Business Insight

Criteria of Data and Information for Business Decision Making

When using data and information for business decision, it is important to define some guidelines or criteria that could justify the data so collected. The data must serve the purpose for which it was collected for. In today’s business world, the quality of data criteria can ensure that you get the most out of your information.

Timeliness

Data collected too soon or too late could misrepresent a situation and drive inaccurate decisions. The timeliness of data for decision making can be very crucial to operations, profit, business growth or survival.

Timeliness basically looks at how up to date an information is. This criteria of data definition is important because data that is not timely can be expensive, time consuming and could damage an organization’s reputation.

Availability and Relevance

The data and information available must be relevant enough to support decision making. Using data that have no importance to a cause will only result in wrong judgement and output.

Reliability

To be able to make informed decision, the source of data and information must be reliable. When the decision maker is confident and trusts the sources, it makes decision making easier, efficient and effective.

In an organization, data on production is best gotten from the production manager as personnel manager also has the most updated data on employees. Therefore, data coming from these units can be trusted for efficient decision making.

Current

Data and information is said to be current when it latest and up to date. It must be data that reflects the recent or current situation. Although management may sometimes use time series data to make forecast, data in itself has a life span.

Therefore, to be able to catch up with time, it is imperative for management to regularly update their database so as to be abreast with current data that can aid swift and efficient decision making process.

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