24 Questions
What is the primary reason why information becomes less valuable over time?
Because it is perishable
What is the primary benefit of accurate information?
It is more valuable and useful
Which type of information is stored in a data warehouse?
Historical information without operational relevance
What is the consequence of having inaccurate information?
It can be very costly to the organization
Which of the following characteristics of information is emphasized by the 7th Law of Information?
Information is self-generating
What is the primary objective of collecting information?
To support a specific analysis objective
What is the primary goal of having a single version of the truth?
To provide accurate information for decision-making
What is the term for information that is collected from external sources?
External data
What is the consequence of having too much information?
It leads to information overload
What is the primary goal of information governance?
To manage and protect the organization's information assets
What is the result of having an information system that provides a single version of the truth?
Improved decision-making
What is the term for the process of ensuring the quality and accuracy of information?
Data quality management
What is the primary benefit of having timely decision-making?
It enables organizations to respond quickly to changes
What is the result of having unstructured information?
Information overload
What is the purpose of information governance?
To manage information as a strategic resource
What is the characteristic of primary data?
Collected with a specific analysis objective in mind
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
What is the consequence of duplicating information?
It does not double its value
What is a common issue that arises from the lack of information governance?
Balkanization of information
What is a prerequisite for information to become valuable?
It must be used to create value
What is essential for organizations to do in order to create value from their information?
Knowing the information they have
What is a key factor in improving the decision-making process with the aid of information?
The decision-maker's information literacy
What is a consequence of having multiple versions of information?
Balkanization of information
What is a key aspect of timely decision-making?
Having a single version of the truth
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.
This quiz explores the concept of information value and how it depreciates over time, based on the 3rd law of information.
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