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, formats, 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 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:

⇒Accuracy - Are all the values correct? 

For example, is the name spelled
correctly? Is the dollar amount
recorded properly?


⇒Completeness 


⇒Consistency - Is aggregate or summary information in agreement with detailed information?

For example, do all total fields
equal the true total of the
individual fields?


⇒Uniqueness - Is each transaction, entity, and
event represented only once in
the information?

For example, are there any
duplicate customers?



⇒Timeliness - Is the information current with
respect to the business
requirements?
 For example,is information updated weekly,daily,
or hourly?


↪Low quality information example

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 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