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Monday, 22 July 2013

CHAPTER 7: STORING ORGANIZATIONAL INFORMATION

ReLaTiOnAL DaTaBaSe FuNdAmEnTaLs:-


vInformation is everywhere in an organization.
vInformation is stored in databases.
  §Database maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses).
vDatabase 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.


EnTiTiEs aNd AttRiBuTeS:- 

vEntity a person, place, thing, transaction, or event about which information is stored. 
     §The rows in each table contain the entities. 
     §In Figure 7.1 CUSTOMER includes Dave’s Sub Shop and Pizza Palace entities. 
vAttributes (fields, columns) characteristics or properties of an entity class. 
     §The columns in each table contain the attributes. 
     §In Figure 7.1 attributes for CUSTOMER include Customer ID, Customer Name, Contact Name.


KeYs aNd ReLaTiOnShiPs:- 
vPrimary 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 table. 
   §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. 
vPotential relational database for Coca-Cola:


Walk your students through the relational database model in Figure 7.1
To ensure your students are grasping the concepts, ask them to answer the following:
How many orders have been placed for T’s Fun Zone? 
Answer: 1 Order IT 34563.
How many orders have been placed for Pizza Palace? 
Answer:  None.
How many items are included in Dave’s Sub Shop’s two orders? 
Answer:  Order 34561 has 3 items and order 34562 has one item for a total of 4 items in both orders.
Who is responsible for distributing Dave’s Sub Shop’s orders? 
Answer:  Hawkins Shipping.
Which products are included in Order 34562? 
Answer:  300 Vanilla Coke. 


ReLaTiOnAL DaTaBaSe AdVaNtaGeS:- 

vDatabase advantages from a business perspective include: 

   §Increased flexibility. 
   §Increased scalability and performance. 
   §Reduced information redundancy. 
   §Increased information integrity (quality). 
   §Increased information security. 

InCrEaSeD FLeXiBiLiTy:- 

vA well-designed database should: 
  §Handle changes quickly and easily. 
  §Provide users with different views. 
  §Have only one physical view. 
               Physical view deals with the physical storage of information on a storage device. 
  §Have multiple logical views. 
               Logical view focuses on how users logically access information. 


InCreAsEd ScALaBiLiTy aNd PeRfOrMaNcE:- 

vA database must scale to meet increased demand,  while maintaining acceptable performance levels. 
   §Scalability – refers to how well a system can adapt to increased demands. 
   §Performance – measures how quickly a system performs a certain process or transaction.


ReDuCed InFoRmAtiOn ReDuNdAnCy:- 

vDatabases reduce information redundancy. 
    §Redundancy the duplication of information or storing the same information in multiple places. 

vInconsistency is one of the primary problems with redundant information.



InCrEaSe InFoRmAtiOn InTeGriTy (QuAliTy):- 

vInformation integrity measures the quality of information. 

vIntegrity constraint rules that help ensure the quality of information. 
   
   §Relational integrity constraint - rule that enforces basic and fundamental information-based constraints.
   
   §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.



InCreAsEd InFoRmAtiOn SeCuRiTy:- 

vInformation is an organizational asset and must be protected. 

vDatabases offer several security features including: 
   §Password provides authentication of the user. 
   §Access leveldetermines who has access to the different types of information. 
   §Access control determines types of user access, such as read-only access.


Database Management Systems:- 
vDatabase management systems (DBMS) – software through which users and application programs interact with a database.


Direct interaction :
>The user interacts directly with the DBMS.
>The DBMS obtains the information from the database.

Indirect interaction:
>User interacts with an application (i.e., payroll application, manufacturing application, sales application).
>The application interacts with the DBMS.
>The DBMS obtains the information from the database.

DaTa-DrIvEn WeB SiTeS:-


>A data-driven Web site is an interactive Web Site kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven Web sites are especially useful when the site offers a great deal of information, products, or services. Web site visitors are frequently angered if they are buried under an avalanche of information when searching a Web site. A data-driven Web site invites visitors to select and view what they are interested in by inserting a query, which the Web site then analyzes and custom builds a Web page in real-time that satisfies the query. The figure displays a Wikipedia user querying business intelligence and the database sending back the appropriate Web page that satisfies the user’s request.

