Kuala Lumpur TimeUiTM KAMPUS BANDARAYA JOHOR BAHRU, JOHOR
MGT300
(INFORMATION TECHNOLOGY IN BUSINESS)
INDIVIDUAL ASSIGNMENT
CHAPTER 6: VALUING ORGANIZATION INFORMATION
NAME : NUR KHAIRIYAH BINTI MUNIT
METRIC NUMBER : 2010852208
GROUP : J3BM1114C
LECTURER’S NAME :SYED MAZLAN BIN SYED MAT DOM
DATE OF SUBMISSION: 27th JANUARY 2012
CONTENTS
1.0 Summary………………………………………………………. 3
2.0 Organizational Information ……………………………………………………………….. 4
2.1 Information Granularity ………………………………………. 4
3.0 Type of Value in Organizational Information ………………………………………………. 5
3.1 The Value of Transactional …………………………………………………….. 5
3.2 The Value of Analytical Information ……………………………………….. 8
3.3 The Value Timely Information ………………………………………………… 10
3.4 The Value of Quality Information ………………………………………. 11
4.0 The Cost of Poor Information …………………………………………………… 13
5.0 The Benefit of Good Information ……………………………………………………….. 14
6.0 References ……………………………………………………………………………….. 15
1.0 SUMMARY
Organizational Information theory says the one of the goals of any organization is to take any vague and confusing information and make it make sense to those that don’t understand the message being presented. The members of these organizations do this thru a process of enactment, selection, and retention of information. When an organization is able to take information that is unclear to some and make it make sense to all, it has achieved its goal in its communication processing.
There are four types of value in organizational information which are transactional, analytical, timely and quality of 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. Therefore, transactional information is the result of performing daily operating tasks.
Analytical information is used for managerial analysis and decision making. People who are higher up in the hierarchy of the company usually do not need all the details of transactional information. Whereas, timely information and quality information are the important things in organization to make sure that the organization’s goal achieved and success.
2.0 ORGANIZATIONAL INFORMATION
Information is everywhere in organization. Organizational information comes at different levels and in different formats and “granularities”. According to Pendse (2008), information needs vary with level in hierarchy. At higher levels, the information required is highly summarized, has higher granularity, lesser frequency of reporting, higher external content and needs to be accurate but need not be very precise.
Employees must be able to correlate he different levels, format and granularities of information when making decision. Successfully collecting, compiling, sorting, and finally analyzing information from multiple levels, exhibiting granularity can provide tremendous insight into how organization information can yield exciting and unexpected results such as potential new markets, new ways of reaching customers, and even new ways of doing business.
2.1 Information Granularities
The granulation structures used by standard rough set theory and the corresponding approximation structures are reviewed. Hierarchical granulation and approximation structures are studied, which results in stratified rough set approximations.
3.0 THE TYPE OF VALUE IN ORGANIZATIONAL INFORMATION
3.1 The Value of 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 with 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.
Organizations capture and store transactional information in databases, and they use it when performing operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules to determine how much inventory to carry. Therefore, transactional information is the result of performing daily operating tasks.
:: THE EXAMPLES OF TRANSACTIONAL INFORMATION ::
Figure 1.0
Figure 1.13.2 The value of Analytical Information
Analytical information encompasses all organizational information. Its purpose is to support the performing of managerial analysis tasks. It is also information that can be quantitative or qualitative and is used for decision making specifically decisions and tasks of managers.
Analytical information includes transactional information along with other information such as market and industry information. There are many examples of analytical information, such as trends, sales, product statistics, and future growth projections. The sample of analytical information can be shown at Figure 1.2 and Figure 1.3 below.
Analytical information can be the first step to becoming one of the many analyzing tools that managers and executives use to make decision.
Analyzing tools that use analytical information:
1) CLUSTER ANALYSIS
· Technique used to divide information set into mutually exclusive groups that the members of each group as close together as possible to one another and the different groups are as far apart as possible.
· Frequently used to segment customer information for customer relationship management systems to help organizations identify customers with similar behavior traits.
2) MARKET BASKET ANALYSIS
· Analyzes information from websites and checkouts and manipulates.
