Thursday, 2 February 2017

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.

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THE VALUE OF TRANSACTIONAL AND ANALYTICAL 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

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