CHAPTER 19 : OUTSOURCING IN THE 21st CENTURY

OUTSOURCING PROJECTS

·         Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems

·         Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house

•  Onshore outsourcing – engaging another company within the same country for services
•  Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby  country
•  Offshore outsourcing – using organizations from developing countries to write code and develop  systems

CHAPTER 15 : CREATING COLLABORATION 

TEAMS, PARTNERSHIPS AND ALLIANCES

•  Organizations create and use teams, partnerships and alliances to;

Ø  Undertake new initiatives

Ø  Address both minor and major problems

Ø  Capitalize on significant opportunities

•  Organizations create teams, partnerships and alliances both internally with employees and externally with other organizations
•  Collaboration system – supports the work of teams by facilitating the sharing and flow of information

§  Organizations from alliance and partnerships with other organizations based on their core competency

  Core competency – An organization’s key strength, a business function that it does better than any of its competitors

 Core competency strategy – Organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes

§  Information technology can make a business partnership easier to establish and manage

  Information partnerships – Occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer

§  The internet has dramatically increased the ease and availability for IT – enabled organizational alliance and partnerships

COLLABORATION SYSTEMS

Two categories of collaboration

§  Unstructured collaboration (information collaboration)

§  Structured collaboration (process collaboration)

KNOWLEDGE MANAGEMENT SYSTEM

§  Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

EXPLICIT AND TACIT KNOWLEDGE

§  Intellectual and knowledge-based assets fall into two categories

# Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT
# Tacit knowledge - knowledge contained in people’s heads

KM AND SOCIAL NETWORKING
· Finding out how information flows through an organization


– Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom
– SNA provides a clear picture of how employees and divisions work together and can help identify key experts


CONTENT MANAGEMENT
· Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment
· CMS marketplace includes:


– Document management system (DMS)
– Digital asset management system (DAM)
– Web content management system (WCM)


· Content management system vendor overview

GROUPWARE SYSTEM

INSTANT MESSAGING
· Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet.

CHAPTER 14 : E-BUSINESS

E-BUSINESS
· The Internet is a powerful channel that presents new opportunities for an organization to:
– Touch customers
– Enrich products and services with information
– Reduce costs


· How do e-commerce and e-business differ?
– E-commerce – the buying and selling of goods and services over the Internet
– E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

INDUSTRIES USING E-BUSINESS

MASHUPS
· Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service
– Application programming interface (API) - a set of routines, protocols, and tools for building software applications

– Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups

CHAPTER 12 : INTEGRATING THE ORGANIZATION FROM END - ENTERPRISE RESOURCE PLANNING.

ERP or Enterprise Resource Planning serves as the organization’s backbone in providing fundamental decision-making support. ERP system provides a foundation for collaboration between departments, enabling people in different business areas to communicate within an organization.

ERP Integration Data Flow:-

ERP Process Flow :-

The Evolution of ERP :-

Integration between SCM, CRM, and ERP Applications

CHAPTER 11 : BUILDING A CUSTOMER -CENTRIC ORGANIZATION-CUSTOMER MANAGEMENT

DEFINITION CRM :-

CRM is managing all aspects of customer’s relationship with an organization to increase customer loyalty and retention and organization’s profitability.

THE EVOLUTION OF CRM
· There are three phases in the evolution of CRM include reporting, analyzing, and predicting

This picture below shows the example of ugly side CRM

USING ANALYTICAL CRM TO ENHANCE DECISIONS

CHAPTER 10 : EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

Basics of supply chain

Information technology's role in the supply chain

factors driving scm :-

VISIBILITY
· Supply chain visibility – the ability to view all areas up and down the supply chain
· Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain

CONSUMER BEHAVIOUR
· Companies can respond faster and more effectively to consumer demands through supply chain enhances
· Demand planning software – generates demand forecasts using statistical tools and forecasting techniques

COMPETITION
· Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain
· Supply chain execution (SCE) software – automates the different steps and stages of the supply chain

SPEED

SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

-there have 7 principles of scm.

CHAPTER 9 : ENABLING THE ORGANIZATION - DECISION MAKING

The decision making proses :-

• problem identification
• data collection 
• solution generation
• solution test
• solution selection
• solution implementation

operational

-employees develop, control and maintain core business activities required to run the day-to-day operations.

managerial

-employees continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and   leverage change.

strategic

-managers develop overall business strategies, goals, and objectives as part of the company's strategic plan.

 

       Artifical Intelligence:

·         AI simulates human thinking and behaviour, such as the ability to reason and learn.

·         Its ultimate goal is to build a system that can mimic human intelligence.

·         Its increase the speed and consistency of decision making

·         Solve problems with incomplete information and etc.

CHAPTER 8 : ACCESSING ORGANIZATIONAL INFORMATION - DATA WAREHOUSE

Data warehouse fundamentals

-Data warehouse - a logical collection of information-gathered from many different operational database- that supports business analysis activities and decision-making tasks.

-Primary purpose - to aggregate information throughout an organization into a single repository in such way that employees can make decisions and undertake business analysis activities.

-Extraction, transformation and loading (ETL) - a process that extracts information from internal and external database, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

-Data warehouse- then send subsets of the information to data mart.

-Data mart - contain the subsets of data warehouse information.

MULTIDIMENSIONAL ANALYSIS AND DATA MINING
cube- the common term for the representation of multi dimensional databases.

data mining - process of analyzing data to extract information not offered by the raw data alone.
data-mining tools - variety of techniques to find patterns and relationship in large volumes of information and infer rules from them that predict future behaviour decision making.

INFORMATION CLEANSING AND SCRUBBING

                                                -contact information in operational system

                                           -standardizing customer name from operational systems

                                                         -information cleansing activities

                                                       -accurate and complete information


BUSINESS INTELLIGENCE

-application and technologies that are used to gather, provide access to and analyze data and information to support decision-making efforts.specifically :-

• collecting information.
• discerning patterns and meaning in the information.
• responding to the resultant information.

CHAPTER 7 : STORING ORGANIZATIONAL INFORMATION-DATABASES

Database - maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses).
Hierarchical database model - information is organized into a tree-like structure that allows repeating information using parent/child relationships in such a way that it cannot have too many relationships.
Network database model - is a flexible way of representing objects and their relationships.
Relational database model - type of database that stores information in the form of logically related two-dimensional tables.

This picture below show the hierarchical, network and relational structure :-

ENTITIES AND ATTRIBUTES
entity - the relational database ,model is a person, place, thing model is a person, place, thing, transaction, or event about which information is stored.
attributes - fields or columns, are characteristics or properties of an entity class.

KEYS AND ATTRIBUTES
primary key - group and fields that uniquely identifies a given entity in a table.
foreign key -  the relational database model is a primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between two tables.

RELATIONAL DATABASE ADVANTAGES
-Increased flexibility
-Increased scalability and performance
-Reduced information redundancy
-Increased information integrity (quality)
-Increased information security

#INCREASED FLEXIBILITY
Databases tend to mirror business structures and a good database can handle changes quickly and easily.
physical view - information deals with the physical storage of information on a storage device such as a hard disc.
logical view - information focuses on how users logically access information to meet their particular business needs.

#INCREASED SCALABILITY AND PERFORMANCE
scalability - how well a system can adapt to increased demands.
performance - how quickly system performs a certain process or transaction.

#REDUCED INFORMATION REDUNDANCY
redundancy - duplication of information, or storing the same information in multiple places.

#INCREASED INFORMATION INTEGRITY (QUALITY)
information integrity - measure of the quality of information.
relational integrity constraints - rules that enforce basic and fundamental information- based constraints.
business-critical integrity constraints - enforce business rules vital to an organization's success an often require more insight and knowledge than relational integrity constraints.

#BUSINESS INFORMATION SECURITY
any asset that the organization must protect its information from unauthorized users or misuse.

DATABASE MANAGEMENT SYSTEMS (DBMS)
-software through which users and application programs interact with a database.

DATA DRIVEN WEBSITE
-interactive website kept constantly updated and relevant to the needs of its customers through the use of a database.

INTEGRATING INFORMATION AMONG MULTIPLE DATABASES
integration - 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 systems and sends it automatically to all upstream systems and processes.

Project Focus :)

Norzulaiha Bt. Alias

Noor Asniza Bt. Asmaddin

Ayuliza Bt. Kasim

Nurul Aisyah Bt. Ahmanul

Nur Atila Bt. Abdul Rahman

Putri Azizuhainee Bt. Mohd. Khalid

Question :

We know that people use information technology to work with information. Knowing this, how could these types of errors occur? What could happen if you decided to use Facebook to collect information intelligence for a research paper? What could Facebook do to help prevent these types of errors?

Here are some references to determine whether the information obtain is a good or bad; 

Problems that may occur:

Facebook is a website that is generally open to all.  The information can be easily falsify and does not need to be filtered. Thus, why the information is not credible for the use of a research. The information obtain may not be true or valid and may not be based on facts. Furthermore, the information at facebook may be biased as it is based on ones opinion and perception. Lastly, we have no way to insure that the information that is posted on facebook is valid as for we do not know the sources of information and its credibility.

Prevention that Facebook may do to prevent these problems:

Facebook should filter the information posted on their website or increase its security by valuating its information and sources.

CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION.

ORGANIZATIONAL INFORMATION

Organizational information comes at different levels and in different formats and "granularities".

• Information granularity - the extent of detail within the information (fine and detailed or coarse) and abstract.The organizational must know what kind of information that they want to know. We must ensure the information gives the best quality for that organizational itself.
• Employees must be able to differentiate the levels of the information, formats and granularities of information when making a decision. If the employees can knows how to use the information with different levels of information or format then, the information can be a values to the sender or receiver of the information.
• Successfully collecting, compiling, sorting and finally analyzing information from multiple levels, in varied formats, exhibiting different granularity can provide tremendous insight how an organization is performing.

                                          figure 6.1 show the levels, formats and granularities of                                                                                   organizational information.

THE VALUE OF TRANSACTIONAL AND ANALYTICAL INFORMATION.

• Transactional information - encompases 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.For example is include withdrawing cash from ATM.
• Analytically information - encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks. Organizations capture and store transactional informations in databases, and use it when performing operational tasks and repetitive decissions such as analyzing daily reports and production schedules.

POOR INFORMATION

- happened when some of the information are not completed or missing and this make the information are not accurate, inability to track customers. With the poor information, its difficult for he organizational to make aright decissions because of poor information happened.

HIGH INFORMATION

-can significantly improve the chances of making a good decision and directly increase an organization's bottom line.So, if the organizational have ahigh quality of information but the people in the organizational do not use the information accurately, it will be nothing.

CHAPTER 5 :  ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES 

ORGANIZATIONAL STRUCTURES 

• Employees across the organization must work closely together to develop strategic initiatives that create competitive advantages.
• Understanding the basic structure of a typical IT department including titles, roles, and responsibilities will help an organization build a cohesive enterprise wide team.

IT ROLES AND RESPONSIBILITIES

• CEO (Chief Executive Officer) - is the highest-ranking corporate officer (executive) or administrator in charge of total management of an organization.
• CIO (Chief Information Officer) - responsible overseeing all uses of information technology and and ensuring the strategic alignment of IT with business goals and objectives.
• CTO (Chief Technology Officer) - responsible for ensuring the throughput, speed, accuracy, availability, reliability of an organization's information technology.
• CSO (Chief Security Officer) - responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses.
• CPO (Chief Privacy Officer) - responsible for ensuring the ethical and legal use of information within an organization.
• CKO (Chief Knowledge Officer) - responsible for collecting, maintaining and distributing the organization's knowledge.

                                          figure 4.1 show the skills pivotal for success in Executive It

                                          Roles.

THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL

• Business Personnel - possess expertise in functional areas such as marketing, accounting, sales.
• IT Personnel - have the technological expertise.
• Their gaps is business personnel have their own vocabularies based on their experience and expertise.IT Personnel have their own vocabularies consisting of acronyms and technical terms.

ETHICS AND SECURITY

• ETHICS - the principles and standards that guide our behaviour toward other people.
• PRIVACY - the right to be left alone when you want to be, to have control over your own personal possessions, and to not be observed without your consent.

 

Chapter 4 – Measuring the Success of Strategic Initiatives

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 

THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVESS 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 focus on an organization’s 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).

-          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.

·         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 browser)

-          Interrelationships between efficiency and effectiveness. 

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.