CHAPTER 6 : VALUING ORGANIZATIONAL INFORMATION

- INFORMATION CAN BE FOUND EVERYWHERE....

Illustration of employees

• employees must be able to obtain and analyze many different levels, formats and granularitites of organizational information to make decisions.

Timeliness = aspect of information that depends on situation.

Real time info = immediate and up to date information

Real time system = provide real time info to query requests

CHARACTERISTICS OF HIGH QUALITY INFORMATION

1. Accuracy
2. Completeness
3. Consistency
4. Uniqueness
5. Timeliness

4 Primary sources of low quality information include :

1. online customers intentionally enter inaccurate info to protect their privacy

2. info from different system have different entry standards and formats

3. call center operator enter abbreviated info by accident or to save time

4. 3rd party and external info contain inconsistencies,inaccuracies and errors.

Potential business effects result from low quality info include :

• inability to accurate track customers
• difficulty identify value customers
• inability to identify selling opportunities
• marketing to nonexistent customers
• difficulty track revenue due to inaccurate invoices
• inability to build strong customer relationship

High quality info improve chances to making good decision

Good decision impact an organization's bottom line

CHAPTER 5 : ORGANIZATIONAL STRUCTURE THAT SUPPORT STRATEGIC INITIATIVES

• Organizational employees must work together to develop strategic initiatives that create competitive advantages.

Recent IT- related strategic positions :

   Chief Information Officer - CIO

   Chief Technology Officer - CTO

   Chief Security Officer - CSO

   Chief Privacy Officer - CPO

   Chief Knowledge Officer - CKO

• CIO oversees uses of IT and ensures strategic alignment of IT with business goals and objectives.
• CTO responsible for ensure the throughput,speed,accuracy,availability.
• CSO responsible for ensuring security of IT systems.
• CPO responsible for ensuring  ethical and legal use of information.
• CKO responsible for collect,maintain and distribute organization's knowledge.

ETHICS

Ethics - principles and standards that guide behaviour toward other people.

Privacy - right to be alone when we want,have control over our personal possessions.

PROTECTING INTELLECTUAL ASSETS

Organization information = intellectual capital that must be protected.

Information strategy is protection of information from accidental or intentional misuse by person inside or outside organization.

CHAPTER 4 : MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

MEASURING INFORMATION TECHNOLOGY’S SUCCES

Key performance indicator - measures that are tied to business drivers

Metrics - 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 – baseline 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

E-government efficiency metrics

includes:

• the number of computers per 100 citizens

• the number of Internet hosts per 10,000 citizens

• the percentage of the citizen population online

E-government effectiveness metrics include

 CRM practices, customer-service vision, approaches to offering e-government services through multiple-service delivery channels, and

initiatives for identifying services for individual citizen segments.

Efficiency IT metrics focus on technology and include:

Throughput – amount of information that can travel through a system at any point in time

Speed – amount of time to perform a transaction

Availability – number of hours a system is available

Accuracy – extent to which a system generates correct results

Web traffic – includes number of pageviews, number of unique visitors, and time spent on                      a Web page

Response time – time to respond to user interactions

Effectiveness IT metrics focus on an organization’s goals, strategies, & objectives

nUsability – the ease with which people perform transactions and/or find information

nCustomer satisfaction –  such as the percentage of existing customers retained

nConversion rates – number of customers an organization “touches” for the first time and                                      convinces to purchase products or services

nFinancial – such as return on investment, cost-benefit analysis, etc.

The interrelationships between efficiency and effectiveness

nSecurity is an issue for any organization offering products or services over the Internet

nIt is inefficient for an organization to implement Internet security, since it slows down processing time.  However, to be effective it must implement Internet security

nSecure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)

Determining IT Efficiency and Effectiveness

Customer metrics – assess the management of customer relationships by the                                             organization and include:

nMarket share

nCustomer acquisition

nCustomer satisfaction

nCustomer profitability