Information is everywhere in an organization. Organization information comes at different levels and in different formats and "granularities". Information granularity refers to the extent of detail within the information ( fine and detailed or coarse and abstract ). Employees must be able to correlate the different level, format and granularities of information when making decision.
Successfully collecting, compiling, sorting and finally analyzing information from multiple level, in varied formats, exhibiting different granularity can provide tremendous insight into how an organization is performing. Taking a hard look at organizational information can yield exciting and unexpected result such as potential new markets, new ways of reaching customer, and even new ways of doing business.
Level, Formats And Granularities Of Organization Information
THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION
- Transactional Information
- Encompasses all 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. Organization capture and store transactional information in database, and they use it when performing operational tasks and repetitive decision such as analyzing daily sales reports and production schedule to determine how much the inventory to carry.
- Example : Withdrawing cash from an ATM
- Analytical Information
- Encompasses all organization information, and its primary purpose is to support the performing of managerial analysis task. Analytical information includes transactional information along with other information such as market and industry information.
- Example : Trends, sales, product statistic and future growth project.
Transactional Versus Analytical Information
THE VALUE OF TIMELY INFORMATION
Real-time information means immediate, up-to-date information. Real-time system provide real-time information in response to query requests. Many organization use real-time system to exploit key corporate transactional information.
THE VALUE OF QUALITY INFORMATION
Five Common Characteristics Of High-Quality Information
UNDERSTANDING THE COSTS OF POOR INFORMATION
- Inability to accurately track customers, which directly affects strategic initiatives such as CRM and SCM
- Difficulty identifying the organization's most value customer.
- Inability to identify selling opportunities and wasted revenue from marketing to nonexisting customers and nondeliverable mail
- Difficulty tracking revenue because of inaccurate invoices.
- Inability to build strong relationship with customer - which increase buyer power.
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