CHAPTER 6 – VALUING ORGANIZATIONAL INFORMATION

ORGANIZATIONAL INFORMATION

·         Information is everywhere in an organization

·          Employees must be able to obtain and analyze the many different levels, formats and granularity of organizational information to make decisions

·          Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing

·         Levels, formats and granularity of organizational information

The Value of Transnational And Analytically Information

·       Transaction information verses analytically information

     

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;

-   Low quality information example;

UNDERSTANDING THE COSTS OF POOR INFORMATION

-   The four primary sources of low quality information include;

- Online customers intentionally enter inaccurate information to protect their privacy

- Information from different systems have different entry standards and formats

- Call center operators enter abbreviated or erroneous information by accident or to save time

- 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 identify selling opportunities

- Marketing to nonexistent customers

- Difficulty tracking revenue due to inaccurate invoices

- 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 organization’s bottom line

CHAPTER 5 : ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVE

Organizational Structure

ü  Organizational employees must work closely together to develop strategic initiatives that create competitive advantages.

ü  Ethics and security are two fundamental building blocks that organizations must base their businesses upon.

IT Roles And Responsibilities

Information technology is a relatively new function area, having only been around formally for around 40 years.

Recent IT-related strategic positions :

·         Chief Information Officer (CIO)

·         Chief Technology Officer (CTO)

·         Chief Security Officer (CSO)

·         Chief Privacy Officer (CPO)

·         Chief Knowledge (CKO)

1.   Chief Information Officer (CIO)

Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

Broad CIO functions include:

Ø  Manager

ensuring the delivery of all IT projects, on time and within budget.

Ø  Leader

ensuring the strategic vision of IT is in line with the strategic vision of the organization.

Ø  Communicator

Building and maintaining strong executive relationships.

If they have any problem involve IT personal, CIO that will solve it. (more effectiveness)

1.   Chief Technology Officer (CTO)

Ø  responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT.

Ø  effectiveness because make sure the system is efficient

1.   Chief Security Officer (CSO)

Ø  responsible for ensuring the security of IT systems.

Ø  to make sure the system we do, no person can hack

1.   Chief Privacy Officer (CPO)

Ø  responsible for ensuring the ethical and legal use of information

1.   Chief Knowledge Office (CKO)

Ø  Responsible for collecting, maintaining, and distributing the organization's knowledge.

ORGANIZATIONAL FUNDAMENTALS

Ø  Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful.

Ø  In recent years, such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security.

• Ethics
• the principles and standards that guide our behavior toward other people

• Privacy is major ethical issue
• privacy
• 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.
• sometimes, we fell want to alone. don't want anyone bother
• we don't want someone to corrupt our business.

• Issues affected by technology advances
• intellectual property.
• intangible creative work that is embodied in physical form. for example, from idea to something we can hold. 
• create new things. so, there is intellectual property, can touch.
• things that comes from a creative idea.
• such as architects, building that we can touch.
• 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 copyrighted materials. for example song from oversea to Malaysia.

• pirated software
• the unauthorized use, duplication, distribution, or sale of copyrighted software. more cheap and free.
• counterfeit software
• software that is manufactured to look like the real thing and sold as such. for example, buy antivirus, notify original but not original.

• One of the main ingredients in trust is privacy. the system is effective because customer will be satisfied but efficiency because the system can be slow.
• 
  

• Security
• organizational information is intellectual capital - it must be protected.

• Information security
• the protection of information from accidental or intentional misuse by persons inside or outside an organization.
• the CSO who save the information.

• E-business automatically creates tremendous information security risks for organizations.

CHAPTER 4 – MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

MEASURING INFORMATION TECHNOLOGY’S SUCCESS

-          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 AND EFFECTIVENESS

-          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

BENCHMARKING – BASELINE METRICS

-          Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be 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 producers to improve system performance

-          Comparing efficiency IT and effectiveness IT metrics for the government initiatives

EFFICIENCY IT METRIC

·         Measure the performance of the IT system itself including throughout,speed and availability.

·         lots of useful information

EFFECTIVENESS IT METRIC

·         Measure the impact it has on business processes and activities including customer satisfaction, conversation rates, and sell-through increases.

·         The extent to which our services are prefer by many consumers.

METRICS FOR STRATEGIC INITIATIVES

-          Metrics for measuring and managing strategic initiatives include;

·         Website metrics.

·         Supply chain management (SCM) metrics

·         Customer relationship management (CRM) metrics

·         Business process reengineering (BPR) metrics

·         Enterprise resource planning (ERP) metrics

WEBSITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS

CUSTOMER RELATIONSHIP MANAGEMENT METRICS

BPR and ERP Metrics

-          The balanced scorecard enables organizations to measure and manage strategic initiatives.