Information is essential when making business decisions; which means that accurate and accessible information will help to make a correct choice.
In companies, information acquires a primary role in directing and managing their activity. Good information will make known the reality of the environment and will allow to anticipate quickly and effectively the changes, which are more frequent every day.
To achieve the goals set and prevent future changes in the environment, it will be necessary to collect information, both from outside and inside the company. And for this you need to know and know how to manage the existing information sources.
From a business point of view, the source of information is “the document, work or material that serves as information or inspiration for the company's decision-making”.
The problem arises when the information that is handled in a company is not entirely clear and concise, and this causes that sometimes when making a decision, this type of diffuse information generates conflicts or erroneous decisions.
Concepts
information
According to Idalberto Chiavenato, information is a set of data with a meaning, that is, that reduces uncertainty or increases knowledge of something. In truth, information is a message with meaning in a certain context, available for immediate use and that provides guidance for actions by reducing the margin of uncertainty regarding our decisions. (Idalberto, 2006)
In the Dictionary of the Royal Spanish Academy, there are, among several meanings, the following: (From the lat. Informatĭo, -ōnis). 1. f. Action and effect of informing. 2. f. Office where something is reported. 3. f. Legal and legal investigation of a fact or crime. 4. f. Evidence that is made of the quality and circumstances necessary in a person for a job or honor. U. m. in pl. 5. f. Communication or acquisition of knowledge that allows to expand or specify what is possessed on a given subject. 6. f. Knowledge thus communicated or acquired. (Dictionary of the Royal Spanish Academy, 2008)
According to Czinkota and Kotabe, the information consists of selected and ordered data for a specific purpose. (Masaaki, 2001)
For Ferrell and Hirt, information comprises the data and knowledge used in decision making. (Geoffrey, 2004)
Alvin and Heidi Toffler, in their book "The Wealth Revolution" provide the following difference between what data is and what information is: "Data are often described as discrete elements, orphaned of context: for example," 300 Actions". When data is contextualized, it becomes information: for example, "We have 300 shares of pharmaceutical company X" ". (Toffler, 2006).
Diffuse
That it lacks clarity or precision or is perceived in this way, generally because it is far away or because it is too long.
Fuzzy information
Based on the above definitions, it can be established that fuzzy information is unclear and imprecise information that obstructs the leaders and departments of an organization to be able to solve problems and make good decisions.
In the process of handling diffuse information, it should be used from the top management of the company since it is in charge of proposing the information needs.
Business Information Sources
Companies have different resources or sources of information inside and outside the organization.
Within the company, there is all the information derived from the activity, from the daily operations of the company, placing orders and billing its customers, among others, but there is also information that is not part of the operational world of the company, but responds to communication and decision-making, loyalty and prospecting databases, market studies, sector studies and external lists.
Therefore, the information sources can be classified into internal sources and external sources as shown in Figure 1.
Business Information Sources
Internal Information Sources
Internal sources are those that are found within the company itself and can be written, personal or audiovisual. These internal sources are divided into primary and secondary.
Primary:
The primary internal sources are those information that the company collects directly; creating a new and original information. These are data that do not exist and that are expressly created for study and analysis. These sources can be divided according to who is the issuing internal public:
- Sales force: attracting new customers, sales orders, information about the competition, claims and customer complaints… Administration staff: customer and supplier files, sales and shipping records, accounting records, production records… production: breakdown reports, warehouse entry and exit parts, machine hours and man hours…
Secondary internal information sources are understood to be all information that has already been processed previously. That is, any information support that the company has other than the basic study data. Among these sources can be found:
- Marketing and commercial reports Accounting reports Economic-financial reports Communication reports Production and logistics reports Human resources reports Legal reports Quality and food safety reports Comprehensive dashboard.
External Information Sources
Companies must know what is happening around them to be prepared when making decisions.
The company's external sources of information allow the satisfaction of information needs and will provide management with updated, relevant, reliable and valid information that is essential for problem solving and optimal decision-making. They are very rich sources of information that are divided as follows:
Primary:
External primary sources are those that are explicitly collected for a specific information or research purpose. To do this, it is necessary to know what information we want to obtain, who to contact, where to collect this information and in what way.
The issuing publics and the information from abroad that they can provide us are the following:
- Distributors: sales orders, information about the competition, customer complaints and complaints… Customers: surveys for market research, suggestions, complaints and complaints… Consumers: tastes, surveys for market research, experiences, satisfaction… Suppliers: information about new products and services, offers…
The ways to collect this information can be qualitative (interviews, group dynamics, projective techniques, creativity techniques, observation…) or quantitative (surveys, panel and buses).
High schools:
Secondary external sources of information are understood to be all that information that has already been collected, published or is available, and that had an informative objective other than that which the company seeks. Due to their low cost and accessibility, it is preferable to inquire among these sources rather than going to the primary sources; However, once compiled, it should be carefully examined to avoid information biases and misinterpretations.
