CHAPTER 6: VALUING ORGANIZATION INFORMATION

Organizational Information

·         When addressing a significant business issue, employees must be able to obtain and analyse all the relevant  information so they can make the best decision possible.

·         Information granularity refers to the extent of detail within the information.

·         Successfully collecting, compiling, sorting, and finally analysing information from multiple levels, in varied formats, exhibiting different granularity can provide tremendous insight into how an organization is performing.

The Value Transactional and Analytical Information

·         Transactional Information encompasses all of the information contain 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 tasks.

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 requests.( eg: google)

The Value of Quality Information

·         Business decisions are only as good the quality of the information used to make them.

·         Information inconsistency occurs when the same data element has different values.

·         Information integrity issues occurs when a system produces incorrect, inconsistent, or duplicate data.

·         Characteristic of high-quality information:

• ·         Low quality information example:

1. Missing information

2.Incomplete information 

3.Inaccurate information

   4.Probable duplicate information

   5. Potential wrong information

Understanding the costs of poor information

·         wrong information can lead to making the wrong decision that can cost time, money, and even reputations.

·         Potential business effects resulting from low quality information:

- Inability to accurately track customers, which directly affects strategic initiatives such as CRM and SCM.

- Difficulty identifying the organization's most valuable customers.

- Inability to identify selling opportunities and wasted revenue from marketing to non-existing customers and non-deliverable mail.

- Difficulty tracking revenue because of inaccurate invoices.

- Inability to build strong relationship with customers.

Understanding the Benefits of Good Information

• ·         High quality information can significantly improve by the chances of making a good decision.
• ·         Good decisions can impact an organization’s bottom line.
• ·         Information governance – information is a vital resource and users need to be educated on what they can and cannot do with it.
• ·         Data governance refers to the overall management of the availability, usability, integrity, and security of company data.