Information as a Resource

For something to be a resource it has to provide some benefit. We can see the example of the natural resources, they are derived from the environment but these are only limited and will deplete over time.  In economics we look at resource as a commodity, or any other asset  service that meets the human needs and wants.

Information is also a an resource for the organisation. Just like money or labour, information is used in accomplishing many tasks and activities in the organisation. Just like any other resource, information also has to be managed carefully. 

The question that we need to ask while we understand why information is a resource is what value does is add to the organisation? or in what way does it provide a benefit for the organisation? This will give us an idea on what role does information play and why it has to be managed in an organisational.

The seven points on why information is a resource:

1. Information as processed data: Since we call information as a processed data, it make the data which is available into something which the human beings can understand.
2. Better informed decisions: What will contribute for the accuracy of the decision being taken? The more information you have about a particular area, the better decisions you and take. For example if you had the information on whether it is going to rain today or not, you can decide better on whether to take the umbrella or not.
3. Analyse the root of a problem: Sometimes to get to the root of the problem we have to have the proper information. When a manufacturer sees that there is a problem in one of the manufacturing processes then he can get to the root of the problem only when he has proper information about it.
4. Avoiding misunderstanding: It is said that for every argument there are three sides, my side - your side and the right one. With proper information at the right time would help to reduce the misunderstandings in all the levels of the organisation.
5. Information play an important role in managing other resources of the organisation: For managing all the other resources of the organisation effectively we need to have proper information on that resource.
6. Information as power: In the present age of technology, information has become power, not only on who shares it but people want to take credit for the information which they have shared. Media like twitter, the micro blogging site help to share the updates online in short messages. 
7. No substitute for information: Ultimate we have to acknowledge that there are no substitutes for information. The organisation which manages its information better can function better and face the competitive environment.