CHAPTER 7 : STORING ORGANIZATIONAL INFORMATION ( DATABASE )

Database – Maintains info about various types of objects ,events,people and places.

Database models include :

Hierarchical Database Model 

Network Database Model

Relation Database Model

Entities and Attributes

Entities -  a person , place , thing or event about which info is stored.

Attributes – characteristics or properties of an entity class.

Keys and Relationsips

Primary key -  a field that uniquely identifies a given entity in atable.

Foreign Key – a primary key of one table that appears an attribute in another table and acts.

Relation Database Advantage

-       -   Increase flexibility

-        -  Increased scalability and performance

-       - Reduces info redundancy

  

Database Mangement System

Data Driven Web Sites

-         

        An interactive web site kept constantly updated and relevant to the needs of customer.

Advantage :

1. Development

-    allows the owner to make changes at any time.

2. Content Management

-    Requires a programmer to make updates.

3. Future Expandability

-   Enables the site to grow faster than would be possible with a static site.

4. More Efficient

-   Computers are excellent at keeping volumes of information intact.

Intergrating Information among Multiple Databases

Intergration – allows separate systems to communicate directly with each other.

1. Forward Intergration

-   takes info entered into a given system and sends it auto to all downstream system and processes.

2. Backward Intergration

-   takes info entered into agiven system and sends it auto to all upstream systems and processes.

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CHAPTER 6 : Valuing Organizational Information

Organization Information

The Value of Transactional and Analytical Information

The Value Of Timely Information

Timeliness is an aspect of information that depends on the situation

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 decision

Characteristics of high-quality information include :

·         Accuracy

·         Completeness

·         Consistency

·         Uniqueness

·         Timeliness

Understanding the Costs of Poor Information

Primary Sources :

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 errors.

EFFECTS :

-          Inability to accurately track customers

-          Difficulty identifying selling opportunities

-          Inability to identify valuable customers.

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CHAPTER 5 : Organizational Structures that Support Stratergic Initiatives

Organizational Structures

-          Organizational employees must work closely together to develop stratergic iniyiatives.

-          Ethics and security are two fundamental building blocks that organization must base their business upon.

IT Roles and Responsibilities

Recent IT related stratergic positions :

1. Chief Information Officer ( CIO )

-   Overseas all uses of IT and ensures the stratergic alignment of IT with business goals and objective.

Broad CIO functions include :

Manager – ensuring the delivery of all IT is in line time and within budget.

Leader – ensuring the stratergic vision of IT is in line with the stratergic vision of the organization.

Communicator – building and maintaining strong executive relationships.

2. Chief Technology Officer ( CTO )

-   responsible for ensuring the throughout,speed,accuracy,availability and reliability of IT.

3. Chief Security Officer ( CSO )

-   responsible for ensuring the security of IT system.

4. Chief Privacy Officer ( CPO )

-  responsible for ensuring the ethical and legal use of information.

5. Chief Knowledge Officer ( CKO )

-  responsible for collecting,maintaining and distributing the organization’s knowledge.

The Gap Between Business Personnel and IT Personnel

Business Personnel possess expertise in functional areas such as marketing and sales while IT Personnel have the technological expertise.

ETHICS

Meaning : the principles and standards that guide our behavior toward other people.In other meaning privacy is means 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.

Issues :

1. Intellectual property

-   Intangible creative work that is embodied in physical form.

2. Copyright

-   The legal protection afforded an expression of an idea such as songs.

3. Counterfeit Software

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

SECURITY

Organizational info is intellectual capital that must be protected

Information Security – the protection of info from accidental or intentional misuse by persons inside or outside an organization.

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Chapter 4 - Measuring The Succes Of Strategic Initiatives

Key Performance Indicator ( KPI ) 

 - measures that are tied to business drivers

Metrics 

- detailed measures that feed KPIs

Efficiency IT metrics

*measrues the performance of the IT system itself including throughput , speed and availability.

Effectiveness of IT metrics

*measrues the impact IT has on business processes and activities including customer satisfaction,conversion rates and sell through increases.

Benchmarking ( Baselining metrics )

- process of continuousy measuring system results . comparing those results to optimal system performance and identytifying steps and procedured to improve system performance.

Efficiency IT metrics

1. Throughput - the amount of info that can travel through a system at a point.

2, Transaction speed - the amount of time a system takes to perform a transaction.

