CHAPTER 6 : VALUING ORGANIZATIONAL 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 to know. We must ensure 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.

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.Organizations capture and store transactional information in databases and use it when performing operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules

•Transactional information 

·   examples include withdrawing cash from an ATM, making an airline reservation, purchasing stocks

·   Compile a list of additional transactional information examples

·   These could include daily sales, hourly employee payroll, product orders, shipping an order

•Analytical information

·   includes transactional information

·   Analytical information also includes external organizational information such as market, industry, and economic conditions

·   Analytical information is used to make ad-hoc decisions

·   Analytical information examples include trends, sales, product statistics, and future growth projections

·   Compile a list of additional analytical information examples

·   These could include cost/benefit analysis, sales forecast, market trends, industry trends, and regulations

·   •Ask your students to compile a list of the different types of ad-hoc decisions a business might base on analytical information

·   These could include building a new plant, hiring or reducing workforces, introducing a new product

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.

THE VALUE OF TIMELY INFORMATION

·        

•  Real-time information – immediate, up-to-date information
•  Real-time system – provides real-time information in responses to query requests

       Business decisions are only as good as the quality of the information used to make the decisions.

You never want to find yourself using to help you make a bad decision faster.