CHAPTER 6

Organizational information comes at different levels and in different formats and granularities. Information granularities refers to the extent of details within the information. The organizational must know what kind of information that they want for. Make sure the information gives the best quality or high quality for that organizational itself.

Employees must be able to differentiate the levels of the information, formats, and granularities of information when making a decision. If the employees can knows how to use the information with different levels of information or format then, the information can be a values to the sender or receiver of the information.

Successfully collecting, compiling, sorting, and finally analyzing information from multiple levels, in varied formats, exhibiting different granularity can provide tremendous insight how an organization is performing.

TRANSACTIONAL INFORMATION

There are hundreds of transactions that go through organizations every day. The result of these transactions is transactional information. Transactional information is all the information contained within a business unit. The primary purpose of transactional information is to support day-to-day operations of the unit. Examples of transactional information include: sales receipt, packing slip, purchase confirmation, etc. So transactional information is the result of performing daily operating tasks. In addition, every time a cash register rings up a sale, a deposit or withdrawal is made from an ATM, or a receipt is given at the gas pump, capturing and storing of the transactional information are required.

            Databases that can handle transactions are known as transactional databases. The main purpose of a database is to ensure accuracy and integrity of information.

ANALYTICAL INFORMATION

 In contrast to transactional information, analytical information is used for managerial analysis decision making. People who are higher up in the hierarchy of the company usually do not need all the details of transactional information. They need the bigger picture. Here is where analytical information is used. An example of analytical information is used. An example of analytical information is a report on monthly sales.

Examples of analytical information

ü  Trends ( information about where the particular market is heading and if the organization should follow the trend)

ü  Sales ( information about if the organization needs to pick up sales in a particular area or if it should cut back on inventory of specific products)

ü  Future growth projections ( information about whether or not the company looks like it will grow, usually if it is taking on a new venture)

THE VALUE OF TIMELY INFORMATION

·         Timeliness is an aspect of information that depends on the situation :

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

Ø  Real-time system – provides real-time information in responses to query requests

·         Business decisions are only as good as the quality of the information used to make the decisions.

·         You never want to find yourself using to help you make a bad decision faster.

THE VALUE OF QUALITY INFORMATION

·         Characteristics of high-quality information include:

•  Five characteristics of high quality information are accuracy, completeness, consistency, uniqueness, and timeliness. 

•  Information needs to be of high quality to be useful andaccurate.  The information that is input into a data base is presumed to be perfect as well as accurate.  The information that is accessed is deemed reliable. 

•   Completeness is another attribute of high quality information.  Completeness is as necessary as accuracywhen inputting data into a database.

• Consistency is key when entering information into a database.  For example, with a column for a phone number entry 10 digits is the expected length of the field.  Once the fields have been set in the database, a number more or less than 10 digits will not be accepted.  The same applies for any field, whether it is an entry that requires a number, a series of numbers, an address, or a name, etc.  If the fields are not set to a specific limit for information then consistency is even more important. 

•   Uniqueness is the fourth component of high quality information.  In order to add value to any organization, information must be unique and distinctive.  Information is a very essential part of any organization and if used properly can make a company competitive or can keep a company competitive. 

•   A fifth important aspect of information is timeliness.  New and current data is more valuable to organizations than old outdated information.  Especially now, in this era of high technological advances, out-of-date information can keep a company from achieving their goals or from surviving in a competitive arena. Real-time information is an element of timeliness.   

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

·         Bad information can cause serious business ramifications such as :

1.    Loss Of Managerial Control

2.    Hidden Cost

3.    Threat to Security and Confidentiality

4.    Quality problems

5.    Tied to the Financial Well-Being of Another Company

6.    Bad publicity 

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

Why is Information Technology Important

All our work related applications are now completely automated, thanks to the IT sector. IT professionals are people involved in essential management of sensitive data, exclusive computer networking and systems-engineering. The advancement of the IT sector has resulted in automated:

• Administration of entire systems.
• Production and manipulation of sensitive information.
• Cultural development and communication.
• Streamlining of business processes and timely upgrades.

Advantages of Information Technology

• Globalization
True globalization has come about only via this automated system. The creation of one interdependent system helps us to share information and end linguistic barriers across the continents. The collapse of geographic boundaries has made the world a 'global village'. The technology has not only made communication cheaper, but also possible much quicker and round the clock. The wonders of text messages email and auto-response, backed by computer security applications, have opened up scope for direct communication.

