Friday, March 7, 2014

CHAPTER SIX - VALUING ORGANIZATIONAL INFORMATION



ORGANIZATIONAL INFORMATION

Information granularity refers to the extent of detail within the information (fine and detailed or coarse and abstract).


Levels, Formats, and Granularities of Organizational Information


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 requests.

Transactional versus Analytical Information


THE VALUE OF QUALITY INFORMATION

Five Common Characteristics of High-Quality Information

The four primary 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 cost of poor information
-          Inability to accurately track customers, which directly affects strategic initiatives such as CRM and SCM.
-          Difficulty identifying the organization's most valuable customers.
-          Inability to identify selling opportunities and wasted revenue from marketing to nonexistent customers and no deliverable mail.
-          Difficulty tracking revenue because of inaccurate invoices.
-          Inability to built strong relationship with customers-which increases buyer power.

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