VALUING ORGANIZATIONAL INFORMATION

ASSALAMUALAIKUM

Hi..we continue again about my new chapter :)

ORGANIZATIONAL INFORMATION

*Organizational information comes at different levels and in different formats and granularities.

*Information Granularity refers to the extent of detail within the information.

*Employees must be able to correlate the different levels, formats, and granularities.

*Figure below displays types of information found in organizations.   

Successful collecting, compiling, sorting, and finally analysing information from multiple levels in varied formats, exhibiting different granularity can provide tremendous insight into how an organization is performing.

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION.

Transactional information- encompasses all of the information contained within a single business process or unit of work and its primary purpose is to support the performing of daily operational tasks.

~example : withdrawing cash from an ATM.

Analytical information- encompasses all organizational information and its primary purpose is to support the performing of managerial analysis tasks and include transactional information with other information such as market and industry  information.

~example : trends, sales, products, statistics, and future growth projections.

 Figure above shows different types of transactional and analytical information.

THE VALUE OF TIMELY INFORMATION

*The important of timely information can change each business decision.

*Real-time information –immediate , up-to-date information

*Real-time systems – provide real-time information in response to query requests.

#Many organizations use real-time systems to exploit key corporate transactional information.

THE VALUE OF QUALITY INFORMATION

^Business decisions are only as good as the quality of the information used if it was to remain competitive decision.

^Figure below show five characteristics common to high quality information : accuracy, completeness, consistency, uniqueness and timeliness.

The several issues with low-quality information including:

·         Missing information

·         Incomplete information

·         Duplication information

·         Wrong information

·         Inaccurate information

The four sources of low-quality information are:

• Online customers intentionally enter inaccurate information to protect their privacy.
• Different systems 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.

UNDERSTANDING THE COSTS OF POOR INFORMATION

Bad information can cause serious business ramifications such as:

§- Inability to accurately track customers that affects CRM and SCM

§- Difficulty identifying the organization’s most valuable customers.

§- Inability to identify selling opportunities and wasted revenue from marketing to nonexisting customers and nondeliverable mail.

§- Difficulty tracking revenue because of inaccurate invoices .

§- Inability to build strong relationship with customers.

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

• High quality information improve the chances of making a good decision
• Increase an organization’s  bottom line.
• High quality information to make solid strategic business decision.

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