Tuesday, 11 March 2014

Valuing Organizational Information


ORGANIZATIONAL INFORMATION

  • information is everywhere in an organisation
  • employees must be able to obtain and analyse the many different levels, formats, and granularity of organisational information to make decisions
  • successfully collecting, compiling, sorting, and analysing information can provide tremendous insight into how an organisation is performing
  • levels. format, any granularity of organisational information




THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION
  • transactional information encompasses all of the information contained within as 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 performing of managerial analysis tasks


THE VALUE OF TIMELY INFORMATION
  • timeliness is an aspect of information that depends on the situation
    • Real-time-information means 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
    • completeness
    • consistency
    • uniqueness
    • timeliness


UNDERSTANDING THE COSTS OF POOR INFORMATION
  • The four primary sources of low quality information include:
    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 identifying selling opportunities
    • marketing to nonexistent customers
    • difficulty tracking revenue due to inaccurate invoice
    • 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 organisation's bottom line

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