Managing Innovation and Technology

A holistic model of an Enterprise's Information Infrastructure

Data categorization in an Enterprise Data

Transaction Data

Transactional data
describe an internal
or external event
that takes place as
an organization
conducts its
business.

Master Data
Master data
describes the
people, Product,
Location, Account
those are Assets,
slow changing and
involved in an
organizations
business

Reference Data

ODS

Reference data are

sets of values that
are referenced to by
systems,
applications, data
stores and processes

ODS is designed to
integrate disparate
data from multiple
sources so that
business
operations,
analysis and
reporting can be
carried out.

Metadata
Metadata literally means data about data. Metadata describe, or characterize other data and
make it easier to retrieve, interpret, or use information.

Unstructured Data
3

Data categorization in an Enterprise Data

Transaction Data

Master Data

Reference Data

ODS Data

Examples include
sales orders,
invoices, purchase
orders, shipping
documents,
passport
applications, credit
card payments, and
insurance claims.

Examples include
people (e.g.,
customers, employees,
vendors, suppliers),
places (e.g., locations,
sales territories,
offices), and things
(e.g., accounts,
products, assets,
document sets).

Examples include lists

of valid values, code
lists, status codes, state
abbreviations,
flags, product types,
gender, Post Code, STD
Code, Unit of Measure,
Customer Category,
Material Type

This is the place

where most of the
data used in current
operation is housed
before it's
transferred to the
data warehouse for
longer term storage
or archiving.

Metadata
Technical metadata are metadata used to describe technology and data structures. Examples of technical metadata are field
names, length, type, lineage, and database table layouts.
Business metadata describe the nontechnical aspects of data and their usage. Examples are field definitions, report names,
headings in reports and on Web pages, application screen names.
Audit trail metadata are a specific type of metadata, typically stored in a record and protected from alteration, that capture
how, when, and by whom the data were created, accessed, updated, or deleted. Audit trail metadata are used for security,
compliance, or forensic purposes. Examples include timestamp, creator, create date, and update date.

Unstructured Data
4

The Information Value Chain

Master
Data
System

Transactional
Systems

Operational
Data Stores
(ODS)

Data
Warehouse
(DWH)

Data Marts
(DM)

Master

Master
Transaction

Master
Transaction

Master
Transaction
Analytic

Master
Transaction
Analytic

History

Yes

No

Limited

Yes

Yes

Integration

Yes

No

Limited

Yes

Yes

Real Time

Close to Real
time

Sometimes Daily
Weekly
Monthly

Sometimes
Daily, Weekly,
Monthly

Fully Integrated
Application
Neutral

Analytical,
Derived and
Summarized,
Application
specific

Limited to
Derived Data

Limited to
Derived Data

Data Class

Data
Currency

Real Time

Data Scope

Fully
Integrated
Application
Neutral

Local
Application
Specific

Integrated
(Limited to a
few
applications)

Yes

Yes

No

Data
Creation

Data & Information

Value of Information

Information Value

Value of information is directly linked to how it helps

decision makers achieve their organizations goals.

Operational
Applications

Transaction Query &

Data
Reporting
(OLTP)

OLAP

Descriptive
Modeling

Predictive
Modeling

Optimization

Information Sophistication
OLAP: Online analytical processing

Data, Information, and Knowledge

Data: raw facts
Information:
Is data in context. Without
context, data is meaningless; we
create meaningful information
by interpreting the context
around data. The resulting
information then guides our
decisions.

Knowledge:
is understanding, awareness and
recognition of a situation and
familiarity with its complexity. It
may also include assumptions
and theories about causes.

Knowledge
+ Patterns & Trends
+ Relationships
+ Assumptions

Information
+ Definition
+ Format
+ Timeframe
+ Relevance

Data

Important Events

General ledger
Budgeting
Human Resource Management and Payroll
Customer Relationship Management
Forecasting, Materials Management, Production Planning
Supply Chain Management
Order Processing, Purchase and Inventory Management
Logistics, Distribution, Fulfillment
Training

The Characteristics of Valuable Information

10

The Characteristics of Valuable Information (continued)

11

How do we define Data Quality

Measurable Dimensions for Data Quality

Dimension

Description

Accuracy

Does the data accurately represent reality or a verifiable source?

Integrity

Do broken links exist between data that should be related?

Consistency

Is there a single representation of data?

Completeness

Is any key information missing?

Uniqueness

Is the data value unique? i.e. no duplicate values or records

Accessibility

Is the data easily accessible, understandable, and used consistently?

Precision

Is data stored with the precision required by the business?

Timeliness

Is the information update frequency adequate to meet the business

requirements?

Data Quality Management involves more than just addressing historical data quality issues through
data profiling and re-engineering. It involves preventing these issues from occurring in the first place.

