Obtain Information on

Business Needs
BSBINM601 Manage knowledge and information
Session 1
Unit overview
At the end of this unit, you should know how to:
 obtain information relevant to business issues

 analyse information and knowledge

 take decisions on business issues identified

 disseminate information to the organisation.

Purpose of this presentation
At the end of this session, you should know how to:
review feedback and business performance data

identify and analyse business problems and issues

identify information required to reach a decision

source and gather reliable information

test information for reliability and validity

utilise formal and informal networks.

Group discussion
Knowledge is power
(Francis Bacon, 1597)

How important is knowledge and information to the success

of businesses today?
Information vs knowledge
Information Knowledge
 Facts provided or  Facts, information, and
learned about something skills acquired through
or someone experience or education
Captured manually or Held in people’s head
computerised systems
Types of IM and KM systems

Transaction processing systems (TPS)

Customer relationship management (CRM) systems

Management information systems (MIS)

Enterprise resource planning (ERP) systems

Decision support systems (DSS)

KM systems
A knowledge management (KM) system gathers,
stores, manages, extracts, creates and disseminates
knowledge and information.

Capture /
create

Acquire / Share /
apply disseminate
Information in business
decision making
Primary functions of making decisions.
The decision making process.

© Innovation and Business Industry Skills Council Ltd

Identify and analyse business
issues
Review performance data

Review customer feedback

Review staff feedback

Review performance data
When is performance data reviewed? How often?

Does the business have a formal review process?

Identify variances to locate potential issues or

problems
Analyse variances to determine if there is an issue or

explanation
Financial performance data
Budgets Financial statements
Operating Statement of financial
Sales performance (formerly
Expenditure income or profit and loss
Purchasing statement)
Statement of financial
Labour
position (formerly balance
Advertising
sheet)
Departmental Cash flow statement
Key performance indicators
Key performance indicators (KPIs) are a set of metrics
that measure how effectively a business is achieving its
objectives or critical success factors (CSFs).

Key
Critical
Business performance
success
Objectives indicators
factors (CSFs)
(KPIs)
Employee satisfaction
Methods of gathering performance data and information
 Surveys
 Performance appraisal
 Interviews
 Focus groups
 Employee committees
 One-on-one, team and work area meetings
 Observation
 Informal conversations
 Staff retention, turnover and absenteeism rates
 Uptake on learning and development program
 Comments in suggestion boxes
Customer satisfaction
Methods of gathering data and information
Surveys e.g. Service and product evaluation forms

Telephone surveys

Electronic surveys

Personalised emails to existing customers

Direct contact through interviews and focus groups

Monitoring commentary on social media websites

Look for the warning signs!
Sudden or significant changes in ratios and
percentages
Substantial or unusual budget variances

Unexplained increases or decreases in

statistics
Reoccurring topics in the comments section
of feedback processes
Changes in areas where issues which have
occurred before
Tools Used to assist
Identification
Using data visualisation tools.
Spreadsheet software.
Geographical maps.
Treemaps.
Business Intelligent dashboard.

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Define and analyse the problem
Data visualisation tools Analysis tools
Graphs The 5 Whys
Charts Cause and effect
Business intelligence (Fishbone) diagram
dashboards
Source and gather information
Identify information that will assist you in making a
decision
Gather it from internal and/or external sources

Make sure the information you have gathered is valid

and reliable
Sources of information
 People – specialists, advisors, employees, teams, managers, customers,
suppliers, stakeholders.
 Procedures or processes – procedures manuals, manufacturer's
instructions, task lists, unwritten work practices.
 Materials – specifications, suppliers, production processes, quality
standards, delivery schedules.
 Resources – purchasing, inventory and recruitment processes, financial
statements, resource allocation reports, hire and purchase contracts.
 Measures – manual and computerised measuring devices, KPIs.

 Policies – organisational policies and the vision and mission

statements they are developed from.
Gather information
Where is it located – internally or externally,
physically close or distant?
Who holds the information or has access to it?

