Improving Data Governance

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SEU_ECOM500_Module02_PPT_Ch02.pptx

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IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 2

Information Systems, IT Architecture, Data Governance, and Cloud Computing

Learning Objectives (1 of 5)

Figure 2.2 IPOS Cycle

Figure 2.3: Components of an Information System

Data, Information, Knowledge, & Wisdom

Raw data describes products, customers, events, activities, and transactions that are recorded, classified, and stored.

Information is processed, organized, or put into context data with meaning and value to the recipient.

Knowledge applies understanding, experience, accumulated learning, and expertise to current problem.

Wisdom applies a moral code and prior experiences to form a judgement.

Figure 2.4: Examples of Data, Information, Knowledge, and Wisdom

Figure 2.5 Input-Processing-Output Model

Figure 2.6 Hierarchy of Information Systems, Input/Output and User Levels

Transaction Processing Systems (TPS)

Internal transactions: originate or occur within the organization (payroll, purchases, etc.)

External transactions: originate outside the organization (customers, suppliers, etc.)

Improve sales, customer satisfaction, and reduce many other types of data errors with financial impacts

Batch v. Online Real-Time Processing

Batch Processing: collects all transactions for a time period, then processes the data and updates the data store

OLTP: processes each transaction as it occurs (real-time)

Batch processing costs less than OLTP, but may be inaccurate from update delays

Management Information Systems (MIS)

General-purpose reporting systems that provide reports to managers for tracking operations, monitoring, and control.

Periodic: reports created or run according to a pre-set schedule.

Exception: generated only when something is outside designated parameters.

Ad Hoc, or On Demand: unplanned, generated as needed.

Decision Support Systems (DSS) (1 of 2)

Interactive, knowledge-based applications that support decision making

Support unstructured and unstructured decisions with the following characteristics:

Easy-to-use interactive interface

Models or formulas that enable sensitivity analysis

Data from multiple sources

Can be used for open-ended What-if analysis and more structured Goal-seeking

Executive Information Systems (EIS)

Strategic-level information systems that help executives and senior managers analyze the environment in which the organization exists

Used to identify log-term trends and plan appropriate actions

Weakly structured data from both internal and external sources

Designed to be easily operated by executives

Information Systems Components and Classification

Name the six components of an IS.

Describe the differences between data, information, knowledge, and wisdom.

Define TPS and give an example.

Explain why TPSs need to process incoming data before they are stored.

Define MIS and DSS and give an example of each.

What characteristics distinguish a DSS from an MIS?

What level of personnel typically use an EIS?

What factors determine IS value?

Learning Objectives (2 of 5)

Figure 2.10

IT Infrastructure

Inventory of the physical IT devices that an organization owns and operates

Describes organization’s entire collection of hardware, software, networks, data centers, facilities and related equipment

Does not include people or process components of an IS

IT Architecture

Guides the process of planning, acquiring, building, modifying, interfacing and deploying IT resources in a single department within an organization

Should offer a way to systematically identify technologies that work together to satisfy the needs of the departments’ users

Blueprint for how future technology acquisitions and deployment will take place

Enterprise architecture (EA)

Reviews all the information systems across all departments in an organization to develop a strategy to organize and integrate the organization’s IT Infrastructures

Helps meet the current and future goals of the enterprise and maximize the value of technology to the organization.

The way IT systems and processes are structured

Solves two critical challenges: where are we going; how do we get there?

Decision Support Systems (DSS) (2 of 2)

Strategic Focus

IT systems’ complexity

Poor business alignment

Business and IT Benefits of EA

Cuts IT costs; increases productivity with information, insight, and ideas

Determines competitiveness, flexibility, and IT economics

Aligns IT capabilities with business strategy to grow, innovate, and respond to market demands

Reduces risk of buying or building systems and enterprise apps

Measuring EA Success: KPIs

Key Performance Indicators (KPIs) are measures that demonstrate the effectiveness of a business process at achieving organizational goals. They present data in easy-to-comprehend and comparison-ready formats.

