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Chapter 6

VALUING ORGANIZATIONAL INFORMATION


Organizational Information

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





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The Value of Transactional & Analytical Information

Transaction information verses analytically information


      The Value of Timely Information

ü  Timeliness is an aspect of information that depends on the situation.
ü  Real-time information – immediate, up-to-date information.
ü  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 decision faster.
  • Characteristics of high-quality information include;



Example of low quality information
 
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Understanding The Cost of Poor Information

The four primary sources of low quality information include

ü  Online customers intentionally enter inaccurate information to protect their privacy.
ü  Information from different systems have different entry standards and formats.
ü  Call center operators enter abbreviated or erroneous information by accident or to save time.
ü  Third party and external information contains inconsistencies, inaccuracies and errors.

Potential business effects resulting from low quality information include

ü  Inability to accurately track customers.
ü  Difficulty identifying valuable customers.
ü  Inability to identify selling opportunities.
ü  Marketing to nonexistent customers.
ü  Difficulty tracking revenue due to inaccurate invoices.
ü  Inability to build strong customer relationships.
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Understanding The Benefits of Good Organization

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

  • Good decisions can directly impact an organization’s bottom line.



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