The format it's available in – written, verbal, video,

email, raw data?
How you can obtain it – formal request form, new data
gathering techniques, face-to-face interviews, online
research?
Factors When Gathering
Information
Relevancy and amount of information.
Cost involved.
Management Information system.
People involved in the process of information
gathering.

© Innovation and Business Industry Skills Council Ltd

Test information
Validity
The relevance and appropriateness of the gathered
information.
How does this information help me make a decision?

Reliability
Consistent
Trustworthy
Dependable
Authentic
Use networks to gather information

Networks allow access information to not obtainable

through computerised systems, and ideas, techniques,
knowledge and experiences not formally recorded
anywhere else.
Information networks
Formal networks Informal networks
Workplace team based on relationships
Mentor programs formed with others
Workshops Communicate via email,
Meetings teleconferencing, social
Formal business networks media

Communities of practice - people who share a common

interest, profession or concern and share their knowledge,
skills and experiences
The next steps

You should now:

 complete the self-paced activities in Section 1 of your
Student Workbook
 review Section 2.
Analyse Information and
Knowledge
BSBINM601 Manage knowledge and information
Session 2
Unit overview
At the end of this session, you should know how to:
set objectives for analyses
identify patterns and emerging trends
utilise statistical analyses and interpretation
undertake sensitivity analysis
document evaluation of evidence and conclusions
adjust management information systems/decision support
systems.
Analyse information and knowledge
1. Clarify objectives: what knowledge or information
do you want to gain?

2. Obtain data: what techniques can you use to

obtain data?

3. Complete analyse: use statistical and other

analysis methods on data and information.

4. Identify trends and patterns: use analysis results

to interpret cause and effects if issues.
Set objectives

Objectives for analysis should directly relate to the

identified issue and root cause/s.

May also reflect business goals and objectives .

Ask - what do you want to achieve?

SMART objectives
S Specific State exactly what you want to achieve:
what, when, why, how, with whom?

M Measurable How are you going to measure success?

Set a number - ask how much / how many.

A Achievable Set objectives that are attainable. Raise

the bar but don't be unrealistic.

R Relevant Is it linked to your or employee KPIs, job

roles, departmental or strategic goals?

T Time-based Set realistic, achievable timeframes.

Obtaining Data
Source of data.

Technology using for data entry.

Manual data entry method.

Computerised data entry method.

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Statistical analysis
The process of collecting, analysing, interpreting and
presenting data to reveal trends and patterns.

Statistical analysis techniques can help;

evaluate the impact of changes in data
the significance of different inputs
predict future trends.
Data mining
Descriptive data mining
Association rule learning

Clustering

Affinity grouping

Anomaly detection

Classification
Predictive analysis

Uses raw data, processed information and analysis

results to predict the future.
Analytical Tools
Trend Analysis.

Correlation calculation.

Probability assessment.

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Trend Analysis
Analyses historical time-series data to determine how
the business is likely to perform in the future.
Uses past performance to predict short and long-term
future performance.
Is used to identify
positive and negative
patterns.
Trend analysis and business
problems
Used to identify emerging patterns or trends.

Helps you determine if there is problem (or an

opportunity), its severity and potential impact on
future financial and operational plans.
Doesn’t indicate causes or resolution strategies for
problems or issues.
Correlation coefficient
calculations
A statistical calculation that measures the strength of a
relationship between two variables.

Must be based on measurable data and there must

be a link between the two variables.

What is the relationship between a person’s postcode and their

level of discretionary spending?
How does the number of children in a household influence the
amount of money spent on fruit and vegetables?
Plotting correlation data
Data can be plotted in a scatter graph or scatter plot to
visually identify if an association between the two
variables exists or not.
Probability
Probability is the extent to which something is likely to
happen; for example, there is a 25% chance it will rain
today.

In business, probability assessment aids decision-

making;
when there is incomplete or insufficient information
to predict possible future outcomes based on past
history.
Classical probability
The frequency an event occurs divided by the total
number of possible outcomes.

Probability of event = Number of favourable outcomes

Total number of outcomes
Empirical probability
Also called relative frequency.
The probability of an event occurring after an
experiment is conducted a large number of times
under uniform conditions.
Relies on extensive historical data to calculate the
probability of future events.

