CHAPTER 9 - ENABLING THE ORGANIZATION - DECISION MAKING

Reasons for the growth of decision making information system

• People need to analyze large amounts of information
• People must make decision quickly
• People must apply sophisticated analysis techniques such as modelling and forecasting, to make good decisions
• People must protect the corporate asset of organizational information 

Model - a simplified representation or abstraction of reality

• IT systems in an enterprise

TRANSACTION PROCESSING SYSTEMS

Moving up through the organizational pyramid users move from requiring transactional information to analytical information 

• Transaction processing system - the basic business system that serves the operational level (analysis) in an organization
• Online transaction processing (OLTP) - the capturing of transaction and event information using technology to (1) process the information according to defined business rules,(2) stores the information , (3) updated existing information to reflect the new information
• Online analytical processing (OALP) - the manipulation of information to create business intelligence in support of strategic decision making

DECISION SUPPORT SYSTEMS (DSS)

Models information to support managers and business professional during the decisions-making process

Three quantitative models used by DSSs include :

1. Sensitivity analysis  - the study of the impact that changes in one ( or more) parts of the models.
2. What-if analysis - checks the impact of a change in an assumptions on the processed solution
3. Goal-seeking analysis - finds the inputs necessary to achieve a goal such as a desired level of output

EXECUTIVE INFORMATION SYSTEMS ( EIS )

A specialized Decision Support Systems that support senior level executive within the organization

Most EISs offering the following capabilities :

1. Consolidation - involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information
2.  Drill-down - enables users to get details and details of details , of information .
3. Slice and dice - looks at the information from different perspective 

Digital dashboard is integrates information from multiples components and presents it in a unified display 

ARTIFICIAL INTELLIGENCE (AI )

• Intelligent systems - various commercial applications of artificial intelligence
• Artificial intelligence ( AI ) - simulates human intelligence such as the ability to reason and learn 

Advantages : can check info on competitor

• The ultimate goal of  AI is the ability to build a system that can mimic human intelligence

  Four most common categories of AI include : 

• Expert system  - computerized advisory programs that imitate the reasoning processes of experts in solving the difficult problems. Eg. Playing chess
• Neural Network - attempts to emulate the way the human brain works 

- Fuzzy logic -a mathematical method of handling imprecise or subjective information

• Genetic algorithm - an artificial intelligent systems that mimics the evolutionary , survival-of-the-fittest process to generates increasingly better solutions to a problems
• Intelligent agent - special-purposed knowledge based information system that accomplishes specific tasks on behalf of its users

- Multi-agent systems

- Agent-based modelling

DATA MINING

Data mining software includes many forms of AI such as neural networks and expert systems

Common forms of data-mining analysis capabilities include :

• Cluster analysis 

*a techniques used to divide an information set into mutually exclusive groups such that the members of each groups are as close together as possible to one another and the different groups are as far apart as possible  

* depend on cluster analysis to segment customers information and identify behavioral traits 

• Association detection - revels the degree to which variables are related and the nature and frequency of these relationships in the information

 - Market basket analysis - analyzes such items as Web sites and check out scanner information to detect customers' buying behavior and predict future behavior by identifying affinities among customers' choices of products and services

• Statistical analysis -  performs such function as information correlation,distributions,calculations and variance analysis 

- Forecast - predictions made on the basis of times - series information

- Time - series information - time-stamped information collected at a particular frequency

Thank you :)

 

 

 

CHAPTER 8 - ACCESSING ORGANIZATIONAL INFORMATION - DATA WAREHOUSE

Data warehouse extend the transformation of data into information . In the 1990's executive became less concerned with the day-to-day business operations and more concerned with overall business functions.The data warehouse  provided the ability to support decision making without disrupting the day-to-day operations.