12

How do we define Data Quality

Intangible Dimensions
Dimension

Description

Relevance

Every piece of information stored is important in order to get a true business

representation

Usability

The stored information is usable by the organization with ease

Usefulness

The stored information is applicable for organization

Believability

The level to which the data is regarded as true and credible

Unambiguous

Each piece of data has a unique meaning, and can be easily comprehended

Objectivity

Data is objective, unbiased and impartial i.e., it does not depend on the
judgment, interpretation, or evaluation of people

Data Quality Management involves more than just addressing historical data quality issues through
data profiling and re-engineering. It involves preventing these issues from occurring in the first place.

13

Information Architecture Components

Web Services (SOA)

Data Movement

Data Exchange

Data Distribution

Data Governance

Enterprise Data Strategy

A framework providing a structured description of an enterprises information assets and the

relationship of those assets to business processes, business management, and IT systems.

Shared Data Repository

Data Model

Business Performance Management

.

Reports
Enterprise Data Warehouse /
Data Marts
Transaction Data Repository

Data Quality Management

Data Staging Area

Semantic Metadata Repository

Enterprise Data Inventory

14

Traditional Organizational Structure

A hierarchical structure
Major department heads report to a president or top-level manager
Managerial pyramid shows the hierarchy of decision making and authority

15

The Role of Information Systems in Business Today

There is a growing interdependence between a firms information systems
and its business capabilities. Changes in strategy, rules, and business
processes increasingly require changes in hardware, software, databases, and
telecommunications. Often, what the organization would like to do depends
on what its systems will permit it to do.

16

Organizing Data in a Traditional File Environment

The use of a traditional approach to file processing encourages each
functional area in a corporation to develop specialized applications and files.
Each application requires a unique data file that is likely to be a subset of the
master file. These subsets of the master file lead to data redundancy and
inconsistency, processing inflexibility, and wasted storage resources.

17

Types of Business Information Systems

Systems from a functional perspective
Sales and marketing systems
Manufacturing and production systems
Finance and accounting systems
Human resources systems
Systems from a constituency perspective
Transaction processing systems
Management information systems and decision-support systems

Executive support systems

Relationship of systems to one another
18

Information, Decisions and Management

Strategic
group of executives develop overall organizational goals, strategies, policies, and objectives as
part of a strategic planning process
Tactical
managers and business professionals in self-directed teams develop short- and medium-range
plans, schedules and budgets and specify the policies, procedures and business objectives for
their subunits
Operational
managers or members of self-directed teams develop short-range plans such as weekly
production schedules

19

Strategic Management

The People
Board of Directors
Chief Executive Officer
President

Decisions
Develop Overall Goals
Long-term Planning
Determine Direction
Political
Economic
Competitive

20

Tactical Management

People
o Business Unit Managers
o Vice-President to MiddleManager

Decisions
o
o
o
o
o
o

short-medium range planning

schedules
budgets
policies
procedures
resource allocation

21

Operational Management

People
o Middle-Managers to
o Supervisors
o Self-directed teams

Decisions
o
o
o
o
o
o

short-range planning
production schedules
day-to-day decisions
use of resources
enforce polices
follow procedures

22

Types of Business Information Systems

The various types of systems in the organization have interdependencies. TPS
are major producers of information that is required by many other systems in
the firm, which, in turn, produce information for other systems. These
different types of systems are loosely coupled in most business firms, but
increasingly firms are using new technologies to integrate information that
resides in many different systems.

23

Management Information Systems (MIS)

Definition:
An information system that produces information products that
support many of the day-to-day decision-making needs of
managers and business professionals.

MIS provides information about the performance of an

organization
Think of entire company (the firm) as a system.
An MIS provides management with feedback

24

Typical MIS Reporting

Periodic Scheduled Reports
Example: Monthly Financial Statements
Exception Reports
Example: List of items out of stock
These reports contain information but they might not directly help you
determine the best decision to make.

Demand Reports and Responses

Available whenever a manager needs them, updated in real-time.
Push Reporting
Information is pushed to a managers computer
Example: Report is pushed every time a supplier is late with a shipment
MIS Reporting is all about giving managers feedback and doesnt necessarily
help directly with decision making.

25

Decision Support Systems (DSS)

Definition:
Computer-based information systems that provide interactive
information support to managers and business professionals
during the decision-making process using the following to make
semi structured business decisions

Analytical models
Specialized databases
A decision makers own insights and judgments
An interactive, computer-based modeling process

26

MIS vs. DSS: Big Differences

In a DSS, a manager generates the report through an

interactive interface
Flexible & Adaptable reports
DSS Reporting is produced through analytical modeling, not
just computing an average, or plotting a graph.
Business Models are programmed into a DSS

27

Interrelationships Among Systems

28

DSS - Perceived benefits

o
o
o
o
o
o

Decision Quality
Improved Communication
Cost Reduction
Increased Productivity
Time Savings
Improved Customer And Employee Satisfaction

