CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION

ORGANIZATIONAL INFORMATION
 * information granularity refers to extent of detail within information ( fine and detailed or coarse and abstract)

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
* Analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks

THE VALUE OF TIMELY INFORMATION 

* REAL- TIME INFORMATION means immediate , up-to-date information.
* REAL- TIME SYSTEMS provide real-time information in response to query request.

THE VALUE OF QUALITY INFORMATION

UNDERSTANDING THE COSTS OF POOR INFORMATION

• Using the wrong information can lead to making the wrong decision.
• Making the wrong decision can cost time, money and even reputations.
• Bad information can cause serious business ramifications such as :

       1) Inability to accurately track customers , which directly affects strategies initiatives such as CRM and SCM

2)Difficulty identifying the organization's most valuable customers.

3) Inability to identify selling opportunities and wasted revenue from marketing to none existing customers and non deliverable mail

4) Difficulty tracking revenue because of inaccurate invoices.

5) Inability to build strong relationship with customers- which increases buyer power

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

• High quality information can significantly improve the chances of making a good decision and directly increase am organization's bottom line.