Organizational Information
# Information Granularity
= Refers to the extent of detail within the information which are fine and detailed or coarse and abstract information.
- Levels, format, and granularities of organizational information.
Additional characteristics that help determine the value of information :
# The value of Transactional and Analytical Information
~ Transactional Information
= Encompasses all of the information contained within a single business
process to support the performing of daily operational tasks.
Organization capture and store transactional info in database and use it
when performing operational tasks and repetitive decisions.
* Example : withdrawing cash from ATM, making airline reservation and purchasing stock.
~ Analytical Information
=
Encompasses all organizational information and its primary purpose is to
support the performing of managerial analysis tasks. It also used when
making an important ad hoc decisions.
* Example : trends, sales, product statistics, future growth projections.
# 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.
- Timely Information is relative to each business decision and some of this decisions require weekly information while other may require daily information.
- Organizational such as 911 centers, stock trader and banks require up-to-the-second information.
# The Value of Quality Information
~ Characteristics of high-quality information include :
> Accuracy
= Are all the values correct ?
* Example : is the name spelled correctly? is the dollar amount recorded properly?
> Completeness
= Are any of the values missing?
* Example : Is the address complete including the street, city, state and zip code?
> Consistency
= Is aggregate or summary information in agreement with detailed information?
* Example : Do all total fields equal the true total of the individual fields?
> Uniqueness
= Is each transaction, entity and event represented only once in the information?
* Example : Are there any duplicate customers?
> Timeliness
= Is the information current with the respect to the business requirements?
* Example : Is information updated weekly,daily or hourly ?
~ Low quality information example
# Understanding the Costs of Poor Information
~ 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.
~ 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-existent 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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