Information entity and characteristics of business

2.1.1 Information entity of business

Information is an integral part of business. Business processes cannot exist without information and out of information, at least because business exists within the certain legal environment determined by set of information objects, such as laws and regulations, the government decree and other similar documents and prepares the reporting under regulations of this legal environment, i.e. generates information of a certain type. The entity business of process is represented as process of achievement of some set is more whole (business objectives) on the basis of asset management. Information entity of business is also this management process. If the legal framework, the reporting, assets and possible transactions over them in many respects depend by nature business, then management process to a large extent invarianten to it.

The main feature of management in business significantly distinguishing it from some other, for example, technical automatic control systems and regulation is a big delay between a decision instant and the received result that is illustrated by figure 1. After decision making on management the certain process of business proceeding in poorly determined external environment is implemented, not all parameters of which are controlled by the organization performing business. Thus, the result of the made decisions is observed with a delay and sometimes very considerable. Therefore the major for business is capability to expect any emergence of situations (both favorable, and adverse) in the environment of business and in the business. It is purely information task which cornerstone the forecast is.

When any process of purposeful activity thinks and implemented it is necessary to deliver and answer the following questions:

• whether the objectives in that type how it is supposed will be achieved?
• whether it is enough at our disposal operating capabilities, knowledge (experience) whether there corresponds to requirements quality of training of personnel and the system of management?
• whether it is rather attracted resources to achievement of an effective objective?
• whether the interval set for achievement of the goal is sufficient?

From the questions posed it is visible that answers to them require the analysis of the different information entities describing the different aspects of activity reflected in the asked questions in the formalized or unformalized type. It is clear, that answers to these questions can be received only in the form of forecasts, i.e. too in the form of information entities. It is obvious also that all questions are interdependent and, therefore, answers to them should be interconnected. The cumulative error of answers to questions creates the consolidated risk of achievement of the goal. The value of this risk depends also on as far as sales terms of the purpose in process of its achievement, and from the nature of these changes will change.

2.1.2 Information characteristics of business

All data, necessary for the forecast: all past and the future, including any formulations of the purposes and plans of their implementation, all environment of business and in general a material world exist in the form of descriptions, i.e. in the type of information. The more the interval of T and the related forecast (see figure 1), the better should be organized business. But it is more difficult for that to make the exact forecast and the more so qualitative information for it is required. The information field of business or its information sphere is formed from:

• legal environment (laws and regulations, government decrees and other documents);
• reportings under regulations of the legal environment;
• specific information of business.

This last information is most dynamic and includes:

• the subjects, objects and processes of business presented in the information form;
• regulatory, organizational and administrative and other documentary base of the organization;
• the business environments given monitoring and own environment;
• analytical these (reviews) and forecasts of a status of external and internal factors of influence;
• the saved-up and generalized practicians (knowledge);
• strategic and operating plans of the organization and solution on them.

The quality of information used for the forecast at decision making is defined not only the number of the used data, but also, most, by how these data are systematized and generalized, how adequately used concepts, theoretical constructions and representations reflect a material world and the environment of business and the organization. Therefore it is necessary to speak not just about data or information, and about knowledge helping to organize rationally organization activity on achievement of effective objectives and to solve the different problems arising in the course of this activity. Therefore, the main problem of business in the information sphere is a problem of accumulation of the good knowledge which is the only guarantee of forecast accuracy.

The main quality requirements of information and knowledge are illustrated by figure 2. Data of the bottom level of a pyramid of management, collecting and being exposed to systematization and generalization, should turn into the filtered useful information, and then collect in the form of knowledge and be used on all hierarchy levels of management.

In terms of opportunities for accumulation of knowledge it is possible to select it is information dangerous types of business. Let's give the signs allowing to refer business to it is information to a dangerous type:

• the business requiring long-term investments. Here very long-term forecast which to make impracticablly is required. The situation is aggravated if investments are made in new, poorly investigated, the direction;
• the business which is implemented in strongly changeable environment. The main complexity of the organization of such business consists in accumulation of knowledge. As a result the exact forecast becomes impossible;
• the short-term (single) business requiring fast accumulation of knowledge. Organizers of business, as a rule, hope for "good luck" and often lose;
• absolutely new type of business. Accumulation of knowledge happens in the course of deployment of the business performed by investments in the small portions. At the same time often there is necessary a modification originally of an effective objective;
• business of "real" time – conditions (Wednesday) change along with return of investments.

Knowledge cannot be accumulated in general.

Now significant increase in a role of information science in business is observed that is caused by information characteristics of modern business. Information component of business constantly grows and this growth accelerates. First of all, this sharp increase of quantity of the factors affecting success of business and their spatio-temporal distribution. The aspiration of the organizations to consider the maximum number of these factors in the conditions of reduction of time for decision making resulting in need of fast processing of a large number of information requires use of the appropriate technical means, computer networks and telecommunications. These requirements and aspiration to cost reduction more and more move business from a material world to information. But at the same time at reduction of time for decision making check of accuracy of the information on which these solutions should be based is at a loss. Need of increase in forecast accuracy and the made decisions is followed by incompleteness, inaccuracy and inopportuneness of the data obtained and used for it.