syahirahzfri.: July 2016

ORGANIZATIONAL INFORMATION
• Information is everywhere in an organization
• Employees must be able to obtain and analyze the many different levels, formats, and granularities 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 granularities of organizational information

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION
Transactional information – encompasses all of the information contained within a 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 the performing of managerial analysis tasks

THE VALUE OF TIMELY INFORMATION

Real-time information – 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
· Accuracy Are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly?
· Completeness Are any of the values missing? For example, is the address complete including street, city, state, and zip code?
· Consistency Is aggregate or summary information in agreement with detailed information? For example, do all total fields equal the true total of the individual fields?
· Uniqueness Is each transaction, entity, and event represented only once in the information? For example, are there any duplicate customers?
· Timeliness Is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly?

Example of Low quality information :

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 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

The End of Chapter 6: Valuing Organizational Information by syahirahzfri.

Thank you for reading :)

Organizational Structure:

Organizational employees must work closely together to develop strategies initiatives that create competitive advantages
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 functional area, having only been around formally for around 40 years

Recent IT-related strategic positions:

Chief Information Officer (CIO) - responsible for overseeing all uses of information technology and ensuring the strategic alignment of IT with business goals and objectives

Manager - ensure the delivery of all IT projects on time and within the budget
Leader - ensure the strategic vision of IT is in line with the strategic vision of the organization
Communicator - advocate and communication that IT strategy by building and maintaining strong executive relationships

Chief Technology Officer (CTO) - ensuring the throughout,speed, accuracy, availability,and reliability of an organization's information technology
Chief Security Officer (CSO) - ensuring the securities of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses
Chief Privacy Officer (CPO) - ensuring the ethical and legal use of information within an organization
Chief Knowledge Officer (CKO) - responsible to collect, maintain and distribute the organization's knowledge

THE GAP BETWEEN BUSINESS PERSONNEL AND IT PRSONNEL

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 organizations must base their businesses on to be successful
In recent years, such event as the 9/11 have shed new light on the meaning of ethics and security

ETHICS

Ethics – the principles and standards that guide our behavior toward other people
Privacy is a major ethical issues;

Privacy – the right to be left alone when you want to be to have control ever your own personnel possessions and not to be observed without your consent

Issues affected by technology advances:

One of the main ingredients in trust is privacy
Primary reasons privacy issues lost trust for e-business

1.	Loss of personnel privacy is a top concern for Americans in the 21^st century
2.	Among Internet users, 37 percent would be “a lot” more inclined to purchase a product on a websites that had a privacy policy
3.	Privacy/security is the number one factors that would convert Internet researchers into Internet buyers

SECURITY

PROTECTING INTELLECTUAL ASSETS

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
E-business automatically crates tremendous information security risks for organization

HOW MUCH WILL DOWNTIME COST YOUR BUSINESS??

Sources of Unplanned Downtime
Bomb threat	Hacker	Snowstorm
Burst pipe	Hail	Sprinkler malfunction
Chemical spill	Hurricane	Static electricity
Construction	Ice storm	Strike
Corrupted data	Insects	Terrorism
Earthquake	Lightning	Theft
Electrical short	Network failure	Tornado
Epidemic	Plane crash	Train derailment
Equipment failure	Frozen pipe	Smoke damage
Evacuation	Power outage	Vandalism
Explosion	Power surge	Vehicle crash
Fire	Rodents	Virus
Flood	Sabotage	Water damage (various)
Fraud	Shredded data	Wind

How much will down time cost your business??
FINANCIAL PERFORMANCE • REVENUE RECOGNITION • CASH FLOW • PAYMENT GUARANTEE • CREDIT RATING • STOCK PRICE	REVENUE • DIRECT LOSS • COMPENSANTORY PAYMENTS • LOST FUTURE REVENUE • INVESTMENT LOSES • LOST PRODUCTIVITY
DAMAGED REPUTATIONS • CUSTOMERS • SUPPLIERS • FINANCIAL MARKETS • BANKS • BUSINESS PATNERS	OTHER EXPENSES • TEMPORARY EMPLOYEES • EQUIPMENT RENTALS • OVERTIME COSTS • EXTRA SHIPPING CHARGES • TRAVEL EXPENSES • LEGAL OBLIGATIONS

The End of Chapter 5: Organizational Structures that Support Strategic Initiatives by syahirahzfri.

Thank you for reading :)

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 - Base lining 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 to optimal system performance (benchmark values) and identifying steps and procedures to improve system performance

THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS

Security is and issue for any organization offering products or services over the internet
It is inefficient for an organization to implement internet security, since it slows down processing
However, to be effective it must implement internet security
Secure internet connections must offer encryption and secure sockets layers (SSL denoted by the lock symbol in the lower right corner of a browser)

EFFICIENCY IT METRICS - Common types of efficiency IT metrics:

	Efficiency IT Metrics
Throughput	The amount of information that can travel through a system at any point.
Transaction speed	The amount of time a system takes to perform a transaction.
System availability	The number of hours at system is available for users.
Information accuracy	The extent to which a system generates the correct results when executing the same transaction numerous times.
Web traffic	Includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.
Response time	The time it takes to respond to user interactions such as a mouse click.

EFFECTIVENESS IT METRICS - Effectiveness IT metrics focus on an organizations goals, strategies and objectives and include:

	Effectiveness IT Metrics
Usability	The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.
Customers satisfaction	Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
Conversion rates	The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
Financial	Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which content revenues equal ongoing costs).