Chapter 6 – Valuing Organizational Information

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 TRANSNATIONAL AND ANALYTICALLY INFORMATION

• Transaction information verses analytically information
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  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