MGT 300 CHAPTER 6:
Valuing Organizational Information
Organizational Information
v Information
is everywhere in an organization
v Employees
must be able to obtain and analyze the many different levels, formats, and
granularities of organizational information to make decisions
v Successfully
collecting, compiling, sorting, and analyzing information can provide
tremendous insight into how an organization is performing
The Value of Transactional and
Analytical Information
The Value of Timely Information
v 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
v Business
decisions are only as good as the quality of the information used to make the
decisions
v You
never want to find yourself using technology to help you make a bad decision
faster
v 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?
§ 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?
Understanding the Costs of Poor Information
v 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
v Potential
business effects resulting from low quality information include:
1.
Inability to accurately track customers
2.
Difficulty identifying valuable
customers
3.
Inability to identify selling
opportunities
4.
Marketing to nonexistent customers
5.
Difficulty tracking revenue due to
inaccurate invoices
6.
Inability to build strong customer
relationships
Understanding the Benefits of Good Information
v High
quality information can significantly improve the chances of making a good
decision
v Good
decisions can directly impact an organization's bottom line
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