Probability event P(E1) = Number of times E1 occurs

N
E1= the event of interest
N = the number of trials
Subjective probability
An individual’s personal judgement about the
likelihood that an event is going to happen.
There is no formal calculation as it is based on
opinions, beliefs and past experience.

How is subjective probability useful in business?

Regulation analysis
The evaluation of the impact of new regulations on
businesses.
1. Government regulation impact analysis
2. Impact of regulations on a business

3. Impact of internal regulations

Cost-benefit analysis.
Direct and indirect benefits.

Strength and weakness of any alternatives.

Financial impact compared to potential benefits.

Procedure in cost benefit analysis.

© Innovation and Business Industry Skills Council Ltd

Sensitivity analysis
Often called ‘what-if’ analysis.
Used to predict potential outcomes of a scenario based
on changing conditions or assumptions.

Microsoft Excel tools include:

data tables
goal seek
scenario manager.
Identify trends and patterns
Trends are indicated by A pattern is data that
change (or lack of) over repeats itself in a
a period of time. recognisable way.
Decision support systems
Data management.
Model management.
Knowledge-based management.
User Interface.

© Innovation and Business Industry Skills Council Ltd

Adjust information systems
MIS and DSSs must support information processing
requirements and analysis objectives.

Adjustments include;
types of analytical tools required to develop decision
models
types and number of variables included in analysis
processes or simulations
sources of data and information used in calculations
ranges for data values, such as time period and highest
and lowest values.
Document evaluation processes
Why document evaluation processes?
It’s a useful communication tool.
Ensures a logical approach to evaluation processes is used.
Helps strategic stakeholders and managers understand the
contents and workings of any models or scenarios.
Allows processes and outcomes from multiple scenario
variations to be compared and analysed simultaneously.
Allows others to cross-check data, variables and processes
to ensure validity of outcomes.
Permits easy distribution of investigation and findings to
others.
The next steps
You should now:
 complete the self-paced activities in Section 2 of your
Student Workbook
 review Section 3.
 Make Decisions on
Business Issues
BSBINM601 Manage knowledge and information
Session 3
Purpose of this presentation
At the end of this session, you should know how to:
ensure sufficient information/evidence is available to
support a decision
utilise risk management plans
utilise quantitative methods
consult specialists, relevant groups and individuals
make timely decisions accordance with organisational
guidelines and procedures, objectives, values and
standards.
Information and evidence
Information Evidence
Collated data that tells Information that proves
you something useful or disproves something.

Evidence-based management (EBMgt)

• A management style that combines evidence
and knowledge to improve decision making.
Evidence/information for
decision-making
Statistical analysis techniques
Statistical evidence from other sources (e.g. Australian
Bureau of Statistics, marketing research, web analytics)
Formal and informal research such as questionnaires,
surveys, interviews and meetings
Employee’s relevant skills, knowledge and experience
Formal reports, opinions or suggestions from specialists
and consultants
Results from external environmental scanning
Results from quantitative analysis
Sufficient information for
decision-making
Reports,
research
Statistical
analysis

Employee
& expert
advice

Sufficient relevant, valid,

reliable, useable information
Risk management
Assess potential risks and evaluate positive and negative
impacts of decision options on the business.
Decisions are made on the basis of which alternative has
the highest probability of working effectively to resolve
problem or issue.
Risk management support decision making.
Quantitative methods of
analysis
Seeks to understand behaviour by using statistical and
mathematical techniques to replicate real-life business
situations.

Includes:
linear programming
dynamic programming
queuing theory
transportation methodology
simulation.
Linear programming
Uses a mathematical model to find optimal solutions
for situations within a framework of constraints or
conditions.

Deals with problems such as maximising profits and

resource allocation or minimising costs.
Dynamic programming
Uses a ‘divide and conquer’ approach to solving problems
by breaking large or complex problems with multiple
decision variables down into smaller, usually interrelated,
sub-problems.
Sets parameters to try and find an optimal (most
favourable) solution to each sub-problem.
Queuing theory
A mathematical method of analysing something
everyone has experienced – waiting in line.

