CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION

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

  
  

  
  

  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.