Information as inventory: A new conceptual view

Abstract

A new approach to viewing and handling information in the organization is presented. Information is treated as inventory in its three stages: raw materials (data to be processed), work in process (data being converted into information), and finished goods (information being stored). In line with modern inventory management methods, such as Just In Time, we introduce the concept of Information In Process (IIP). We show that IIP is costly, hard to control, and hinders the decision-making ability of those for whom information is gathered and processed in the first place — the users. Mismanaging the information resource by stocking IIP is suggested to be a cause of many system failures and malfunctions as is the case with production systems accumulating inventories. A methodology for applying inventory control techniques to the area of information systems is outlined aiming at the reduction of IIP.