1. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-1 BUSINESS DRIVEN TECHNOLOGY UNIT 2: Managing Information for Business Initiatives OPENING CASE Searching for Revenue - Google

2. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-2 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

3. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-3 BUSINESS DRIVEN TECHNOLOGY Chapter Six: Valuing Organizational Information

4. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-4 LEARNING OUTCOMES 6.1Describe 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 6.4Assess the impact of low-quality information on an organization and the benefits of high-quality information on an organization

5. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-5 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

6. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-6 CHAPTER SIX OVERVIEW Levels, Formats, and Granularities of Information

7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-7 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

8. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-8 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

9. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-9 THE VALUE OF TIMELY INFORMATION Real-time systems can help organizations make faster and more effective decisions

10. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-10 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

11. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-11 THE VALUE OF QUALITY INFORMATION Five common characteristics of high-quality information

12. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-12 THE VALUE OF QUALITY INFORMATION Low-quality information example

13. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-13 THE VALUE OF QUALITY 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 that have different information entry standards and formats 3.Call center operators enter abbreviated or erroneous information by accident or to save time 4.Third party and external information contains inconsistencies, inaccuracies, and errors

14. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-14 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

15. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-15 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

16. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-16 OPENING CASE STUDY QUESTIONS Searching for Revenue - Google 1.Determine if Google’s search results are examples of transactional information or analytical information 2.Describe the ramifications on Google’s 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 Google’s business 4.Explain how the Web site RateMyProfessors.com solved its problem of low-quality information

17. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-17 CHAPTER SIX CASE Fishing for Quality Alaska’s Department of Fish and Game requires high- quality information to manage the state’s 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

18. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-18 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