Chapter 6 Valuing Organizational Information

The Business Benefits Of High-Quality Information


Information is powerful. Information can tell an organization how its current operations are performing and help it estimate and strategize about how future operation might perform. Remember that new perspectives and opportunities can open up when you have the right data that you can turn into information and ultimately business intelligence.

Information is everywhere in an organization. Managers in sales, marketing, human resources, and management need information to run their departments and make daily decisions. Organizational information comes at different levels in different formats and “ granularities “. Information granularity refers to the extent of detail within the information ( fine and detailed or coarse and abstract ). For example, a company might be collecting information from various suppliers to make needed decisions, only to find that the information is in different levels, formats, and granularities.

 
The Value Of Transactional And Analytical Information


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

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

Real-time information – immediate, up-to-date information
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 accuracy when i putting 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 Organisational Structure That Support Strategic Initiatives

CHIEF INFORMATION OFFICER (CIO)

• This person will responsible for overseeing for the uses of information technology
• It ensuring the strategic alignment of IT with business goals and objectives
• The jobs will reports all the activities in organisation directly to the CEO
• CTO also must be a person that have understanding of every aspect of an organisation
• The capability in IT must be the main power to be a CTO
• Other function of CTO:- 
• MANAGER - Ensure the delivery of all IT  projects, on time and within budget
• LEADER - Ensure the strategic vision of IT is in line with the strategic vision of the organisation
• COMMUNICATOR- Advance and communication the IT strategy by building and maintaining strong executive relationship
• CTO also need to enhance customer satisfaction ahead of their concern of any specific aspects of IT

CHIEF TECHNOLOGY OFFICER (CTO)

• Responsible for ensuring the through, speed, accuracy, availability, and reliability of an organisation in IT
• Direct responsibilities for ensuring the efficiency of IT system 
• CTO will posses well-rounded knowledge of all aspects of IT
• Runs the organization’s engineering group
• Uses technology to enhance the company’s product offerings
• Focuses on external customers (buyers)
• Collaborates and manages vendors that supply solutions to enhance the company’s product(s)
• Aligns the company’s product architecture with business priorities
• Develops strategies to increase the company’s top line (revenue)
• Has to be a creative and innovative technologist to be successful

CHIEF SECUARITY OFFICER (CSO)

• To ensuring the security of IT systems
• Developing strategies in IT
• Make sure the IT safeguards against attacks from hackers and viruses
• EXAMPLE OF THE RESPONSIBILITIES CSO:-
• Lead operational risk management activities to enhance the value of the company and brand.
• Oversee a network of security directors and vendors who safeguard the company's assets, intellectual property and computer systems, as well as the physical safety of employees and visitors.
• Identify protection goals, objectives and metrics consistent with corporate strategic plan.
• Manage the development and implementation of global security policy, standards, guidelines and procedures to ensure ongoing maintenance of security. Physical protection responsibilities will include asset protection, workplace violence prevention, access control systems, video surveillance, and more. Information protection responsibilities will include network security architecture, network access and monitoring policies, employee education and awareness, and more.
• Work with other executives to prioritize security initiatives and spending based on appropriate risk management and/or financial methodology.
• Maintain relationships with local, state and federal law enforcement and other related government agencies.
• Oversee incident response planning as well as the investigation of security breaches, and assist with disciplinary and legal matters associated with such breaches as necessary.
• Work with outside consultants as appropriate for independent security audits.

CHIEF PRIVACY OFFICER (CPO)

• Responsibility for ensuring the ethical and legal use of information within an organisation
•  Created to respond to both consumer concern over the use of personal information, including medical data and financial information, and laws and regulations.
• Evaluating legislative and regulatory proposals involving collection, use, and disclosure of personal information by the Federal Government. 
• Conducting a privacy impact assessment of proposed rules of the Department or that of the Department on the privacy of personal information, including the type of personal information collected and the number of people affected.
• Coordinating with the Officer for Civil Rights and Civil Liberties.

CHIEF KNOWLEDGE OFFICER (CKO)

• (CKO) is an organizational leader, responsible for ensuring that the organization maximizes the value it achieves through "knowledge". 
• The CKO is responsible for managing intellectual capital and the custodian of Knowledge Management practices in an organization. 
• CKO role is much broader, that can help an organization maximize the returns on investment in knowledge (people, processes and intellectual capital), exploit their intangible assets (know-how, patents, customer relationships), repeat successes, share best practices, improve innovation, and avoid knowledge loss after organizational restructuring.
• CKO must have skills across a wide variety of areas. 
• They must be good at developing/understanding the big picture, advocacy (articulation, promotion and justification of the knowledge agenda, sometimes against cynicism or even open hostility), project and people management (oversight of a variety of activities, attention to detail, ability to motivate), communications (communicating clearly the knowledge agenda, have good listening skills and be sensitive to organizational opportunities and obstacles), leadership, teamwork, influencing, and interpersonal skills. 
• The CKO who successfully combines these skills is well equipped as an excellent agent of change for their organization.

Chapter 4 Measuring The Success Of Strategic Initiatives

How Facebook can be effective and efficient as a platform to set-up online business.

First, we need to know IT effectiveness matrix and efficiency matrix.

