Your Life is between the Heaven and Hell.. Between Demon and Angel.. Just you the one that can choose which path you go.. Heaven is the good reward.. Hell the other way..

Tuesday, July 16

Value Of Organizational Information

Chapter 6

Organizational information comes at different levels and in different formats and granularities. Information granularities refers to the extent of details within the information. The organizational must know what kind of information that they want for. Make sure the information gives the best quality or high 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.


There are hundreds of transactions that go through organizations every day. The result of these transactions is transactional information. Transactional information is all the information contained within a business unit. The primary purpose of transactional information is to support day-to-day operations of the unit. Examples of transactional information include: sales receipt, packing slip, purchase confirmation, etc. So transactional information is the result of performing daily operating tasks. In addition, every time a cash register rings up a sale, a deposit or withdrawal is made from an ATM, or a receipt is given at the gas pump, capturing and storing of the transactional information are required.
            Databases that can handle transactions are known as transactional databases. The main purpose of a database is to ensure accuracy and integrity of information.


 In contrast to transactional information, analytical information is used for managerial analysis decision making. People who are higher up in the hierarchy of the company usually do not need all the details of transactional information. They need the bigger picture. Here is where analytical information is used. An example of analytical information is used. An example of analytical information is a report on monthly sales.
Examples of analytical information
ü  Trends ( information about where the particular market is heading and if the organization should follow the trend)
ü  Sales ( information about if the organization needs to pick up sales in a particular area or if it should cut back on inventory of specific products)
ü  Future growth projections ( information about whether or not the company looks like it will grow, usually if it is taking on a new venture)


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
4.    Third party and external information contains inconsistencies, inaccuracies

Bad information can cause serious business ramifications such as :

1.    Loss Of Managerial Control
2.    Hidden Cost
3.    Threat to Security and Confidentiality
4.    Quality problems
5.    Tied to the Financial Well-Being of Another Company
6.    Bad publicity


Why is Information Technology Important

All our work related applications are now completely automated, thanks to the IT sector. IT professionals are people involved in essential management of sensitive data, exclusive computer networking and systems-engineering. The advancement of the IT sector has resulted in automated :
  • Administration of entire systems.
  • Production and manipulation of sensitive information.
  • Cultural development and communication.
  • Streamlining of business processes and timely upgrades.



True globalization has come about only via this automated system. The creation of one interdependent system helps us to share information and end linguistic barriers across the continents. The collapse of geographic boundaries has made the world a 'global village'. The technology has not only made communication cheaper, but also possible much quicker and round the clock. The wonders of text messages email and auto-response, backed by computer security applications, have opened up scope for direct communication.

• Cost-effective

Computerized, internet business processes have made many businesses turn to the Internet for increased productivity, greater profitability, clutter free working conditions and global clientèle. It is mainly due to the IT industry that businesses have been able to make their processes more streamlined, thereby becoming more cost-effective and consequently more profitable. People are able to operate their businesses 24x7, even from remote locations only due to the advent of information technology.


Quick and effective communication is vital to any business anywhere in the world. Information technology gives an entrepreneur or business the tools, like email, video conferencing, SMS, etc., essential to communicate efficiently and effectively. to the business world, and information technology gives your company the resources it needs to communicate quickly and effectively. Not only do people connect faster with the help of information technology, but they are also able to identify like-minded individuals and extend help, while strengthening ties.

Storing and Protecting Information

IT provides a low-cost business options to store and maintain information that may be important from a business or service point of view. Virtual vaults and other such security systems not only store vital data but also allow control over the access to such information. IT security systems will also protect virtual data from being hacked or wiped out in case of any technical failure.

Creation of New Jobs

One of the biggest advantages of IT has been the creation of a whole new field of opportunity for skilled personnel leading to new and interesting jobs. Hardware and software developers, computer programmers, web designers, system analyst, the list of new jobs created could go on. IT has also been attributed to be the major cause of surge in the economies of certain Third World nations too.

OrGaNiZaTiOn StrUcTurE..



The typically hierarchical arrangement of lines of authoritycommunicationsrights  and duties of an organization. Organizational structure determines how the rolespower  and responsibilities are assigned, controlled, and coordinated, and how information flows between the different  levels  of  management.
A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.


