CHAPTER 6 VALUING ORGANIZATIONAL INFORMATION

*Learning Outcomes.
6.1 Describe the broad levels, formats and granulities of information
6.2 Differentiate between transactional and analytical information
6.3 List, Describe and provide an example for each five characteristics.
6.4 Assess the impact of low quality information on an organizational.

  1. 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.

2. THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION.

• Timeliness is an aspect of information that depends on the situation.

Real- time Information - Immediate, up-to-date information (weather forecast, touch and go).

Real- time System - Provides real times information in response to query requests (using internet).

• Business decisions are only as good as the quality of the information used to make the decisions.
• Characteristics of high-quality information include;

  3. THE VALUE OF QUALITY INFORMATION.

• Low quality information example.

 

 4. UNDERSTANDING THE COSTS OF POOR INFORMATION.

• The four primary sources of low quality information include;

1. Online customers intentionally enter inaccurate information to protect their privacy.
2. Information from different systems have different entry standards and formats.
3. Call center operators enter abbreviated or erroneous information by accident or to save time .
4. Third party and external information contains inconsistencies, inaccuracies and errors.

• Potential business effect resulting from low quality information include;

1. Inability to accurately track customers.
2. Difficulty identifying valuable customers.
3. Inability to identify selling opportunities.
4. Marketing to nonexistent customers.
5. Difficulty tracking revenue due to inaccurate invoices.
6. Inability to build strong customer relationships.

• High quality information can significantly improve the chances of making a good decision.
• Good decisions can directly impact an organization's bottom line.

Niaathirah xx