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Introduction to Competitive Advantage in Information Systems

Data Rich, Information Poor

Learning Objectives

  1. Know and be able to list the reasons why many organizations have data that can't be converted to actionable information.
  2. Understand why transactional databases can't always be queried and what needs to be done to facilitate effective data use for analytics and business intelligence.
  3. Recognize key issues surrounding data and privacy legislation.

Despite being awash in data, many organizations are data rich but information poor. A survey by consulting firm Accenture found 57 percent of companies reporting that they didn't have a beneficial, consistently updated, companywide analytical capability. Among major decisions, only 60 percent were backed by analytics - 40 percent were made by intuition and gut instinct. The big culprit limiting BI initiatives is getting data into a form where it can be used, analyzed, and turned into information. Here's a look at some factors holding back information advantages.