3. System availability - the number of hours a system is available for uers.

4. Information accuracy - the extent to which sysytem generates the correct results

5. Web traffic - includes a host of benchmarks

6. Response time - the time it takes to respond to user interactions.

* effectiveness of IT metrics

WEBSITE Metrics

* abandoned registrations

* abandoned shopping cards

* click-through

* conversion rate 

* cost - per - thousand

* page exposures

* total hits

* unique visitors

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CHAPTER 3 : STRATERGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE                                     ADVANTAGES


Organizations can undertake high-profile stratergic initiatives including :

- Supply Chain Management ( SCM )
- Customer Relationship Management ( CRM )
- Business Process Reengineering ( BPR )
- Enterprise Resource Planning ( EPR )


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,

4 BASIC components of supply chain management include :

1. Supply chain stratergy - stratergy of managing all resources to meet customer demand.
2. Supply chain partner - partners throughout the supply chain that delivers finished products , raw                                              materials and services.
3. Supply chain operation - schedule for production activities.
4. Supply chain logistics - product delivery process

  Effective and efficient SCM system can enable organization to :
- Decrease the power of its buyers
- Increase its own supplier power
- Increase switching costs to reduce the threat of substitute products or services
- Create entry barriers thereby reducing the threat of new entrants
- Increase efficiences while seeking a competitive advantage through cost leadership.


Customer Relationship Management ( CRM )

* Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty & retention & organization's profitability.

CRM can enable an organization to :

- identify types of customers
- design individual customer marketing campaigns
- understand customers buying behaviour



Business Process Reengineering

* Business Process means a standardized set of activities that accomplish a specific task , such as processing customer's orders.

* Business Process Reenginering means the analysis and redesign of workflow within and between entreprises.





Enterprise Resource Planning

* intergrates all departments and functions tthroughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide info on all business operations.

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CHAPTER 2 : IDENTIFYING COMPETITIVE ADVANTAGE


COMPETITIVE ADVANTAGE
- a product or service that customers service place a greater value on the similar offerings from a competitor.

FIRST MOVER ADVANTAGE
- occurs when an organization can significantly impact its market share by being first to market with competitive advantage.

Organization watch their competition through environmental scanning.

Environmental scanning is the acquisition and analysis of event and trends.It have external and internal environment.

Internal

P - Politics
E - Economy
S - Social
T - Technology
E - Environment
L - Law

PORTER'S FIVE FORCES MODEL

1. Buyer Power
- HIGH  when buyers have many choices.
- Loyalty programs and Switching cost are the way to reduce buyer power.

2. Supplier Power
- HIGH when buyers have few choices of whom to buy from.
- supply chain is consists of all parties involved in the procurement of a produc.
-2 types of B2B ( business to business ) whcih is private exchange and reverse auction.

3. Threat of substitute products or service
-HIGH when there are many alternatives to a product.
-switching cost can make customer reluctant to change service.

4. Threat of new entrants
- HIGH when its easy for new competitor to enter the market.

5. Rivalry among the existing competitor
- HIGH when the competition is fierce in a market.

THE GENERIC STRATERGIES

- Focused stratergy

- Cost leadership

- Diffentation

Value Creation

Tools to choose stratergy
- Business Process ( processing customer's order )
- Value Chain ( views organization as a series of processes )

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 CHAPTER 1 : BUSINESS DRIVEN TECHNOLOGY

THE ROLE OF INFORMATION TECHNOLOGY IN BUSINESS

- IT is everywhere in business

- Business organization operate by functional areas or functional silos.

- Functional areas are interpendent.

IT BASICS

IT is a field concerned with the use of technology in managing and processing information.Its an important enabler of business success and innovation.

Management Information System ( MIS ) is a general name for the business function and academic discipline covering the application of people,tech and procedures to solve business problems.

MIS is a business function.

DATA , INFORMATION AND BI

Data - Raw facts that describes the characteristics of an event.

Information - Data converted into a meaningful and useful content 

Business Intelligent (BI) - Applications and technologies that areused to support decision-making effort such as Microsoft Excel.

IT RESOURCES

1. People use 

2. Information technology to work with

3. Information

IT CULTURES

Informational Functional Cultures

Employes use information as a means of exercising influence or powers of others.

Information Sharing Cultures

Employees across departments trust each other to use information to improve performance.

Information Inquiring Cultures

Employees across departments search for information to better understand the future and align themselves with current trends and new direction.

Information Discovery Cultures

Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.

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