· Useful for forecast how much inventories the organization may need or may not need.
· Market basket analysis gives clues as to what a customer might have bought if the idea had occurred to them.
3) PERSONALIZATION
· Similar to Market Basket Analysis but uses the information obtained from a customer online to find out what the customer likes.
· Useful because creates more revenue and sell more product.
:: THE EXAMPLES OF ANALYTICAL INFORMATION ::
Figure 1.2
Figure 1.3
3.3 The Value Timely Information
The need for timely information can change for each business decision. Some decision requires weekly or monthly information while other decisions require daily information. Timeliness is an aspect of information that depends on the situation. In some industries, information that is a few days or weeks old can be relevant while in other industries information that is a few minutes old can be almost worthless.
REAL-TIME INFORMATION
· Real-time information is defined as immediate, up-to-date information
· Many organizations use real-time systems to exploit key corporate transactional information.
· With Real-time information, the information must also need to be timely in the sense that it meets employee needs.
· The growing demand for real-time information stems from organizations’ need to make faster and more effective decisions, keep smaller inventories, operate more efficiently, and track performance more carefully.
· If employee can absorb information only an hourly or daily basis, there is no need to gather real-time information in smaller increments.
· Most people request real-time information without understanding the continual change which is the one of the biggest pitfalls associated with real-time information.
· The timeliness of the information required must be evaluated for each business decision. Organizations do not want to find themselves using real-time information to make a bad decision later.
3.4 The value of Quality Information
Information from the organization must show the best quality for its customers as to look good image to them. Business decisions are only as good as the quality of the information used to make the decision in organization.
Westpac Financial Services (WFS), one of the four major banks in Australia serves millions of customers from its many core systems, each with its own database. The database maintains information and provides users with easy access to the stored information. Unfortunately, the company failed to develop information-capturing standards, which led to inconsistent organizational information. WFS had to solve its information quality problems immediately if it was to remain competitive. Customer service ratings are on the rise for WFS now that the company can operate its business with a single and comprehensive view of each one of its customers.
There are five characteristics common high quality of information which are accuracy, completeness, consistency, uniqueness, and timeliness.
1) Accuracy:
· Are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly?
2) Completeness:
· Are any of the values missing? For example, is the address complete including street, city, state, and zip code?
3) Consistency:
· Is aggregate or summary information in agreement with detailed information? For example, do all total fields equal to the true total of individual fields?
4) Uniqueness:
· Is each transaction, entity, and event represented only once in the information? For example, are there any duplicate customers?
5) Timeliness:
· Is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly?
:: THE EXAMPLES OF LOW QUALITY AND HIGH QUALITY INFORMATION ::
Figure 1.4: Low quality of data information
Figure 1.5: High quality of data information
4.0 THE COST OF POOR INFORMATION
Poor data quality often has a greater effect on companies than they realize. In most cases, the costs associated with poor data quality are not only ignored but subsumed into the overall category of the cost of doing business. Bad information can cause serious business ramifications such as:
5.0 THE BENEFITS OF GOOD INFORMATION
High quality information can significantly improve the chances of making a good decision and directly increase an organization’s bottom line. High quality information does not automatically guarantee that every decision made is going to be a good one, since people ultimately make decision. However, such information confirms that the basis of the decisions is accurate. The success of the organization depends on appreciating and leveraging the true value of timely and high quality information.
6.0 REFERENCES
Baltzan, P., Philips, A., & Haag, S. (2006). Business driven technology. (3rd ed.). New York, NY: The McGraw-Hill Companies.
Computer business research. (n.d.). Retrieved from http://sites.google.com/site/b188sjsu/Home/database/transactional-information
Hungerford, M. Defining information quality. (p. 24). Retrieved from http://www.infoimpact.com/IQBook/Ch2-Book-Defining_Info_Quality.pdf
O'Brien, J., & Marakas, G. (2008). Introduction to Information System. (14 ed.). New York: McGraw-Hill.
Pendse, P. H. (2008). Business analysis. (p. 26). New Delhi: Prentice-Hall of India Ptd Ltd.
