© 2009 Pearson Education, Inc. Publishing as Prentice Hall Managing Corporate Information Resources Chapter 7 Information Systems Management in Practice

© 2009 Pearson Education, Inc. Publishing as Prentice Hall

Managing Corporate Information Resources

Chapter 7Information Systems

Management in Practice

8th Edition

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Chapter 7

Identifies problems in managing data and surveys evolution of DBMS

Explores various types of information that companies need to manage

Provides guidelines to management of knowledge (key organizational asset) Harbinger to Chapter 14

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Today’s Lecture

Introduction Managing Data

The Three-Level Database Model Four Data Models Getting Corporate Data into Shape Enterprise Resource Planning (ERP)

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Today’s Lecture cont’d

Managing Information Four Types of Information Data Warehouses Document Management Content Management Managing Blogs

Conclusion

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Introduction

IS continually manages new forms of information resources Corporate databases Documents (electronic or paper) and Web content Knowledge management

Data—Information—Knowledge

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Managing Data

Data management Structured way data is represented, stored and

retrieved for use. Database management systems (DBMS) are

the main tool for managing corporate data Two principles of DBMS

Three-level conceptual model Several alternative data models for organizing the

data

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The Three-Level Database Model

Level 1: External, conceptual or local level Various “user views” of corporate data Each application program has own view

Level 2: Logical or enterprise data level “Technical” (human) view of all corporate data Controlled by database administrators

Level 3: Physical or storage level Specifies the way data is physically stored For use by database administrators

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The Three-Level Database Model cont’d

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Four Data Models

Alternative ways of defining relationships among types of data

1. Hierarchical Model Structures data so that each element is

subordinate to another in a distinct hierarchical manner

e.g., Parent-child relationship

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Four Data Models cont’d

2. Network Model Allows each data item to have more than one parent

Relationships stated by pointers stored with the data

3. Relational Model Data stored in tables (intuitive for users)

“Key” uniquely defines each record “Tuple-calculus” operations

Commands such as Select, Join, Match, etc. Data normalization (optimization) Not as efficient as hierarchical but more flexible

Database technology of choice (e.g., SQL, MS Access)

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4. Object-Oriented Database Model Extension of concept of data to objects:

Piece of data Methods that can perform work on data Attributes describing the data Relationships between objects

Objects can be used to store any type of data e.g., spreadsheet, video clip, photograph, music

segment Object database

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Four Data Models

Object-oriented models retain traditional DBMS features including End-user tools High-level query languages Concurrency control Recovery Ability to handle huge amounts of data

Addition of two major concepts Object management Knowledge management

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Object-oriented models outperform relational systems for certain types of database manipulation Scientific and engineering applications

Corporations slow to adopt due to legacy systems Tenets of objects have increasingly become

important in world of computing E.g., Web Services because XML modules utilize

object principles

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Getting Corporate Data into Shape

1. Inconsistent Data Definitions Data definitions incompatible at many levels

Application, department, site, division System designers sought data from cheapest and/or

politically expedient source to get systems up and running quickly

Organizations end up with different files Different names for same data Same name for different data

Management cannot get data consistency across the enterprise to make data-driven decisions

Products, markets, control structure

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Getting Corporate Data into Shape cont’d

2. Proliferation of heterogeneous database DBMSs used to meet a variety of specific tasks

in many organizations Small databases in hundreds or thousands of

microcomputers (PCs) across the organizations Independent applications, different data structures,

naming conventions, administrative procedures Difficult for IS to manage corporate data

seamlessly. Imagine data management for inter-

organizational or global systems

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3. Data availability, integrity and security Availability

How to get the terabytes of data at the right place and right time?