DATA WAREHOUSE FUNDAMENTALS

Data warehouse - a logical collection of information - gathered from many different operational databases - that supports business analysis activities and decision making tasks

• the primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision - making purpose

Proces :

• Extraction,transformation, and loading (ETL) - a process that extracts information from internal and external database , transforms the information using  a common set of enterprise definitions , and loads the information into a data warehouse

 Data Mart - contains a subset of data warehouse information

MULTIMEDIA ANALYSIS AND DATA MINING

• Database contain information in a series of two-dimensional tables
• in a data warehouse and data mart, information is multidimensional , it contains layers of columns and rows - Dimension - a particular attribute of information
• Cube - common term for the representation  multidimensional information 

• Data mining - the process of analyzing data to extract information not offered by the raw data alone

To perform data mining users need data mining tools

• Data mining tools - uses a variety of techniques to find pattern and relationships in large volumes of information and infers rules that predict future behavior and guide decision making

INFORMATION CLEANING OR SCRUBBING

• An organizations must maintain high-quality data in the data warehouse
• information cleansing or scrubbing - a process that weeds out and fixes or discards inconsistent , incorrect , or incomplete information
• Contact information in an operational system

• Standardizing customers name from operational systems

• Information cleansing activities

•Information cleansing allows an organization to fix these types of inconsistencies and cleans the data in the data warehouse

• Accurate and complete information

•Why do you think most businesses cannot achieve 100% accurate and complete information?

•If they had to choose a percentage for acceptable information what would it be and why?

§Some companies are willing to go as low as 20% complete just to find business intelligence

§Few organizations will go below 50% accurate – the information is useless if it is not accurate

•Achieving perfect information is almost impossible

§The more complete and accurate an organization wants to get its information, the more it costs

§The trade off between perfect information lies in accuracy verses completeness

§Accurate information means it is correct, while complete information means there are no blanks

§Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete

BUSINESS INTELLIGENCE 

- Information that people use to support their decision-making effort

Principle BI enablers include :

• Technology

Even the smallest company with BI software can do sophisticated analyses today that were unavailable to the largest organizations a generation ago. The largest companies today can create enterprise wide BI systems that compute and monitor metrics on virtually every variable important for managing the company. How is this possible? The answer is technology—the most significant enabler of business intelligence.

• People

Understanding the role of people in BI allows organizations to systematically create insight and turn these insights into actions. Organizations can improve their decision making by having the right people making the decisions. This usually means a manager who is in the field and close to the customer rather than an analyst rich in data but poor in experience. In recent years “business intelligence for the masses” has been an important trend, and many organizations have made great strides in providing sophisticated yet simple analytical tools and information to a much larger user population than previously possible.

• Culture 

A key responsibility of executives is to shape and manage corporate culture. The extent to which the BI attitude flourishes in an organization depends in large part on the organization’s culture. Perhaps the most important step an organization can take to encourage BI is to measure the performance of the organization against a set of key indicators. The actions of publishing what the organization thinks are the most important indicators, measuring these indicators, and analyzing the results to guide improvement display a strong commitment to BI throughout the organization.

CHAPTER 7 - STORING ORGANIZATIONAL INFORMATION DATABASE

RELATIONAL DATABASE FUNDAMENTAL 

• Information is everywhere in an organization
• Information stored in database

          Database - maintains information about various type types of object ( inventory),                                 events ( transactions), people ( employees ), and places ( warehouse)

• Database models include :

          - Hierarchical database model - information is organized into a tree-like structure                    (using the parent/child relationships) in such a way that it cannot have to many relationship 

          - Network database model - a flexible way of representing objects and their relationships

          - Relational database model ( RDM ) - stores information in the form of logically related two-dimensional tables

HIERARCHICAL STRUCTURE

NETWORK STRUCTURE

RELATIONAL STRUCTURE

ENTITIES AND ATTRIBUTE

• Entity - a person, place, thing, transaction, or event about which information is stored

          - The rows in each table contain the entities

• Attributes (fields,columns ) - characteristics or properties of an entity class 

          - The columns in each table contain the attributes

KEY AND RELATIONSHIPS

•  Primary keys and foreign keys identify the various entity classes ( tables ) in the database

           - 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 appear an attribute in another table and acts to provide a logical relationship among the two tables

• Potential relational database for Coca-Cola

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 eg hard disk 
• Have multiple logical views
• - Logical view - focuses on how users logically access information
• Eg: a mail-order buss - 2 people view diff format ( logical views ) but same physical view

