Accessing Organizational 

Information – Data Warehouse

What is

DATA WAREHOUSE?

History of Data Warehousing

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

vThe 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

§Issue of quality information

vWithout information history, it is difficult to tell how and why things change over time.

Data Warehouse Fundamentals

vData warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks

vThe 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

vExtraction, 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.

vData warehouse  then send subsets of the information to data mart.

vData mart – contains a subset of data warehouse information

        Multidimensional Analysis
and Data Mining 

vRelational Database contain information in a series of two-dimensional tables.

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

§Dimension –

a particular attribute

of information. 

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

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

Multidimensional Analysis
and Data Mining

vData 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 find trends, patterns, and correlations that can guide decision making and increase understanding.

vTo perform data mining users need data-mining tools

Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information. Eg: retailers can 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 

vAn organization must maintain high-quality data in the data warehouse

vInformation cleansing or scrubbing – a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information

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

Business Intelligence

vBusiness intelligence – refers to applications and technologies that are used to gather, provide access, analyze data, and information to support decision making effort.

vthese 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

vEg: Excel, Access

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

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.

CHAPTER 4:MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

CHAPTER 4:MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

           measuring information technology 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 - 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.

                   BeNcHmArKiNg~BaSeLiNiNg 

                                       MeTrIcS:-

·

   > 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 is a process of continuously measuring system results, comparing those results to optimal system performance and identifying to improve system performance.

ThE InTeRrElATiOnShIpS Of 

EfFiCiEnCy AnD EfFeCtIvEnEsS iT 

MeTrIcS:-

Efficiency IT metrics focus on technology and include :

•      Throughput - the amount of information that can travel trough a system at any point.
•      Transaction speed - the amount of time a system takes to perform a transaction.
•      System availability - the number of hours a 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:

•      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.
•      Customer 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 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:

      ☑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 corner of a browser) .

      

        Web Site Metrics:

•      Abandoned registrations – Number of visitors who start the process of completing a registration page and then abandon the activity.
•      Abandoned shopping carts – Number of visitors who create a shopping cart and start shopping and then abandon the activity before paying for the merchandise.
•      Click-through – people who visit a site, click on an ad, and are taken to the site of the advertiser.
•      Conversion rate – potential customers who visit a site and actually buy something.
•      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.
•      Page exposures – average number of page exposure to an individual visitor.
•      Total hits – number of visits to a web site, many of which may be by the same visitor.
•      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.

                    SuPpLy ChAiN MaNaGeMeNt 

                                        MeTrIcS:-

•  Back order - an unfilled customer order.
• Customer order promised cycle time - the anticipated or agreed upon cycle time of a purchase order.
• Customer order actual cycle time - to actually fill a customer’s purchase order.
• Inventory replenishment cycle time - measure of the manufacturing cycle time plus  the time included to deploy the product to the appropriate distribution center.
• Inventory turns ( inventory turnover ) - the number of times that a company’s inventory cycles or turns over per year.

                     CuStOmEr ReLaTiOnShIP 

                         MaNaGeMeNt MeTrIcS:-

 Customer relationship management metrics measure user satisfaction and interaction and include :

>  Sales metrics.

> Service metrics.
> Marketing metrics.

BPR and ERP METRICS - The balanced scorecard enables organizations to measures and manage strategic initiatives.