It considers the cost of increased capacity against the

gains in increased productivity and service.
Queuing theory
Based on a probability theory called Little’s Law.
‘For a queuing system in steady state, the number of customers in a
queue is equivalent to the average arrival rate multiplied by the average
waiting time.’

L=λW
L = average number of items in the queuing system
λ = average number of items arriving per unit of time
W = average waiting time in the system for an item
Queue characteristics
Arrival process – arrival patterns such as how they
arrive, how arrivals are distributed in time.
Service mechanism – how services are provided such
as number of service counters and servers.
Queue characteristics – behaviour of queue and
customers in it such as how
they wait, how they behave,
capacity of the queue.
Transportation methodology
A method of analysing traffic and transportation
services.
Aims to improve the efficiency of movements by
identifying their spatial constraints.
Constraints include capacity, costs, time, environment
and geographical features.
Other factors are customer or vehicle throughput,
travel demand and patterns, facilities, routing and
congestion.
Transportation analysis
Formulas include:
North West Corner Method (NWCM)
Vogel’s Approximation Method (VAM
Matrix Minima (least cost) Method (MMM)
Stepping Stones method
MODI (modified distribution)
Simulation
Simulation is a support tool for decision analysis.

It creates a model of the business and identified issue.

Values for variables are entered into the software

application to forecast future business behaviour.
Allows managers to evaluate and
compare the impact of alternative
courses of action before actually
implementing them.
Organisational standards for
decision-making
Policies and procedures document decision-making
standards
The process for reaching a decision

Consultation processes (if any)

Who has the authority to make a decision

Who can over-rule a decision (if applicable)

Use of forms or templates

Post-decision processes
Consultation processes
Why consult others at this stage in decision-making?

What determines who you consult?

Who could you consult?

Authority to make decisions
Do you have the authority
to make this decision?

Job role
Policies Legal Delegat
and
responsibili
and authorit ed
procedures
ties y authority
Analyse decision choice
1. Compare possible actions and their consequences
against the identified problem or issue. How do
these actions address and resolve the business issue?

2. Compare possible actions against organisational

objectives, values and standards.
Force field analysis
Analysis of opposing factors for and against a course of
action.
Decision tree analysis
A visual analysis tool that uses a stylised tree with a
trunk for the core decision or course of action and
branches to represent available options.
Barriers to good decision-
making
Lack of objectives

Unclear objectives

Inadequate alternatives for courses of action

Too little or too much information

Lack of commitment

Lack of accountability
Decision enablers
1. Plan and prepare

2. Separate stages in decision-making

3. Establish guidelines for inability to make decisions

4. Set timelines
Plan and prepare
What decision are we actually trying to make?
What are the criteria for the decision?
What information is required?
Who is decision maker?
What is the timeline for the decision and
implementation of actions?

© Innovation and Business Industry Skills Council Ltd

Separate stages in decision-making

Different thought processes.

Separating the session along with participants.

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Establish guideline for inability
to make a decision.
Reviewing organizational policy and procedure.
Decision to be reviewed by higher level manager.
Appropriate escalation and path for guidance.

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Set timelines
Helps ensure a decision is made in a timely manner.
Reduces unnecessary research and procrastination
techniques.

Timelines should consider;

o urgency of the issue or problem
o research and analysis requirements
o distribution of information between decision makers
o availability of all participants in collaborative decisions
o regulatory and other requirements such as reporting
dates and shareholder meetings.
The next steps
You should now:
 complete the self-paced activities in Section 3 of your
Student Workbook
 review Section 4.
Disseminate Information
BSBINM601 Manage knowledge and information
Session 4
Purpose of this presentation
At the end of this session, you should know how to:
ensure advice/information needs are documented
document information and update databases regularly
design and test systems
ensure information is meets recipient’s needs
develop communication plans and disseminate information
adhere to policies relating to information/advice
review and update communication plans
utilise technology
maintain corporate knowledge and ensure security.
Identify information needs
Identify who needs what documentation, when, why and what
needs to be in it.
 Discuss needs with team members

 Identify system and equipment requirements

 Review policies and procedures

 Identify performance measure requirements

 Review business plans

 Identify legislative and regulatory requirements

 Review standards
Tools and templates
They are used to make sure vital information is
captured and recorded efficiently and consistently in a
clear, usable format.

