Valuing Organizational Information LEARNING OUTCOMES 61 Explain how information differs throughout an organization 62 Assess the impact of lowquality information on an organization and the ID: 264769
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Slide1
CHAPTER 6
Valuing Organizational InformationSlide2
LEARNING OUTCOMES
6.1
Explain how information differs
throughout
an organization
6.2
Assess the impact of low-quality
information
on an organization and the
benefits
of high-quality information on
an
organizationSlide3
LEARNING OUTCOMES
6.3
List, describe, and provide an example of each of the five characteristics of high quality informationSlide4
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
Information granularities
refers to extent of details within the information (fine or coarse)
Successfully
collecting, compiling, sorting, and analyzing
information can provide tremendous insight into how an organization is performingSlide5
ORGANIZATIONAL INFORMATION
Levels, formats, and granularities of organizational informationSlide6
THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION
Transactional information verses analytical informationSlide7
Transactional information
Transactional information
encompasses
all of the information
contained within a single business process or unit of work, and its primary purpose is to
support the performing of daily operational tasks
. Examples of transactional information are
withdrawing cash from an ATM
, making an
airline reservation
, or
purchasing stocksSlide8
Analytical Information
Analytical Information
encompasses all organizational information, and its primary purpose is to
support the performing of managerial analysis
tasks. Analytical information includes transactional information along with other information such as market and industry information. Examples of analytical information are
trends, sales, product statistics, and future growth projections.Slide9
THE VALUE OF TIMELY INFORMATION
Timeliness
is an aspect of information that
depends on the situation
Daily monitoring of flight delays.
Weekly sales forecasts.
Annual reviews of production facility capacities
Real-time information
– immediate, up-to-date information
Real-time system
– provides real-time information in response to query requestsSlide10
Real-Time Info.
Questions:
I
s credit
card transaction a real-time one?
Is bank card
transaction a real-time one?
Timeliness is relative and should be to the point for correct and efficient decision making.
Real-time info has its own pitfalls. It may not speed up decision making.Slide11
THE VALUE OF QUALITY INFORMATION
Business decisions are only as good as the
quality of the information
used to make the decisions
Garbage In
Garbage Out
You
never
want to find yourself using technology to help you
make a bad decision faster
The automation of a useless system leads to a faster, state-of-the-art … useless system.Slide12
THE VALUE OF QUALITY INFORMATION
Characteristics of high-quality information include:Slide13
THE VALUE OF QUALITY INFORMATION
Low quality information exampleSlide14
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
(e.g. date)
Call center operators enter abbreviated or erroneous information by accident or to save time
Third party
and
external information
contains inconsistencies, inaccuracies, and errorsSlide15
Understanding the Costs of Poor Information
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 relationshipsSlide16
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