Chapter 6 : Valuing Organizational Information

Organizational Information

• Employees must be able to obtain and analyse the many different levels, formats and granularities of organizational information to make decisions.
• Successfully collecting, compiling, sorting and analysing information can provide tremendous insight into how an organization is performing.
• Levels, formats and granularities of organizational information :

The Value Of Transactional & 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 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 :

1. Online customers intentionally enter inaccurate information to protect their privacy.
2. Information from different systems have different entry standards and formats.
3. Call centre 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 :

1. Inability to accurately track customers.
2. Difficulty identifying valuable customers.
3. Inability to identify selling opportunities.
4. Marketing to non-existent customers.
5. Difficulty tracking revenue due to inaccurate invoices.
6. 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.