Chapter 6:

Organizational Information

Information granularity refers to the extent of detail within the information (fine and detailed or coarse and abstarct).

The Value of Transactional and Analytical Information

Transactional information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks.

Analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks.

The Value of Timely Information

Real-time information means immediate,up-to-date information.

Real-time systems provide real-time information in response to query requests.

The Value of Quality Information

The four primary sources of low quality information are:

1. Online customers intentionally enter inaccurate information to protect their privacy.
2. Different systems have different infomartion entry standards and formats.
3. Call center operators enter abbreviated or erroneous information by accident or to save time.
4. Third-party and external information contains inconsistencies, inaccuracies, and errors.

Understanding the cost of poor information

• Inability to accurately track customers, which directly affects strategic initiatives such as CRM and SCM.
• Difficulty identifying the organization's most valuable customers.
• Inability to identify selling opportunities and wasted revenue from marketing to nonexisting customers and nondeliverable mail.
• Difficulty tracking revenue because of inaccurate invoices.
• Inability to built strong relationship with customers-which increases buyer power.

CHAPTER 5: Organizational Structures That Support Strategic Initiatives

Organizational Structures

organization must work closely together to develop strategic initiatives that create competitive advantages.

IT Roles and Responsibilities

Chief Information Officer (CIO)- responsible for overseeing all uses of information technology and  ensuring the strategic alignment of IT with business goals and objectives.

Chief Technology Officer (CTO)- responsible for ensuring the throughput, speed, accuracy, availability, and reliablity of an organization's information technology.

Chief Security Officer (CSO)- responsible for ensuring the security of IT system and developing strategies and IT safeguards against attacks from hackers and viruses.

Chief Privacy Officer (CPO)- responsible for ensuring the ethical and legal use of information within an organization.

Chief Knowledge Officer (CKO)-responsible for collecting, maintaining, and distributing the organization's knowledge.

The Gap Between  Business Personnel and IT Personnel

• Business personnel posses expertise in functional areas such as marketing, accounting, sales, and so forth.
• IT personnel have the technological expertise. 
• Unfortunately, a communications gap often exists between the two.

Improving Communication

• Business personnel must seek to increase their understanding of IT. IT personnel must understand the business if the organization is going to determine which technologies can benefit (or hurt) the business.
• It is the responsibility of the CIO to ensure effective communication between business and IT personnel.

Ethics

the principles and standards that guide our behavior toward other people.

Privacy

the right to be left alone when you want to be, to have control over your own personnel possessions, and to not be observed without your consent.

Past Year Question Oct 2009 Part D

QUESTION 1

Identify five (5) of competitive advantages used by AirAsia.

(5 marks)

• AirAsia launching new routes from its hub in
• Kuala Lumpur International Airport at breakneck speed.
• Air Asia undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $0.27).
• AirAsia operates scheduled domestic and international flights and is Asia's largest low fare,no frills airline.
• AirAsia pioneered low cost travelling in Asia which is then followed by Tiger
• Airways, Jetstar Asia, Nok Air, Lion Air and Cebu Pacific.
• AirAsia also the first airline in the region to implement fully ticketless travel and unassigned seats.

QUESTION 2

Which of the Porter's generic strategies were applied by AirAsia in the case study and

explain with examples.

(6 marks)

 Differentation

The products or services have particular difference. Certain or only few people purchase the product instead thinking of the price.

example:

Instead of giving low cost travelling, AirAsia is the first airline in theregion to implement fully ticketless travel and unassigned seats. AirAsia also operates with the world's lowest unit cost of US$0.023/ASK(available seat per kilometer) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines and achieves an average aircraft utilization rate of 13 hours a day.

QUESTION 3

Based on Porter's Five Force Model, analyze Air Asia’s buyer power and supplier power.

(9 marks)

Buyer power

 AirAsia assessed by analyzing the ability of buyers to directly impact the price they are willing to pay for an item.

example: AirAsia giving low cost travelling to their customers and also operates with the world's lowest unit cost of US$0.023(ASK) . Usually airline industry has high buyer power because of customer have many choices.

Supplier power

 AirAsia assessed by the suppliers' ability to directly impact the price they are charging for suppliers.

Example: AirAsia is currently the main customer of the Airbus A320. The company has place an order of 175 units of the same plane to service its route. AirAsia also enhance its route network by connecting all the existing cities in the region and expending further.

Usually airline industry has high supplier power has as there are limited plane and engine manufacturers to choose from.

CHAPTER 4: Measuring the Success of Strategic Initiatives.

Assalamualaikum everyone. Today I would like to share with you guys about Chapter 4 which is Measuring the success of strategic initiatives.

Measuring Information Technology’s Success.

·         It has become an important part of organizations’ strategy.

·         There is management to pressure to build system faster, better, and at minimum cost.

·         The first thing managers need to be understand about IT success is that it is incredibly difficult to measure.

 

Efficiency and Effectiveness.

·         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.

Benchmarking- Baseline Metrics.

·         Benchmarking is a process of continuously measuring system result, comparing those results to optimal system performance and identifying steps and procedures to improve system performance.

The Interrelationships of Efficiency and Effectiveness IT Metrics

Metrics for strategic Initiatives

A metrics is nothing more than a standard to measure to assess performance in a particular area.

The Four Primary Perspectives of the Balance Scorecard.