CHAPTER 6: VALUING ORGANIZATIONAL INFORMATION

LEARNING OUTCOMES

6.1 Describe the broad levels,formats, and granularities of information.

6.2 Differentiate between transactional and analytical information.

6.3 List,describe and provide an example of each of the 5 characteristics of high quality information.

6.4 Assess the impact of low quality information on an organization and the benefits of high quality information on an organization.

*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.

*Daily decisions need information.

*A lot of information can make good decision.

*Successfully collecting ,compiling ,sorting and analyzing information can provide tremendous insight into how an organization is performing .

1)Organizational information

*It divided into 3 where as levels, formats ,and granularities.

*4 primary traits of value of information : - Information type

                                                                         - Information timeliness

                                                                         - Information quality

2)The value of transactional & analytical information 

                                                                       

Transactional information -to support daily operation tasks(routine). Examples :if we withdrawal money from ATM we will get receipt from ATM machine.

                                                              

Analytical information -occurs monthly,weekly.Combine transactional information = analytical information. 

3)The value of timely information -timeliness is an aspect of information that depends on the situation .

i)Real-time information- immediate ,up-to-date information.Example:Lazada update their stock everyday so customers will know whether stock available or not.

ii)Real-time system-provides real-time information in response to query requests.Example Bursa Saham every second the information will change.

4)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.

*Want use technology to get faster decision,but have good decision.

*Characteristics of high quality information.

a)Accuracy -the values must correct,name spelled correctly .

b)Consistency -aggregate or summary information in agreement with detailed information.Example total fields equal true total of individual fields.

c)Uniqueness -each transaction,entity and event represented only once in the information.Example to avoid duplicate customers.

d)Timeliness -information current with respect to the business requirements.Example information updated weekly,daily or hourly.To avoid get outdated information.

5)Understanding the costs of poor information 

*The 4 primary sources of low quality information

i)Online customers intentionally enter inaccurate information to protect their privacy(fake name,fake address)

ii)Information from different systems have different entry standards and formats(wrong key in data)

iii)Call enter operators enter abbreviated or erroneous information by accident or to save time(customer service use short form only when they received complain but when to key in data they do not remember)

iv)Third party & external information contains inconsistencies, inaccuracies &errors(get information from supplier did not complete)

*Potential business effects resulting from low quality information include :

i)Inability to accurately track customers(when have duplicate customers)

ii)Inability to identify selling opportunities(details did not enough)

iii)Marketing to nonexistent customers(if email customers did not valid)

iv)Difficulty tracking revenue due to inaccurate invoices(did not get accurate numbers)

v)Inability to build strong strong customer relationships(customers did not promotion)

6)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.