Saturday, 13 July 2013

chapter 6

·        Organizational information
ü Employees must be able to obtain and analyze to many different levels, formats and granularities of organizational information to make decision
ü Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing

·        The value of timely information
ü Timeliness is an aspect of information that depends on the situation : 
-         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
ü Business decisions are only as good as the quality of the information used to make the decisions
ü You never want to find yourself using technology to help you make a bad decision faster
ü Characteristic of high-quality information include :
-         Accuracy
-         Completeness
-         Consistency
-         Uniqueness
-         Timeliness
·        Understanding the cost of poor information
ü The four primary sources of low quality information include :
                                                       I.            Online customers intentionally enter inaccurate information to protect their privacy
                                                     II.            Information from different systems have different entry standards and formats
                                                  III.            Call center operators enter abbreviated or erroneous by accident or to save time
                                                  IV.            Third party and external information contains inconsistencies, inaccuracies and errors

ü 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 relationship

·        Understanding the benefits of good information
ü High quality information can significantly improve the chances of making a good decision
ü Good decision can directly impact an organization’s bottom line

chapter 5

·        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 based their businesses upon

·        IT Roles and Responsibilities
ü Chief Information Officer (CIO) – oversees all users of IT and ensures the strategic alignment of IT with business goals and objectives.
ü Broad CIO function include :
-         Manager : ensuring the delivery of all IT projects, on time and within budget
-         Leader : ensuring the strategic vision of IT is in line with the strategic vision of the organization
-         Communicator : building and maintaining strong executive relationship
ü Chief Technology Officer (CTO) – responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT
ü Chief Security Officer (CSO) – responsible for ensuring the security of IT systems
ü Chief Privacy Officer (CPO) – responsible for ensuring the ethical and legal use of information
ü Chief Knowledge Officer (CKO) – responsible for collecting, maintaining and distributing the organization knowledge

·        The Gap Between Business Personnel and IT Personnel
ü Business personnel possess expertise in functional areas such as marketing, accounting and sales
ü IT personnel have the technology expertise
ü This typically causes a communication gap between the business personnel and IT personnel
·        Improving Communication
ü Business personnel must seek to increase their understanding of IT
ü IT personnel must seek to increase their understanding of the business
ü It is the responsibility of the CIO to ensure effective communication

·        Organizational Fundamental Ethics and Security
ü The principle and standard that guide our behavior toward other people
ü Privacy is a 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 concern
ü Issues affected by technology advances :
-         Intellectual property : intangible creative work that is embodied in physical form
-         Copyright : the legal protection afforded and expression of an idea, such as a song, video game and some types of proprietary document
-         Fair use doctrine : in certain situations, it is legal to use copyrighted material
-         Pirated software : the unauthorized use, duplication, distribution or sale of copyright software
-         Counterfeit software : software that is manufactured to look like the real thing and sold as such

·        Primary Reasons Privacy Issues Reduce Trust for Business
ü Loss of personal privacy is a top concern for Americans in the 21st century
ü Among Internet users, 37 percent would be “a lot” more inclined to purchase a product on a website that had a privacy policy
ü Privacy/ security is the number one factor that would convert Internet researchers into Internet buyers

           SECURITY :
ü Information Security : the protection of information from accidental or intentional misuse by person inside or outside an organization
ü E-business automatically creates tremendous information security risks for organizations

Monday, 8 July 2013

chapter 4

·         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 – measure the performance of the IT system itself including throughout speed and availability
·         Effectiveness IT metric – measures the impact IT has on business processes  and activities including customers satisfaction conversion rates and self-through increases
·         Regardless or what is measured, how it is measured and whether it is for the sake of efficiency or effectiveness, there must be benchmarks – beseline values the system seek to attain
·         Benchmarking – a process of continuously measuring system results, comparing those results to optimal system performance and identifying to improve system performance
·         Efficiency IT metrics focus on technology and include :
ü  Throughput - the amount of information that can travel trough a system at any point
ü  Transaction speed - the amount of time a system takes to perform a transaction
ü  System availability – the number of hours a system is available for users
ü  Information accuracy – the extent to which a system generates the correct results when executing the same transaction numerous times
ü  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
ü  Response time –the time it takes to respond to user interactions such as a mouse click
·         Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include:
ü  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 numbers of clicks required to find desired information.
ü  Customer satisfaction – Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
ü  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.
ü  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 constant revenues equal ongoing costs).
·         Security is an 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
v  However, to be effective it must implement Internet security
v  Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower corner of a browser) .
·         Web Site Metrics:
ü  Abandoned registrations – Number of visitors who start the process of completing a registration page and then abandon the activity.
ü  Abandoned shopping carts – Number of visitors who create a shopping cart and start shopping and then abandon the activity before paying for the merchandise.
ü  Click-through – people who visit a site, click on an ad, and are taken to the site of the advertiser.
ü  Conversion rate – potential customers who visit a site and actually buy something.
ü  Cost-per-thousand (CPM) – sales dollar generated per dollar of advertising. This is commonly used to make the case for spending money to appear on a search engine.
ü  Page exposures – average number of page exposure to an individual visitor.
ü  Total hits – number of visits to a web site, many of which may be by the same visitor.
ü  Unique visitor – number of unique visitors to a site in a given time. This is commonly used by Nielsen/Net ratings to rank the most popular Web site.
ü  Back order – an unfilled customer order.
ü  Customer order promised cycle time – the anticipated or agreed upon cycle time of a purchase order.
ü  Customer order actual cycle time – to actually fill a customer’s purchase order.
ü  Inventory replenishment cycle time – measure of the manufacturing cycle time plus  the time included to deploy the product to the appropriate distribution center.
ü  Inventory turns ( inventory turnover ) – the number of times that a company’s inventory cycles or turns over per year.