Information flow within organizations: a competitive advantage

As businesses grow, so does the amount of knowledge they compile. A nugget picked up by a sales manager combined with information heard by R&D and a fragment by advertising can alert management of an impending competitive product launch. Regular information flow is critical to the overall success of a business functions and increases the value a group contributes to the company overall.

Experts have made claims that approximately 80% of the information one wants to know about a competitor or market resides within their own organization. But unfortunately what organizations fail to realize is that information collected in isolation does not benefit the company as a whole.

The failure of a business to share information among departments often translates into the possession of partial or flawed information resulting in flawed conclusions or decisions.

A steady flow of information within an organization requires the development of an internal network. This internal network does not equate to a sophisticated Information Technology network, but rather an even more powerful set of computational power: the collective minds of each department.

Realizing the benefits of networking (meeting new people as well as colleagues) is a challenge at best and elusive to many. Using effective techniques can smooth the road to a practical flow of information across multiple departments still remains a challenge in most organizations. Knowing who knows what, when to initiate contact, and how to follow up are the keys to networking success, and building an effective, respected, and flourishing business intelligence unit.

If we regard an organization as an organism, the information processing system, like the central nervous system, it is the foundation of all voluntary behavior. Organizations must be seen as complex systems, the elements of which must collaborate to compete effectively.

The most vital source of competitive advantage may lie not in the possession of specific organizational resources or skills, which can often be imitated or purchased, but in the power of utilizing the available resources & skills to the optimum level but openness of information sharing and ability of information compiling to form meaning ‘knowledge’.

One can identify company’s current information flow model by:

• Gain an understanding of the impediments to information sharing.
• Develop and facilitate a process to increase information sharing across departments.
• Implement practical tools/techniques to build an internal network.

Motivate people to communicate, not conceal, what they know