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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