Monday, 21 March 2016

Chapter 7 Storing Organizational Information - Databases


Chapter 7 
Storing Organizational Information - Databases 



Relational Database Fundamentals 

q Information is everywhere in an organization
q Information is stored in databases
vDatabase maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)HG

Database models
§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
qEntity – a person, place, thing, transaction, or event about which information is stored
The rows in each table contain the entities
Customer includes Dave’s Sub Shop and Pizza Palace entities
qAttributes (fields, columns) – characteristics or properties of an entity class
The columns in each table contain the attributes
Attributes for customer include Customer ID, Customer Name, Contact Name

Relational Database Advantages


ÁDatabase advantages from a business perspective
Increased flexibility
Increased scalability and performance
Reduced information redundancy
Increased information integrity (quality)
Increased information security

Increased Flexibility
©A well-designed database should:
vHandle changes quickly and easily
vProvide users with different views
vHave only one physical view
   ¨Physical view – deals with the physical storage of information on a storage device eg hard disk
vHave multiple logical views
   ¨Logical view focuses on how users logically access information
vEg: a mail-order buss- 2 people view diff format (logical views) but same physical view

Increased Scalability and Performance
   ©A database must scale to meet increased demand,  while maintaining acceptable performance levels
ØScalability – refers to how well a system can adapt to increased demand
ØPerformance – measures how quickly a system performs a certain process or transaction
 Reduced Information Redundancy
qDatabases reduce information redundancy
Redundancy the duplication of information or storing the same information in multiple places
qInconsistency is one of the primary problems with redundant information-difficult to decide which is most current and most accurate
Increase Information Integrity
(Quality)
Information integrity measures the quality of information
Integrity constraint rules that help ensure the quality of information
Relational integrity constraint-rule that enforces basic and fundamental information-based constraints
Eg. Users cannot create an order for a nonexistent customer ; An order cannot be shipped without an address
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

Eg. Product returns are not accepted for fresh product 15 days after purchase; A discount maximum of 20 percent.

Database Management Systems

Database management systems (DBMS) software through which users and application programs interact with a database




DATA-DRIVEN WEB SITES
qData-driven Web sites – an interactive Web site kept constantly updated and relevant to the needs of its customers through the use of a database

Data-Driven Web Site Business Advantages
 vDevelopment: Allows the Web site owner to make changes any time—all without having to rely on a developer or knowing HTML programming.
vContent 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.
vFuture 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.

vMinimizing human error: 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.
vCutting 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.
vMore efficient: With a data-driven solution, the system keeps track of the templates, so users do not have to.

vImproved Stability: 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
BI in a data-driven Web site


Integrating Information among Multiple Databases
vIntegration – allows separate systems to communicate directly with each other
üForward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes
üBackward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes
vWithout integration, an organization will:
üSpend considerable time entering the same info in multiple system

üSuffer from the low quality and inconsistency typically embedded in redundant info.

Forward and Backward integration



Building a central repository specifically for integrated information










CHAPTER 6 


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 

Transaction information verses analytical information


The Value of Timely Information 
qTimeliness is an aspect of information that depends on the situation
Á Real-time information – immediate, up-to-date information
Á Real-time system – provides real-time information in response to query requests
                                      Á Business decisions are only as good as the quality of the                                              information used to make the decisions
                                      Á You never want to find yourself using technology to help you                                        make a bad decision faster



Understanding the Costs of Poor Information

The four primary sources of low quality information

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
     qInability to accurately track customers
     qDifficulty identifying valuable customers
     qInability to identify selling opportunities
     qMarketing to nonexistent customers
     qDifficulty tracking revenue due to inaccurate invoices
     qInability to build strong customer relationships

Understanding the Benefits of Good Information 

Á High quality information can significantly improve the chances of making a good decision


Á Good decisions can directly impact an organization's bottom line

Chapter 5 Organization Structures That Support Strategic Initiatives





IT Roles and Responsibilities
Information technology is a relatively new functional area, having only been around formally for around 40 years
Chief Information Officer (CIO)
Chief Technology Officer (CTO)
Chief Security Officer (CSO)
Chief Privacy Officer (CPO)
Chief Knowledge Office (CKO)





Recent IT-related strategic positions
Chief Information Officer (CIO)
oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives
Broad CIO functions
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 relationships
Chief Technology Officer (CTO)
responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT
Chief Security Officer (CSO)
responsible for ensuring the security of IT systems
Chief Privacy Officer (CPO)
responsible for ensuring the ethical and legal use of information
Chief Knowledge Office (CKO)
responsible for collecting, maintaining, and distributing the organization’s knowledge






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 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 a major ethical issue
üPrivacy – 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






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






CHAPTER 6 Valuing Organization Information


CHAPTER 6 


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 

Transaction information verses analytical information


The Value of Timely Information 
qTimeliness is an aspect of information that depends on the situation
Á Real-time information – immediate, up-to-date information
Á Real-time system – provides real-time information in response to query requests
                                      Á Business decisions are only as good as the quality of the                                              information used to make the decisions
                                      Á You never want to find yourself using technology to help you                                        make a bad decision faster



Understanding the Costs of Poor Information

The four primary sources of low quality information

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
     qInability to accurately track customers
     qDifficulty identifying valuable customers
     qInability to identify selling opportunities
     qMarketing to nonexistent customers
     qDifficulty tracking revenue due to inaccurate invoices
     qInability to build strong customer relationships

Understanding the Benefits of Good Information 


Á High quality information can significantly improve the chances of making a good decision


Á Good decisions can directly impact an organization's bottom line