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4.1.3 Quality of information

How information can improve the quality of decision making. 4.1.3 Quality of information. Starter: Discuss. Discuss what makes information good quality. (5 mins - pairs). Quality Information. The quality of information is a measure of: The accuracy of the information

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4.1.3 Quality of information

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  1. How information can improve the quality of decision making

    4.1.3 Quality of information

  2. Starter: Discuss Discuss what makes information good quality. (5 mins - pairs)
  3. Quality Information The quality of information is a measure of: The accuracy of the information The relevance for a particular use How up-to-date the information is The completeness of the information How easy the information is to understand How well information is targeted How much user confidence there is in the information.
  4. Main: Quality of Information - Accuracy Accurate data is recorded exactly as it is and is protected from being changed accidentally or maliciously. Examples Incorrectly recorded stock levels may lead to empty shelves or over ordering of new stock. (Why is this bad?) Variables such as interest rates, exchange rates and the cost of materials need to be accurate for businesses to plan effectively for the future. Can you think of 1 more example?
  5. Main: Quality of Information - Relevance Examples Data is Relevant to it’s intended use and for the person who is using it. A business buys market research results from a survey carried out in the south of England. Although the information gathered may be accurate and up-to-date it may not be relevant to the north, where the company does most of its business, because trends and spending habits are different. A study of female buying habits will be largely irrelevant when targeting male customers. Can you think of 1 more example?
  6. Main: Quality of Information - Up-to-date Up-to-date data is recorded at intervals. “Out of date” information may be worse than useless to a business. Examples Brokers who buy and sell shares need to have VERY up-to-date information because share prices change so rapidly. A holiday company using results from a 2 year old survey to pre-book hotel places for next season may over or under book places due to changing customer tastes. A credit card company unaware that a customer now earns twice as much as when the card was issued may fail to increase his/her credit limit. Can you think of 1 more example?
  7. Main: Quality of Information – Completeness Data is complete when all aspects are included and all possible sources are used. Incomplete information may give an organisation a misleading picture on which they base their management decisions. Sales data taken from only two quarters of the year may give a distorted picture of average business performance. Analysis of national sales may give inaccurate results if only England and Scotland are included in the analysis. Examples Can you think of 1 more example?
  8. Main: Quality of Information - Ease of understanding Information is easy to understand. It should be well presented so the reader can understand it quickly. The sales map on the right immediately highlights areas of high and low sales. Under the DPA 1998 if a data subject requests information about themselves, the information must be presented clearly with any codes explained. This is difficult for a business to do… e.g. if you move house you are likely to tell your bank, credit card, utility companies but unlikely to tell the company you booked your holiday with last year. Examples Can you think of 1 more example?
  9. Main: Quality of Information - Targeted Information needs to be targeted at the person who is going to be using it. This means making it very specific and more precise. Management frequently receive reports containing detailed figures when all they really need is an overview of the situation. The lower the level of management the more details the information needs to be. The lowest level of management needs details on daily operations in order to make decisions about scheduling, stock control, payroll etc. Examples Can you think of 1 more example?
  10. Main: Quality of Information - User Confidence A user must have confidence with the information they are using and believe the information is correct Sometimes, when users ask for information from the system, they spot some aspect of the information they know is definitely wrong. This causes them to suspect other aspects of the information . E.g. the system may tell them that there are five items of a certain product in stock when they know that there are actually only two. When this happens the user has no confidence in the system providing the information and rather than use the system to tell them how may products are in stock they would prefer to check. Examples Can you think of 1 more example?
  11. Activity: Acronym Using the same idea as ‘My very elderly mother swam under north pier’ to remember the planets. Come up with an Acronym for: Quality of information (10 mins)
  12. Activity: Example Give one example of information that could be valuable to a company and explain why?(2) (5 mins)
  13. Main: Processing huge amounts of data Sometimes there is too much data rather than too little. Within hours of the terrorist attacks on the London underground 7th July – police were gathering huge amounts of data including: - cctv footage - mobile phone records - witness statements They managed to process all of the data available and arrest the people involved (e.g. riots in UK) Processing huge amounts of data requires a powerful computer coupled with sophisticated software
  14. Main: Mark exam answers… In order for management to make good decisions, it needs good quality information. One feature of good quality information is that it is accurate. Give four other features of good quality information? (4 marks) 10 mins
  15. Student Answer 1 The information must be relevant as users of the information do not want to waste time reading information that is not relevant to their purpose. The information must be accurate because in most cases it will be used to base decisions on. The information must be collect for a purpose otherwise there is no point in producing it. Student Answer 2 Relevant Understandable Complete Up-to-date Main: Mark exam answers… Examiners Comment: All of the answers are correct (4 marks out of 4) Examiners Comment: No explanations are needed. The first answer is correct The second answer gains no marks because they had to describe ‘four other’ features. The third answer is not an answer to this question. (1 mark out of 4)
  16. Examiners Answers Notice the word ‘give’ in the question. This means that a complete explanation is not needed One mark each to maximum of 4 for 4 of the following: Correctly targeted Understandable Complete Relevant Up-to-date Has user confidence Main: Mark exam answers…
  17. Main: Match up Match up the aspects of good quality information to the examples (5 mins)
  18. Plenary: Hot Seat(10 mins)
  19. Extension: Revision tasks Use internet sources to make notes on ‘value and importance of information’. Your notes should cover: Why information has value Factors that determine the value of information
  20. Directed Study: Assessment Complete the Directed Study worksheet with exam questions that will be assessed.
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