KPIs measure financial, social media, sales and marketing, operations and supply chain, or environmental data.

KPI examples are current ration; accounts payable turnover; net profit margin; new followers per week; cost per lead; order status.

EA Components

IT Infrastructure, IT Architecture, and Enterprise Architecture

What is the purpose of the IT infrastructure?

How is the IT infrastructure different from the IT architecture?

What is the purpose of an enterprise architecture?

What are the business benefits of EA?

Explain why it is necessary for the EA to maintain alignment between IT and business strategy?

Explain KPIs and give an example.

Learning Objectives (3 of 5)

Information Management

The use of IT tools and methods to collect, process, consolidate, store, and secure data from sources that are often fragmented and inconsistent

Why a continuous plan is needed to guide, control, and govern IT growth

Information management is critical to data security and compliance with continually evolving regulatory requirements, such as the Sarbanes-Oxley Act, Basel III, the Computer Fraud and Abuse Act (CFAA), the USA PATRIOT Act, and the Health Insurance Portability and Accountability Act (HIPAA)

Reasons for Information Deficiencies

Information deficiencies are still a problem, caused by:

Data Silos, trapping information in stand alone data stores not accessible by other information systems

Lost or bypassed data, due to flaws in the data collection process

Poorly designed interfaces

Nonstandardized data formats, impeding efficient analysis

Cannot hit moving targets, because data tracking requirements keep changing

Reasons for Information Deficiencies: Data Silos

Figure 2.14 Data (or information) silos are ISs that do not have the capability to exchange data with other ISs, making timely coordination and communication across functions or departments difficult.

Information Management Benefits

Business benefits of information management

Improves decision quality

Improves the accuracy and reliability of management predictions

Reduces the risk of noncompliance

Reduces time and cost

Enterprise Data Governance

Data governance is the control of enterprise data through formal policies and procedures to help ensure data can be trusted and are accessible.

Enterprise-wide Data Governance

Crosses boundaries and used by people through the enterprise.

Reduces legal risks associated with unmanaged or inconsistently managed information.

Data Governance: Master Data & Management

Master Data & Management (MDM)

Synchronizes critical data from disparate systems into one master file

Creates high-quality trustworthy data:

Running the business with transactional or operational use

Improving the business with analytic use

Requires strong data governance to manage availability, usability, integrity, and security

Information Management and Data Governance

What is information management?

What is a the “silo effect” and how does it affect business performance?

What three factors are driving collaboration and information sharing?

What are the business benefits of information management?

Explain why it is important to develop an effective data governance program?

Explain the purposes of master data management.

Why has interest in data governance and MDM increased?

Learning Objectives (4 of 5)

Data Centers and Cloud Computing

Data Centers and Cloud Computing are types of IT infrastructures or computing systems.

Data Center also refers to a physical facility.

Houses large numbers of network servers used for the storage, processing, management, distribution, and archiving of data, systems, Web traffic, services, and enterprise applications.

National Climatic Data Center U.S. Nation Security Agency Apple

When a Data Center Goes Down, So Does Business

Business is Reliant Upon data

Uber (car-hailing service)

Users flooded social media with complaints when they experienced an hour-long outage

WhatsApp (smartphone text-messaging service)

Competition added 2 million new registered users within 24 hours of WhatsApp outage (a record)

Data Virtualization

Cisco’s single solution integrating computing, storage, networking, virtualization, and management into a single (unified) platform

Virtualization gives greater IT flexibility and cutting costs:

Instant access to data any time in any format

Respond faster to changing data analytic needs

Cut complexity and cost

Data Virtualization Benefits

Data Virtualization compared to traditional data integration and replication methods:

The Software–Defined Data Center (SDDC)

An SDDC facilitates the integration of the various infrastructure silos within organizations.

