Enabling the Organization—Decision Making

FOR YOUR INFORMATION

  There are a few reason for Decision Making are made. They are:
*People need to analyse the amount of information
*People must make the decision quickly
*People must apply sophisticated analysis technique
*People must protect the corporate asset of organizational information.

Organizational level that you must know in an organization are start from EXECUTIVE as the highest level followed by the MANAGER  and the lower level are the ANALYSIS.

ONLINE TRANSACTION PROCESSING (OLTP)
* is the capturing of transaction and event information and event using the information according to define business rule.
TRANSACTION PROCESSING SYSTEM (TPS)
*the basic business system that serves the operational level in an organization.
ONLINE ANALYTICAL PROCESSING (OLAP)
 *manipulation of information to create business intelligence in support of strategic decisin making.

ARTIFICIAL INTELLIGENCE simulate the human intelligence such as the ability to reason and learn. There are many categories of artifiail intelligence which are :

• Expert system   :   computerized advisory programmed that imitiate the reasoning process of expert in solving difficult problem.
• Neural Network  :   attempt to emulate the way of human brain work.
• Generic Algorithm  :   mimics the evalution, survival-of-the fittest process to generate increasingly better solution to a problem.
• Intelligent Agent  :  special purpose knowledge-based information system that accomplished specific task on behalf of its user.

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Accessing Organizational Information—Data Warehouse

Database Warehouse Fundamental

A data warehouse is a logical collection of information which is gathered from many different operational databases that supports business analysis activities and decision making tests.

The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such way that employees can make decisions and undertake business analysis activities.

The data warehouse model complies information from internal databases, transactional databases and external databases through extraction, transformation and loading (ETL), which is a process that extract information from external and internal databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

The data warehouse then sends subsets of the information to data marts. A data mart contains a subset of data warehouse information.

 

•Cube – common term for the representation of multidimensional information

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

 

INFORMATION CLEANSING OR SCRUBBING

• to increase the quality of organizational information and thus the effectiveness of decision making, business must formulate a strategy to keep information clean.
• Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect or incomplete information.
• specialized software tools use sophisticated algorithms to parse, standardize, correct, match, and consolidate data warehouse information.

The relationship between business intelligence and a data warehouse

•    Business intelligence – information that people use to support their decision-making efforts

•    Principle BI enablers include:

–               Technology

–               People

–               Culture

STORING ORGANIZATIONAL INFORMATION - DATABASE

Database are important for organization to access information.   The central concept of a database is that of a collection of records, or pieces of information. Typically a given database has a structural description of the type of facts held in that database. This description is known as a schema.

1) The fundamental concepts of the relational database model

•    Database models include:

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

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

  Relational database model – stores information in the form of logically related two-dimensional tables.

 

        2) The advantages of the relational database model

Database advantages from a business perspective include:

Ø  Increased flexibility

Ø  Increased scalability and performance

Ø  Reduced information redundancy

Ø  Increased information integrity (quality)

Ø  Increased information security

3) The definition of a DBMS and Data Driven Website

Database management systems (DBMS) – 

software through which users and application programs interact with a database

Data-driven websites – 

an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database.

      4) The two primary methods for integrating information across multiple    databases

                   

 Integration – allows separate systems to communicate directly with each other

a)      Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes

b)      Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes

Advantages:

• development
• content management
• future expandability
• minimizing human error
• cutting production and update costs
• more efficient
• improved stability

Valuing Organizational Information

When  we addressing a significant business issue, employee must be able to obtain and analyze all the relevant information so they can make the best decision possible. Organizational information comes at different levels and in different formats and "granularities"

Information granularity

• refers to the extent of detail within the information (fine and detailed or coarse and abstract)
• employee must be able to correlate the different levels, formats and granularities of information when making decisions. For example is if employees are using a supply chain management system to make decisions, they might find that their suppliers send information in different formats and granularity at different level.

