CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION
ORGANIZATIONAL INFORMATION
Information is everywhere in an organization. When addressing a significant business issue, employees must be able to obtain and analyze all the relevant information so they can make the best decision possible. Organizational information comes at different levels and in different formats and “granularities”. Information granularity refers to the extent of detail within the information (fine and detailed or coarse and abstract). Employees must be able to correlate the different levels, formats and granularities of information when making decision.
THE VALUE OF TRANSACTIONAL AND ANALYTICAL 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.
Analytical information: encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis task.
THE VALUE OF TIMELY INFORMATION
Real time information means immediate, up-to-date information. Real time systems provide real time information in response to query request. Many organization use real time system to exploit key corporate transactional information.
Understanding the Costs of Low-Quality Information
Potential business effects resulting from low-quality information
- Inability to accurately track customer
- 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- which increases buyer power
Understanding The Benefits Of High-Quality Information
- High-quality information can significantly improve the chances of making a good decision
- Good decisions can directly impact an organization's bottom line
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