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




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

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