The Value of Transactional and Analytical Information
Transactional information 
-encompassess all of the information contained within a single business process or unit of work
- primary purpose is to support the performing of daily operational task. 

Analytical information 
-encompassess all organization information
-primary purpose is ti suppport the performing of managerial analysis task
- includes transactional information along with other information such as market and industry information. 

The value of timely information 

• REAL TIME INFORMATION means immediate, up to date information.
• provide real time information in response to query request.
• many organization use this system to exploit key corporate transactional information

The value of quality information

-the database maintains information and provide users with essay access to the stored information. 
-several issues with low quality information including: 

a) Missing information that consist of accuracy, completeness, consistency, uniqueness and timeliness. 
b) incomplete information

c) probably duplication of information

d) potential wrong information 

e) inaccurate information 

HIGH QUALITY INFORMATION WILL IMPROVE DECISION MAKING!!!

Organizational Structures That Support Strategic Initiatives

In this chapter, it contains the person who are responsible for maintaining IT system...

Organization structure is where employee work closely together to develop strategic initiative that create competitive advantages. Beside that, ethics and security are two fundamental building blocks that organization must base their business upon. There are a few person responsible in the top management of an organization. They are :

                                     CHIEF INFORMATION OFFICER

• oversees all uses of IT and ensures the strategic alignment of IT with business goal and objectives
• Broad CIO function 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 strategic vision of the organization

- Communicator building and maintaining strong executive relationships


                                      CHIEF TECHNOLOGY OFFICER

• responsible for ensuring that throughput, speed, accuracy, availability and realibility of an organization's information technology.
• have direct responsibility for ensuring the efficiency of IT system throughout the organization
• most possess well rounded knowledge of all aspects of IT, including hardware, software and telecommunications.

                                          CHIEF SECURITY OFFICER

• responsible for ensuring the security of IT system and developing strategies and IT safeguards against attacks from hackers and viruses.
• has been elevated in recent years because of the number of attacks from hackers and viruses
• possess detailed knowledge of network and telecommunications because hackers and viruses usually find their way into IT system through networked computer.

                                            CHIEF PRIVACY OFFICER

• responsible for ensuring the ethical and legal use of information within an organization.
• newest senior executive position in IT.

                                           CHIEF KNOWLEDGE OFFICE

• responsible for collecting, maintaining and distributing the organization's knowledge.
• these sysytem create repositories of organizational documents, methodologies, tools and practices and they establish methods for filtering the information

measuring the success of strategic initiatives

There are two types of IT metric:

Efficiency implies doing things right and effectiveness implies doing the right things. 

Efficiency IT metrics focus on technology and include throughput, which is the amount of information that can travel through a system at any point in time.  Efficiency metrics include :

•      speed
•      availability
•      accuracy
•      Web traffic
•      response time.

Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives .  Ideally, an organization wants to operate with significant increases in both efficiency and effectiveness. Effectiveness metric and include :

•      usability
•     customer satisfaction 
•     conversion rates
•     financial metrics.

In order to enhance the measurement, there must be a benchmark which is the baseline values the system seek to attain. Benchmarking is a process of continousely measuring system result, comparing the result and identify steps to improve the system performance.

the relation:

STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Well for people information, there are 4 strategy that a commonly used for implementing competitive advantages!!!

    Supply chain management (SCM)    
 Definition :  it involves the management information flows among the organization.
Example : when we buy a product, the scanning of the product will deduct one from the store.
Basic component : strategy, partners, operation, logistic.

        Customer relationship management (CRM)   
Definition : not just a strategy but also a process and business that an organization must embraces on an enterprisewide level.
Purpose : to increase customer loyalty and retention and an organization profitability. 

       Business process reengineering (BPR)  
 Definition : the analysis and redesign of workflow within and between enterprise.
By who : Micheal Hammer and James Champy

        Enterprise resources planning  
Definition : intergrates all departments and function throughout the organization into a single IT system.
Keyword : "enterprise"

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