Optimizes the use of resources, balances workloads

Maximizes operational efficiency by dynamically distributing workloads and provisioning networks

SDDC Goals: decrease costs and increase agility, policy compliance and security by deploying, operating, managing and maintaining applications.

Figure 2.18 SDDC Infrastructure

Cloud Computing

What is “The Cloud”?

A general term for infrastructure that uses the Internet and private networks to access, share, and deliver computing resources

Scalable delivery as a service to end-users over a network

Should be approached with greater diligence than other IT decisions as a new technology including Vendor Management and Cloud Service Agreements (CSAs)

Cloud Computing Types

Private Cloud: Single-tenant environments with stronger security and control (retained) for regulated industries and critical data.

Public Cloud: Multiple-tenant virtualized services utilizing the same pool of servers across a public network (distributed).

Cloud Computing CSAs

Cloud Service Agreements

A negotiated agreement between a company and service provider that can be a legally binding contract or an informal contract.

The goal is not building the best CSA terms, but getting the terms that are most meaningful to the business needs.

Cloud Infrastructure

The Value of the Cloud Infrastructure:

Dynamic, not static

Provides a way to make apps and computing power available on demand because they are provided as a service

Referred to as Software As A Service, or SaaS. (examples: Google Apps and Salesforce.com)

Helps companies become more agile and responsive while significantly reducing IT costs and complexity

Large organizations are moving to Enterprise Clouds.

Data Centers, Cloud Computing, and Virtualization (1 of 2)

What is a data center?

What is the difference between on premise data centers and cloud computing?

What is an SDDC?

What are the advantages of using an SDDC?

How can cloud computing solve the problems of managing software licenses?

What factors should be considered when selecting a cloud vendor or provider?

When are private clouds used instead of public clouds?

Explain three issues that need to be addressed when moving to cloud computing or services.

Learning Objectives (5 of 5)

Cloud Services and Virtualization

Sustaining performance requires new business apps and analytics capabilities, which comprise the front end,― and the data stores and digital infrastructure, or back end, to support them.

The back end is where the data reside.

Data may have to navigate through a congested IT infrastructure that was first designed decades ago.

Cloud Services are services made available to users on demand via the Internet from a cloud computing provider's servers instead of being accessed through an organization’s on-premises servers.

Anything-As-A-Service Models

There are different types of Cloud Service Model

Software as a Service (SaaS)

End-user apps, like SalesForce

Platform as a Service (PaaS)

Tools and services making coding and deployment faster and more efficient, like Google App Engine

Infrastructure as a Service (IaaS)

Hardware and software that power computing resources, like EC2 & S3 (Amazon Web Services)

Data as a Service (DaaS)

Data shared among clouds, systems, apps, regardless the data source or storage location

Data Centers, Cloud Computing, and Virtualization

Figure 2.17 Virtual machines running on a simple computer hardware layer. Virtualization: created by a software layer (virtualization layer) containing its own operating system and applications as a physical computer.

Virtualization Concepts

A virtual machine is a software-created computer. Technically, a virtual machine (VM) is created by a software layer, called the virtualization layer.

That layer has its own Windows or other OS and apps, such as Microsoft Office, as if it were an actual physical computer.

A VM behaves exactly like a physical computer and contains its own virtual―that is, software-based―CPU, RAM (random access memory), hard drive, and network interface card (NIC).

Virtualization Benefits

Characteristics & Benefits

Memory-intensive

Huge amounts of RAM due to massive processing requirements

Energy-efficient

Up to 95% reduction in energy use per server through less physical hardware

Scalability and load balancing

Handles dynamic demand requests like during the Super Bowl or World Series

Data Centers, Cloud Computing, and Virtualization Questions (2 of 2)

What is SaaS?

What is PaaS?

What is IaaS?

How might companies risk violating regulation or compliance requirements with cloud services?

In what ways is a virtualized information system different from a traditional information system?

Describe the different types of Virtualization.

What is load balancing and why is it important?

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