Integrity Data should be entered correctly once in the system

Security Data protection is a top concern in organizations

today

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Role of Data Administration Administering databases and software that

manages them to provide accurate and timely information to users

Determining what data is being used outside of originating organizational unit boundaries Definition and format must be standardized “Data dictionary” used as main tool

Data elements definition, schema, database structures, usernames, roles and privileges

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Enterprise Resource Planning

ERP provides the means to consolidate data to give management a corporate-wide view of operations

An important prerequisite to installing an ERP system is data consistency Data definitions cleaned up Shared data controlled Data distribution managed Data quality maintained

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Managing Information

Once enterprises get their data into shape, that data can more easily be turned into information

“Information is power” Managing information is a critical activity

Technology = infrastructure Asset = information that runs on that infrastructure

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Managing Information cont’d

Four Types of Information Internal record-based information—original focus

of IS and most used in organizations Found in databases

Internal document-based information Reports, emails, proposals

External record-based information Acquisition from external databases

External document-based information World-Wide-Web

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Four Types of Information

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Records versus Documents

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Managing Information cont’d

Record-based information was IS focus Easy to generate and manage

Little attention to document-based information Difficult to manipulate

Intranets and Internet (html) changed this Documents integral part of information now

IS is involved in all four areas of information today

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Scope of Information Management

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Data Warehouses

Data warehouse: Stores data used to make decisions Obtained periodically from transaction databases Snapshot of situation at specific time Different from operational databases

Customer data is most common type of data housed Corporate use transcends reporting internal data

to business intelligence today

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Data Warehouses cont’d

Metadata The part of the warehouse that defines the data

Explains meaning of each data element and sets standards e.g. to reconcile data from legacy systems

Quality data The cleaning process to adhere to metadata standards

The older the data the more suspect its quality Datamart

A subset of data pulled off the warehouse for a specific group of users Faster search time and lower costs

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Five steps in a data warehousing project:1. Define the business uses of the data

2. Create the data model for the warehouse

3. Cleanse the data

4. Select the user tools

5. Monitor usage and system performance

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Data warehouses are seen as strategic assets that can yield business intelligence customer behavior, internal operations, product

mixes, etc. Again, getting corporate data into shape is a

key prerequisite e.g., reconciling data from legacy systems

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Owens & Minor

Case Example: Data Warehousing O&M—a medical and surgical supplier Illustrates how O&M is innovatively using its data to

achieve competitive advantage ERP Data warehousing Web

O&M employs these technologies to provide internal use of data (decision support) and also revenue-generating services to customers and suppliers

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Owens & Minor cont’d

Implemented ERP to automate order forecasting Improved inventory turns, lowered ordering rates Improved customer service

Provided customers and suppliers access to its data warehouse (inventory data) through “Wisdom” (Web medium) Predefined queries Interactive system (customers add external data) Mobile Web Services

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Owens & Minor

“Wisdom” was the first e-business intelligence application in the industry

O&M’s role as an industry “infomediary” important and gave it a competitive edge Strengthened relationships with partners,

suppliers, customers Enticed new customers and created switching

costs Generated new source of revenue

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Document Management

Documents more pervasive and fundamental than anything else in an organization. Paper still plays a major role in most enterprises Need to move seamlessly between digital and

print Electronic document management (EDM)

uses new technologies for document management to produce significant impacts Business process redesign Quality improvement

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Document Management cont’d

Improve the publishing process Traditional process has inefficiencies

Infrequent long print runs require storing documents which become obsolete between runs

60% of total cost of delivering these documents in storage and transportation

EDM enables major restructuring of publishing and distribution process of print documents Electronic storage Mass distribution (over time/space) and print when needed

EDM minimizes obsolescence, physical warehouse costs and delivery time

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Traditional Publishing Process

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Electronic Document Management

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Supporting communication among people and groups The value of documents is that they transfer

information across time and space Internet can help but people often still rely on print

documents EDM can be used to facilitate such

communications among people and groups Tapiola case study illustrates how

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Tapiola Insurance Group

Case Example: Supporting communications among people and groups

Tapiola Group offered 150 types of insurance policies with 300 different policy forms All preprinted by outside print company Reprinting new forms often took weeks

Potential loss of revenue Investigate alternate ways for document publishing

Reduce costs Provide new ways of marketing insurance products Make Tapiola “the most personal insurance company in

Finland”

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Tapiola Insurance Group cont’d

Centralized Solution Reduced 300 preprinted forms to 4 standard-sized forms Used plain paper printers from Xerox to generate forms

Xerox electronic document processing products enables text, data, image and graphics in documents

Decentralized Expansion Moved much of printing of customer correspondence to

their 62 branch offices to improve customer service through better communication with customers and partners Mix of host computing with local EDM applications Fast banking system (collaboration with Finnish banks)

Mission accomplished

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Supporting organizational processes Documents still the vehicle for accomplishing most

organizational processes Use of technology to support processes generates

significant business value (transaction) Reducing physical space Faster routing Managing and tracking work flow and load