- Specialized publications on general and sectoral business information News published by competitors themselves Advertising and public relations carried out Consulting firms that sell information Media Business associations National or local government sources (Mercantile Registry, Registry of the property,…)
In addition to these sources, the company must be attentive to any change that occurs, and affects it directly, in the following fields: demographic, sociocultural, environmental, political, technological, economic and legal.
Diffuse Information Management Process
The process must be implemented from the top management of the organization as it is in charge of proposing the information needs from a strategic point of view. (Escobar, 2013)
1 . Information need
It arises with the concern of knowledge about:
- The internal and external environment of the organization: You need to know the environmental, socio-cultural situations, marketing plans, work situations, the national or local economy, the position you have in the competition, among others. Organizational interests and objectives: what are they the concerns, interests, needs that the company can satisfy Clients: It is to know what needs the company can cover Production or operation systems: these are the systems where the company's capacity is focused since they are in charge of providing the products to customers in such a way that it is of importance what type of system should be used for a better product offer. Technology: It must be known since production costs can be saved and it can be more efficient.
2 . Information search
To be able to carry it out, it is essential to know what the information needs are, it is recommended to develop a schedule of activities that contains the following:
- Tasks to achieve organizational objectives Order the activities in a logical order of action Define the resources and means to be used Define the execution time.
3 . Obtaining all kinds of information (diffuse information)
It is usual that when information is sought, a large amount of unclassified, disorganized, unstable information is obtained, giving the impression that it lacks substance and form. In order to determine whether the information obtained is diffuse, the following questions should be asked: is it adequate to the business needs of the companies? Is it accurate and complete? Is it reliable? Is it accessible to members of the organization?
4 . Use of tools to locate and obtain clear information
These arise with the need to clarify and facilitate the understanding of information. Some tools that can be useful for handling fuzzy information are mentioned below.
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Quantitative information is usually clearer since it is given numerically. Its measurement and analysis can be carried out having knowledge about the use of various software that facilitate obtaining information for decision-making.
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These data are more difficult to analyze since they are measured based on subjective concepts so the information becomes diffuse. Through different heuristic methods, several solutions can be proposed and in some cases the methods used by specialized software can generate an ideal solution.
Diffuse logic
Fuzzy logic is a procedure that provides a simple and attractive way to obtain a conclusion from vague, imprecise or incomplete information, in general, fuzzy logic imitates a person when making decisions based on information with mentioned characteristics.
It is a computational intelligence technique that allows information to be processed with a high level of imprecision.
5 . Information Evaluation
This stage is relevant since it defines how to respond or react to the objectives or information needs.
In order to implement the evaluation you must:
- Establish evaluation objectives Distinguish from the general to the particular of the information Apply the appropriate criteria to capture, select, integrate and organize Provide coherence to the information Distinguish facts from opinions Find different points of view about the information and discuss them Feedback the actions that are being carried out Be able to see the evolution of information work Distinguish between primary and secondary sources
Reasons to implement the assessment
- Because the senior manager requests it To allow modifications As part of planning To be able to document results or impacts on the organization To provide opinions that give new perspectives
6 . Processing and Production Control
This processing is carried out in order to understand, signify, locate and differentiate in time-space, know, express and convince so that it will later benefit the organization and achieve its success.
Some of the activities carried out for this stage are mentioned below.
- Synthesize, organize and represent information Be able to carry out an analysis and synthesis of information Reflect and conclude Mastering basic written expression techniques Making reports Using outlines Integrating paraphrasing, transforming information in some way Using tables Using graphs Knowing how to write an essay Not copying and pasting Use synoptic tables
All of this will help to generate timely and clear communication instruments that respond to real information or communication requirements.
7 . Decision making
The basic instrument for a good decision-making is clear, truthful and timely information since it is like the raw material for senior managers in terms of their determination, we can say that the higher the quality of the information, the better the quality of the decision. decision.
conclusion
Information is the vital and fundamental part of every company and it is this that provides it with a high level of competitiveness against its competition. In this way, they contribute to the administration and management of companies, it is therefore recommended that administration professionals must know and master the subject of information systems.
The success of an organization not only depends on the way in which it manages each of its material resources (labor, capital, etc.) but rather is based on the use of intangible assets such as know-how (do as), customer and market knowledge, etc.
A company is much more competitive in the global market the more focus it has on the maximum use and exploitation of its information.
The correct management of fuzzy information is a fundamental part of decision-making in a company, it is something that cannot be neglected, since it can sometimes change the course of a decision previously made.
References
McGraw-Hill.
Idalberto, C. (2006). Introduction to the General Theory of Administration.
McGraw-Hill.
Masaaki, CM (2001). Marketing Administration. Thomson. Toffler, AT (2006). The Wealth Revolution. Mondadori,.
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