By Geoffrey Elliott
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Product differentiation: creating new or different products and services that distinguish (or differentiate) one business organization from another organization. ᮣ Customer and supplier linkage: locking-in suppliers to the price and delivery structure of the purchasing organization or locking customers into the organization’s products or services. QXD 7/8/08 6:45 AM Page 19 Competitive advantage through business systems 19 between the business systems of customers, organizations and suppliers inherent in the structure of the competing business organization.
The majority of modern business organizations are intrinsically information-based. Information is the life-blood of a modern business organization. This section expands on the ideas of business to look at some of the historical developments of business and ICT within society. We noted earlier in this chapter that the information age evolved from the industrial age of the nineteenth century, which in turn evolved from the agricultural age preceding that century. Up until about 1825 the majority of the population around the world was engaged in agricultural labour.
7 Information quality and value The quality of information affects the quality of decision making within a business organization. Put yourself into the role of a manager deciding whether to buy new equipment for a factory manufacturing computer components. Discuss and list all the possible information sources the manager would consult to establish a set of criteria for decision making. Explain the qualities that the information set should possess. Define whether the information set may include quantifiable and non-quantifiable information and highlight some of the problems associated with measuring intangible information value.
