Friday 27 October 2017

Chapter 7 : Storing Organizational Information Database

RELATIONAL DATABASE FUNDAMENTALS

  • Information is everywhere in an organization.
  • Information is stored in databases.


Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses).

Database models include:

  • Hierarchical database model – information is organized into a tree-like structure (using parent/child relationships) in such a way that it cannot have too many relationships.
  • Network database model – a flexible way of representing objects and their relationships.
  • Relational database model – stores information in the form of logically related two-dimensional tables.
  • Entities and Attributes.
  • Entity – a person, place, thing, transaction, or event about which information is stored.
  • Attributes (fields, columns) – characteristics or properties of an entity class.

Keys and Relationships


Primary key – a field (or group of fields) that uniquely identifies a given entity in a table.


Foreign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables.




RELATIONAL DATABASE ADVANTAGES



Database advantages from a business perspective include:
  • Increased flexibility.
  • Increased scalability and performance.
  • Reduced information redundancy.
  • Increased information integrity (quality).
  • Increased information security.
  • Increased Flexibility.

A well-designed database should:

  • Handle changes quickly and easily.
  • Provide users with different views.
  • Have only one physical view.

Physical view – deals with the physical storage of information on a storage device.
  • Have multiple logical views.

Logical view – focuses on how users logically access information.
  • Increased Scalability and Performance.

A database must scale to meet increased demand,  while maintaining acceptable performance levels:
  • Scalability – refers to how well a system can adapt to increased demands.
  • Performance – measures how quickly a system performs a certain process or transaction.

Reduced Information Re
dundancy:

  • One of the primary goals of a database is to eliminate information redundancy by recording each piece of information in only one place.
  • Databases reduce information redundancy.

Redundancy – the duplication of information or storing the same information in multiple places.

  •  Inconsistency is one of the primary problems with redundant information.

Increase Information Integrity (Quality):
  • Information integrity – measures the quality of information.
  • Integrity constraint – rules that help ensure the quality of information.

Increased Information Security:


  • Information is an organizational asset and must be protected.
  • Databases offer several security features including:

Password – provides authentication of the user.
Access level – determines who has access to the different types of information.
Access control – determines types of user access, such as read-only access.


DATABASE MANAGEMENT SYSTEMS

- software through which users and application programs interact with a database.




DATA-DRIVEN WEB SITES


A data-driven Web site is an interactive Web site kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven Web sites are especially useful when the site offers a great deal of information, products, or services. Web site visitors are frequently angered if they are buried under an avalanche of information when searching a Web site. A data-driven Web site invites visitors to select and view what they are interested in by inserting a query, which the Web site then analyzes and custom builds a Web page in real-time that satisfies the query. The figure displays a Wikipedia user querying business intelligence and the database sending back the appropriate Web page that satisfies the user’s request.



Data-Driven Web Site Business Advantages
• Development: Allows the Web site owner to make changes any time—all without having to rely on a developer or knowing HTML programming. A well-structured, data-driven Web site enables updating with little or no training.

• Content management: A static Web site requires a programmer to make updates. This adds an unnecessary layer between the business and its Web content, which can lead to misunderstandings and slow turnarounds for desired changes.

• Future expandability: Having a data-driven Web site enables the site to grow faster than would be possible with a static site.  Changing the layout, displays, and functionality of the site (adding more features and sections) is easier with a data-driven solution.

• Minimizing human error: Even the most competent programmer charged with the task of maintaining many pages will overlook things and make mistakes. This will lead to bugs and inconsistencies that can be time consuming and expensive to track down and fix. Unfortunately, users who come across these bugs will likely become irritated and may leave the site. A well-designed, data-driven Web site will have ”error trapping” mechanisms to ensure that required information is filled out correctly and that content is entered and displayed in its correct format.

• Cutting production and update costs: A data-driven Web site can be updated and ”published” by any competent data entry or administrative person. In addition to being convenient and more affordable, changes and updates will take a fraction of the time that they would with a static site. While training a competent programmer can take months or even years, training a data entry person can be done in 30 to 60 minutes.

• More efficient:  By their very nature, computers are excellent at keeping volumes of information intact. With a data-driven solution, the system keeps track of the templates, so users do not have to. Global changes to layout, navigation, or site structure would need to be programmed only once, in one place, and the site itself will take care of propagating those changes to the appropriate pages and areas. A data-driven infrastructure will improve the reliability and stability of a Web site, while greatly reducing the chance of ”breaking” some part of the site when adding new areas.

• Improved Stability: Any programmer who has to update a Web site from ”static” templates must be very organized to keep track of all the source files. If a programmer leaves unexpectedly, it could involve re-creating existing work if those source files cannot be found. Plus, if there were any changes to the templates, the new programmer must be careful to use only the latest version. With a data-driven Web site, there is peace of mind, knowing the content is never lost—even if your programmer is.


Integrating Information among Multiple Databases:


Integration – allows separate systems to communicate directly with each other

Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes

Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes






One of the biggest benefits of integration is that organizations only have to enter information into the systems once and it is automatically sent to all of the other systems throughout the organization.


  • This feature alone creates huge advantages for organizations because it reduces information redundancy and ensures accuracy and completeness.
  • Without integration an organization would have to enter information into every single system that requires the information from marketing and sales to billing and customer service.