• Cost-effective
Computerized, internet business processes have made many businesses turn to the Internet for increased productivity, greater profitability, clutter free working conditions and global clientèle. It is mainly due to the IT industry that businesses have been able to make their processes more streamlined, thereby becoming more cost-effective and consequently more profitable. People are able to operate their businesses 24x7, even from remote locations only due to the advent of information technology.

• Communication
Quick and effective communication is vital to any business anywhere in the world. Information technology gives an entrepreneur or business the tools, like email, video conferencing, SMS, etc., essential to communicate efficiently and effectively. to the business world, and information technology gives your company the resources it needs to communicate quickly and effectively. Not only do people connect faster with the help of information technology, but they are also able to identify like-minded individuals and extend help, while strengthening ties.

• Storing and Protecting Information
IT provides a low-cost business options to store and maintain information that may be important from a business or service point of view. Virtual vaults and other such security systems not only store vital data but also allow control over the access to such information. IT security systems will also protect virtual data from being hacked or wiped out in case of any technical failure.

• Creation of New Jobs
One of the biggest advantages of IT has been the creation of a whole new field of opportunity for skilled personnel leading to new and interesting jobs. Hardware and software developers, computer programmers, web designers, system analyst, the list of new jobs created could go on. IT has also been attributed to be the major cause of surge in the economies of certain Third World nations too.

CHAPTER 5

ORGANIZATIONAL STRUCTURES

     Organizational structures as communication flowcharts that communication in which managers at various levels are required to deliver information to too many people for too many levels of approval.

      Well designed organizational structures will produce efficient communication channels and encourage fast, clean decisions. To develop strategic initiatives that create competitive advantages organizational employees must work closely together.

      Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, work group and individual.

IT ROLES AND RESPONSIBILITIES

1. Chief Information Officer (CIO)

     CIO ensures effective communications between business and IT personnel. A wide function of in CIO is manager to ensure the delivery of all IT project, on time and within budget. Next, leader is the wide functions of a CIO for make sure the strategic vision of IT in the organization. Furthermore, communicator must building and maintaining strong executive relationship.

2. Chief Technology Officer (CTO)

     CTO responsible for ensuring the throughout, speed, accuracy, availability, and reliability of an organization’s information technology.

     Similar to CIOs but CIOs take on the additional responsibility usefulness of ensure that IT is associated with the organization’s strategic initiatives.

3.  Chief Privacy Officer (CPO) 

      CPO responsible for ensuring the ethical and legal use of information. This role is regarding the use of personal information, including medical data and financial information, and laws and regulations.

4. Chief Knowledge Officer (CKO)

     CKO responsible for collecting, maintaining and distribution the organization’s knowledge. Those who hold this position have to manage intellectual capital and the custodian of knowledge management practices in an organization.


5. Chief Security Officer (CSO)

     The CSO generally serves as the business leader responsible for the development, implementation and management of the organization’s corporate security vision, strategy and programs. They direct staff in identifying, developing, implementing and maintaining security processes across the organization to reduce risks, respond to incidents, and limit exposure to liability in all areas of financial, physical, and personal risk; establish appropriate standards and risk controls associated with intellectual property; and direct the establishment and implementation of policies and procedures related to data security.

Gap Between Business Personnel And It Personnel

§  The gap between the business arm in a company and information technology is exist because presence of perception business people that the Information Technology Department generates expenses not income. This means, they looks alike liability and not asset to the company. In the same time, The Information technology department is “hidden” from the customer often classified as a “back office” business initiative or process. This create a different perspective to the business  personnel and the result, a gap is exist.

Ways To Decrease Gap Between Both IT Personnel And Business Personnel

 Communication

§ Communication is the main ingredient that will close the gap between the business personnel and the IT Department. Business leaders must understand, really understand, that Information Technology is not optional but critical to the success of the business.

§ The head of the company sets the tone for the entire business.

§ In addition IT department teams need to understand the business practices of the company.

 Cross Training

Rettig suggests that initiating cross training is one way to reduce the distance between business and IT.

§       Cross   training   is   a loaded  concept  and  most  technologists  will be specialists  with  years  of  training  in  their  chosen  field. This mean, the IT personnel could be train with other department skills to install some confidence in them. Not to give them other job.

ORGANIZATIONAL FUNDAMENTAL

1.    ETHICS

Ethics is the principle and standards that guide our behaviour toward other people.

Descriptive ethics is exactly that a description of "what is"       in the land of business ethics.  This perception seeks to recognize moral & ethical systems shared by people, cultures, and societies.  This form seeks to know prevailing views and actions about ethical performance.  One problem to this school of thought is that using this perspective may lead one to believe that an actual unethical behaviour is satisfactory because "everyone is doing it."

