1. Valuing Organizational Information
CHAPTER 6
Valuing Organizational Information

2. Learning Outcomes
Describe the broad levels, formats, and granularities of information
Differentiate between transactional and analytical information
List, describe, and provide an example of each of the five characteristics of high-quality information
Assess the impact of low-quality information on an organization and the benefits of high-quality information on an organization

3. Overview
Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions

4. Transaction information examples
withdrawing cash from an ATM
making an airline reservation
purchasing stocks
shipping an order
daily sales
employee payroll
its primary purpose is to
support the performing of daily operational tasks

5. Analytical information examples
cost/benefit analysis
sales forecast
market trends
includes transaction information,
external organizational information
its primary purpose is to
support the performing of managerial analysis tasks

6. ad-hoc decisions a business might base on analytical information
building a new plant
hiring or reducing workforces
introducing a new product

7. The Value of Timely Information
Timeliness is an aspect of information that depends on the situation
Real-time information – means immediate, up-to-date information
Real-time systems – provide real-time information in response to query requests
Real-time systems can help organizations make faster and more effective decisions

8. The Value of Quality Information

9. Low-quality information example

10. The four primary sources of low-quality information
Online customers intentionally enter inaccurate information to protect their privacy
Information from different systems that 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

11. Potential business effects resulting from low-quality information
Inability to accurately track customers
Difficulty identifying valuable customers
Inability to identify selling opportunities
Marketing to nonexistent customers
Difficulty tracking revenue due to inaccurate invoices
Inability to build strong customer relationships – which increases buyer power

12. The Benefits of High-Quality Information
High-quality information can significantly improve the chances of making a good decision
Good decisions can directly impact an organization's bottom line

13. Opening Case Questions: Searching for Revenue - Google
Determine if Google’s search results are examples of transactional information or analytical information
Describe the ramifications on Google’s business if the search information it presented to its customers was of low-quality
Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business
Explain how the Web site RateMyProfessors.com solved its problem of low-quality information