Post on 29-Jan-2016
McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved
UNIT TWO
Exploring Business Intelligence
6-2
UNIT TWO
• Chapter Six – Valuing Organizational Information
• Chapter Seven – Storing Organizational Information—Databases
• Chapter Eight – Accessing Organizational Information—Data Warehouse
McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved
CHAPTER 6
Valuing Organizational Information
6-4
LEARNING OUTCOMES
6.1 Describe the broad levels, formats, and granularities of information
6.2 Differentiate between transactional and analytical information
6-5
LEARNING OUTCOMES
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
6-6
ORGANIZATIONAL INFORMATION
• 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
6-7
ORGANIZATIONAL INFORMATION
• Levels, formats, and granularities of organizational information
6-8
THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION • Transactional information verses analytical
information
6-9
THE VALUE OF TIMELY INFORMATION
• Timeliness is an aspect of information that depends on the situation– Real-time information – immediate, up-to-
date information– Real-time system – provides real-time
information in response to query requests
6-10
THE VALUE OF QUALITY INFORMATION
• Business decisions are only as good as the quality of the information used to make the decisions
• You never want to find yourself using technology to help you make a bad decision faster
6-11
THE VALUE OF QUALITY INFORMATION
• Characteristics of high-quality information include:
6-12
THE VALUE OF QUALITY INFORMATION
• Low quality information example
6-13
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 privacy2. Information from different systems have
different entry standards and formats3. 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
6-14
Understanding the Costs of Poor Information
• Potential business effects resulting from low quality information include:– 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
6-15
Understanding the Benefits of
Good Information • High quality information can significantly
improve the chances of making a good decision
• Good decisions can directly impact an organization's bottom line
6-16
OPENING CASE STUDY QUESTIONSIt Take A Village to Write an Encyclopedia
1. Determine if an entry in Wikipedia is an example of transactional information or analytical information
2. Describe the impact to Wikipedia if the information contained in its database is of low quality
3. Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia
4. Explain how Wikipedia is resolving the issue of poor information
6-17
CHAPTER SIX CASEPolitical Microtargeting: What Data Crunchers Did
for Obama
• The word data was spoken within three minutes of President Obama’s inauguration speech
• Capturing and analyzing data was crucial to Obama's campaign strategy
• Throughout Obama’s campaign he identified potential swing voters to help win the election
6-18
CHAPTER SIX CASE QUESTIONS
1. Describe the difference between transactional and analytical information and determine which types Spotlight used to identify its 10 tribes
2. Explain the importance of high quality information for political microtargeting
3. Review the five common characteristics of high quality information and rank them in order of importance for political microtargeting.
6-19
CHAPTER SIX CASE QUESTIONS
4. In terms of political microtargeting explain the following sentence: It is never possible to have all of the information required to make a 100 percent accurate prediction
5. Do you agree that political microtargeting signals the dehumanization of politics?