Monday, March 17, 2014

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 Transactional and Analytical Information
  • Transactional information VS analytical information.

  • Transactional information – encompasses all of the information contained within a 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 the performing of managerial analysis tasks.
  • Information granularity refers to the extent of detail within the 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:
    • Accuracy
    • Completeness
    • Consistency
    • Uniqueness
    • Timeliness 

  • Example of low quality information



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.
 
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.






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