Valuing Chapter Six

   Happy Friday people!!! Since it's Friday this post will be cute and short. As you can see by the post title, this is a post about chapter six : Valuing Organizational Information. Chapter six is about organizational information, the value of transactional information, analytical information timely information and quality information. So basically this chapter is about the types of information in Information Technology in Business. It's not a long chapter just a short one so I hope you'll read it.

   The first thing you have to know is that information is everywhere in an organization. Each employees must be able to obtain and analyze the many different levels, formats and granularity of organizational information to make decision. Here is a pyramid to show you the example.

   Meanwhile transactional information encompasses all the information contained within a single business process or unit of work, and its primary purpose is to support performance of daily operational task. On the other hand, analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks.

   Timeliness is an aspect of information that depends on the situation such as real time information which is immediate and up to date information. It uses real time system that provides real time information in response to query request. On the other hand, business decisions are only as good as the quality of the information used to make the decisions. To get high quality information it must be accurate, complete, consistent, unique and timeliness.

Example of low quality information

There are many consequences of having poor quality information to the company such as  marketing to non-existing customers, difficulty tracking revenue due to inaccurate invoices and inability to build strong customer relationships. The reason why there are low quality information are because online customers intentionally enter inaccurate information to protect their privacy, information from different systems have different entry standards and formats and call center operator enter abbreviated or erroneous information by accident or to save time. Therefore it is vital to have high quality information so that it can improve the chances of making a good decision as good decisions can have a huge impact on the company.

Organizing Chapter Five

 

 For this chapter I'm posting my blog early because this chapter is a short one. So, for chapter five : Organizational Structures that Support Strategic Initiatives, it consist of knowing the chief officers that are vital to IT such as Chief Information Officer, Chief Security Officer, Chief Technology Officer and many more. We also learnt about the difference of IT people and Business people, I didn't even realized that there is a different between those two or maybe I did. Then there's ethic and security discussion.

   There are a few important role or position that are related to IT:

• Chief Information Officer, who oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives. CIO function as a leader, communicator and a manager.
• Chief Technology Officer, who is responsible for ensuring the throughput, speed, accuracy, availability, reliability of IT.
• Chief Security Officer, responsible for ensuring the security of IT system.
• Chief Privacy Officer, responsible for ensuring the ethical and legal use of information.
• Chief Knowledge Officer, responsible for collecting, maintaining and distributing the organization's knowledge.

   Did you ever notice the difference between It people and Business people? Well there is few difference between these two such as IT people are good with technologies while Business people are good in marketing, sales, accounting etc. In this situation, there is gap between these type of people so how do suggest we eliminate this gap? Well by improving communication, in other words Business people must learn IT and IT people must learn Business. The Chief Information Officer is responsible to ensure the effective communication amongst these two.  

  Ethics and security are both important building blocks that organizations must base their business on to be successful. Ethics is the principles and standards that guide our behaviour toward other people. Some of the issues that arise due to technology advance are intellectual property (intangible creative work that is embodied in physical form), copyright (the legal protection afforded an expression of an idea), fair use doctrine (in certain situations, it is legal to use copyrighted material), pirated software (the unauthorized use, duplication, distribution or sale of copyrighted software) and counterfeit software (software that is manufactured to look like the real thing and sold as such.

Security is need to protect organizational information cause it is intellectual capital. Information security is the protection of information from accidental or intentional misuse by persons inside or outside and organization. 

   Thank you for reading!!!

AirAsia - Now Everyone Can Fly Case Study.

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

• Pioneered low cost traveling in Asia. 
• The first airline in the region to implement fully ticketless travel and unassigned seats.
• Operates with the world's lowest unit cost.
• Has a crew productivity level that is triple that of Malaysia Airlines and achieves an average
  aircraft utilization rate of 13 hours a day.
• AirAsia has a crew productivity level that is triple that of Malaysia Airlines and achieves an average aircraft utilisation rate of 13 hours a day.

2) Which of the Porter's generic strategies were applied by AirAsia in the case study and explain with examples.

• AirAsia applied the focused strategy which concentrate on differentiation. This is said because it is also the first airline in the region to implement fully ticket-less travel and unassigned seats. Futhermore, AirAsia pioneered low cost travelling in Asia and operates scheduled domestic and international flights and is Asia's largest low fare.

3) Based on Porter's Five Force Model, analyze AirAsia's buyer power and supplier power.

• Buyer Power

In this situation, the buyer power is high due to buyers having many choices whom to buy from. The buyers can purchase low fare tickets from various airline that offer low cost fare such as Lion Air, Jet Star and many more.

• Supply Power

The supply power is low due to buyers having many choices to choose from. Since AirAsia is not the only airline that offer low cost fare, its supply power is low as customer can choose which airline they would like to fly with that offer the same or cheaper price than AirAsia.