Introduction to Strategic Information Management
Strategic information management (SIM) is termed as the process of integrating the applicable information so that, business can gain competitive edge in the market. To operate business effectively, the management should determine all the information regarding their target market so that, they can plan according to it and achieve the objectives (Hausmann, Williams and Hardy, 2014). Therefore, the management does not require theoretical framework for operating their business but they need precise information regarding their market trends and competitors to support their theoretical plan. Different tools like strategic information systems, operational information systems, and management information systems (MIS) render the required information to the management of the organization for taking an effective decision.
Present report focuses on the Tesco PLC which is the renowned supermarket chain in the UK and provides wide range of grocery products and services to their market customers. It is the second largest supermarket chain in the UK covering market share around 28.4%. The supermarket chain also has different stores in the international market across Asia and different region of Europe. The report will mainly concentrate on the identifying the data and information of the organization to take effective decision making within the organization.
1.1 The features of data and information
Strategic decision making is the effective process that requires processing, storing and reviewing the data and information so that, management of the organization can take proper decision (Lee, Lee and Kang, 2005). Tesco PLC is the largest supermarket chain in the UK market that serves different need of the customers. For supporting the strategic decision making in the Tesco PLC, they need proper information and relevant data. Data refers to the unstructured facts or information which is ineffective until it is being organized. The information is the processed and organized data that is useful in the organization for taking impressive decision. The theory of Russell Ackoff, has suggested that, the content in the individual mind can be classified into the four different categories that is data, information, knowledge and wisdom (Walters, Jiang and Klein, 2003).
- Data: The data simply can be termed as the raw or unstructured information that features no information. For example, for formulating the strategies to expand their activities Tesco collects the data from market customers.
- Information: Information refers to the structured or organized data which is useful for the management to take effective decisions. For example, the collected data should be sorted and categorised under different section and answer that who are the customers that will be satisfied by Tesco (Jaspers and et.al., 2004).
- Knowledge: It is deterministic process or can say application of data and information that mainly answers the “how” questions. For example, how Tesco will expand their activities the company possess required human inventory with the proper skills and capabilities to enlarge their activities.
- Wisdom: The last category includes wisdom this deals in the future as it integrates the vision.
Key features of the data and information are:
- Accessibility: The identified features of data and information are accessibility that is it should be conveniently handled and available to the Tesco organization so that, they can take proper decision (Kunnathur and Shi, 2001).
- Relevance: Another feature is that, the collected data and information about Tesco should be relevant and related so that, they can take effective decision regarding the specific purpose of expanding their activities.
- Comprehensibility: The collected data and information should be understood by the management as it will help the firm in taking effective decision (Hult, Ketchen and Slater, 2004).
- Timeliness: Another feature of data and information is that, it should be collected properly. Data or information that arrives after the decision taken by the management is of no use.
- Accuracy: accuracy is very important as the data should be correct and without any error or mistake.
1.2 Criteria to be applied when selecting the data and information to support decision making
For effective decision making, management of Tesco PLC should follow certain criteria for selecting the data and information (Lee and Pai, 2003). The different criteria for selecting data and information consist of decision action cycle that mainly include Plan, do, check and act (PDCA) and Observe orientate decide act (OODA). The decision making process of Tesco PLC includes 8 steps that include:
Identify problem: The first step in the decision making process of Tesco PLC include determining problem or to analyze the opportunities which will benefit the company. For example, with the advanced technology the company should focus on expanding the activities on the internet platform to serve their global customers (Wheelen and Hunger, 2011).
Establish decision criteria: The second step includes establishing the decision criteria by gathering the necessary information which are relevant for the organization to take