CHAPTER 6: VALUING ORGANIZATIONS INFORMATION

CHAPTER 6: VALUING ORGANIZATIONAL INFORMATION

QUESTION FROM THIS CHAPTER:

• 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

ORGANIZATIONAL INFORMATION

• Organizational information comes at different levels and in different formats and granularities. 
• Information granularities refers to the extent of details within the information. The organizational must know what kind of information that they want for. 
• Make sure the information gives the best quality or high quality for that organizational itself.

• Employees must be able to differentiate the levels of the information, formats, and granularities of information when making a decision. 
• If the employees can knows how to use the information with different levels of information or format then, the information can be a values to the sender or receiver of the information.
• Successfully collecting, compiling, sorting, and finally analyzing information from multiple levels, in varied formats, exhibiting different granularity can provide tremendous insight how an organization is performing.

Differentiate between transactional and analytical information:

TRANSACTIONAL INFORMATION

• Encompasses all of the information contained within a single business processes or unit of work and its primary purpose is to support the performing of daily operational tasks.

• Any documentation about the information. Example: The receipt purchase by the customer.

• All the information will enter in the database and will correlate.

• The organizational need that information in database to make a decision.

ANALYTICAL INFORMATION

• Encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks.

• From the transactional information, the organizational can get the analytical information. For example, when comes to Ramadhan, the organizational looks the previous database Ramadhan to give more promotional to customer.

• Any kind of information must have timing information because we want to look whether the information still can use in the effective time or not.

All the information have a timing information. For example, Real-time information means immediate up-to-date information. And this kind of information are not always constant because it's always keep up-to-date.

List, describe and provide an example of each of the five characteristics of high quality information:

UNDERSTANDING THE COSTS OF POOR INFORMATION:

The four primary sources of low quality information include:

Poor Information

Poor information happened when some of the information are not completed or missing and this make the information are not accurate, inability to track customers. With the poor information, its difficult for the organizational to make a right decision because of poor information happened.

High Information

High quality of information can significantly improve the chances of making a good decision and directly increase an organization's bottom line. But if the organizational have high quality information, that's not guarantee that can make a good decision because obviously people ultimately make decisions. So, if the organizational have a high quality of information but the people in the organizational do not use the information accurately, it will be nothing.