Storing Organizational Information Databases

relational database fundamentals

• information is everywhere in an organization
• information is stored in databases
• databases - maintains information about various types of objects (inventory), events (transaction), people )employee), and places (warehouse)
• database includes includes:
• hierarchical database model - information is organized into a tree-like structure (using parent/child relationships) in such way that it cannot have too many relationships
• network database model - a flexible way of representing object and their relationships
• relational database model - stores information in the form of logically related two-dimensional tables

entities and attributes

• entity - a person, place, thing, transaction, or event about which information is stored
• the rows in each table contain the entities
• attributes (fields, columns) - characteristics or properties of an entity class
• the column in each table contains the attributes

keys and relationships

• primary keys and foreign keys identify the various entity classes (tables) in the database
• primary key - a field (or group of fields) that uniquely identifies a given entity in a tables
• foreign key - a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables

relational database database

• database advantage from a business perspective include
• increased flexibility
• increased scalability and performance
• reduced information redundancy
• increased information integrity (quality)
• increased information security

increased flexibility

• a well- designed database should:
• handle changes quickly and easily
• provide users with different views
• have only one physical views
• have multiple logical views
• logical view - focuses on how users logically access information
• eg: a mail-order buss-2 people view diff format (logical views) but same physical view

increased scalability and performance

• a database must scale to meet increased demand, while maintaining acceptable performance levels
• scalability - refers to how well a system can adapt to increased demand
• performance - measures how quickly a system performs a certain process or transaction

reduced information redundancy

• databases reduce information redundancy
• redundancy - the duplication of information or storing the same information in multiple places
• inconsistency is one of the primary problems with redundant information
• difficult to decide which is most current and most accurate

increased information integrity (quality)

• information integrity - measures the quality of information
• integrity constraints - rules that help ensure the quality of information
• relational integrity constraint - rule that enforces basic and fundamental information-based constraints
• Eg. users cannot create an order for a nonexistent customer, provide a markup percentage that was negative etc.
• business critical integrity constraint - rule that enforce business rules vital to an organization's success and often require more insight and knowledge than relational integrity constraints
• Eg. product returns are not accepted for fresh product 15 days after purchase

increased information security

• information is an organization asset and must be protected
• database offer several security features including:
• password - provide authentication of the user
• access level - determines who has access to the different types of information
• access control - determines types of user access, such as read-only access

 Database management system

• database management system (DBMS) - software through which user and application programs interact with a database

Data driven web sites

• data driven websites - an interactive web site kept constantly updated and relevant to the needs of its customers through the use of a database
• advantages
• development: allows the websites owner to make changes anytime - all without to rely on a developer or knowing HTML programming. a well-structured, data web site enables updating with little or no training.
• content management: a static web site requires a programmer to make updates. this adds an unnecessary layer between the business and its wen contract, which can lead to misunderstanding and slow turnarounds for desired changes.
• future expandability: having a data driven web site enables the site to grow faster than would be possible with a static site, changing the layout, displays, and functionality of the site (adding more features and section) is easier with a data driven solution
• minimizing human error: even the most competent programmer charged with the task of maintaining many pages will overlook things and make mistakes. this will lead to bugs and inconsistencies that can be time consuming and expensive to track down and fix. unfortunately, uses who come across these bugs will likely become irritated and may leave the site. a well-designed, data driven web site will have "error trapping" mechanisms to ensure that required information is filled out correctly and that content is entered and displayed in its correct format.
• cutting production and update costs: a data driven web site can be updated and "published" by any competent data entry or administrative person. in addition to being convenient and more affordable, changes and updates will tak a fraction of time that they would with a static site. while training a competent programmer can take months or even a years, training a data entry person can be done in 30-60 minutes
• more efficient: by their very nature, computers are excellent as keeping volumes of information intact. with a data driven solution, the system keeps track of the templates, so users do not have to. global changes to layout, navigation, or site structure would need to be programmed only once, in one place, and the site itself will take care of propagating those changes to the appropriate pages and areas.
• improved stability: any programmer who has to update a web site from "static" templates must be very organized to keep track of all the sources files. if a programmer leaves unexpectedly, it could involve re-creating existing work if those source file cannot be found.
• plus. if there were any changes to the templates, the new programmer must be careful to use only the latest version. with a data driven web site, there is peace of mind, knowing the content is never lost.

integration information among multiple database

• integration - allows separate system to communication directly with each other 
• forward integration - takes information entered into a given system and sends it automatically to all downstream systems and processes
• backward integration - takes information entered into a given system and sends it automatically to all upstream systems and processes.
• building a central repository specifically for integrated information
• without integration, an organization will:
• spend considerable time entering the same info in multiple system
• suffer from the low quality and inconsistency typically embedded in redundant info.

Valuing Organizational Information

ORGANIZATIONAL INFORMATION

• information is everywhere in an organisation
• employees must be able to obtain and analyse the many different levels, formats, and granularity of organisational information to make decisions
• successfully collecting, compiling, sorting, and analysing information can provide tremendous insight into how an organisation is performing
• levels. format, any granularity of organisational information

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION

• transactional information encompasses all of the information contained within as single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks
• analytical information encompasses all organizational information, and its primary purpose is to support performing of managerial analysis tasks

THE VALUE OF TIMELY INFORMATION

• timeliness is an aspect of information that depends on the situation
• Real-time-information means 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 decisions
• you never want to find yourself using technology to help you make a bad decision faster
• characteristics of high-quality information include:
• accuracy
• completeness
• consistency
• uniqueness
• 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, and errors
• potential business effects resulting from low quality information include:
• inability to accurately track customers
• difficulty identifying valuable customers
• inability to identifying selling opportunities
• marketing to nonexistent customers
• difficulty tracking revenue due to inaccurate invoice
• inability to build strong customer relationships

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 organisation's bottom line

Organisational Structures That Support Strategic Initiatives

ORGANISATIONAL STRUCTURES

• organisational employees must work closely together to develop strategic initiatives that create competitive advantages
• ethics and security are two fundamental building blocks that organisations must base their business upon

IT ROLES AND RESPONSIBILITIES

• information technology is a relatively new functional area, having only been around formally for around 40 years
• recent IT-related strategic positions:
1. Chief Information Officer (CIO) is oversees all uses of IT and ensures the strategic alignment of IT business goals and objectives
2. Chief Technology Officer (CTO) is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization's information technology
3. Chief Security Officer (CSO) is responsible for ensuring the ethical and legal use of information within an organization
4. Chief Knowledge Office (CKO) is responsible for collecting, maintaining, and distributing the organisation's knowledge

THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL

• business personnel possess expertise in functional areas such as marketing, accounting and sales
• IT personnel have the technological expertise
• this typically causes a communications gap between the business personnel and IT personnel

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

ORGANIZATIONAL FUNDAMENTALS - ETHICS AND SECURITY

• ethics and security are two fundamental building blocks that organisations 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 n the meaning of ethics and security

Ethics

• the principles and standards that guide our behavior toward other people
• privacy is a major ethical issue. 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 affected by technology advances
• intellectual property - intangible creative work that is embodied in physical form
• copyright - the legal protection afforded an expression of an idea, such as a song, video game, and some types of proprietary documents
• fair use doctrine - in certain situations,it is legal to use copyright material
• pirated softwarebcounterfeit software - software that is manufactured to look like the real thing and sold as such
• one of the main ingredients in trust is privacy
• primary reasons privacy issues lost trust for e-business
1. loss personal privacy is atop concern for american in the 21st century
2. among Internet user, 37 percent would be "a lot" more inclined to purchase a product on a Web site that had a privacy policy
3. privacy/security is the number one factor that would convert internet researchers into Internet buyers

Security

• organization information is intellectual capital - it must be protected
• information security - the protection of information from accidental or intentional misuse by person inside or outside an organization
• E-business automatically creates tremendous information security risks for organizations 

Organisational Structures That Support Strategic Initiatives

ORGANISATIONAL STRUCTURES

• organisational employees must work closely together to develop strategic initiatives that create competitive advantages
• ethics and security are two fundamental building blocks that organisations must base their business upon

IT ROLES AND RESPONSIBILITIES

• information technology is a relatively new functional area, having only been around formally for around 40 years
• recent IT-related strategic positions:
1. Chief Information Officer (CIO) is oversees all uses of IT and ensures the strategic alignment of IT business goals and objectives
2. Chief Technology Officer (CTO) is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization's information technology
3. Chief Security Officer (CSO) is responsible for ensuring the ethical and legal use of information within an organization
4. Chief Knowledge Office (CKO) is responsible for collecting, maintaining, and distributing the organisation's knowledge

THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL

• business personnel possess expertise in functional areas such as marketing, accounting and sales
• IT personnel have the technological expertise
• this typically causes a communications gap between the business personnel and IT personnel

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

ORGANIZATIONAL FUNDAMENTALS - ETHICS AND SECURITY

• ethics and security are two fundamental building blocks that organisations 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 n the meaning of ethics and security

Ethics

• the principles and standards that guide our behavior toward other people
• privacy is a major ethical issue. 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 affected by technology advances
• intellectual property - intangible creative work that is embodied in physical form
• copyright - the legal protection afforded an expression of an idea, such as a song, video game, and some types of proprietary documents
• fair use doctrine - in certain situations,it is legal to use copyright material
• pirated softwarebcounterfeit software - software that is manufactured to look like the real thing and sold as such
• one of the main ingredients in trust is privacy
• primary reasons privacy issues lost trust for e-business
1. loss personal privacy is atop concern for american in the 21st century
2. among Internet user, 37 percent would be "a lot" more inclined to purchase a product on a Web site that had a privacy policy
3. privacy/security is the number one factor that would convert internet researchers into Internet buyers

Security

• organization information is intellectual capital - it must be protected
• information security - the protection of information from accidental or intentional misuse by person inside or outside an organization
• E-business automatically creates tremendous information security risks for organizations 

Measuring The Success Of Strategic Intiatives

• Key performance indicator - measures that are tied to business drivers.
• metrics are detailed measures that feed KPIs
• performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals.

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

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

Benchmarks - baseline values the system seeks to attain.

Benchmarking - a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values) and identifying steps and procedures to improve system performance.

• Efficiency IT metrics focus on technology and include :-

       - Throughput
       - Transaction speed
       - System availability
       - Information accuracy
       - Web traffic
       - Response time

• Effectiveness IT metrics focus on and organization goals, strategies and objectives and include :-

        - Usability
        - Customer satisfaction
        - Financial

• Metrics for measuring and managing strategic initiatives include :-

      - Web site metrics

      - Supply chain management (SCM) metrics

      - Customer relationship management (CRM) metrics

      - Business process reengineering (BPR) metrics

      - Enterprise resource planning (ERP) metrics

• SCM Metrics

       - Back order

       - Customer order promised cycle time

       - Inventory replenishment cycle time

       - Inventory turns (inventory turnover)

• CRM Metrics

      - Sales metrics

      - Service metrics

      - Marketing metrics

• BPR and ERP Metric - the balanced scorecard enables organizations to measure and manage strategic intiatives.