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CHAPTER 6

CHAPTER 6. Valuing Organizational Information. Learning Outcomes. Describe the broad levels, formats, and granularities of information Differentiate between transactional and analytical information

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CHAPTER 6

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  1. CHAPTER 6 Valuing Organizational Information

  2. Learning Outcomes • Describe the broad levels, formats, and granularities of information • Differentiate between transactional and analytical information • List, describe, and provide an example of each of the five characteristics of high-quality information • Assess the impact of low-quality information on an organization and the benefits of high-quality information on an organization

  3. Overview • Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions

  4. Transaction information examples • withdrawing cash from an ATM • making an airline reservation • purchasing stocks • shipping an order • daily sales • employee payroll its primary purpose is to support the performing of daily operational tasks

  5. Analytical information examples • cost/benefit analysis • sales forecast • market trends includes transaction information, external organizational information its primary purpose is to support the performing of managerial analysis tasks

  6. ad-hoc decisions a business might base on analytical information • building a new plant • hiring or reducing workforces • introducing a new product

  7. Timeliness is an aspect of information that depends on the situation Real-time information – means immediate, up-to-date information Real-time systems – provide real-time information in response to query requests Real-time systems can help organizations make faster and more effective decisions The Value of Timely Information

  8. The Value of Quality Information

  9. Low-quality information example

  10. The four primary sources of low-quality information • Online customers intentionally enter inaccurate information to protect their privacy • Information from different systems that have different information 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

  11. Potential business effects resulting from low-quality information • 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 – which increases buyer power

  12. The Benefits of High-Quality Information • High-quality information can significantly improve the chances of making a good decision • Good decisions can directly impact an organization's bottom line

  13. Opening Case Questions:Searching for Revenue - Google • Determine if Google’s search results are examples of transactional information or analytical information • Describe the ramifications on Google’s business if the search information it presented to its customers was of low-quality • Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business • Explain how the Web site RateMyProfessors.com solved its problem of low-quality information

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