CHAPTER 6

VALUING ORGANIZATIONAL INFORMATION

ORGANIZATIONAL INFORMATION

• information is everywhere in an organisation

• employees must be able to obtain and analyse the many different levels, formats, and granularity of organisational information to make decisions

• successfully collecting, compiling, sorting, and analysis information can provide tremendous insight into how an organisation is performing

• levels. format, any granularity of organisational information





THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION

• transactional information encompasses all of the information contained within as single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks

• analytical information encompasses all organizational information, and its primary purpose is to support performing of managerial analysis tasks


THE VALUE OF TIMELY INFORMATION

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

• Real-time-information means 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:

• accuracy

• completeness

• consistency

• uniqueness

• timeliness

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 identifying selling opportunities 

• marketing to nonexistent customers 

• difficulty tracking revenue due to inaccurate invoice 

• 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 organisation's bottom line