Managing Information for Business Initiatives Unit Two Managing Information for Business Initiatives
Unit Two Chapter Six – Valuing Organizational Information Chapter Seven – Storing Organizational Information – Databases Chapter Eight – Accessing Organizational Information – Data Warehouse
Valuing Organizational Information Chapter 6 Valuing Organizational Information
Learning Outcomes 6.1 Describe the broad levels, formats, and granularities of information 6.2 Differentiate between transactional and analytical information
Learning Outcomes 6.3 List, describe, and provide an example of each of the five characteristics of high quality information 6.4 Assess the impact of low quality information on an organization and the benefits of high quality information on an organization
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
Organizational Information Information granularity – refers to the extent of detail within the information (fine and detailed or coarse and abstract) Levels Formats Granularities
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 Timeliness is an aspect of information that depends on the situation Real-time information – immediate, up-to-date information Real-time system – provides real-time information in response to query requests
The Value of Timely Information Real-time systems help organizations make faster and more effective decisions
The Value of Quality Information Business decisions are only as good as the quality of the information used to make the decisions The five characteristics of high quality information include: Accuracy Completeness Consistency Uniqueness Timeliness
The Value of Quality Information Characteristics of high-quality information include: Accuracy Completeness Consistency Uniqueness Timeliness
The Value of Quality Information Low quality information example
Understanding the Costs of Poor Information The four primary sources of low quality information include: Online customers intentionally enter inaccurate information to protect their privacy Information from different systems have different 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 Potential business effects resulting from low quality information include: 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
Understanding the Benefits of Good Information High quality information can significantly improve the chances of making a good decision Good decisions can directly impact an organization's bottom line
OPENING CASE STUDY QUESTIONS It Take A Village to Write an Encyclopedia Determine if an entry in Wikipedia is an example of transactional information or analytical information Describe the impact to Wikipedia if the information contained in its database is of low quality Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia Explain how Wikipedia is resolving the issue of poor information
CHAPTER SIX CASE Fishing for Quality Alaska’s Department of Fish and Game requires high quality information to manage the state’s natural resources, specifically to increase fishing yields, while ensuring the future of many species Using fish counts the department makes daily decisions as to which districts will be open or closed to commercial fishing Allowing too many fish to be caught before they swim upstream to spawn could diminish fish populations – yielding devastating effects for years to come
Chapter Six Case Questions Describe the difference between transactional and analytical information and determine which type the Alaska Department of Fish and Game is using to make decisions Explain the importance of high quality information for the Alaska Department of Fish and Game
Chapter Six Case Questions Review the five common characteristics of high quality information and rank them in order of importance for the Alaska Department of Fish and Game Do the managers at the Alaska Department of Fish and Game actually have all of the information they require to make an accurate decision? Explain the statement “it is never possible to have all of the information required to make the best decision possible”