Managing Software: Information has value, but how much are you willing to pay for it?
Not all information is equal. Savvy food processors must weigh the costs.
INFORMATION HAS VALUE. IT IS AN ASSET AND, LIKE ANY ASSET, IT is never free. The value of information is not fixed. It is a function of your business requirements. For example, yesterday’s news has much less value than today’s.
The value of inventory information about a high cost ingredient has more value than a low cost one. When the information is gathered also impacts its value. For example, if an item’s inventory has been inaccurate recently, the information on that item’s inventory is more valuable. For a new formula, usage and yield information will help get the standards adjusted to reality faster. If a process’ yield is very predictable, yield information is less valuable than a process whose yield varies greatly.