>What would happen to a Web site that is not data-driven? 
    Answer:The users would need to continually update the Web site data manually as the business data is updated.  This would be a redundant effort and most likely result in errors and the Web site could quickly become out of sync with the business data.

DaTa DriVeN WeB SiTe AdVaNtaGeS:-

1. Development: Allows the Web site owner to make changes any time—all without having to rely on a developer or knowing HTML programming. A well-structured, data-driven Web site enables updating with little or no training.

2. Content management: A static Web site requires a programmer to make updates. This adds an unnecessary layer between the business and its Web content, which can lead to misunderstandings and slow turnarounds for desired changes.

3. 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 sections) is easier with a data-driven solution.

4. 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, users 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.

5.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 take a fraction of the time that they would with a static site. While training a competent programmer can take months or even years, training a data entry person can be done in 30 to 60 minutes.

6.More efficient: By their very nature, computers are excellent at 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. A data-driven infrastructure will improve the reliability and stability of a Web site, while greatly reducing the chance of ”breaking” some part of the site when adding new areas.

7. Improved Stability: Any programmer who has to update a Web site from ”static” templates must be very organized to keep track of all the source files. If a programmer leaves unexpectedly, it could involve re-creating existing work if those source files 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—even if your programmer is.


DaTa-DriVeN BuSinEsS InTelliGeNcE:-



vBusiness Intelligence in a data-driven Web site:





>Companies can gain business intelligence by viewing the data accessed and analyzed from their Web site.  The figure displays how running queries or using analytical tools, such as a Pivot Table, on the database that is attached to the Web site can offer insight into the business, such as items browsed, frequent requests, items bought together, etc.

InTeGraTiNg InFoRmAtiOn
AmOnG MuLtiPlE DaTabAsEs:- 


vIntegration allows separate systems to communicate 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.



Forward Integration:

>Basically, all information flows forward along the business process. Sales enters the information when it is negotiating the sale (looking for opportunities). The information is then passed to the order entry system when the order is actually placed. The order fulfillment system picks the products from the warehouse, packs the products, labels boxes, etc. Once the order is filled and shipped, the customer is billed.

What would happen if users could enter order information directly into the billing system?
The systems would quickly become out-of-sync.  There might be bills for nonexistent orders, or orders that do not have any bills (if someone deleted a bill). For this reason organizations typically place a business-critical integrity constraint on integrated systems:  With a forward integration the information must be entered in the sales system, you could not enter information directly into the billing system.

>Integrations are expensive to build and maintain and difficult to implement. For these reasons many organizations only build forward integrations and use business-critical integrity constraints to ensure all information is always entered only at the start of the integration (one source of record).

Backward Integration:

>Basically, all information flows backward along the business process. Billing enters information and this information is passed back to the order system. The order fulfillment system passes the information back to the order entry system. The order entry system passes the information back to the sales system.

Why would an organization want to build both forward and backward integrations?
This allows users to enter information at any point in the business process and the information is automatically sent upstream and downstream to all other systems. For example, if order fulfillment determined that they could not fulfill an order (the product had been discontinued), they could simply enter this information into the database and it would be sent automatically upstream to the sales representative who could contact the customer and downstream to billing to remove the item from the bill.


Building a central repository specifically for integrated information:-






The above figure displays an example of customer information integrated using this method. Users can create, read, update, and delete in the main customer repository, and it is automatically sent to all of the other databases. This method does not follow the business process when building the integrations. Business-critical integrity constraints still need to be built to ensure information is only ever entered into the customer repository, otherwise the information will become out-of-sync.

Tuesday, 16 July 2013

CHAPTER 6: VALUING ORGANIZATIONAL INFORMATION.


OrGaNiZaTiONaL InFoRmATiOn:-

Ø  Information is everywhere in an organization.
Ø  Employees must be able to obtain and analyze the many different levels, formats and granularity of organizational information to make decisions.
Ø  Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing.
Ø  Levels, formats and granularity of organizational information.






ThE VaLuE Of TrAnSnAtIoNaL AnD AnALyTiCaLLy InFoRmATiOn:-  


·  Transaction information verses analytically information.



