CHAPTER 6 - VALUING ORGANIZATIONAL INFORMATION

ORGANIZATIONAL INFORMATION

• Information is everywhere in an organization
• Employees must be able to obtain and analyze the many different levels,formats and granularities of organizational information to make decisions.
• Successfully collecting,compiling,sorting and analyzing information can provide tremendous insight into how an organization is performing.

• Level,formats and granularities of organizational information

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION

• Transactional information verses analytical information

THE VALUE OF TIMELY INFORMATION

• Timeliness is an aspect of information that depends on the situation

        - Real-time information - immediate,up-to-date information

        - Real-time system - provides real time information in response to query requests

THE VALUE OF QUALITY INFORMATION

• Business decisions are only as good as the quality of the information used to make the decisions
• You never want to find yourself using technology to help you make a bad decisions faster
• Characteristics of  high-quality information include:

        - Accuracy

        -Completeness

        -Consistency

        -Uniqueness

        -Timeliness

• Low quality information example

Understanding the Costs of Poor Information

The four primary sources of low quality information include:

1.       Online customers intentionally enter inaccurate information to protect their privacy

2.       Information from different systems have different entry standards and formats

3.       Call center operators enter abbreviated or erroneous information by accident or to save time

4.       Third party and external information contains inconsistencies, inaccuracies, and errors

Potential business effects resulting from low quality information include:

·         Inability to accurately track customers

·         Difficulty identifying valuable customers

·         Inability to identify selling opportunities

·         Marketing to nonexistent customers

·         Difficulty tracking revenue due to inaccurate invoices

·         Inability to build strong customer relationships

Understanding the Benefits of Good Information

•          High quality information can significantly improve the chances of making a good decision

•          Good decisions can directly impact an organization's bottom line