Thursday, 18 December 2008

Value of Information


In questions like this is it actually pretty easy to collect a lot of marks. What to do is give a quick definition of what each one means and how it affects decisions getting made.

Say for example Gordon Ramsay wants to open a new restaurant in LA. He gets info from other British chefs who work in the US.

Is information:

Accurate? - is the information true and correct? Gordon many be misled by what the Chefs say.

Timely? - is the information out of date? When was the info collected? Gordon may find that what the Chefs tell him is not what is happening currently. This may be important in terms of who the customers will be and what suppliers he may have to buy from.

Complete? - is Gordon getting the full picture from the Chefs? Perhaps he should talk to customers and suppliers also? Plus are all the Chefs successful?

Appropriate? - is the info relevant? Gordon may be talking to Chefs based in Chicago, New York and Miami. LA is very different, and even within LA there are very, VERY different neighbourhoods of ultra poor and mega rich, and diverse ethnic populations.

Available? - is the info easy to collect, and if so is this still good?

Cost effective? - is it worthwhile for Gordon to collect this info? And even at that is it valuable enough or will he have to conduct an expensive survey?

Objective? - Is the information biased? Gordon may be misled by Chefs who perhaps either don't really know the market or in fact may want him to fail. Or he could be told porkie pies!

Concise? - is the information to the point and not long winded? Gordon is a busy man. He doesn't want a report the size of War and Peace, though it still has to contain the information he needs.

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