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overwhelm the business. A business must ensure information flows are
actively managed, and only necessary, useful information is used.
3 People must sample information to fully appreciate its value and
benefit. Information is what economists call an experience good. Often
(but not always) customers do not know whether they will find an
information product useful until they try it. With experience goods, the
aim is to make the benefits widely known, with the aim of attracting
people to try the product. An example of this is the growth of online
travel agents, providing information about a range of holidays and
flights, and inviting potential customers to compare prices, locations and
other factors. On the internet, many companies have tried to get cus-
tomers to sample their information services through push technologies,
which place information on potential customers computers. But there
has been a backlash against such pushiness, so other approaches need
to be explored.
4 The usefulness of infomediaries. In a world of abundant digital
information, people and companies want and need to spend less time
and money accessing, collecting and using information. Customers
online (in common with television and other media) usually have a lim-
ited attention span and limited time to search for and use information.
The need to focus attention and time on providing the right information
at the right time creates an enormous business opportunity for informa-
tion intermediaries, or infomediaries. On the internet, there are many
opportunities to help people find information. Infomediaries focus on
providing the information their customers want quickly. This necessi-
tates building a brand reputation based on trust.
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BUSINESS STRATEGY
Management information systems
Most organisations have their own distinct management information
system, providing data for day-to-day operations and decisions that
may be arrived at by exercising a degree of gut feeling . The normal
process of collecting, organising, processing, analysing and maintaining
information continues routinely. As long as it remains undisturbed,
directors and senior managers have the information they need and can
have confidence that there are unlikely to be too many surprises (and
certainly no serious ones). Unfortunately, few systems are robust
enough to cope satisfactorily with dislocating events, such as mergers
and acquisitions or major reorganisations. Any event that brings major
change will have an impact on the established management informa-
tion systems. In themselves, such events are often high-risk transitions,
requiring high-quality information for their successful management.
Changes in information technology and systems, departures of key per-
sonnel, new product introductions and organisational change are all
likely to dislocate an organisation s management information systems
and give rise to insecurity and uncertainty, with major implications for
decision-making.
Managers often place undue emphasis on the management informa-
tion that they receive, dwelling on the details of information collection
or storing, rather than focusing on the broader issues of analysis and
decision-making. They may request too much information, simply
because it is there and is intrinsically interesting rather than relevant. Or
they may just see a barrage of data and variables that they ignore or
from which they draw out elements that justify their own beliefs or pur-
poses. Achieving balance in the information provided to help decision-
makers and support the decisions they make is never easy, and
sophisticated management information systems and technology have
not made it easier or more effective. Achieving the right balance is
something that organisational behaviourists are researching, and it is
likely to receive more attention in both business schools and board-
rooms. If information is power, how can that power be unlocked and
wielded?
The impact of technology on decision-making
The new economy surge of the late 1990s changed people s perceptions
of what they could expect in terms of value and customer service. Cus-
tomers have become more demanding as competitive pressures have
increased. But should customers always come first? Or are there times
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IDEAS AT WORK
when decisions that adversely affect them may be best? The answer to
both questions is yes. Customers are rarely one homogeneous group.
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