ThE VaLuE oF TiMeLy InFoRMaTiOn:-

ü  Timeliness is an aspect of information that depends on the situation.
ü  Real-time information – immediate, up-to-date information.
ü  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;



·         Low quality information example;

 


UnDeRsTaNDiNg ThE CoStS oF PoOR InFoRMaTiOn:-

v  The four primary sources of low quality information include;

ü  Online customers intentionally enter inaccurate information to protect their privacy.
ü  Information from different systems have different entry standards and formats.
ü  Call center operators enter abbreviated or erroneous information by accident or to save time.
ü  Third party and external information contains inconsistencies, inaccuracies and errors.

v  Potential business effects resulting from low quality information include;

ü  Inability to accurately track customers.
ü  Difficulty identifying valuable customers.
ü  Inability to identify selling opportunities.
ü  Marketing to nonexistent customers.
ü  Difficulty tracking revenue due to inaccurate invoices.
ü  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 INITIATIVES.


OrGaNiZaTiONaL STrUcTuReS:-

v  Organizational employees must work closely together to develop strategic initiatives that create competitive advantages.
v  Ethics and security are two fundamental building blocks that organizations must base their businesses upon.

InFoRmATiOn TeChNoLoGy RoLeS AnD 

ReSpOnSiBiLiTiEs:-

Ø  Information technology is a relatively new functional area, having only been around formally for around 40 years.
Ø   Recent IT – related strategic positions:

ü  Chief Information Officer (CIO)
ü  Chief Technology Officer (CTO)
ü  Chief Security Officer (CSO)
ü  Chief Privacy Officer (CPO)
ü  Chief Knowledge Officer (CKO)

Ø  Chief Information Officer (CIO) – oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives.

Ø  Broad CIO functions include;

ü  Manager – ensuring the delivery of all IT projects, on time and within budget.
ü  Leader – ensuring the strategic vision of IT is in line with the strategic vision of the organization.
ü  Communicator – building and maintaining strong executive relationships.


Ø  Average CIO compensation by industry:

Industry
Average CIO Compensation
Wholesale/Retail/Distribution
$ 243,304
Finance
$ 210,547
Insurance
$ 197,697
Manufacturing
$ 190,250
Medical/Dental/Health Care
$ 171,032
Government
$ 118,359
Education
$   93,750

Ø  What concerns CIOs the most:

Percentages %
CIOs Concerns
94
Enhancing customer satisfaction
92
Security
89
Technology evaluation
87
Budgeting
83
Staffing
66
ROI analysis
64
Building new applications
45
Outsourcing hosting

v  Chief Technology Officer (CTO) – responsible for ensuring the throughput , speed, accuracy, availability and reliability of IT.
v  Chief Security Officer (CSO) – responsible for ensuring the security of IT systems.
v  Chief Privacy Officer (CPO) – responsible for ensuring the ethical and legal use of information.
v  Chief Knowledge Officer (CKO) – responsible for collecting, maintaining and distributing the organization’s knowledge.


ThE GaP BeTwEeN BuSiNeSs PeRsOnNeL 

AnD iT PeRsOnNeL:-

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


ImPrOvInG CoMmUnIcATiOnS:-

v  Business personnel must seek to increase their understanding of IT.
v  IT personnel must seek to increase their understanding of the business.
v  It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel.


OrGaNiZaTiOnAL FuNdAmEnTaLs – EtHiCs 

AnD SeCuRiTy:-

ü  Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful.
ü  In recent years, such event as the 9/11 have shed new light on the meaning of ethics and security.


EtHiCs:- 
v  Ethics – the principles and standards that guide our behavior toward other people.
v  Privacy is a major ethical issues;
v  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.
v  Issues affected by technology advances.

Intelligent 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 copyrighted material
Pirated software
The unauthorized use, duplication, distribution or sale of copyrighted software
Counterfeit software
Software that is manufactured to lock 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 of personnel privacy is a top concern for Americans in the 21st 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 – 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 downtime cost your business??


PrOTeCTiNg InTeLLeCTuAL AsSeTs:-

ü  Organizational information is intellectual capital – it must be protected.
ü  Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization.
ü  E-business automatically crates tremendous information security risks for organization.

Percentage of IT Budget Spent on Information Security


Average Reported Computer Security 
Expenditure/Investment per Employee