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 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, format and granularities of organizational information.

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION

• Transactional information verses analytical information.

THE VALUE OF TIMELY INFORMATION

• Timeliness is an aspect of information that depends on situation.
• 1. Real-time information : immediate such as message, email, TV and etc.
• 2. 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.
• Characteristics of high-quality information include: 
• 1. accuracy 
• 2. completeness 
• 3. consistency
• 4. timeliness
• 5. uniqueness

UNDERSTANDING THE COSTS OF POOR INFORMATION

• Four primary sources:

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 effects resulting from low quality information include:

- inability to accurately track customers.

- difficulty identifying valuable customers.

- inability to identify selling opportunities.

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

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