CHAPTER 8:ACCESSING ORGANIZATIONAL INFORMATION- DATA WAREHOUSE

LEARNING OUTCOMES 

8.1 Describe the roles and purposes of data warehouses and data marts in an organization.

8.2 Compare the multidimensional nature of  data warehouses (and data marts) with the two-dimensional nature of databases.

8.3 Identify the importance of ensuring the cleanliness of information throughout an organization.

8.4 Explain the relationship between business intelligence and a data warehouse.

1.History of Data Warehousing

⇾Data warehouses extend the transformation of data into information because variety number of databases.

⇢In the 1990's executives 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.

➨The day-to-day activities such as customer service and billing.

⇨Cannot handle too much information at one time.

➔Databases become increases and they realize they want system that more systematic so that WAREHOUSE exist.

2.Data Warehouse Fundamentals

➪i)Data warehouse - a logical collection of information from many different operational databases to supports business analysis activities and decision-making tasks(link to the business intelligence).The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes.

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

-Not all databases put at warehouse ,it keep internal and external database. Example :External for industries they key in data of competitors.

➣iii)Data mart - contains a subset of data warehouse information.

   

➥data warehouse contain a lot of information 

3.Multidimensional Analysis and Data Mining 

➤Databases contain information in a series of two-dimensional tables. Databases and warehouse are totally different.

➤Data warehouse and data mart ,information is multidimensional it contains layers of columns and rows.

      -Dimension is a particular attribute of information.

➤Cube- common term for the representation of multidimensional information.

⟹i) Cube A - It have variety of product from different store and different promotions .There have all the information so that we can see everything.

⟹ii)Cube B - It for promotion II ,for all products, and all store.

⟹iii)Cube C-  It is data mart where as it only for certain information that we want.

➤Data mining - 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 tool -uses a variety of techniques to find patterns and relationships in large volumes of information and infers rules that predict future behavior and guide decision making.

4.Information cleansing or scrubbing

→An organization must maintain high-quality data in the data warehouse.

⇝Help upper do good decision making.

⇨Information cleansing or scrubbing - process that weeds out and fixes or discards inconsistent, incorrect or incomplete information.

↝ Contact Information in an Operational System

↠ Standardizing customer name from Operational Systems ( it can predict redundancy so can cleansing or scrubbing).

↝Information cleansing activities 

⇨Accurate & complete information

5.Business Intelligence

➨Business Intelligence -information that people use to support their decision-making efforts (help upper level do decision making).

➨Principle BI enablers include:
    -i)Technology
    -ii)People
    -iii)Culture 

➠i)Technology -helps a lot ,nowadays even the smallest company with BI software can do sophisticated analyses .Technology is the most significant enabler of business intelligence.

➠ii)People- Without people no want can operate technology .It also can performance and use technology.

➦iii)Culture - A key responsibility of executives is to shape and manage corporate culture.Top level must have knowledge about technology and must adapt culture.

CHAPTER 7 :STORING ORGANIZATIONAL INFORMATION -DATABASES

LEARNING OUTCOMES 

7.1 Define the fundamental concepts of the relational database model.

7.2 Evaluate the advantages of the relational database model.

7.3 Compare relational integrity constraints & business-critical integrity constraints .

7.4 Describe the benefits of a data driven Website .

7.5 Describe the two primary methods for integrating information across multiple databases.

1.Relational Database Fundamentals

a)Information is everywhere in an organization.

b)Information is stored in databases.
   -Database: maintains information about various types of objects,events,people and places.

c)Database models include:
  🔺 i)Hierarchical database model- information is organized into a tree-like structure it cannot       have too many relationships.
  🔺 ii)Network database model -a flexible way of representing objects & their relationships.
  🔺 iii)Relational database model-stores information in the form of logically related 2-dimensional tables.

c.i)Hierarchical Structure

                                          ⤷cannot too many relationship 


c.ii)Network Database Model

                      ⤍can be too many relationship because its flexible


c.iii)Relational Database Model

⤕can be related with different tables

2.ENTITIES AND ATTRIBUTES 

➤ Entity- a person,thing, place ,transaction or event with information is stored.

↝ Entity is the rows in each table contain the entities.

➤ Attribute -characteristics or properties of an entity class.

⇾Attributes is the column in each table contain the attributes.

3.Keys & Relationship

➦Primary key- unique identifies a given entity in a table (ID number,matrix number).

➦Foreign key- a primary key that appears an attribute in another table and to provide a logical relationship among the two tables.

