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).
For conducting the report I have chosen 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. Working as a manager in the Tesco superstore my role is to measure the information within the organization that will assist in taking strategic decisions. The assignment 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. 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).
Illustration 1: Ansoff model
(Source: Data, Information, Knowledge, and Wisdom, 2004)
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, Tesco ensure collected data 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 the 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 decision.
Weigh Decision Criteria: Another step is to measure the decision criteria that are it is suitable or not for the Tesco.
Generate Alternatives: After weighing decision criteria, the management should create or generate several solutions so that, Tesco should ensure they should design effective online system to serve their customers (Laudon and Laudon, 2004).
Choose the Best Alternative: After measuring all the alternatives Tesco PLC should choose or select the effective alternative that will assist the organization in grasping the opportunities of expanding their business in the internet platform.
Implement: After that management of Tesco PLC should properly implement the chosen alternative for organization so they can improve their performance and attract the large customers (Shapiro and Varian, 2013).
Evaluate the Decision: The last step in the decision making process include evaluating the effectiveness of decision by measuring the number of customers that purchase Tesco PLC products through online services.
The Criteria to be applied when selecting the data and information to support decision making process include ensuring PDCA cycle by the manager of Tesco. PDCA cycle includes:
Illustration 2: PDCA cycle
(Source: Weinstein and Vasovski, 2004)
Plan: The first step is planning that is establishing the goals and objectives to meeting the expected output. Proper plan will help the management in taking proper decision regarding the accomplishment to objectives and goals.
Do: Another step includes implementing the plan so that they can execute according to the plan projects.
Check: After that Tesco manager need to check the actual result with the expected output and determine the deviation in the decision making so that they should rectify them.
Action: The last step of the PDCA cycle include taking action to improve existing performance.
1.3 Evaluate the impact of a management information system to a company
The management information system assists the Tesco PLC in collecting the necessary information or data from inside and outside the working environment (Schultze and Leidner, 2002). Management information system is defined as software that is implemented within the business enterprise that assemble or gather information so that management can effectively operates their business. The main function of Tesco using MIS is to collect data and integrated so that management can access the data in future for their purposes. After that all the assembled data are computerized, stored and measured by the management and it helps to take impressive judgement. It helps Tesco in upgrading their supply chain management across different countries that will support the company in delivering quality and timely services and products. However, it also help the Tesco manager those are working in warehouse to control their level of stock and function of different warehouses.
The advantages of using MIS within the Tesco will help the manager to perform their activities and enable in providing organization proper direction so that they should follow on the proper direction. MIS also assist in integrating the activities of different department for completing the tasks as this software consume the time of department for performing the activities. In Tesco, MIS software combines the past and present data related with the sales figures or total number of human inventory in the supermarket in order to meet the changing requirement of customers.
There are some negative impact of using MIS Tesco should be aware of that it might be too much expensive for the large organization. As, the MIS need to be updated in the regular time interval with the up gradation of technology. Therefore, this will result in increasing the expenses of the company.
However, the positive impact of using MIS also help the Tesco PLC in managing internal activities and operations so that they keeps render quality services to their customers in terms of providing quality product at fair prices.
2.1 The legal responsibilities in sourcing, sharing and storing information
Tesco deals in providing the different grocery items and products to their market customers so there are certain legal responsibilities in sourcing, sharing and storing the information. The company while sourcing or sharing the information mainly focuses on the legal aspects that is confidentiality, authorised access for information, data protection etc. for this Tesco PLC should focus in the act that is
1. Freedom of information act 2000: This act is enforced by the parliament of UK that provide the right to the public to access the information that are held by the national dominance.
2. Data Protection act 1998: This act is being framed by the UK government on processing the data or information of the identifiable living people (Luftman, Bullen and Neumann, 2004). The basis eight principles that need to be followed by Tesco PLC are:
- Information should be used fairly and lawfully
- Data should be used for the specific purposes
- Data or information should be used adequately not excessively
- Information should be accurate
- Unnecessary information or data should not being kept with the organization
- Company should handled the personal information properly
- Company or individual should keep information or data securely or safely
- Company should not transfer the information outside the UK region
Identifying Two Types of Information:
Customers Information: Tesco collect personal information from their customers such as name address, email and date of birth for several different purposes such as clubcard, market survey, online activities ect.
Employee Information: Accordingly to recruitment policy Tesco PLC collect their employees information such as copies of passport, current address, previous work references, valid visa status and employees national insurance number.
2.2 When information should be offered and access allowed
Acquiring information, accessing and processing should be accordant to the act that is Data Protection Act, which gives the precise right to Person and organization to know what information or data need to be handled and which data need to be disclosed to the other parties (Pearlson and Saunders, 2004). The information of the Tesco PLC should be offered and access allowed in terms are below:
Political Opinion: The political opinion should ensure that Tesco PLC should abide by with employers legal duty/ obligation/rights.
Radical or origin: The information regarding the origin of their employees so that they should not being discriminate on the the basis or their origin.
Religious or Other Benefits: The Tesco manager may also offer their employees the information regarding the religious offers so that they should attract more and more customers.
Trade Union Membership: However, Tesco manager should also offer the information regarding the trade union so that they should maintain proper relation within the organization.
Physical or Mental Condition: Tesco manager should also offer the information regarding the physical working location so that they should ensure that their employees should render proper services.
Criminal Offences: The Tesco manager should also offer the information regarding the criminal offences that are unethical in the org