strong the competition is, and the competitors” marketing and product strategies.
Top management relies on direct information for long-term planning and policy decisions. Within the business itself, they look at changing consumer
patterns, the trends of income and expenditure involved in product lines, the
impact of new technology, and population and other social trends. These and
other similar information influence the long-term decisions that management
have to make. Computerised technology plays an important role in long-term
planning. Computerised information processing, information retrieval and
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centralised computer facilities provide management with data and information.
Top management can use sophisticated analysis, forecasting and simulation
techniques as a basis for long-term decisions. All this information will enable top
management to make certain decisions and counteract any changes by competitors
that could affect the business negatively. With this external information available, they can then look internally and decide whether the business is properly aligned to face the future.
The information needs of functional (middle-level) managers
Top management will coordinate with the different functional managers and will decide on proper strategies for the future. The decisions made by top management are then given through to the functional managers. The functional managers, representing the middle-management level, need information to enable them to assist top management in the planning, development and implementation of policies as well as to manage their individual functions effectively. Table 1.1 gives examples of the types of information they need.
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