IT Effectiveness Matrix:

• Effectiveness is related to doing the right things.
• It is more to intangible which is not easy to see, touch, calculate, define, determine and realize.
• It also measure the impact IT has on business process and activities including customer satisfaction.
• How well the organization achieve its goals and objectives and ensuring they accomplished.

IT Efficiency Matrix:

• Efficiency is related to doing the things right.
• It is more to tangible which is easy to see,touch,calculate,define,determine and realize.
• It also measure the performance of the IT system itself including throughput, speed, availability and flexibility.
• How far the company can using their resources such as capital, assets, facilities or technology system to achieve it goals. 
• For example, a company already have a formal web and now they want to create news letter that can be generate everyday for their customers.

 I would like to set up an online jersey shop. So, what can facebook help me in my business?

Efficiency:

1. There are so many facebook users in this wonderful world. So, i can have a bigger prospect to sell my jersey. i also have many friends in facebook, which can help me by buyinmg my jersey and do little promotion.
2. Promote my jersey through a popular facebook groups or page.  I can place my advertisement on the popular pages like Oh! Media network to make my shop more popular. Again, my friends also can support me by helping me to promote my shop to their friends.
3. Every updates of my product will be announced to the customer, with complete details of the product like size and measurement. So, easier for the customers to buy from me.

Effectiveness:

1. I must keep my promise to my customers. Which I must deliver their order at the right place and at the right time.
2. I also will let them know my personal facebook, which can help them dealing with me if problem happen.

Chapter 3 Strategic Initiatives for Implementing Competitive Advantages

This chapter introduces high-profile strategic initiatives that an organization can undertake to help it gain competitive advantages and business efficiencies - supply chain management, customer relationship management, business process re engineering, and enterprise resource planning.

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. The four basic components of supply chain management :

• Supply chain strategy : The strategy for managing all the resources required to meet customer demand for all products and services.
• Supply chain partners : The partners chosen to deliver finished products, raw materials and services including pricing, delivery and payment processes along with partner relationship monitoring metrics.
• Supply chain operation : The schedule for production activities including testing, packaging and preparation for delivery. Measurements for this component include productivity and quality.
• Supply chain logistics : The product delivery processes and elements including orders, warehouses, carriers, defective products returns, and invoicing.

When total supply chain is effectiveness and profitability is achieved, means the organization has achieve good productivity.

 

Effectiveness and efficient supply chain management can enable an 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 efficiencies while seeking a competitive advantages through cost leadership.

Customer Relation 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.

 

Business Process Reengineering (BPR) is the analysis and redesign of workflow within and between enterprises. The concept of BPR traces its origins to management theories developed as early as the 19th century.

 

 

Seven Principles of Business Process Reengineering

1. Organize around outcome, not tasks.
2. Identify all the organization's processes and prioritize them in order of redesign urgency.
3. Integrate information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once and the source. 

Enterprise Resource Planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing enterprise wide information on all business operations.

Chapter 2 Indentifying Competitive Advantage

Identifying Competitive Advantages.

• A competitive advantage is a product or service that an organization's customers place a greater value on than similar offerings from a competitor.
• First-Mover Advantage occurs when an organization can significantly impact its market by being the first to market with a competitive advantage.
• It is important while developing competitive advantage to pay attention to their competition by environmental scanning. Environmental Scanning is the acquisition and analysis of events and trends in the environment external to an organization.
• Organizations use 3 common tools to analyze and develop competitive advantages: 

1. Value Change Analysis
2. Five Force Model
3. Three Generic Strategies

Chapter 1 Business Driven Technology

The objective in Business Driven Technology is a Distinguish Management Information System (MIS) and Information Technology (IT). This describe the relationship among people Information Technology. IT in our daily life is electronic that can connect to one another are found everywhere. For example in the office, home can connect.
 
Three IT impact on Business Operating is:

• Reducing Cost
• Improving Productivity
• Generating Growth

Reducing Cost can reduce of paper work, communication and time.

Improving Productivity in the pocess to promote the product with smoothly and efficient. 

Generating Growth in case of increasing on demand and supply for the customer.
In IT is a field concerned with the use of technology in managing and processing information. If can be important enable of business success and innovation. Not useful unless the right people know how to use and manage it effectively.

Management Information Systems (MIS) is a general name for the business function and academic discipline covering the application of people, technologies, and procedures--collectively information systems--to solve business problems. MIS is a business function just as marketing, finance, operations, and human resources are business functions.
 Important of MIS :
Data,Information and Business Intelligance
-It is important to distinguish between data, information, business intelligence.
• Data - are raw facts that describe the characteristics of an event.
• Information - is data converted into a meaningful and useful context.
• Business Intelligence - refers to applications and technologies that are used to gather, provide access to, and analyze data and information to support decision -making efforts.
   
IT Resources 
The plans and goals of the IT department must align wit the plans and goals of the organization. 
1. People use.
2. information technology to work with
3. information
 
IT culture
It culture plays a large role in determining how successful it will share information.
Organizational Information Cultures
1. Information-Functional Culture - Employees use information as a means of exercising influence or power over others.
2. Information-Sharing Culture - Employees across departments trust each other to sue information (especially about problems and failures) to improve performance.
3. Information-Inquiring Culture - Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
4. Information-Discovery Culture - Employees across departments are open to new insights about crises and radical changes and seek ways to create competitive advantages.