BUSINESS DRIVEN TECHNOLOGY

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BUSINESS DRIVEN TECHNOLOGY UNIT 2 Managing
Information for Business Initiatives OPENING
CASE Searching for Revenue - Google
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Unit Two

• The chapters in this unit include
• Chapter Six Valuing Organizational Information
• Chapter Seven Storing Organizational
  Information - Databases
• Chapter Eight Viewing and Protecting
  Organizational Information

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BUSINESS DRIVEN TECHNOLOGY Chapter Six Valuing
Organizational Information
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LEARNING OUTCOMES

• 6.1 Describe the broad levels, formats, and
  granularities of information
• 6.2 Differentiate between transactional and
  analytical information
• 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 information
  on an organization and the benefits of
  high-quality information on an organization

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CHAPTER SIX OVERVIEW

• Information is everywhere in an organization
• Employees must be able to obtain and analyze the
  many different levels, formats, and granularities
  of organizational information to make decisions
• Successfully collecting, compiling, sorting, and
  analyzing information can provide tremendous
  insight into how an organization is performing

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CHAPTER SIX OVERVIEW

• Levels, Formats, and Granularities of Information

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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

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THE VALUE OF TIMELY INFORMATION

• Timeliness is an aspect of information that
  depends on the situation
• Real-time information means immediate,
  up-to-date information
• Real-time systems provide real-time information
  in response to query requests

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THE VALUE OF TIMELY INFORMATION

• Real-time systems can help organizations make
  faster and more effective decisions

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THE VALUE OF QUALITY INFORMATION

• Business decisions are only as good as the
  quality of the information used to make the
  decisions
• The five characteristics of high-quality
  information include
• Accuracy
• Completeness
• Consistency
• Uniqueness
• Timeliness

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THE VALUE OF QUALITY INFORMATION

• Five common characteristics of high-quality
  information

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THE VALUE OF QUALITY INFORMATION

• Low-quality information example

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THE VALUE OF QUALITY INFORMATION

• The four primary sources of low-quality
  information include
• Online customers intentionally enter inaccurate
  information to protect their privacy
• Information from different systems that have
  different information entry standards and formats
• Call center operators enter abbreviated or
  erroneous information by accident or to save time
• Third party and external information contains
  inconsistencies, inaccuracies, and errors

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Understanding the Costs of Low-quality
Information

• Potential business effects resulting from
  low-quality information
• 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
  which increases buyer power

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Understanding the Benefits of High-Quality
Information

• High-quality information can significantly
  improve the chances of making a good decision
• Good decisions can directly impact an
  organization's bottom line

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OPENING CASE STUDY QUESTIONSSearching for
Revenue - Google

1. Determine if Googles search results are examples
   of transactional information or analytical
   information
2. Describe the ramifications on Googles business
   if the search information it presented to its
   customers was of low-quality
3. Review the five common characteristics of
   high-quality information and rank them in order
   of importance to Googles business
4. Explain how the Web site RateMyProfessors.com
   solved its problem of low-quality information

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CHAPTER SIX CASEFishing for Quality

• Alaskas Department of Fish and Game requires
  high-quality information to manage the states
  natural resources, specifically to increase
  fishing yields, while ensuring the future of many
  species
• Using fish counts the department makes daily
  decisions as to which districts will be open or
  closed to commercial fishing
• Allowing too many fish to be caught before they
  swim upstream to spawn could diminish fish
  populations yielding devastating effects for
  years to come

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CHAPTER SIX CASE QUESTIONS

1. Describe the difference between transactional and
   analytical information and determine which type
   the Alaska Department of Fish and Game is using
   to make decisions
2. Explain the importance of high-quality
   information for the Alaska Department of Fish and
   Game
3. Review the five common characteristics of
   high-quality information and rank them in order
   of importance for the Alaska Department of Fish
   and Game