Decision Information or Information for Decisions
Information are Essence of Management Decisions
For every decision quality on time information is essential. Making decisions without analyze of information is a wild guess. Several groupings of decisions information can be defined according to nature, intended purpose and source.
There are two basic types of information needed for decisions, let’s name them decision information, with different structure – nature: financial and non-financial (business) information. Shown on figure with two parts of information pyramids (black part for financial information and other business information).
Another major decision information separation can be considered as source of information, is the information source inside company or from outside: internal and external information. Internal information can be additionally distinguished by Business Units specifics: sales, customer care, marketing, production, logistic, materials, and etc.
Finally decision information are separated by specifics and nature of management decisions: strategic, tactical and operative.
Decision Information Layers
Internal sources of information are Operations Information Systems (OIS) like Transaction Processing System, Process Control Sytsem and Office Automation System - more in Information System and Decision Making). Quantity of data is huge in this level and information are created by filtering and positioning of data in right context. OIS and their information are used by analysts and low management for making operative decisions. Next step in information processing is storage of data from OIS to Information Reporting Systems like Data Warehouse and their presentation by Business Intelligence Systems. IRS are also used for Operative Decisions due to their speed and storage capabilities.
Next step is adding additional value to raw information by adding planning figures, projections, versioning, scenarios and by combining raw OIS information for tactical and strategic decisions. It’s being done in Decision Support Systems (DSS) and Executive Information Systems (EIS) as presentation layer (for example Scorecards on Dashboards) of DSS information. DSS especially should support unstructured decisions for Strategic decisions. This is the place where external information are mixed with Internal Information for complete Decision Information.
Information for Decisions need to go long way till they are exploited for decision making process.
Core Decision Information Problems
In a big companies diversities between financial and non-financial basic types of information are so significant that relationship between them is very hard to achieve (marked with dashed separation lines between black and other pillars on picture). Even if relation is achieved it is also very demanding to keep and maintain relationships due to constant changes in organization, market, product portfolio and etc.
Integration, On time delivery, Plausibility and Completeness are core decision problems.