Thursday, 28 January 2016

MGT300 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 granularity of organizational information to make decisions
  • Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing
  •  Levels, formats and granularity of organizational information






THE VALUE OF TRANSNATIONAL AND ANALYTICALLY INFORMATION
  • Transaction information verses analytically 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
-   You never want to find yourself using technology to help you make a bad decision faster
-   Characteristics of high-quality information include;



-   Low quality information example;





UNDERSTANDING THE COSTS OF POOR INFORMATION
  1. The four primary sources of low quality information include;-

- Online customers intentionally enter inaccurate information to protect their privacy
- Information from different systems have different entry standards and formats
- Call center operators enter abbreviated or erroneous information by accident or to save time
- Third party and external information contains inconsistencies, inaccuracies and errors


      2.  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 nonexistent 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 an organization’s bottom line











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