CHAPTER 6 ( VALUING ORGANIZATIONAL INFORMATION )

6.1  Describe the broad levels, formats,               and granularities of information

6.2   Differentiate between transactional   and analytical information

6.3  List, describe, and provide an example   of each of the five characteristics of   high quality information

6.4  Assess the impact of low quality   information on an organization and   the   benefits of high quality information on an   organization

ORGANIZATIONAL INFORMATION

v Employees must be able to obtain and analyze the Information is everywhere in an organization

v many different levels, formats, and granularities of organizational information to make decisions

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

The Value of Timely Information 

v 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

v  Business decisions are only as good as the quality of the information used to make the decisions

v  You never want to find yourself using technology to help you make a bad decision faster

»Characteristics of high-quality information include:

»Accuracy

»Completeness

»Consistency

»Uniqueness

»Timeliness

Understanding the Costs of
Poor Information

v  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 none Existent customers

»Difficulty tracking revenue due to inaccurate invoices

»Inability to build strong customer relationships

Understanding the Benefits of
Good Information

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

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