Businesses are finding it more and more difficult to keep up with the ever-increasing rate of new information being produced. In fact, gathering information and identifying new sources is no longer the issue, knowing what to do with all of it is. As the world moves into a new epoch of globalization, a surge in available information is creating a snowball effect with data being duplicated and shared across the internet. Quantity is only part of the problem, as information is also beginning to decline in quality and accuracy because of the pressure placed on publishers to produce content as quickly as possible. Without a method for processing and analyzing this information, the challenge of managing it and learning from it, becomes nearly impossible.
In business, information overload can be defined as a point in time where a business professional is challenged with reading and comprehending information varying in complexity, size, and consistency which hinders them from inferring an optimal decision or conclusion. Psychologist George Armitage Miller states that under overload conditions, people become confused and are likely to make poorer decisions based on the information they have received as opposed to making informed ones.
Opposite to information overload, but potentially equally as important, is organization underload. Businesses are finding that more and more pieces of information are seemingly unrelated or do not have any overall structure making it difficult to analyze and relate. In other words, without common and proper organization of data, attempting to utilize information in its raw form is challenging.
Because of this, businesses can face the following problems:
- Missed Risks and Opportunities: Being unable to manually manage information prevents businesses from fully knowing what is happening in their market.
- Inefficient Processes: Information is largely textual, which is difficult to manually organize and make sense of at scale.
- Cost Overrun: As the amount of information grows, so does the amount of time and resources spent manually organizing, preparing and analyzing the data.
- Missed Goals and Objectives: The manual process of cleaning data is distracting and takes time away from actually understanding how it impacts your business objectives.
- Poor Future Planning: Manual data analysis can be flawed and biased, which leads to poor decision making when planning for the future.
So, whats the solution? Well, businesses essentially have two options; limit the volume of information analyzed or augment their capability to process and comprehend information. Knowing that minimizing the stream of incoming information will lead to biased conclusions and missed market signals, businesses actually only have one option; improve how they manage information.
Does all this sound familiar? Looking to solve your information overload problem? Nowigence’s unique method of searching, structuring and storing the world’s business information solves the information overload problem and empowers businesses to develop effective quarterly and annual business targets, long-term strategies, detect risks and opportunities ahead of time, and develop accurate predictive models to deliver profitable results.