Discuss the role of information within an organization in full detail. For an organization to act, it needs to have information about itself, its customer and supplier (if any), and the environment that it operates in.

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The first area in which an organization needs understanding in is itself. Accounting, essentially, provides financial self-understanding. Accurate knowledge of assets, cash flow, and liabilities allows a company to make safe financial decisions. Financial information can also be used to assess the relative profitability of different activities and allow the organization to focus on the areas that are most profitable rather than just chasing revenue or growth. Knowledge of its own human resources allows them to be deployed and motivated more effectively.

An organization needs to understand its customers and potential customers in order to anticipate their future needs and create products and services that will address those needs. In retail, loyalty programs can be especially important in accumulating data about valuable customers. An increasingly important area of understanding is customer technological preferences so that one can use appropriate channels and interfaces for...

(The entire section contains 5 answers and 821 words.)

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Last Updated by eNotes Editorial on November 14, 2019
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