CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION

Assalamualaikum. Today I will explain about the value of the information in the organization.

1. 1.      ORGANIZATIONAL INFORMATION

Organizational information comes at different levels and in different formats and granularities.

INFORMATION GRANULARITIES: to the extent of details within the information. The organizational must know what kind of information that they want for as to make sure the information gives the best quality or high quality for that organizational itself.

For example, 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 values to the sender or receiver of the information.

• ·         Information levels (above): individual department, enterprise
• ·         Information formats (middle): document, presentation, spreadsheet, database
• ·         Information granularities (below): detail (fine), aggregate(course)

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.

After understanding the different levels, formats and granularities of information, it is important to look at a few additional characteristics that help determine the value of information which are called TRANSCATIONAL INFORMATION AND ANALYTICAL INFORMATION.

1. 2.      THE VALUE OF TRANSACTIONAL INFORMATION AND ANALYTICAL INFORMATION.

                    i.            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: sales receipt, withdrawing cash from an ATM, and purchasing stock.

·         All the information will store in the database.

·         The organizational need that information in database to make a decision for the future action such as they want to determine how much inventory to carry.

                  ii.            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, trends, sales, and product statistics .

·     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.

1. 3.      THE VALUE OF TIMELY INFORMATION

All the information has timing information such as a few days, weekly or monthly. 

                    i.            Real-time information: immediate, up-to-date information. These kinds of information are not always constant because it’s always kept up-to-date.

                  ii.            Real-time system :  provide real time information in response to query request

                iii.            Timeliness: an aspect of information that depends on the situation

1. 4.      THE VALUE OF QUALITY INFORMATION

§  5 common characteristics of high quality information:

§  4 primary sources of low quality information.

                                            i.            Online customers intentionally enter inaccurate information to protect their privacy

                                          ii.            Different systems have different information entry standards and formats

                                        iii.            Call center operators enter abbreviated or erroneous information by accident or to save time

                                        iv.            Third party and external information contains inconsistencies, inaccuracies and errors

Poor Information

Poor information happened when some of the information is not completed or missing and this make the information is not accurate. the effects are

• It will be wasting the time, money and reputations.
• It’s difficult for the organizational to make a right decision 

• 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

Benefits of High Quality Information

•         i.            Significantly improve the chances of making a good decision
•       ii.            Directly increase an organization's bottom line.
•     iii.            It can save time, money and reputations.

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.

thanks youuu....