CIMA E1 Syllabus C. Data And The Finance Function - Improving information for decision makers - Notes 3 / 8
High Quality Information
Information is data, processed in such a way that it has meaning to the person who receives it; this can then be used to improve the quality of decision making.
The provision of high quality information is of the utmost importance within organisations and can lead to:
greater customer insights
new business models and revenue streams
operational efficiencies offering significant cost savings as well as improved products and service for customers
quicker more reactive decision making
early warning of potential problems
customised products specific to a customer needs.
Improving information for decision makers
Understanding a business's data needs and collecting data in a deliberate and targeted manner facilitates the provision of improved information.
This benefits of improved information for decision makers includes the following:
Enhanced data transparency
Enhanced performance - The ability to monitor data points in real-time helps decision-makers take corrective action immediately
Market segmentation and customisation
Improved decision-making
New products and services
Operational gains