4.Relational Database Advantages

➯a)Increased flexibility -different users have different needs.

                           -one physical view multiple logical view and flexible to users.

                                       -eg:UiTM lecturers view on iLearn different,student view on iLearn different but in physical view.

➯b)Increased scalability & performance 

         -Scalability : system can adapt to increased demands.

         -Performance :measures how quickly a system performs a certain process/transaction.

➯c)Reduced Information Redundancy 

   - Get same information ,eg:Customers name will duplicate can avoid by primary key.

   -Goal: eliminate information redundancy by recording each piece of information in one place.

➯d)Increase information integrity (quality)
     - Information integrity: measures the quality of information.
     - Integrity constraint : rules that help ensure the quality of information.
       i)Relational integrity constraint -rule that enforces basic & fundamental information -               based constraints.
      ii)Business-critical integrity constraint -rule that enforce business rules vital to an                         organization's knowledge than relational integrity constraints.

➱e)Increased information security- asset from authorized users not all can access because password ,access level and access control .Eg : Lower level only can read but upper level can update or delete.

5.Database management systems (DBMS)

➜Use DBMS to get information it can update ,delete ,print but still have to access level.

➜Users send request to DBMS then DBMS resend the information that users wants.

*Indirect interaction users NOT directly database but application directly to database.

*Direct interaction users directly to database.

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

i)Dynamic information- data always changes.
ii)Static information- data fixed cannot changes such as Wikipedia.

7.Data-Driven Web Site Business Advantages

➔Development :
➔Content management 
➔Future expandability 
➔Minimizing human error 
➔Cutting production & update costs
➔More efficient 
➔Improve stability 

8.Data-Driven Business Intelligence 

*Application that helps to make decisions.


9.Integrating information among multiple databases

*Integration-allows separate systems to communicate directly with each other.
a)Forward integration -
b)Backward integration - 

9.a)Forward integration 

*Follow the sequence where as start from sales and ending by billing system.
*It also relate each other.

9.b)Backward integration 

*Backward integration recheck everything where as start from billing system and ending by sales system.

c)Building a central repository specifically for integrated information.

*Once update to central repository (customer information system) automatically update to salwes system,order entry system,order fulfillment system and billing system.

d)Advantages :

 -Can save time
 -Reduce redundancy 
 -To get high quality

CHAPTER 6: VALUING ORGANIZATIONAL INFORMATION

LEARNING OUTCOMES

6.1 Describe the broad levels,formats, and granularities of information.

6.2 Differentiate between transactional and analytical information.

6.3 List,describe and provide an example of each of the 5 characteristics of high quality information.

6.4 Assess the impact of low quality information on an organization and the benefits of high quality information on an organization.

*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.

*Daily decisions need information.

*A lot of information can make good decision.

*Successfully collecting ,compiling ,sorting and analyzing information can provide tremendous insight into how an organization is performing .

1)Organizational information

*It divided into 3 where as levels, formats ,and granularities.

*4 primary traits of value of information : - Information type

                                                                         - Information timeliness

                                                                         - Information quality

2)The value of transactional & analytical information 

                                                                       

Transactional information -to support daily operation tasks(routine). Examples :if we withdrawal money from ATM we will get receipt from ATM machine.

                                                              

Analytical information -occurs monthly,weekly.Combine transactional information = analytical information. 

3)The value of timely information -timeliness is an aspect of information that depends on the situation .

i)Real-time information- immediate ,up-to-date information.Example:Lazada update their stock everyday so customers will know whether stock available or not.

ii)Real-time system-provides real-time information in response to query requests.Example Bursa Saham every second the information will change.

4)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.

*Want use technology to get faster decision,but have good decision.

*Characteristics of high quality information.

a)Accuracy -the values must correct,name spelled correctly .

b)Consistency -aggregate or summary information in agreement with detailed information.Example total fields equal true total of individual fields.

c)Uniqueness -each transaction,entity and event represented only once in the information.Example to avoid duplicate customers.

d)Timeliness -information current with respect to the business requirements.Example information updated weekly,daily or hourly.To avoid get outdated information.

5)Understanding the costs of poor information 

*The 4 primary sources of low quality information

i)Online customers intentionally enter inaccurate information to protect their privacy(fake name,fake address)

ii)Information from different systems have different entry standards and formats(wrong key in data)

iii)Call enter operators enter abbreviated or erroneous information by accident or to save time(customer service use short form only when they received complain but when to key in data they do not remember)

iv)Third party & external information contains inconsistencies, inaccuracies &errors(get information from supplier did not complete)

*Potential business effects resulting from low quality information include :

i)Inability to accurately track customers(when have duplicate customers)

ii)Inability to identify selling opportunities(details did not enough)

iii)Marketing to nonexistent customers(if email customers did not valid)

iv)Difficulty tracking revenue due to inaccurate invoices(did not get accurate numbers)

v)Inability to build strong strong customer relationships(customers did not promotion)

6)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.

