ERP/U1 Topic 4 Characteristics and Value of information in enterprise
Information needs to be of high quality to be useful and accurate. The information that is input into a data base is presumed to be perfect as well as accurate. The information that is accessed is deemed reliable. Flaws do arise with database design but do not let something in your control, accurate and reliable data, be one of them. A database design that is accurate and reliable will help achieve the development of new business ideas as well as promoting the organizational goals.
Completeness is another attribute of high quality information. Partial information may as well be incomplete information because it is only a small part of the picture. Completeness is as necessary as accuracy when inputting data into a database.
Consistency is key when entering information into a database. For example, with a column for a phone number entry 10 digits is the expected length of the field. Once the fields have been set in the database, a number more or less than 10 digits will not be accepted. The same applies for any field, whether it is an entry that requires a number, a series of numbers, an address, or a name, etc. If the fields are not set to a specific limit for information then consistency is even more important.
Uniqueness is the fourth component of high quality information. In order to add value to any organization, information must be unique and distinctive. Information is a very essential part of any organization and if used properly can make a company competitive or can keep a company competitive.
A fifth important aspect of information is timeliness. New and current data is more valuable to organizations than old outdated information. Especially now, in this era of high technological advances, out-of-date information can keep a company from achieving their goals or from surviving in a competitive arena. The information does not necessarily need to be out of date to have effect, it just needs to not be the most current. Real-time information is an element of timeliness.
Managerial information is valuable when presented in a way that facilitates decision-making. Information should not only be given but presented in such a way that the decision-making aspect becomes obvious.
Information for management is highly contextual. Information is valuable to a manger only if it has a decision-making connotation to it. For example, for a finance manager any information about the competitor’s product is valueless.
Information is generally more valuable to management when the information breaks an expected view or an expected result or an expected’ reaction. Any information that is unexpected carries a higher value. For example, if a manager has made a marketing strategy expecting his competitor to launch a product A and before the launch he gets information that the product to be launched by his competitor is not product A but product S, then this information has got greater value for him as it is contrary to his expectation.