CHAPTER 6
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
Transaction information verses analytical information
The Value of Timely Information
qTimeliness is an aspect of information that depends on the situation
Á Real-time information – immediate, up-to-date information
Á Real-time system – provides real-time information in response to query requests
Á Business decisions are only as good as the quality of the information used to make the decisions
Á You never want to find yourself using technology to help you make a bad decision faster
Understanding the Costs of Poor Information
The four primary sources of low quality information
1.Online customers intentionally enter inaccurate information to protect their privacy
2.Information from different systems have different entry standards and formats
3.Call center operators enter abbreviated or erroneous information by accident or to save time
4.Third party and external information contains inconsistencies, inaccuracies, and errors
Potential business effects resulting from low quality information
qInability to accurately track customers
qDifficulty identifying valuable customers
qInability to identify selling opportunities
qMarketing to nonexistent customers
qDifficulty tracking revenue due to inaccurate invoices
qInability to build strong customer relationships
Understanding the Benefits of Good Information
Á High quality information can significantly improve the chances of making a good decision
Á Good decisions can directly impact an organization's bottom line
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