MGT 300

IT in BUSINESS

PN. INTAN LIANA SUHAIME

 Chapter 6

Valuing Organizational Information

 Learning Outcomes

6.1 Describe the broad levels, formats,

and granularities of information

6.2 Differentiate between transactional an

d 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 infor

mation on an organization and the bene
fits of high quality information on an orga
nization
 Organizational Information

Information is everywhere in an organization

Employees must be able to obtain and analyze t

he many different levels, formats, and granulariti
es of organizational information to make decisio
ns

Successfully collecting, compiling, sorting, and a

nalyzing information can provide tremendous ins
ight into how an organization is performing
 Organizational Information

Levels, formats, and granularities of organ

izational information
 The Value of Transactional and Analytical
Information

Transactional information verses analytical information

 The Value of Timely Information

Timeliness is an aspect of information that

depends on the situation
Real-time information immediate, up-to-da
te information
Real-time system provides real-time inform
ation in response to query requests
 The Value of Quality Information

Business decisions are only as good as the quali

ty of the information used to make the decisions

You never want to find yourself using technology

to help you make a bad decision faster
 The Value of Quality Information

Characteristics of high-quality information i

nclude:
Accuracy
Completeness
Consistency
Uniqueness
Timeliness
 Accuracy

Are all the values correct? For exa

mple, is the name spelled correctl
y? Is the dollar amount recorded
properly?
 Consistency

Is aggregate or summary infor

mation in agreement with det
ailed information?
For example, do all total fields
equal the true total of the indiv
idual fields?
 Uniqueness

Is each transaction, entity, and ev

ent represented only once in the
information?
For example, are there any duplic
ate customers?
 Timeliness

Is the information current with resp

ect to the business requirements?
For example, is information updat
ed weekly, daily, or hourly?
 The Value of Quality Information

Low quality information example

 Understanding the Costs of
Poor Information

The four primary sources of low quality info

rmation include:
1. Online customers intentionally enter inaccurate
information to protect their privacy
2. Information from different systems have differe
nt entry standards and formats
3. Call center operators enter abbreviated or erro
neous information by accident or to save time
4. Third party and external information contains in
consistencies, inaccuracies, and errors
 Understanding the Costs of
Poor Information

Potential business effects resulting from lo

w 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 in
voices
Inability to build strong customer relationships
 Understanding the Benefits of
Good Information

High quality information can significantly i

mprove the chances of making a good dec
ision

Good decisions can directly impact an org

anization's bottom line
THANK YOU
 Learning Outcomes

4.1 Compare efficiency IT metrics and effecti

veness IT metrics

4.2 List and describe five common types of e

fficiency IT metrics