CHAPTER 8 ACCESSING ORGANIZATIONAL INFORMATION - DATA WAREHOUSE

CHAPTER 8 ACCESSING ORGANIZATIONAL INFORMATION - DATA WAREHOUSE

1. HISTORY OF DATA WAREHOUSE

• In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions
•  The data warehouse provided the ability to support decision making without disrupting the day-to-day operations, because;

1.  Operational information is mainly current – does not include the history for better decision making.
2.  Issues of quality information.
3. Without information history, it is difficult to tell how and why things change over time.

2. DATA WAREHOUSE FUNDAMENTALS

•  A Data Warehouse is a logical collection of information-gathered from many different operational database - that supports business analysis activities and decision-making tasks.
• The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
• A Data Mart contains a subsets of data warehouse information.
  
• The Data Warehouse then send subsets of the information to data mart.
  
• Extraction, Transformation, and Loading (ETL) - 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.
  
  
  
  
  3. MULTIDIMENSIONAL ANALYSIS AND DATA MINING.

  • Database contains information in a series of two-dimensional tables.
    In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows.

  >  Dimension – A particular attribute of information.

  • A cube is the common term for the representation of multidimensional information.

  
  
  • Data Mining is the process of analyzing data to extract information not to offered by the raw data alone. It is known as 'knowledge discovery.
  • To perform data mining user needs data mining tools.

  1. Data Mining Tools use a variety of techniques to find patterns and relationships in large volumes in information and infer rules from them that predict future behaviour and guide decision making. 

  
  

  
  

  4. INFORMATION CLEANSING OR SCRUBBING.

  •  Information cleansing or scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect or incomplete information.

  
  
  
  
  5. BUSINESS INTELLIGENCE
  

  • Business Intelligence refers to application and technologies that are use to gather, provide access to, and analyze data and information to support decision-making efforts. 
  • Enabling Business Intelligence

  1. Technology.
  2. People.
  3. Culture.

CHAPTER 3 : STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES.

Supply chain management.

Definition: Involve the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Importance of supply chain management : 

1. Decrease the power of its buyer. 

2. Increase its own supplier power.

3. Increase switching cost.

4. Boost customer service.

5. Create entry barrier.

Customer Relationship Management (CRM)

Definition: Involve managing all aspects of a customer's relationship with an organization to increase customer's loyalty and retention an organization's profitability.

Importance of Customer Relationship Management

• Identify types of customers.

• Understand the needs of customer.

• Treat each customer as an individual.

BUSINESS PROCESS REENGINEERING

Definition : The analysis and redesign of workflow within an between enterprises.

Principles of Business Process Reengineering

Finding Opportunity Using BPR

BPR risks

• BPR requires 3rd order change.
• Very expensive to implement.
• BPR sees that operational processes are not glamorous or highly valued.

ENTERPRISE RESOURCE PLANNING (ERP)

Definition : Intergrates all department and functions throughout an organization into a single IT system so that employess can make decisions by viewing enterprisewide information on all business operations.

Importance of Enterprise Resource Planning

• ERP supports upper level management by providing information for decision making.
• ERP creates a more agile company that adapts better to change. ERP makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business—internally and externally.
• ERP can improve data security. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised.
• ERP provides increased opportunities for collaboration. Data takes many forms in the modern enterprise. Documents, files, forms, audio and video, emails. Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.

 1. Threat of Substitute products and services.         

 ·High – when there are many alternatives to a product or  service.          ·Low – when there are few alternatives from which to choose.         ·Ideally, an organization would like to be on a market in which there are few substitutes of their product or services.       
  - Best practices of IT.        
 - Example, Electronic product – same functions different brands.

The Competitive Environment
Threat of Substitutes

• To the extent that customers can use different products to fulfill the same need, the threat of substitutes exists

• Example, electrical product – same function different brands

• Switching cost – costs can make customer reluctant to switch to another product or service

  2.Threat of new entrants.        
·High – when it is easy for new competitors to enter a market.        ·Low – when there are significant entry barriers to entering a market.       
 ·Entry barriers is a product or service feature that customers have come to except from organizations and must be offered by entering organization to complete and survive.       
 ·Best practices of IT.        
-Example, new bank must offers online paying bills, acc. monitoring to compete.


The Competitive Environment
Threat of New Entrants

• Many threats come from companies that do not yet exist or have a presence in a given industry or market.

• The threat of new entrants forces top management to monitor the trends, especially in technology, that might give rise to new competitors.

• Example, new bank (online paying bills, acc. monitoring)

       3.Rivalry among existence competitors.     
    ·High – when competition is fierce in a market.  
    ·Low – when competition is more complacent.         
    ·Best practices of IT.         
    -Wal-Mart and its suppliers using IT 
   – enabled system for communication and track product at aisles by effective tagging system.         
   -Reduce cost by using effective supply chain.

The Competitive Environment
Rivalry Among Existing Firms

•  Existing competitors are not much of the threat: typically each firm has found its “niche”.

•  However, changes in management, ownership, or “the rules of the game” can give rise to serious threats to long term survival from existing firms

•  Example, the airline industry faces serious threats from airlines operating in bankruptcy, who do not the debts while slashing fares against those healthy airlines who do pay on debt. (MAS & AIR ASIA)

The Value Chains – Targeting Business Processes

• Supply Chain – a chain or series of processes that adds value to product and service for customer
•  Add value to its products and services that support a profit margin for the firm