Information Value and Perishability

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Questions and Answers

What is the primary reason why information becomes less valuable over time?

Because it is perishable (correct)
Because it is not accurate
Because it is not stored in a data warehouse
Because it is not used for decision-making

What is the primary benefit of accurate information?

It becomes a liability to the organization
It reduces information overload
It is more valuable and useful (correct)
It is less costly to store

Which type of information is stored in a data warehouse?

Statutory information
Decision support information
Historical information without operational relevance (correct)
Operational information

What is the consequence of having inaccurate information?

It can be very costly to the organization (D) Signup and view all the answers

Which of the following characteristics of information is emphasized by the 7th Law of Information?

Information is self-generating (D) Signup and view all the answers

What is the primary objective of collecting information?

To support a specific analysis objective (C) Signup and view all the answers

What is the primary goal of having a single version of the truth?

To provide accurate information for decision-making (C) Signup and view all the answers

What is the term for information that is collected from external sources?

External data (A) Signup and view all the answers

What is the consequence of having too much information?

It leads to information overload (D) Signup and view all the answers

What is the primary goal of information governance?

To manage and protect the organization's information assets (C) Signup and view all the answers

What is the result of having an information system that provides a single version of the truth?

Improved decision-making (D) Signup and view all the answers

What is the term for the process of ensuring the quality and accuracy of information?

Data quality management (D) Signup and view all the answers

What is the primary benefit of having timely decision-making?

It enables organizations to respond quickly to changes (A) Signup and view all the answers

What is the result of having unstructured information?

Information overload (C) Signup and view all the answers

What is the purpose of information governance?

To manage information as a strategic resource (C) Signup and view all the answers

What is the characteristic of primary data?

Collected with a specific analysis objective in mind (D) Signup and view all the answers

What is the unique characteristic of information that distinguishes it from other assets?

It can be shared between business areas or organizations without any loss of value (C) Signup and view all the answers

What is the consequence of duplicating information?

It does not double its value (A) Signup and view all the answers

What is a common issue that arises from the lack of information governance?

Balkanization of information (C) Signup and view all the answers

What is a prerequisite for information to become valuable?

It must be used to create value (B) Signup and view all the answers

What is essential for organizations to do in order to create value from their information?

Knowing the information they have (A) Signup and view all the answers

What is a key factor in improving the decision-making process with the aid of information?

The decision-maker's information literacy (D) Signup and view all the answers

What is a consequence of having multiple versions of information?

Balkanization of information (A) Signup and view all the answers

What is a key aspect of timely decision-making?

Having a single version of the truth (D) Signup and view all the answers

Study Notes

Seven "Laws" of Information

3rd Law: Information is Perishable, meaning its value decreases over time, and there are different types of information with varying levels of useful life, including operational, decision support, and statutory information.
4th Law: The Value of Information Increases With Accuracy, as accurate information is more valuable, while inaccurate information can be costly and becomes a liability below a certain level.
1st Law: Information Is (Infinitely) Shareable, having a unique characteristic that allows it to be shared without losing value, and its value multiplies when shared.
2nd Law: The Value of Information Increases With Use, as information has no value on its own and only becomes valuable when used, and organizations need to know the information they have to create value.
7th Law: Information is not Depletable, unlike most resources, as using information generates more information and it is not a scarce resource.

Information as a Strategic Resource

Information can be classified based on its objective, organization, and origin.
Primary data refers to data collected with a specific analysis objective in mind.
Information can be primary or secondary, structured or unstructured, and internal or external.