CHAPTER 6 (MGT300)

Valuing 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
The Value of Transactional and 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 information
-        Real-time system : provides real-time information in response to query requests

The Value of Quality Information

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

-        Completeness
-        Consistency
-        Uniqueness
-        Timeliness

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 systems have different entry standards and formats
3.     Call center operators enter abbreviated or erroneous information by accident or to save time
4.     Third party and external information contains inconsistencies, inaccuracies and error
  • ·       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 non-consistent customers
-        Difficulty tracking revenue due to inaccurate invoices
-        Inability to build 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 on organization’s bottom line

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