 Issues Affected By Technology Advances :

i) Intellectual property - Intangible creative work that is personified in physical form.

ii) Copyright - The legal protection afforded an expression of an idea, such as a song, video   game, and some types of proprietary documents.

iii) Fair use doctrine - In certain situations, it is legal to use copyrighted material.

iv) Pirated software - The unauthorized use, duplication, distribution, or sale of copyrighted software.

v) Counterfeit software - Software that is manufactured to look like the real thing and sold as such.

2. SECURITY

a.    Security is a major ethical issues.

b.    The right to be left alone when you want to have control over your own personal possessions and not to be observed without your consent.

Privacy

It is the the ability of an individual or group to seclude themselves or information about themselves and thereby reveal themselves selectively. The boundaries and content of what is considered private differ among cultures and individuals, but share basic common themes.

i-Information Security

Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction.^[1]

The terms information security, computer security and information assurance are frequently used interchangeably. These fields are interrelated often and share the common goals of protecting the confidentiality, integrity and availability of information; however, there are some subtle differences between them.

ii- Electronic Business

Electronic business, commonly referred to as "ebusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business

The term "e-business" was coined by IBM's marketing and internet teams in 1996.

Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.

CHAPTER 4

Tutorial Chapter 4 – Measuring the Success of Strategic Initiatives

• Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics.

A business metric is any type of measurement used to gauge some quantifiable component of a company's performance. Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. Metrics are about neither technology nor business strategy. Efficiency and effectiveness metrics are two primary types of IT metrics. Efficiency IT metrics measure the performance of the IT system itself including throughput, speed, and availability. Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell-through increases. Effectiveness focuses on how well an organization is achieving its goals and objectives, while efficiency focuses on the extent to which an organization is using its resources in an optimal way. However, operating in the upper left-hand corner (minimal effectiveness with increased efficiency) or the lower right-hand corner (significant effectiveness with minimal efficiency) may be in line with an organization’s particular strategies. In general, operating in the lower left-hand corner (minimal efficiency and minimal effectiveness) is not ideal for the operation of an organization.

• Explain why a business would use metrics to measure the success of strategic initiatives.

Metrics are the heart of a good, customer-focused management system and any program directed at continuous improvements. A focus on customers and performance standards shoes up in the form of metrics that assess the ability to meet customers’ needs and business objectives. The following metrics will help managers measure and manage their strategic initiatives: 

 Website metrics

1. Most companies measure the traffic on a website as the primary determinat of the website's success. However, heavy website traffic does not mean it has large sales.
2. A web-centric metric is the measure of the success of the web and ebusiness initiatives.

Customer Relationship Management (CRM) Metrics

1. The metrics to track are no more than seven out of hundreds possible.

Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) Metrics

1. Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) Metrics are large organization initiatives. Measuring these type of strategic initiatives is extremely difficult. One of the best methods is the balance scorecard.
2. Balance Scorecard: is the management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcome in order to continuously improve strategic performance and results. 

Supply Chain Management (SCM) Metrics

1. A supply chain management can help an organization understand how it's operating over a given time period. Supply chain measurements can cover many areas including procurement, production, distribution, warehousing, inventory, transportation, and customer service. To succeed using the supply chain is by measuring the following areas:
   - Back Order
   - Customer Order promised cycle time
   - Customer order actual cycle time
   - Inventory replenishment cycle time
   - Inventory turns(inventory turnover)
   
   
   
   

CHAPTER 3

Strategic Initiatives for Implementing Competitive Advantage

 

This chapter introduce four high-profile strategic initiatives that an organization can apply to help it gain competitive advantages and business efficiencies. There are :-

• Supply Chain Management (SCM)

•  involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
• there are four basic components of supply chain management include :
• supply chain strategy
• supply chain partner
• supply chain operation
• supply chain logistics

 

•  Customer Relationship Management (CRM)

• involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability
• it is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level.
• can enable an organization to:
• identify types of customer
• design individual customer marketing campaigns

• Business Process Reengineering (BPR)

• the analysis and redesign of workflow within and between enterprises
• the purpose is to make all business processes best-in-class
• seven principles of business process reengineering
• organize outcomes
• identify all the organization's process
• integrate information processing into real work
• treat geographically dispersed resources as though they were centralized
• link parallel activities in the workflow
• put the decision point and build control into the process
• capture information once and at the source

 

• Enterprise Resource Planning (ERP)
• integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterpridewide information on all business operations.
• the key word is "enterprise"
• collect data from across an organization and correlates the data generating an enterprisewide view.