Friday 26 July 2013

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;


                                                                  



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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