A01 chaf6542 06 se fm indd

Sense and respond 

communications

Organisations monitor 

consumers’ preferences 

indicated by their 

responses to websites or 

email communications in 

order to target them with 

relevant, personalised and 

targeted communications.

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Part 2  Strategy and applications

Figure 5.12

An evaluation tool relating information to business value. An organisation’s 

use of information on each axis can be assessed from 1 (low use of 

information) to 10 (high use of information)

Source: Marchand et al. (2002).

Add value

Market, financial,

legal, operational

risks

Create new reality

Reduce costs

Manage risks

Transactions and

processes

New products,

new services,

new business ideas

Customers and markets

Organisation C

Organisation B

Organisation A

Each way of using information

involves using different types of

information

2 

Reduce costs. Cost reduction through information is achieved through making the 

business processes shown in Figure  10.2 more efficient. Efficiency is achieved through 

using information to source, create, market and deliver services using fewer resources 

than previously. Technology is applied to reduce paperwork, reduce the human resources 

needed to operate the processes through automation and improve internal and external 

communications.