MGT300 - CHAPTER 6

                           CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION

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



The Value of Timely Information
  • Timeless is an aspect of information that depends on the situation
          - 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 decision 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 :
           - accuracy
           - completeness
           - consistency
           - uniqueness
           - timeless

1. Accuracy
    Are all the values correct ? For example, is the name spelleg correctly ? Is the dollar amount recorded properly ?
2. Consistency
    Is aggregate or summary information in aggrement with detailed information ? For example, do all total fields equal the true total of the individual fields ?
3. Uniqueness
    In each transaction, entity and event represented only once in the information ? For example, are there any duplicates customers ?
4. Timeless
    Is the information current with respect to the business requirements ? For example, is information updated weekly, daily, or hourly ?


Understanding the Costs of Poor Information
  • The four primary sources of low quality information include:
           1. Online customers intentionally enter inaccurate information to protect their privacy
           2. Information from different system have different entry standards and formats
           3. Call centre operators enter abbreviated or erroneous information by accident or to save time
           4. Third party and external information contains inconsistencies, inaccuracies and errors
  • Potential business effects resulting from low quality information include :
           1. Inability to accurate track customers
           2. Difficulty identifying valuable customers
           3. Inability to identify selling opportunities
           4. Marketing to nonexistent customers
           5. Difficulty tracking revenue due to inaccurate invoices
           6. Inability to built 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

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