Chapter 6 Valuing Organizational Information

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.

TRANSACTIONAL INFORMATION

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.

ANALYTICAL 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 VALUE OF TIMELY INFORMATION

·         Timeliness is an aspect of information that depends on the situation :

Ø  Real-time information – immediate, up-to-date information

Ø  Real-time system – provides real-time information in responses to query requests

·         Business decisions are only as good as the quality of the information used to make the decisions.

·         You never want to find yourself using to help you make a bad decision faster.

THE VALUE OF QUALITY INFORMATION

·         Characteristics of high-quality information include:

• Five characteristics of high quality information are accuracy, completeness, consistency, uniqueness, and timeliness. 
• Information needs to be of high quality to be useful andaccurate.  The information that is input into a data base is presumed to be perfect as well as accurate.  The information that is accessed is deemed reliable. 
• Completeness is another attribute of high quality information.  Completeness is as necessary as accuracywhen inputting data into a database.
• Consistency is key when entering information into a database.  For example, with a column for a phone number entry 10 digits is the expected length of the field.  Once the fields have been set in the database, a number more or less than 10 digits will not be accepted.  The same applies for any field, whether it is an entry that requires a number, a series of numbers, an address, or a name, etc.  If the fields are not set to a specific limit for information then consistency is even more important. 
• Uniqueness is the fourth component of high quality information.  In order to add value to any organization, information must be unique and distinctive.  Information is a very essential part of any organization and if used properly can make a company competitive or can keep a company competitive. 
• A fifth important aspect of information is timeliness.  New and current data is more valuable to organizations than old outdated information.  Especially now, in this era of high technological advances, out-of-date information can keep a company from achieving their goals or from surviving in a competitive arena. Real-time information is an element of timeliness.   

UNDERSTANDING THE COSTS OF POOR INFORMATION

•         The four primary sources of low quality information include:

• Online customers intentionally enter inaccurate information to protect their privacy
• Information from different systems have different entry standards and formats
• Call center operators enter abbreviated or erroneous information by accident or to save time
• Third party and external information contains inconsistencies, inaccuracies

·         Bad information can cause serious business ramifications such as :

• Loss Of Managerial Control
• Hidden Cost
• Threat to Security and Confidentiality
• Quality problems
• Tied to the Financial Well-Being of Another Company
• Bad publicity 

 

UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

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.

Advantages of Information Technology
• Globalization

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.

• Communication

 
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.

Chapter 5: Organizational Structures That Support Strategic Initiatives

IT Roles and Responsibilities 

Information technology is a relatively new functional area,having been only around formally around 40 years. It can divide into five parts of each position in usually in large companies or certain company that have establish in doing business organization :-

• Chief Information Officer (CIO)
• Chief Technology Officer (CIO)
• Chief Security Officer (CSO)
• Chief Privacy Officer (CPO)
• Chief Knowledge Officer (CKO)

Chief Information Officer (CIO)

 

Business personnel must seek to increase their understanding of IT
IT personnel must seek to increase their understanding of the business
It is the responsibility of the ......... to ensure effective communication between business personnel and IT personnel

• Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives. For example,in an organization,the CEO give the instructions to the Chief Information Officer to set up or redesign our product information through the website.Then,the CIO will make a meetings with the employee that involve in Information system department, how to make the website become more easiest to customer when finding information.

Chief Technology Officer (CTO)

• Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT.For example, in produce a product,we used a machines to produce it. When demand form customer is high,we must changes our production through upgrade the good technology machines that can produce more in a each day. Hired the skilled worker that able to managed the system of machines and have a skill and knowledge in technology.

Chief Security Officer (CSO)

• Responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses.For example, the CSO must make sure their system such as a website must protect and have a strength security to prevent from hacker. For example, in UITM Student Portal,have a person that controlled or managed the website.

Chief Privacy Officer (CPO)

• Responsible for ensuring the ethical and legal use of information. CPO also is a senior level executive within a business or organization who is responsible for managing the risks and business impacts of privacy laws and policies.The CPO position is relatively new and was created to respond to both consumer concern over the use of personal information, including medical data and financial information, and laws and regulations, including, but not limited to, legislation concerning the protection of patient medical records. For example, the Health Insurance Portability and Accountability Act of 1996 and the use and safeguarding of consumer financial and banking transactions.

  Chief Knowledge Officer (CKO)

• Responsible for collecting, maintaining, and distributing the organization’s knowledge. The CKO is responsible for managing intellectual capital and the custodian of Knowledge Management practices in an organization. CKO responsibilities include such things as :

• Collecting relevant data that is useful for the organization as knowledge
• Developing an overall framework that guides knowledge management
• Actively promoting the knowledge agenda within and beyond the company
• Overseeing the development of the knowledge infrastructure
• Facilitating connections, coordination and communication

Gap Between Business Personnel And It Personnel

The gap between the business arm in a company and information technology is exist because presence of perception business people that the Information Technology Department generates expenses not income. This means, they looks alike liability and not asset to the company. In the same time, The Information technology department is “hidden” from the customer often classified as a “back office” business initiative or process. This create a different perspective to the business  personnel and the result, a gap is exist.

Ways To Decrease Gap Between Both IT Personnel And Business Personnel

Communication

Communication is the main ingredient that will close the gap between the business personnel and the IT Department. Business leaders must understand, really understand, that Information Technology is not optional but critical to the success of the business.

The head of the company sets the tone for the entire business.

In addition IT department teams need to understand the business practices of the company.

Cross Training

Rettig suggests that initiating cross training is one way to reduce the distance between business and IT.

Cross   training  

Is a loaded  concept  and  most  technologists  will be specialists  with  years  of  training  in  their  chosen  field. This mean, the IT personnel could be train with other department skills to install some confidence in them. Not to give them other job.

ORGANIZATIONAL FUNDAMENTAL

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.

2. SECURITY

Security is a major ethical issues.

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.

Privacy

It is the the ability of an individual or group to seclude themselves or information about themselves and thereby reveal themselves selectively. The boundaries and content of what is considered private differ among cultures and individuals, but share basic common themes.

i-Information Security

Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction.^[1]

The terms information security, computer security and information assurance are frequently used interchangeably. These fields are interrelated often and share the common goals of protecting the confidentiality, integrity and availability of information; however, there are some subtle differences between them.

ii- Electronic Business

Electronic business, commonly referred to as "ebusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business

The term "e-business" was coined by IBM's marketing and internet teams in 1996.

Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.