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 granularity of organizational information to make decisions

• Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing

•  Levels, formats and granularity of organizational information

THE VALUE OF TRANSNATIONAL AND ANALYTICAL INFORMATION

• Transaction information verses analytically information

T 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 decision faster
•    
•  Characteristics of high-quality information include:

-   Low quality information example:

 

UNDERSTANDING THE COSTS OF POOR INFORMATION

The four primary sources of low quality information include:

     - Online customers intentionally enter inaccurate information to        

       protect their privacy 
    - Information from different systems have different entry standards     

      and formats 

    - Call center operators enter abbreviated or erroneous information by          

       accident or to save time 
    - 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