Templates should be reviewed and updated regularly

to reflect changes in work practices, information needs
and business trends.
Manage data and information
Data and information in organisational documents must
be captured and recorded so it can be accumulated,
manipulated, analysed and used to meet customer and
organisational needs.

Two main computerised systems are:

Database management systems (DBMS)
Customer relationship management (CRM)system
Database management systems
A database management system (DBMS) is a group of
software programs that organises, stores and
manipulates data and converts it into information.
Physical
database

Database
scheme

Database
engine
Customer relationship
management system
A CRM manages and analyses customer data and
information.
Used to:
develop relationships with new customers
retain and improve relationships with existing
customers
create more sales opportunities.
Design and test systems
System must be designed for your organisation’s
needs.
Can purchase commercially available software or
employ developers to create a customised information
system.
System and purchase choices affect level of input into
design and development.
Features of MIS and DSSs
Features Management information system Decision support system

Systems focus Operational efficiency Effective decisions

System Information gathering and Advanced analysis and
features processing, reporting forecasting
Decision Assists with structured, routine Assists with decisions where
making decisions for clearly defined knowledge is incomplete or
support problems cannot be described in detail

Principle use Control processes, monitor Plan and organise resources,

in business and support efficiency short and mid-term objectives

Summary Supports daily routine Supports higher level

operational decision-making decisions using analysis and
modelling
Meet decision-maker’s needs
Databases, MIS and DSSs collect and manage data for a
reason – to help decision-makers make good decisions.

What do manager’s need to help them make good

decisions?
Design process
Can the system;
make both general and specific information requests?
produce standard reports when needed?
produce customised reports at any time?
easily share information with others?
manipulate, compare and organise information?
access a variety of analysis tools?
use information from internal and external sources to
create models and scenarios?
Test the system
Make sure you test:
automatic data capture, manual data entry processes
ability to access and retrieve data and information
production of information and statistics
automatic and specialist reporting options
ease of customer and employee interaction with the
system via the user interface
integration with other systems
system security.
Disseminate information
Dissemination of information requires planning and
coordination to ensure the right people receive the right
information within the right timeframes.
Communication plans
A communication plan describes what information is
going to be communicated, to whom and how.

It helps manage the flow information and knowledge

across the organisation.

Communication is more effective if you tell people not

only the what, but explain why something is happening
Components of a
communication plan
Target audience

Communicators

Communication messages

Dissemination channels

Dissemination tools

Who is responsible for coordinating and developing

communication activities
Review and update plans
Does it;
create an acceptance of change?
provide a greater understanding of business issues,
problems, solutions or strategies?
increase awareness of organisational goals?

support work areas or organisational objectives?

meet stakeholder and target audience expectations?
encourage, acknowledge and respond to feedback?
Organisational policies
Organisational policies and procedures govern how
information is captured, stored and disseminated.
Record and document management
Information, knowledge management and
information technology (IT)
Information and IT
Finance, administration, customer service, human
resources and all other sectors of an organisation.
Legislative requirements
 Privacy Act 1988 and the Australian Privacy Principles
(APP)
 The Freedom of Information Act 1982
Security
An organisation’s corporate knowledge and information
is its soul, the foundation upon which it is built. Loss of
this information to competitors can be devastating.
Even though a business has legal rights, they should still
use every possible avenue to protect their IP assets.
What can you do?
Make confidentiality a cultural standard in the
organisation.
Check the terms and conditions of your contracts.

Establish an intellectual property policy.

Establish employee departure processes.

Conduct exit interviews with

departing employees.
Utilise technology
Data mining

Data warehouses

Multidimensional modelling

Data visualisation tools

The next steps
You should now:
 complete the self-paced activities in Section 4 of your
Student Workbook
 complete any remaining self-paced activities from
previous sections of your Student Workbook
 complete the assessment tasks.