Integrating Information among Multiple Databases
Building a central repository specifically for integrated information







  • The above figure displays an example of customer information integrated using this method.
  • Users can create, read, update, and delete in the main customer repository, and it is automatically sent to all of the other databases.
  • This method does not follow the business process when building the integration.
  • Business-critical integrity constraints still need to be built to ensure information is only ever entered into the customer repository, otherwise the information will become out-of-sync.

Chapter 6 : Valuing Organizational Information

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.

• Levels, formats, and granularities of organizational information.









THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION
Transactional information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks.

Analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks.







THE VALUE OF TIMELY INFORMATION


  • Real-time information immediate, up-to-date information.
  • Real-time system – provides real-time information in response to query requests.



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.



Characteristics of High Quality Information


  1. Accuracy Are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly?
  2. Completeness Are any of the values missing? For example, is the address complete including street, city, state, and zip code?
  3. Consistency Is aggregate or summary information in agreement with detailed information?
  4. For example, do all total fields equal the true total of the individual fields?
  5. Uniqueness Is each transaction, entity, and event represented only once in the information?
  6. For example, are there any duplicate customers?
  7. Timeliness Is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly?


Example of Low quality information:







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 privacy.
2. Information from different systems have different entry standards and formats.
3. 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.



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.

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.

Wednesday 11 October 2017

Chapter 5 : Organizational Structures that Support Strategic Initiatives





IT Roles and Responsibilities
 Information technology is a relatively new functional area, having only been around formally for around 40 years.


  • Chief information officer (CIO) - responsible for overseeing all uses of information technology and ensuring the strategic alignment of IT with business goals and objectives.

    • Manager - ensure the delivery of all IT projects on time and within the budget.
    • Leader - ensure the strategic vision of IT is in line with the strategic vision of the organization.
    • Communicator - advocate and communication that IT strategy by building and maintaining strong executive relationships.

  • Chief technology officer (CTO) - ensuring the throughout,speed, accuracy, availability,and reliability of an organization's information technology.

  • Chief security officer (CSO) - ensuring the securities of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses.

  • Chief privacy officer (CPO) - ensuring the ethical and legal use of information within an organization.

  • Chief knowledge officer (CKO) - responsible to collect, maintain and distribute the organization's knowledge.


The Gap Between Business Personnel and IT Personnel

  • Business personnel -  possess expertise in functional areas such as marketing, accounting, and sales.
  • IT personnel - is a technological expertise.

  • Business personnel -  to increase their understanding of IT.
  • IT personnel -  to increase their understanding of the business.
  •  CIO will responsibilities to ensure effective communication between business personnel and IT personnel.



Organizational Fundamentals - Ethics and Security

1.    Ethics - the principles and standards that guide our behavior toward other people.

2.   Privacy - right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent.

  • Issues affected by technology advances:


3. Security - the protection of information from accidental or intention misuse by persons inside or outside an organization.

Friday 6 October 2017

Chapter 4 : Measuring the Success of Strategic Initiatives





Efficiency IT metric - measures the performance of the IT system itself including throughput, speed and availability.

Effectiveness IT metric - measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell through increase.







  • Throughput - the amount of information that can travel through a system at any point.
  • Transaction Speed - the amount of time a system takes to perform a transaction.
  • System Availability - the number of hours a system is available for users.
  • Information Accuracy - the extent to which a system generates the correct results when executing the same transaction numerous times.
  • Web Traffic - includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.
  • Response Time - the time it takes to respond to user interactions such as a mouse click.





  • Usability - the ease with which people perform transaction and find information. A popular usability metric on the internet is degrees of freedom, which measures the number of clicks required to find desired information.
  • Customer Satisfaction - measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customers. 

  • Conversion Rates - the number of customer an organization "touches" for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the internet.
  • Financial - such as return on investment (the earning power of an organization`s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which constant revenues equal ongoing costs).




Customer relationship management metrics measure user satisfaction and interaction.






THE END


Chapter 3 : Strategic Initiatives for Implementing Competitive Advantages





Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.


Four basic components of scm:

  1. Supply Chain Strategy - strategy for managing all resources to meet customer demand.
  2. Supply Chain Partner - partners throughout the supply chain that deliver finished products, raw materials, and services.
  3. Supply Chain Operation - schedule for production activities.
  4. Supply Chain Logistics - product delivery process.



  • Involves managing all aspects of a customer`s relationship with an organization to increase customer loyalty and retention and an organization`s profitability.
  • CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level.
  • Many organizations have obtained great success through the implementation of CRM systems such as: 

 The founder is Henry J. Kaiser and Sidney Garfield.

Bank Charles Schwab

The founder

  • CRM can enable an organization to: 
  1. Identify types of customers.
  2. Design individual customer marketing campaigns.
  3. Treat each customer as an individual.
  4. Understand customer buying behaviors.



Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations.



ERP systems  collect data from across an organization and correlates the data generating an enterprisewide view.





A standardized set of activities that accomplish a specific task, such as processing a customer`s order.






Seven principles for BPR


Opportunity using BPR:
  • A company can improve the way it travels the road by moving from foot to horse and then horse to car.
  • BPR looks at taking a different path, such as a airplane which ignore the road completely.



  • Progressive Insurance Mobile Claims Process:







THE END