CHAPTER 6

Valuing Organizational Information

Organizational information 

Information granularity ~ refers to the extent of detail within the information (fine and detaled or coarse and abstract). Sucessfully levels, in varied formats, exhibiting different granulity can provide tremendous insight into how an organization is performing.

The Value of Transactional and Analytical Information

Transactional information encompasses all of the information contained within a single business or unit of work, and its primary purpose is to suport the performing of daily operational tasks. Analytical information encompasses all organizational information and its primary purpose os to support the performing of managering analysis tasks.

The Values of Timely Information

Real time information means immediate, up-to-date information. Real time systems provide real time information in response to query request.

The Value of Quality Information

Business decisions are only as good as the quality of information used to make the decision.HIgh quality information = 1. Accuracy 2. Comleteness 3. Consistency 4. Uniqueness 5. Timeliness

Understanding The Costs of Poor Information

Using the wrong information can lead to make the wrong decision. As a consequense wrong decisions can cosy time, money and even reputation.

Understanding The Benefit

High quality information does not automatically guarantee that every decision you made is going to be a good one, since people ultimately make decisons. However, high qulaity information can significantly improve the chances of making a good decision and directly increase an organization's bottom line.

CHAPTER 5

ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

IT Roles and Responsibilities

- CIO (chief information officer)

Overseeing all uses of information technology. Ensuring the strategic alignment of IT with business goals and objectives. Reports directly to the CEO. 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 organization. Communicator ~ advocate and communicate the IT strategy by building and maintaining strong executive       relationship

- CTO (chief technology officer)

Ensuring the throughput, speed, accuracy, availability and realibilityof an organization's IT. Have direct responsibility for ensuring the eficiency of IT systems throughout the organization

- CSO (chief security officer)

Ensuring the security of IT systems. Developing strategies and IT safeguards against attacks from viruses and hackers

- CPO (chief privacy officer)

Ensuring the ethical and legal use of information within an organization. Many CPOs are lawyers by training, enabling them to understand the often complex legal issues surrounding the use of information

- CKO (chief knowledge officer)

Collecting, maintaining and distributing the organization's knowledge. Designs programs and systems that make it easy for people to reuse knowledge. Must continuously encourage employee contributions to keep systems up-to-date. Can contribute directly to the organization's bottom line by reducing the learning curve for new employees or employees taking on new roles

The Gap Between Business Personnel and IT Personnel

The gap between the business arm in an organization and IT is exist because presence of perception business people that the IT department generates expenses not income. This means they looks alike liability and not asset to the organization. In the same time, the IT department is hidden from the customer often classified as back office business initiative or process, This create a different perspective to the business personnel and the resuly, a gap is exist.

Organizational Fundamentals

- Ethics ~ Ethics is the principle and standards that guide our behavior toward other people. Descriptive ethics is exactly that a description of "what is" in the reality of business ethics. This perspective seeks to understand moral and ethical systems shared by people, cultures and societies. This form seeks to understand prevailing views and actions regarding ethical behavior. Effective communicatiob is important to accutarely and effectively convey the management's message. several key elements are important are honest, faith and confident. 

- Security ~ Security is a major ethical issues. The right to be left alone when you want to have control over your own personal possessions and not to be observed without your consent.

TUTORIAL CHAPTER 4

1. Define metrics and describe the relationship between efficiency IT metrics and effectiveness IT metrics.

• A metric is a standard measure to assess performance in a particular area. Metrics are about neither technology nor business strategy. Metrics are the detailed measure that feed KPIs (Key Performance Indicators). KPIs are the measure that are tied to business drivers.
• Effeciency IT metrics measure the perfomance of the IT system itself including throughput speed and availability.Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell-through increases. Effectiveness focus on how well an organization is achieving its goals and objectives, while efficiency focuses on the extent to which an organization is using its resources in an optimal way.

2. Explain why a business would use metrics to measure the success at strategic initiatives

• Metrics are at yhe heart of a good, customer- focused management system and any program directedat continous improvement.
• Supply Chain Management (SCM) metrics can hepl an organization understand how it's operating over a given time period. SCM cover many areas including procurement, production, distribution, warehousing, inventory, transportation and customer service. A good performance in one part of the supply chain is not sufficient.
• Customer Relationship Management (CRM) metrics is to track and monitor using repoerting and real-time performance dashboards.
• Business Process reengineering (BPR) is a standardized set of activities that accomplish a specific task, such as processing a customer's order and also redesign of workflow within and between enterprises. 
• Enterprise Resource Planning (ERP) Identify how an organization can use business process reengineering to improve its business. E.g: company A resolution cycle time is 3-4 weeks in order to claim for insurance while company B resolution time is 40 minutes to claim for insurance.

CHAPTER 3

STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Supply Chain Management (SCM)

- SCM involves the management of information flows between and among stages in a suplly chain to maximize total supply chain effectiveness and profitability. The  four basic components of SCM management are:

• [Supply Chain Strategy]= the strategy for managing all the resources required to meet customers demand for all of the products and services
• [Supply Chain Partners]= the partners chosen to deliver finished products, raw materials and servicesincluding 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 including productivity and quality
• [Supply Chain Logistics]= the product delivery process and elements including orders, warehouse, carriers, defective product returns and invoicing

 E.g: the diagram demonstrates how the supply chain is dynamic and involves the constant flow of information between the different parties.

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 the threat of substitute products or services
• create entry barriers thereby reducing the threat of new entrants
• increase effiiciencies while seeking a competitive advantage through cost leadership

Customer Relationship Management (CRM)

- CRM involves managing all aspects of a customers' relationship with an organizationto increase customers loyalty and retentionand an organization's profitability

CRM Strategy

CRM aside from a form of technology, it is also a strategy an organization must embrace on a enterprise level. CRM system also help organizations identify customers and design specific marketing campaign tailored to each customer, thus increase customer spending. It is also allow organizations to treat customers as an individuals, gaining important insights into their buying preferences and behaviors and leading to increased sales, greater profitability, and higher rates of customer loyalty.

Business Process Reengineering (BPR)

- A standardardized set of activities that accomplish a specific task, such as processing a customers' orders and also redesign of workflow within and between enterprises.

Finding Opportunity Using BPR

- 7 principle of business process reengineering:

1. Organize around outcomes,not tasks
2. Identify all the organization's processes and prioritize then 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 at the source

Enterprise Resource planning 

- Identify how an organization can use business process reengineering to improve its business. E.g: company A resolution cycle time is 3-4 weeks in order to claim for insurance while company B resolution time is 40 minutes to claim for insurance.