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
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| Levels, formats, and granularities of organizational information |
💙 Timeliness is an aspect of information that depends on the situation
The Value of Quality 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
- 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 :
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 represent only once in the information ? For example, are there any duplicate customers ?
💛 Timeliness
Is the information current with respect to te business requirements ? For example, is information updated weekly, daily, or hourly ?
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| Low quality information example |
Understanding the Costs of Poor Information
- Four primary sources / reasons of low quality information :
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Online customers intentionally enter inaccurate information to protect their privacy
😞 Information from different systems have different entry standards and formats
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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 :
😟 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
THE END OF CHAPTER 6 💛
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