CHAPTER 5: ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

LEARNING OUTCOMES

5.1 Compare the responsibilities of a chief information officer (CIO) ,chief technology officer (CTO), chief privacy officer (CPO), chief security officer (CSO), chief knowledge officer (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 .

1)Organizational structures

i)Organizational employees must work closely together to develop strategic initiatives that create competitive advantages .

ii)Ethics & security are two fundamental building blocks that organizations must base their businesses upon.

2)IT roles & responsibilities 

i)Chief Information Officer (CIO) -uses of IT & ensures the strategic alignment of IT with business goals & objectives. Broad CIO functions include manager,leader and communicator.

ii)Chief Technology Officer (CTO) -responsible for ensuring the throughput,speed ,accuracy ,availability and reliability of IT.

iii)Chief Security Officer (CSO) -responsible for ensuring the security of IT systems.

iv)Chief Privacy Officer (CPO) -responsible for ensuring the ethical and legal use of information.

v)Chief Knowledge Officer (CKO) -responsible for collecting ,maintaining and distributing the organization's knowledge.

3)The gap between business personnel & IT personnel

*Business personnel possess expertise in functional areas such as marketing, accounting &sales.

*IT personnel have the technological expertise.

*This typically causes a communications gap between the business personnel & IT personnel.

4)Improving communications

*Business personnel 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.

5)Organizational fundamentals -ethics and security

*Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful.

*In recent years ,such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics & security.

*Ethics - the principles & standards that guide our behavior toward other people.

*Privacy is a major ethical issue. Privacy -the 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 .


6)Ethics ;issues affected by technology advances :

a)Intellectual property -intangible creative work that is embodied in physical form.

b)Copyright - legal protection afforded an expression of an idea(song,video game,proprietary documents).

c)Fair use doctrine- legal to use copyrighted material.

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

e)Counterfeit software- manufactured to like the real thing &sold as such.

7)Security- organizational information is intellectual capital-it must be protected .

*Information security- the protection of information from accidental /intentional misuse by persons inside or outside an organization.

*E-business automatically creates tremendous information security risks for organizations.

CHAPTER 4 :MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

LEARNING OUTCOMES

4.1 Compare efficiency IT metrics & effectiveness IT metrics.

4.2 List & describe 5 common types of efficiency IT metrics.

4.3  List & describe 4 types of effectiveness IT metrics.

4.4 Explain customer metrics & their importance to an organization,

1)Key performance indicator (KPI) -measures tied to business drivers.

2)Metrics are detailed measures that feed KPIs.

3)Performance metrics fall into nebulous area of business intelligence that is neither technology ,nor business centered but requires input from both IT and business professionals .

4)Efficiency & Effectiveness 

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

ii)Effectiveness IT metric- measures impact IT on business processes & activities including customer satisfaction, conversion rates, and sell- through increases.

5)Benchmarking -baselining metrics 

i)Benchmarks -baseline values the system seeks to attain.

ii)Benchmarking -process of continuously system results ,comparing results to optimal system performance ,identifying steps & procedures to improve system performance.

6)Efficiency IT metrics

a)Throughput -The amount of information that can travel through a system at any point. Example : Zalora website you can get a lot of information at one time.

b)Transaction speed -The amount of the time a system takes to perform a transaction.Example : Online banking it very fast it takes short time only to process.

c)System availability -The number of hours a system is available for users .Example :Zalora website customers can open any time because it available 24 hours.

d)Information accuracy -A system generates the correct results when executing the same transaction numerous times .Examples; Supply chain management and customer relationship management produce same results.

e)Web traffic- includes a host of benchmarks such as the number of page views, number of unique visitors and average time spent viewing a web page. Example :to compare the famous website that most visitors.

f)Response time -Time takes to respond user interactions such as mouse click.Example :how many time they click to get information.

7)Effectiveness IT metrics -focus on organizations goals,strategies, and objectives include:

a)Usability -easy people to get information.To do any transactions.It also users friendly. The less click is the most effectiveness.

b)Customer satisfaction -by satisfaction surveys,percentage of existing customers retained,and increases in revenue dollar per customer.To retain the regular customers and to increase profit.

c)Conversion rates- when customers open, read advertisement and buy the product .

d)Financial- return on investment,cost benefit analysis and costs including development, maintenance and fixed.