Use of technology to improve management processes Decision support Problem solving Control

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Tennessee Valley Authority

Case Example: Supporting Organizational Processes

Largest supplier of power in U.S. Revamped maintenance management system

System relies on documents such as manuals, drawings and instructions that are regulated by government

Analyzed and charted existing work processes to determine where improvements were most needed

Discerned that document workflow was inextricably linked to work orders and therefore key to significant improvements

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Tennessee Valley Authority cont’d

Revamped maintenance management Collapsed all disparate systems into two main integrated

electronic systems Maintenance work orders Procedural management documents

Redesigned entire process Data diagramming techniques to map out workflow Testing retrieval times, routing efficiencies, transmission rates

Work orders generated electronically and then routed for approval with most current drawings and procedures Workers can easily access documentation on equipment

parts, records and instructions etc. Enables work efficiency and planning for future

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Tennessee Valley Authority cont’d

New system an overall success Productivity and efficiency increases (errors) Significant cost reductions (labor) and cycle time

savings Work operations made transparent to public

Team underestimated change management effort

Improved document management system contributed to knowledge management

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Content Management

Corporate intranets (Web content) now replace print documents Necessary to support scale of e-business

operations Automation of content

Computer-readable and interchangeable format e.g., XML

Content is no longer static, but interactive

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Content Management cont’d

To create a content management strategy, companies need to understand the three phases of content

1. Managing content creation and acquisition

2. Content administration and safeguarding

3. Content deployment and presentation

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1. Managing content creation and acquisition Focus on creating content quality

Content can be purchased from external specialists syndicated content

Decentralized organizational structure for content creation and maintenance to content-expert employees is best approach

Central direction for dispersed experts however required

Standardized organization-wide formats to integrate content into overall workflow also needed

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Source: Adapted from Chuck, Tueber, Dealing in Web Currency, Gartner EXP, 56 Top Gallant, Stamford, CT, June 2001.

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Content Management cont’d2. Content Administration and Safeguarding

Efficiency is key in this phase Content management tools can be used to

identify types of content and the business rules that apply to each type

Content administration should be centralized Organizational workflow

How content fits into overall organization process Content approval

e.g., foreign language translation

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3. Content Deployment and Presentation Effectiveness is the emphasis in this phase—

maximize effect of Web content presentation Attract visitors and gain desired outcomes

Easy site navigation, pertinent and accurate information This phase is crucial to success of e-commerce

effort and so Web site design should start here Most Web sites today require certain features to

attract and retain visitors Personalization Localization

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Selecting Web Content Management tools Wide range of COTS available today Some important selection criteria

Digital asset management Information rights management Ability to handle full range of digital content types Versioning Workflow and approval routing Web publishing platform

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Eastman Chemical Company

Case Example: Content Management Redesigned Web site in 1999

Goal to become more customer-oriented and launch e-commerce initiative Outside-in view (process starts from customer markets)

Upgraded content management software for seamless process to Create pre-approved templates for employees to use

(distributed), and Forward content pages for approval (centralized)

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Eastman Chemical Company cont’d

Benefits of site redesign Web traffic growth far greater than expected

Overall traffic tripled 50 percent outside of U.S. 70 percent in market sectors where Eastman sells its

products Customers report that online availability of

technical data significantly improved their internal decision-making processes

Eastman now working on globalizing and personalizing the site even further

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Managing Blogs

Blog = Web log Originally intended as personal electronic journal Increasingly used in lieu of traditional Web site today

Competes with mainstream media Opportunities and challenges for organizations

posed by this immediate form of publishing and communication Used for crisis management, knowledge management Information security

Careless or deliberate leak of confidential information Company reputation vulnerable

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Groove Networks

Company views personal Web sites and blogs positively

Established employee guidelines for personal Website and blogs however Clarify to readers that personal views expressed are

separate from those of the company Take care not to disclose confidential information Generally, exercise good discretion and be respectful to

Company Employees Customers

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Conclusion IS job of managing information resources is

widening significantly Get corporate data in shape Create and build infrastructure to manage full

spectrum of information types Internet provides an easily accessible place to

store and retrieve information ad hoc. Issues include, but are not limited to: Information glut Security

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Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall