Chapter 8 : Accessing Organizational Information – Data Warehouse

What is Data Warehouse?

Ø  Defined in many different ways, but not rigorously

-          A decision support database that is maintained separately from the organization’s operational database.

-          A consistent database source that bring together information from multiple sources for decision support queries.

-          Support information processing by providing a solid platform of consolidated, historical data for analysis.

History of Data Warehousing

Ø  In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions

Ø  The data warehouse provided the ability to support decision making without disrupting the day-to-day operations, because;

-          Operational information is mainly current – does not include the history for better decision making

-          Issues of quality information

-          Without information history, it is difficult to tell how and why things change over time

Data warehouse fundamentals

Ø  Data warehouse – A logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making takes

Ø  The primary purpose of a data warehouse is to combined information throughout an organization into a single repository for decision-making purposes – data warehouse support only analytical processing

Data warehouse model

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

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

Ø  Data mart – contains a subset of data warehouse information.

Multidimensional Analysis and Data Mining

Ø  Relational Database contains information in a series of two-dimensional tables.

Ø  In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows

-          Dimension – A particular attribute of information

Ø  Cube – common term for the representation of multidimensional information

Ø  Once a cube of information is created, users can begin to slice and dice the cube to drill down into the information.

Ø  Users can analyze information in a number of different ways and with number of different dimensions.

Ø  Data Mining – the process of analyzing data to extract information not offered by the raw data alone. Also known as “knowledge discovery” – computer-assisted tools and techniques for sifting through and analyzing vast data stores in order to finds trends, patterns and correlations that can guide decision making and increase understanding

Ø  To perform data mining users need data-mining tools

-          Data-mining tool – uses a variety of techniques to finds patterns and relationships in large volumes of information. Eg: retailers and use knowledge of these patterns to improve the placement of items in the layout of a mail-order catalog page or Web page.

Information Cleansing or Scrubbing

Ø  An organization must maintain high-quality data in the data warehouse

Ø  Information cleansing or scrubbing – A process that weeds out and fixes or discards inconsistent, incorrect or incomplete information

Ø  Occurs during ETL process and second on the information once if is in the data warehouse

Ø  Contract information in an operational system

Ø  Standardizing Customer  name from Operational Systems

Ø  Information cleansing activities

-          Missing Records or Attributes

-          Redundant Records

-          Missing Keys or Other Required Data

-          Erroneous Relationships or References

-          Inaccurate Data

Ø  Accurate and complete information

Business Intelligence 

Ø  Business Intelligence – refers to applications and technologies that are used to gather, provides access, analyze data and information to support decision making efforts

Ø  These systems will illustrate business intelligence in the areas of customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis, and inventory and distribution analysis to name a few

Ø  Eg; Excel, Access

Chapter 7 : Storing Organizational Information Databases

RELATIONAL DATABASE FUNDAMENTALS

Information is everywhere in an organization

Information is stored in databases

·         Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)

Database 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

Entity – a person, place, thing, transaction, or event about which information is stored

Attributes (fields, columns) – characteristics or properties of an entity class

Keys and Relationships

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

RELATIONAL DATABASE ADVANTAGES

Database advantages from a business perspective include

·         Increased flexibility

·         Increased scalability and performance

·         Reduced information redundancy

·         Increased information integrity (quality)

·         Increased information security

Increased Flexibility

A 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

A 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

•          One of the primary goals of a database is to eliminate information redundancy by recording each piece of information in only one place

•          Databases reduce information redundancy

Redundancy – the duplication of information or storing the same information in multiple places

•          Inconsistency is one of the primary problems with redundant information

Increase Information Integrity (Quality)

•         Information integrity – measures the quality of information

•         Integrity constraint – rules that help ensure the quality of information

Increased Information Security

•         Information is an organizational asset and must be protected

•         Databases offer several security features including:

Password – provides authentication of the user

Access level – determines who has access to the different types of information

Access control – determines types of user access, such as read-only access

DATABASE MANAGEMENT SYSTEMS

software through which users and application programs interact with a 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.

Data-Driven Web Site Business Advantages

•          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.

•          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.

•          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.

•          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.

•          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.

•          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.

•          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.

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 system and sends it automatically to all upstream systems and processes

•          One of the biggest benefits of integration is that organizations only have to enter information into the systems once and it is automatically sent to all of the other systems throughout the organization

•          This feature alone creates huge advantages for organizations because it reduces information redundancy and ensures accuracy and completeness

•          Without integrations an organization would have to enter information into every single system that requires the information from marketing and sales to billing and customer service

Integrating Information among Multiple Databases

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

Chapter 6 : Valuing Organizational Information

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

Chapter 5 - Organizational Structures that Support Strategic Iniatiatives

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 position which is : 

           * Chief Information Officer (CIO).

           * Chief Technology Officer (CTO). 

           * Chief Security Officer (CSO).

           * Chief Privacy Officer (CPO).

           * Chief Knowledge (CKO).

Chief Information Officer (CIO)

*      Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives. Make sure system that we used to save the information must align with the objective of the company.

 

CIO functions :

                         i.  Manager is a ensuring the delivery of all IT projects, on time and within budget.

                        ii. Leader is a ensuring the strategic vision of IT is line with the strategic vision on the                 organization.Strategic those companies plans make sure align with the objectives of the         company.

                       iii. Communicator is a building and maintaining strong executive relationships. Communicator very important to the company. It is because when company has a problem communicator will settle that problem.

Chief Technology Officer (CTO)

      Responsible for ensuring the throughput, speed, accuracy, availability and reliability of IT.

      CTO more than efficiency

Chief Security Officer (CSO)

      Responsible for ensuring the security of IT systems. Ensure that the system used to store company information taken care of properly.

Chief Privacy Officer (CPO)

      Responsible for ensuring the ethical and legal use of information.

Chief Knowledge Officer (CKO)

      Responsible for collecting, maintaining, and distributing the organization’s knowledge.

The gap between business personnel and IT personnel:

      Business personnel possess expertise in functional areas such as marketing, accounting and sales.

      IT personnel have the technology expertise.

      This typically cause a communications gap between business personnel and IT personnel.

Improving communications:

      Business personnel must seek to increase their understanding of IT. Even though business personnel department don’t know about IT department but they must know how IT department do their job. It is because can easier business personnel department used technology if anything happen.

      IT personnel must seek to increase their understanding of the business. It is because can easier IT department do business personnel job if anything happen.

      It is the responsibility of the CIO to ensure the effective communication between business personnel and IT personnel.

Organizational fundamentals—ethics and security

- Ethics and security are two fundamentals building blocks that organizations must base their business on to be successful.

Ethics:

Ø  Definitions for ethics are the principles and standards that guide our behavior towards other people. 

Ø  Issues affected by technology advance:

                  i.  Intellectual property is the intangible creative work that is embodied in            form such as architect.

                  ii.   Copyright is the legal protection afforded an expression of an idea, such           as       a song, video game, and some types of proprietary documents.

             iii. Fair use doctrine is the in certain situation. It is legal to use copyrighted     material. For example song, different lyrics but same rhythm.

                iv.  Pirated software is the unauthorized use, duplication distribution, or sale of   copyright software

               v.  Counterfeit software is the software that is manufactured to look like the real thin and sold as such. For example that property actually not original but when I sold that property same like original price.

Security:

 o    Organizational information is intellectual capital it must be protected

o  Information security means the protections of information from accidental or intentional misuse by persons inside or outside an organization. CSO must guide this system for company information.

o E-business automatically creates tremendous information security risks for organizations.