1. Chief Information Officer (CIO)

     CIO ensures effective communications between business and IT personnel. A wide function of in CIO is manager to ensure the delivery of all IT project, on time and within budget. Next, leader is the wide functions of a CIO for make sure the strategic vision of IT in the organization. Furthermore, communicator must building and maintaining strong executive relationship.

2. Chief Technology Officer (CTO)

     CTO responsible for ensuring the throughout, speed, accuracy, availability, and reliability of an organization’s information technology.
     Similar to CIOs but CIOs take on the additional responsibility usefulness of ensure that IT is associated with the organization’s strategic initiatives.

3.  Chief Privacy Officer (CPO)

      CPO responsible for ensuring the ethical and legal use of information. This role is regarding the use of personal information, including medical data and financial information, and laws and regulations.

4. Chief Knowledge Officer (CKO)

     CKO responsible for collecting, maintaining and distribution the organization’s knowledge. Those who hold this position have to manage intellectual capital and the custodian of knowledge management practices in an organization.

5. Chief Security Officer (CSO)

     The CSO generally serves as the business leader responsible for the development, implementation and management of the organization’s corporate security vision, strategy and programs. They direct staff in identifying, developing, implementing and maintaining security processes across the organization to reduce risks, respond to incidents, and limit exposure to liability in all areas of financial, physical, and personal risk; establish appropriate standards and risk controls associated with intellectual property; and direct the establishment and implementation of policies and procedures related to data security.


1.    ETHICS

Ethics is the principle and standards that guide our behaviour toward other people.
Descriptive ethics is exactly that a description of "what is"       in the land of business ethics.  This perception seeks to recognize moral & ethical systems shared by people, cultures, and societies.  This form seeks to know prevailing views and actions about ethical performance.  One problem to this school of thought is that using this perspective may lead one to believe that an actual unethical behaviour is satisfactory because "everyone is doing it."
 Issues Affected By Technology Advances :
i) Intellectual property - Intangible creative work that is personified in physical form.
ii) Copyright - 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 - In certain situations, it is legal to use copyrighted material.
iv) Pirated software - The unauthorized use, duplication, distribution, or sale of copyrighted software.
v) Counterfeit software - Software that is manufactured to look like the real thing and sold as such.


a.    Security is a major ethical issues.

b.    The right to be left alone when you want to have control over your own personal possessions and not to be observed without your consent.

Measuring the Success of Strategic Initiatives

A business metric is any type of measurement used to gauge some quantifiable component of a company's performance. Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. Metrics are about neither technology nor business strategy. Efficiency and effectiveness metrics are two primary types of IT metrics. Efficiency IT metrics measure the performance of the IT system itself including throughput, speed, and availability. Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell-through increases. Effectiveness focuses on how well an organization is achieving its goals and objectives, while efficiency focuses on the extent to which an organization is using its resources in an optimal way. However, operating in the upper left-hand corner (minimal effectiveness with increased efficiency) or the lower right-hand corner (significant effectiveness with minimal efficiency) may be in line with an organization’s particular strategies. In general, operating in the lower left-hand corner (minimal efficiency and minimal effectiveness) is not ideal for the operation of an organization.
Explain why a business would use metrics to measure the success of strategic initiatives.

Metrics are the heart of a good, customer-focused management system and any program directed at continuous improvements. A focus on customers and performance standards shoes up in the form of metrics that assess the ability to meet customers’ needs and business objectives. The following metrics will help managers measure and manage their strategic initiatives: 

Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) Metrics
1.            Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) Metrics are large organization initiatives. Measuring these type of strategic initiatives is extremely difficult. One of the best methods is the balance scorecard.

2.            Balance Scorecard: is the management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcome in order to continuously improve strategic performance and results. 

Friday, July 5

Chapter Three...


