Chapter 6
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.
TRANSACTIONAL
INFORMATION
There
are hundreds of transactions that go through organizations every day. The
result of these transactions is transactional information. Transactional
information is all the information contained within a business unit. The
primary purpose of transactional information is to support day-to-day
operations of the unit. Examples of transactional information include: sales
receipt, packing slip, purchase confirmation, etc. So transactional information
is the result of performing daily operating tasks. In addition, every time a
cash register rings up a sale, a deposit or withdrawal is made from an ATM, or
a receipt is given at the gas pump, capturing and storing of the transactional
information are required.
Databases that can handle
transactions are known as transactional databases. The main purpose of a
database is to ensure accuracy and integrity of information.
ANALYTICAL
INFORMATION
In contrast to transactional information,
analytical information is used for managerial analysis decision making. People
who are higher up in the hierarchy of the company usually do not need all the
details of transactional information. They need the bigger picture. Here is
where analytical information is used. An example of analytical information is
used. An example of analytical information is a report on monthly sales.
Examples
of analytical information
ü Trends ( information about where the
particular market is heading and if the organization should follow the trend)
ü Sales ( information about if the organization
needs to pick up sales in a particular area or if it should cut back on
inventory of specific products)
ü Future growth projections ( information about
whether or not the company looks like it will grow, usually if it is taking on
a new venture)
UNDERSTANDING
THE COSTS OF POOR INFORMATION
The four primary sources of low
quality information include:
1. Online customers intentionally enter
inaccurate information to protect their privacy
2. Information from different systems have
different entry standards and formats
3. Call center operators enter abbreviated or
erroneous information by accident
4. Third
party and external information contains inconsistencies, inaccuracies
Bad
information can cause serious business ramifications such as :
1. Loss Of Managerial Control
2. Hidden Cost
3. Threat to Security and Confidentiality
4.
Quality problems
5. Tied to the Financial Well-Being of Another
Company
6. Bad publicity
UNDERSTANDING
THE BENEFITS OF GOOD INFORMATION
Why
is Information Technology Important
All
our work related applications are now completely automated, thanks to the IT
sector. IT professionals are people involved in essential management of
sensitive data, exclusive computer networking and systems-engineering. The
advancement of the IT sector has resulted in automated :
- Administration of entire systems.
- Production and manipulation of sensitive information.
- Cultural development and communication.
- Streamlining of business processes and timely upgrades.
ADVANTAGES OF INFORMATION TECHNOLOGY
•
Globalization
True
globalization has come about only via this automated system. The creation of
one interdependent system helps us to share information and end linguistic
barriers across the continents. The collapse of geographic boundaries has made
the world a 'global village'. The technology has not only made communication
cheaper, but also possible much quicker and round the clock. The wonders of
text messages email and auto-response, backed by computer security
applications, have opened up scope for direct communication.
•
Cost-effective
Computerized,
internet business processes have made many businesses turn to the Internet for
increased productivity, greater profitability, clutter free working conditions
and global clientèle. It is mainly due to the IT industry that businesses have
been able to make their processes more streamlined, thereby becoming more
cost-effective and consequently more profitable. People are able to operate
their businesses 24x7, even from remote locations only due to the advent of information
technology.
•
Communication
Quick
and effective communication is vital to any business anywhere in the world.
Information technology gives an entrepreneur or business the tools, like email,
video conferencing, SMS, etc., essential to communicate efficiently and
effectively. to the business world, and information technology gives your
company the resources it needs to communicate quickly and effectively. Not only
do people connect faster with the help of information technology, but they are
also able to identify like-minded individuals and extend help, while
strengthening ties.
•
Storing and Protecting Information
IT
provides a low-cost business options to store and maintain information that may
be important from a business or service point of view. Virtual vaults and other
such security systems not only store vital data but also allow control over the
access to such information. IT security systems will also protect virtual data
from being hacked or wiped out in case of any technical failure.
•
Creation of New Jobs
One
of the biggest advantages of IT has been the creation of a whole new field of
opportunity for skilled personnel leading to new and interesting jobs. Hardware
and software developers, computer programmers, web designers, system analyst,
the list of new jobs created could go on. IT has also been attributed to be the
major cause of surge in the economies of certain Third World nations too.