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
• Performance - measures how quickly a system performance a certain process or transaction 

REDUCED  INFORMATION REDUNDANCY

Database 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 - difficult to decide which is most current and most accurate

INCREASE INFORMATION INTEGRITY  ( QUALITY )

Information integrity - measures the quality of information

Integrity constraint - rules that help ensure the quality of information 

• Relational integrity constraint - rules that enforces basic and fundamentals information - based constraint
• Business-critical integrity constraint - rule that enforce business rules vital to an organization's success and often requires more insight and knowledge than relational integrity constraints

INCREASED INFORMATION SECURITY 

Information is an organizational asset and must be protected

Database offer several security feature including : 

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

DATABASE MANAGEMENT SYSTEM

Database management system ( DBMS ) - software through which users and application programs interact with a database

   

DATA-DRIVEN WEB SITES

Data-driven web site - an interactive web site kept constantly updated and relevant to the needs of its customers through the use of database

7 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
• Content management : A ststic Web site requires a programmer to make updated
• Future expandability : Having a data-driven web-site enables the site to grow faster than would be possible with a ststic site
• Minimizing human error : A well -designed, data-driven Web sites 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 updated costs :  a data-driven web site can be updated and "published" by any competent data entry or administrative person .
• More efficient : with a data-driven solution , the system keeps track of the templates , so users do not have to
• Improved stability : with data-driven web sites .there is peace of mind , knowing the content is never lost-- even if your programmer is

DATA-DRIVEN BUSINESS INTELLIGENCE

• BI in a data-driven web sites

INTEGRATING INFORMATION AMONG MULTIPLE DATABASE

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 process 

Building a central repository specifically for integrated information

without integration , an organization

•  Spend considerable time entering the same info in multiple system
• Suffer from the low quality and inconsistency typically embedded in redundant info

hope you all can understand this chapter :)

CHAPTER 6 - VALUING ORGANIZATIONAL INFORMATION

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
• Level, format, and granularities of organizational information 

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION

• Transactional information verses analytical information

 

THE VALUE OF TIMELY INFORMATION

• Timeline is an aspect of information that depends on the situation

          - Real - time information -immediate, up-to-date information

          - Real-time system -Provide real-time information in response to query request

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 decisions faster

THE VALUE OF QUALITY INFORMATION

Characteristics of high-quality information include

• Accuracy
• Completeness
• Consistency
• Uniqueness
• Timeliness

Low quality information example

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 systems have entry standard 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
• Difficult tracking revenue due to inaccurate invoices
• Inability to build strong customers relationships   

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

• High quality information can significantly improve the chances of making a good decisions
• Good decision can directly impact an organization's bottom line

 Hope you all can understand about this chapter :]

CHAPTER 5 - ORGANIZATIONAL STRUCTURE THAT SUPPORT STRATEGIC INITIATIVES

LEARNING OUTCOMES :
5.1 Compare the responsibilities of a chief information offer (CIO), chief technology officer (CTO), chief privacy officer (CPO), chief securityrseee officer (CSO), and chief knowledge office (CKO)
5.2 Explain the gap between IT people and business people and the primary reason this gap exists
5.3 Define the relationship between information security and ethics

ORGANIZATIONAL STRUCTURES

• Organizational employees must work closely together to develop strategic initiatives that create competitive advantages
• Ethics and security are two fundamentals building blocks that organizations must base their businesses upon

IT ROLES AND RESPONSIBILITIES

• Information technology is a relatively new functional area, having only been around formally for around 40 years
• Recent IT -related strategic positions :

1.  chief information offer (CIO) 
2. chief technology officer (CTO)
3. chief privacy officer (CPO)
4. chief security officer (CSO)
5. chief knowledge office (CKO)

Chief information offer (CIO) 

Oversees all uses of IT and ensure the strategic alignment of IT with  business goals and objectives.