Here is about the little explaination of chapter 3. Below is the learing outcome which stated as question and there are answer for the question given :  

List and describe the four basic components of supply chain management

  • Supply chain strategy is the strategy for managing all the resources required to meet customer demand for all products and services
  • Supply chain partners are the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
  • Supply chain operation is the schedule for production activities including testing, packaging, and preparation for delivery
  • Supply chain logistics is the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
Explain customer relationship management systems and how they can help organizations understand their customers

  • CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level.  If an organization does not embrace CRM on an enterprisewide level it will have a difficult time gaining a complete view of its customers.  CRM can enable an organization to identify types of customers, design specific marketing campaigns tailored to each individual customer, and understand customer-buying behaviors.
Summarize the importance of enterprise resource planning systems

  • Enterprise resource planning systems provide organizations with consistency. Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing enterprise wide information on all business operations. An ERP system provides a method for effective planning and controlling of all the resources required to take, make, ship, and account for customer orders in a manufacturing, distribution, or service organization. The key word in enterprise resource planning is enterprise.
 Identify how an organization can use business process reengineering to improve its business

  • The purpose of BPR is to make all your processes the best-in-class. Companies frequently strive to improve their business processes by performing tasks faster, cheaper, and better. Companies often follow the same indirect path for doing business, not realizing there might be a different, faster, and more direct way of doing business. BPR provides companies with a way to find the different, more direct way of doing business, such as Progressive Insurance.
  • If your students are unfamiliar with business processes have them review plug-in B2 – Business Processes for a detailed look at common business processes, business process modeling, continuous improvement, and business process reengineering.

Customer Relationship Management

Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability. CRM allows an organization to gain insights into customers' shopping and buying behaviour in order to develop and implement enterprise wide strategies.
Understand all customer communication allows the organization to communicate effectively with each customer. It gives the organization a detailed understanding of each customer's products and services record regardless of the customer's preferred communication channel.

Enterprise Resource Planning (ERP)

Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.

Identifying Competitive Advantage


What is competitive advantage?

A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.
Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.
Unfortunately, competitive advantages are typically temporary, because competitors often quickly seek ways to duplicate them.
Then, the company should start the new competitive advantage.

Below is the Five Force Model in evaluating business attraction :

  •           The ability of buyers to affect the price they must pay for an item.
  • -          High - When buyers have many choices of whom to buy.
  • -          Low - When their choices are few.

  • -          To reduce buyer power is by manipulating switching costs, costs that make customers reluctant to switch to another product or services.

  • -     The ability to influence the prices they charge for supplies (including materials, labor, and services)
  • -          Supplier power is high when buyers have few choices of whom to buy from.
  • -          Supplier power is low when their choices are many.

  • -          High - When there are many alternatives to a product or service
  • -          Low -  There are few alternatives from which to choose.
  • -      For example, travelers have numerous substitutes for airline transportation including automobiles, trains, and boats. 

  • -          High - When it is easy for new competitors to enter a market.
  • -          Low -  When there are significant entry barriers to entering a market.
  • -          An entry barrier is a feature of a product or service that customers have come to expect and entering competitors must offer the same for survival.

  • -          High when competition fierce in the market
  • -          Low when competition is more complacent

In this chapter also explain about the generics strategies.


Becoming a low-cost producer in the industry allows the company to lower prices to customers.
Competitors with higher costs cannot afford to compete with the low-cost leader on price.


Create competitive advantage by distinguishing their products on one or more features important to their customers.
Unique features or benefits may justify price differences.


Target to a niche market.
Concentrates on either cost leadership or differentiation.

End of Chapter Two....

Business Driven Technology


First of all.. This post is written for my new subject for this semester. It is officially written to Madam Intan Liana. 

For the chapter one its called Business Driven Technology which the learning outcome from this chapter that can we gain are : 

- How to compare between management information system and information technology.

- Describe the relationships between people, information technology and the information.

- Identify the different department in typical business

- Compare the different types of organization culture

For the new modern era, information technology is everywhere in the business. There many way to access the information that we needed. Information technology (IT) is mean by the field with the use of technology in managing and processing the idea and information.

While management information system (MIS) is general function in business and academic discipline which covered the application people and technology.

Here is the meaning of data, information and business intelligence. Data mean by raw fact that describe the characteristic of event. Information is data that converted to the easier way to understand and it meaningful. While business intelligence is application and technology us to support decision making. Another important item in this chapter is meaning of information functional culture. Its is mean by the employees that use the information as mean to exercising the influence.

thank you