Tuesday, 11 March 2014

VALUING ORGANIZATIONAL INFORMATION

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.

  •  Transactional information verses 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.
  • 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.

No comments:

Post a Comment