Information compression refers to the combination of individual information according to the requirements of the respective information carrier. The compression of information is the most important form of decision-oriented information provision (information gathering and processing) of management information and is one of the most important controlling tasks.
The compression of information is characterized by a transformation process in which individual pieces of information are processed using algorithms to form an overall piece of information in which the original information is lost, but its ontological substance is retained. The quantitative compression is carried out with the aim of reducing the scope of the individual information to be provided in such a way that complex issues can be represented in a shortened form (key figure formation).
The need to condense from or to management information increases with the ascending hierarchy level and is intended to counteract an oversupply of information. The planning and control-related information requirements at the lower decision-making levels, on the other hand, are more geared towards the provision of individual information relevant to decision-making. Ultimately, the requested degree of compression of information is determined by the depth of the problem-relevant decision area.