Following are the uses of management information and reports:
Assist in Strategic Decision
Strategist or higher management of your business couldn’t take all the decision based on intuition. They should have enough information to take strategic decision.
Show the Current Positioning of your Business in Industry
Management information and reports will show your business current positioning in the industry. The next course of action could be decided on the basis of current positioning. Let assume, the results show that your business positioning is weak in terms of customer stratification therefore, information should be acquired from customer and generate different management reports to find the root cause of customer satisfaction.
Performance Data of Your Business Products and Services
Decision of harvesting of divesting the products and services could be only made by your business only if the accurate management information and reports are provided to them.
Performance of Your Business Resources
Management information and reports can be used to highlight the performance of your business resources. The information will let you know the utilization of resources and their performance. On the basis of the provided information your business can decide different course of actions for optimal utilization of resources.
Highlight the Problem Areas
The provided information can be used to identify the problem areas of your business. Once the problems are known then appropriate decision will be taken by management to minimize or eliminate the problem areas.
Planning for the future is important for the survival of your business. If you are will to take your business ahead then perform business forecasting for as many years. It is almost near to impossible to forecast for your business without using management information and reports. The high percentage of information accuracy reduces the risk percentage of forecast.
Revenue & Profit Trends
Management information and report show the revenue and profit trends on different time period. The business might be doing well in some products or locations however it will also highlight the weak revenues and profits against the products, locations and time period.