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Thursday, 18 February 2016

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





  •  Low quality information




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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