Learning
Outcome
1- Describe the broad levels, formats, and
granularities of information.
2- Differentiate between transactional and analytical information.
3- List,
describe, and provide an example of each
of the five characteristics of high
quality information.
4- Assess
the impact of low quality information on
an organization and the benefits of high quality information on an organization.
Organizational
Information
- Information is everywhere in an
organization.
- Employees must be able to obtain and
analyze the many different levels, formats, and granularities of organizational
information to make decisions.
- Successfully collecting, compiling,
sorting, and analyzing information can provide tremendous insight into how an
organization is performing.
- Levels, formats, and granularities of
organizational information.
The
Value of Transactional and Analytical Information
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.
The Value of Quality Information
-Business decisions are only as good as the quality of the information used to make the decisions.
-You never want to find yourself using technology to help you make a bad decision faster.
-Characteristics of high-quality information include:
- Accuracy
- Completeness
- Consistency
- Uniqueness
- Timeliness
Accuracy
Are all the values correct?
For example,
is the name spelled correctly? Is the dollar amount recorded properly?
Consistency
Is
aggregate or summary information in agreement with detailed information?
For
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?
For
example, are there any duplicate customers?
Timeliness
Is the information current with respect
to the business requirements?
For 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 customer
- Difficulty identifying valuable customers
- Inability to identify selling opportunitie
- Marketing to nonexistent 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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