CHAPTER 6

ORGANIZATIONAL INFORMATION

• Employees must be able to obtain and analyze different levels, format ans granularities of organizational information to make daily decisions.
• Collecting, compiling, sorting and analyzing information provide tremendous insight into how an organization is performing.

Level, format and granularities of organizational 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.

- Real time system : provides real time information in response to query resquests.

THE VALUE OF QUALITY INFORMATION

• Business decisions are only good as the quality of the information used to make decisions.
• Characteristics of high quality information : 

- Accuracy

- Completeness

- Consistency 

- Uniqueness

- Timeliness

UNDERSTANDING THE COSTS OF POOR INFORMATION

• The 4 primary sources of low quality information :

- Online customers intentionally enter inaccurate  information to protect their privacy.

- Information from different system have different entry  standarts and formats.

- Call centre 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 included :

- Inability to accurately track customers.

- Difficulty to identify valuable customers.

- Inability to identify selling opportunities.

- Marketing to nonexistent customers.

- Difficulty tracking revenue due to inaccurate invoices.

- Inability to build strong customer relationship.

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

• High quality information can significantly improve the chances of making good decisions.
• Good decisions can directly impact an organization bottom line.