Managing Information

Successful businesses understand the importance of managing critical resources. From employees to materials it is widely known that managing these resources correctly can lead to success. One resource that is often overlooked is information. "Decision makers are beginning to understand that information is not just a by-product of conducting business; rather, it fuels business and can be the critical factor in determining the success or failure of a business." (Avison)

Information is comprised of data which is "raw facts and figures"(Ebert, 2005, p359). Information is "the meaningful, useful interpretation of data" (Ebert, 2005, p359). Businesses operate on information (AIU Online Virtual Campus, 2001-2006) and will either effectively organize it and access it efficiently, or they will struggle to compile it every time it is needed (Ebert, 2005). As a business owner this is one of the main reasons that it is important to manage information as a resource.

Managing information saves valuable time. Managers who do not effectively manage information must endure the grueling process of sifting through reports, mail, memos, files etc to compile necessary information. If information is managed correctly it can be channeled in a timely and appropriate manner (Ebert, 2005). When this type of management is implemented it provides a firm wide, systematic approach to the compiling, storage, and use of information (C Michaelis, public presentation, 4/17/2003)

One of the largest forums for Information sharing is the Internet. The internet is "a gigantic system of networks that both serves millions of computers with information on business, science, and government and provides communication flows among more than 170,000 separate networks around the world"(Ebert, 2005, p.361). The internet can transfer information between almost any location quickly and at a low cost, it is steadily replacing the high usage and expense of physical mail, phone service, and fax machines (Ebert, 2005). Since saving money is a key component to running a successful business, this is a plus.

Aside from money saved by using electronic mail, the usage of electronic conferencing, which includes video and teleconferencing, has become an important tool to help eliminate the need for expensive travel (Ebert, 2005).

The internet can also allow businesses exposure to customers that may not be physically located in close proximity to a business. Customers can order products and services form Basket Case, Inc. from our Website and allow them to make immediate purchasing decisions which could create a considerable edge over competition (Ebert, 2005). It also allows for the research of best prices for supplies and purchase of them quickly (Ebert, 2005).

Because of the ability to communicate electronically, it is possible to collaborate without the cost (Ebert, 2005). Firms can now assemble teams with other firms that can contribute different skills and resources to solve problems and increase company productivity (Ebert, 2005)

Information Technology, also known as IT, is "The development, installation, and implementation of computer systems and applications" (Answers.com).