VALUING ORGANIZATIONAL INFORMATION
In this chapter, we learned about :
- Describe the broad levels, formats, and granularities of information
- Differentiate between transactional and analytical information
- List, describe, and provide an example of each of the five characteristics of high quality information
- Assess the impact of low quality information on an organization and the benefits of high quality information on an organization
Organizational Information
* Information is everywhere in a organization
* Employees must be able to obtain and analyze the many different levels, formats, and granularities 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 granularities of organizational information
The Value of Transactional and Analytical Information
* Transactional information verses analytical information
* Transactional information - encompasses of all the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks
* Analytical information - encompasses all organizational information, and its primary purpose is to support the performing of managerial information task
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 :
- Accuracy ~ are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly?
- Completeness ~ are any of the values missing? For example, is the address complete including street, city, state, and zip code?
- Consistency ~ is aggregate or summary information in agreement with detailed information? For example, do all total fields equal the true total of the individual fields
- Uniqueness ~ is each transaction, entity, and event represented only once in the information? For example, are there any duplicate customers?
- Timeliness ~ is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly?
* Low quality information example
Understanding the Cost 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 ebbreviated or errorneous information of 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
Understand the Benefits of Good Information
* High quality information can significantly improve the chances of making a good decision
* Good conditions can directly impact an organization's bottom line
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