CHAPTER SIX : VALUING ORGANIZATIONAL INFORMATION

ORGANIZATIONAL INFORMATION

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 is as below;

THE VALUE OF TRANSNATIONAL AND ANALYTICALLY INFORMATION

Transaction information verses analytically information

THE VALUE OF TIMELY INFORMATION

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

Characteristics of high-quality information include;

i)Accuracy

ii) Completeness

iii) Consistency

iv) Uniqueness

v) Timeliness

-   Low quality information example;

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