CHAPTER 6

Chapter 6 – Valuing Organizational Information

ORGANIZATIONAL INFORMATION

Ø  Information is everywhere in an organization

Ø  Employees must be able to obtain and analyze the many different levels, formats and
    granularity of organizational information to make decisions

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

Ø  Levels, formats and granularity of organizational information

 

THE VALUE OF TRANSNATIONAL AND ANALYTICALLY INFORMATION

Ø Transaction information verses analytically 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;

- 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