• Broad CIO functions include

         - Manager - ensuring the delivery of all IT projects on time and within budget

         - Leader  - ensuring the strategic vision of IT is in line with the strategies vision of the                  organization

         - Communicator - building and maintaining strong executive relationship CIO 

Average CIO compensation by industry

What concerns CIOs the most

• Chief  Technology Officer ( CTO ) - responsible for ensuring the throughput speed, accuracy, availability, and reliability of IT
• Chief Security  Officer ( CSO ) - responsible  for ensuring the security of IT systems ( about the hacker/ virus )
• Chief Privacy Officer - responsible for ensuring the ethical and legal use of information ( advice about the legal : eg. Lawyer )
• Chief Knowledge Officer ( CKO ) -responsible for collecting , maintaining, and distributing  the organization's knowledge.

IMPROVING COMMUNICATION 

• Business personal must seek to increase their understanding of IT
• IT personnel must seek to increase their understanding of the business
• It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel 

ORGANIZATIONAL FUNDAMENTALS - ETHICS AND SECURITY 

• Ethics and security are two fundamentals building blocks that organizations must base their businesses on to be successful
• In recent years, such event as the 9/11 have shed new light on the meaning of ethics and security

  ETHICS

• Ethics - The principles and standard that  guide our behavior toward other people 
• Privacy is a major ethical issue - privacy - the right to be the 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 advance 

Intelligent property	Intangible creative work that is embodied in physical form
Copyright	The legal protection afforded an expression of an idea, such as a song, video game and some types of proprietary documents
Fair use doctrine	In certain situations, it is legal to use copyrighted material
Pirated software	The unauthorized use, duplication, distribution or sale of copyrighted software
Counterfeit software	Software that is manufactured to lock like the real thing and sold as such

•  One of the main ingredients in trust is privacy
• Primary reasons privacy issues lost trust for e-business

1.  Loss of personal privacy is atop concern for Americans in the 21st century
2. Among internet user , 37 percent would be "a lot " more inclined to purchase a product on a web sites that had a privacy policy.
3. Privacy/security is the number one factor that would convert internet researchers into internet buyers 

SECURITY 

• Organizational information is intellectual capital - it must be protected
• information security  - the protection of information from accidental or intentional misuse by persons inside or outside an organization
• E-business automatically creates tremendous information security risks for organizations

 :) Hope YOU all learning this chapter .. THANK YOU :]

CHAPTER 4 - MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Learning outcomes :

4.1 Compare efficiency IT metric and effectiveness IT metric

4.2 List and describe five common types of efficiency IT metric

4.3 List and describe four types of effectiveness IT metric

4.4 Explain customer metrics and their importance to an organization

MEASURING INFORMATION TECHNOLOGY'S SUCCESS

• Measure that are tied to business drivers
• Metric are detailed measures that feed KPIs
• Performance metrics fall into the nebulous area of business intelligence that is neither technology , nor business centered, but requires input from both IT and business
• 5M   - man. -material, -money, -meachine

EFFICIENCY IT METRICS  (Doing thing right )

- Measures the performance of the IT system itself including throughput, speed, and availability.

EFFECTIVENESS IT METRICS ( Doing the right things )

- Measure the impact IT has on business processes and activities including customers satisfaction, conversion rates and sell through increases .

BENCHMARKING - BASELINE METRICS

BENCHMARK  - Baseline value the system seeks to attain.

BENCHMARKING - A process of continuously measuring system results, comparing those results to optimal system performance ( benchmark values ), and identifying steps and procedures to improve system performance.

THE INTERRELATIONSHIP OF EFFICIENCY AND EFFECTIVENESS IT METRICS

• Security is an issues for any organizations offering product or service over the internet

Interrelationship between efficiency and effectiveness

METRICS FOR STRATEGIC INITIATIVE

Metrics for measuring and managing strategies initiative include :

• Web sites metrics
• Supply chain management (SCM) metric
• Customers relationship management ( CRM ) metric
• Business process reengineering ( BPR ) metric
• Enterprise resources planni g ( ERP )

WEB SITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS

CUSTOMERS RELATIONSHIP MANAGEMENT METRICS

- Customer relationship management metrics measures user satisfaction and interaction and include

• Sales metrics
• Service metrics
• Marketing metric

BPR AND ERP METRICS

The balanced scorecard enables organizations to measure and manage straregic initiatives.

 :) hope you all can understand for this chapter :)