8)The interrelationships of efficiency and effectiveness IT metrics

-Security is the most issue ,efficiency become not but high in effectiveness.

-If system success it does not means success in business.

*Many organizations want to achieve upper right hand corner where as high in efficiency and high in effectiveness.

9)Metrics for strategic initiatives -metrics for measuring & managing strategic initiatives include :

-Website metrics
-Supply chain management (SCM) metrics
-Customer relationship management (CRM) metrics
-Business process reengineering (BPR) metrics 
-Enterprise resource planning (ERP) metrics

10)Website metrics

a)Abandoned registrations -number of visitors who start the process of completing a registration page & abandon the activity.

b)Abandoned shopping carts-number of visitors who create a shopping cart and start shopping and abandon activity before paying for the merchandise .

c)Click through -count number of people who visit,click on ad, taken site of the advertiser.

d)Conversion rate -percentage of potential customers who visit site and buy .

e)Page exposures -average number of page exposures to an visitors.

f)Total hits-number of visits to a website,many maybe by the same visitors .

11) SCM metrics :

a)Back order- unfilled customer order,back order is demand (immediate /past due)

b)Customer order promised cycle time-agreed upon cycle time of a purchase order.Gap between the purchase order creation date and requested delivery date.

c)Customer order actual cycle time -average time takes to actually fill a customers purchase order.Measure can viewed on an order /order line level.

d)Inventory replenishment cycle time- measure the manufacturing cycle time plus time included to deploy the product.

12)CRM metrics: measure user satisfaction & interaction ,include :

-Sales metrics
-Service metrics
-Marketing metrics

 13)BPR AND ERP METRICS- balanced scorecard enables organizations to measure  and manage strategic initiatives .

CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

LEARNING OUTCOMES

3.1 List and describe the four basic components of supply chain management.

3.2 Explain customer relationship management systems and how they can help organizations           understand their customers.

3.3 Summarize the importance of enterprise resource planning systems.

3.4 Identify how an organization can use business process reengineering to improve its business.

*Organizations can undertake high-profile strategic initiatives including :

a.i)Supply chain management (SCM) -Management of information flows between& among stages in supply chain to maximize total supply chain effectiveness & profitability.

ii)SCM have their own supplier where as more than one supplier.

iii)Link each other with supplier ,so that supplier will know if stock less so they will top-up the products.No need to call supplier only update the systems (for users SCM)

iv)4 basic components of SCM include :

a)Supply chain strategy :managing all resources to fulfill customer demand .

b)Supply chain partner :deliver finished products ,raw materials and services.

c)Supply chain operation :schedule for production activities.

d)Supply chain logistics :product delivery process.

v)Effective and efficient SCM systems can enable an organization to :

-Decrease the power of its buyers.

-Increase its own supplier power.

-Increase switching costs to reduce threat of substitute products/services.

b.i)Customer relationship management (CRM) -managing all aspects to fulfill demands of customers to increase customer loyalty.

ii)CRM is not technology ,but a STRATEGY  ,process and business goal that an organization must embrace .

iii)CRM can enable an organization to :

-Identify types of customers.

-Design individual customer marketing campaigns.

-Treat each customer as an individual .

iv)Systems that link customers will link to CRM.

c.i)Business Process Reengineering (BPR) -Redesign ,restructure ,and reengineering .Not only improves but totally changes.The purpose to make all business processes best-in-class.

ii)Business process- set of activities that accomplish a specific tasks, such as processing a customers order.

iii)Reengineering the Corporation -book written by Michael Hammer & James Champy that recommends 7 principles for BPR.

iv)Finding opportunity using BPR

-Transform or improve the way of work from traditional to technology.

-For example in traditional we have to find our own solution to solve the problems. But in modern they find solution for us to solve our problems.

-Nowadays, to do passport only takes 1 hour 30 minutes because exist technology and systems.

-The more you do changes ,the more you gets benefits.

-Put benchmark(people the most best we want to be like them)

v)Pitfalls of BPR -fails to keep up with competitors because have benchmark,you always number two, and same business process to others.

d.i)Enterprise Resource Planning (ERP) -integrates all departments and functions into a single IT system so employees can make decisions .

ii)Keyword in ERP is "enterprise"

iii)To make upper level easy especially customer service because can link to all.

iv)ERP systems collect data from across an organization & correlates the data generating an enterprisewide view.