Tue. Jan 7th, 2020

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Knowledge Peace

Sources of Data For Decision Making

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Sources of Data

Sources of Data

Sources of information Organizations of each kind perpetually generate giant quantities of information that need organizing and process in a very variety of ways in order to satisfy the information needs of each function in the organization. In addition, the ‘homegrown’ data are supplemented by vast quantities of data that are generated externally but nevertheless may form the basis of useful information for the organization.

the problem faced by the organization is the management of these data so that the necessary information can be acquired at the right time and in the correct format.

INTERNAL SOURCES OF DATA

We have already seen that organizations hold significant amounts of transactional data in their databases. Appropriately processed, this could offer data for creating operational, military science and strategic choices.

EXTERNAL SOURCES OF DATA

Organizations frequently use data obtained outside the organization itself. For example:

  • A research survey to see client satisfaction with a selected product
  • information, from official publications, on the dimensions and characteristics of the population,is helpful once estimating the number of potential customers for a brand new
  • information, from company reports, on the activities (sales, investments, takeovers, etc.) of competitors is important if a company is to remain.

PRIMARY AND SECONDARY DATA

Data that are used solely for the purpose for which they were collected are said to be primary data.

Data that are used for a distinct purpose to it that they were originally collected, ar known as secondary knowledge.

THE PROBLEMS OF USING SECONDARY DATA

In most cases it’s preferred to use primary knowledge since knowledge collected for the particular purpose is probably going to be higher, i.e more accurate and more reliable. However, it is not always possible to use primary data and therefore we need to be aware of the problems of using secondary data. Some of the problems are listed below:

  1. The data have been collected by someone We have no control over how it was done. If a survey was used, was:
    • the suitable questionnaire used?
    • Is large enough sample taken?
    • The reputable organization employed to carry out the data collection?
    • The data recorded to the required accuracy
  2. knowledge quickly becomes noncurrent since, for instance, shopper tastes amendment. The worth will increase might drastically alter
  3. The data may be Certain groups are sometimes omitted from the published figures, for example, unemployment figures do not include everyone who does not have a job. (Which groups are left out? ) specific statistics printed by the Motor Traders Association, for instance, might exclude simple machine cars, vans, and motor-caravans. we have a tendency to should apprehend that classes are enclosed within the knowledge
  4. Is the data actual, seasonally adjusted, calculable or projection?
  5. the figures may not be published to sufficient accuracy and we may not have access to the raw data. For example, population figures could also be printed to the closest thousand, however, we have a tendency to might want to understand the precise range
  6. The reason for collecting the data in the first place may be unknown, hence it may be difficult to judge whether the published figures are appropriate for the current user.

If we have a tendency to ar to form the use of secondary knowledge, we have a tendency to should have answers to those queries. typically the answers are going to be printed with the information itself or typically we have a tendency to could also be ready to contact the folks that administered the information assortment If not, we must be aware of the limitations of making decisions based on information produced from the secondary data.

SOURCES OF SECONDARY DATA

there are numerous sources of secondary data. they can be broadly categorized into two groups:

  1. those made by individual corporations, native authorities, trade unions, pressure teams, etc
    Some examples are:

    1. Bank of England Quarterly Bulletin – reports on financial and economic
    2. Company Reports (usually annual)  – data  on  performance  and  accounts of individual
    3. Labour Research (monthly) – articles on the industry, employment, trades unions and political
    4. Financial Times (daily) – share prices and information on
  2. Those produced by Government departments. this is an extensive source of data and includes general digests, such as the Monthly Digest of Statistics, as well as more specific material, such as the New Earnings

DECISION MAKING IN BUSINESS

DATA AND INFORMATION FOR DECISION MAKING

This post contains the content of the book Applied Business Analysis

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