29

TPS, MIS, DSS & EIS:

TPS

DSS
Operational
Management
Decisions

MIS

Tactical
Management
Decisions

Strategic
Management
Decisions

EIS

30

Information Characteristics

Decision Structure

Unstructured

Semi-structured

Strategic
Management

Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope

Tactical Management

Structured
Operational Management

Pre-specified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus

31

Enterprise Data Principles

32

1 - Manage data as a valuable Enterprise Asset

Definition

Data needs to be managed as an Enterprise Asset, rather than as an asset of any one group or
department
Rationale
Data is a valuable asset providing reference and operational information in support of making
business decisions, transactions between departments, divisions, as well as with trading
partners and customers.
Effective management and operation of the organization and successful provision of goods
and services depend on accurate, timely and secure data.
Data usually originates in one business process and/or department, but it may be used by
other business processes and departments, as well as beyond the organizational boundary
into the extended organization, including trading partners.
Lack of a common, Enterprise wide approach to Data results in separate islands of data,
created in different departments and managed according to varying and disparate policies and
principles.
33

2 - Maximize data sharing

Definition

Data collected and stored must be readily available to all (i.e. shared with) authorized users,
whenever and wherever needed

Rationale
Historically, data has been seen to belong within specific application and within organizational
boundaries. This created an artificial notion of our data - data in fact transcends the
applications and the operational, and must be treated as an Enterprise Asset rather than
belonging to a specific application or user group.
Creating mechanisms which enable easy and consistent sharing of data between applications
and user groups will reduce application integration complexity.

34

3 Ensure single Reference Source of Data

Definition

There will be a single, clearly identified, data storage location for each managed Enterprise
Data element.

Rationale
A single data source is critical to achieving comprehensive data integrity.

A single source reduces confusion, complexity, and therefore data management costs.
A single data source enables a more effective data ownership practice

35

4 - Replicate data
Definition

The organization will provide replicated data to enhance access performance and/or
specialized analysis needs. However every data item must have one and only one source of
reference, which is singularly used as the source for all replications. The replicated data should
not be persisted beyond the original usage time-window.

Rationale
Business value, access performance demands, or specialized analysis needs may require data
replications.
System response performance impacts system usability and therefore complex reporting and
data analyses should be performed on replicated data and not on the source data.
As the organization opens up its data and information repositories to a broader audience via
new channels (e.g., the Internet) the organization must ensure its original source data is
protected from accidental corruption.

36

5 - Validate data at the source

Definition

Data must be validated at the source (i.e., at data entry or collection), prior to being recorded
in the reference source repository

Rationale
Validation Rules prevent entry and propagation of invalid data, which in turn can lead to
adverse business decisions, or erroneous business transactions.
Validating data at the source is critical to improve and maintain data integrity.

37

6 - Establish Data Ownership

Definition

Each data item must have a clearly defined Owner who is accountable and responsible for the
quality of the data, including its definition.

Rationale
Clearly defined Ownership provides clarity in data definition, reducing unnecessary
complexity.
Data Ownership ensures responsibility and accountability for the maintenance of data integrity
and protection of strategic Enterprise Assets.
Clear data ownership ensures accountability for the quality, accuracy and timeliness of data for
the source.

Data ownership identifies the single point of authority for the specification of the quality
requirements for each data element.

38

7 - Automate data entry

Definition

Automated data entry techniques and processes will be used to minimize data entry errors
where economically and technically viable.

Rationale
Manual data entry is inherently prone to error.

Retail industry innovations such as bar coding, Radio Frequency Identification (RFID), Point Of
Sale (POS) scanning facilitates automated data entry.
Data accuracy is critical to support decision making in the retail industry.
Costs of manual data entry increase as the costs of human resources increase.

39

8 - Design data storage facilities for scalability

Definition

Data storage will be designed to facilitate incremental capacity increases in response to

increased data storage demand

Rationale
Changing business strategies, business processes, service delivery and data access channels
are predicted to lead to significant increases in data storage capacity

Early identification of changing data storage requirements facilitates capacity meeting demand
in a planned and cost effective manner

40

9 - Encrypt data before transmission over unsecured infra.

Definition

Data classified as sensitive must be encrypted, before it is transmitted over unsecured

infrastructure in accordance with the Data and Information security policy

Rationale
Breaches of data security increase exposure to potential financial loss.

Secure transmission of sensitive personal and corporate information is consistent with

legislative, regulatory and Corporate policies

41

10 - Govern access to data

Definition
Access to Data must be a subject to Data Management and security policies. Only authorized users
and entities shall be granted access to the Data

Rationale
Data must be managed as a critical strategic asset and access to data must be managed according to
the Corporate Data Management Policies, as defined by the Information Architecture.
Regular breaches to the Data Management Policies, regarding data access, result in unsecured
sharing of data or excessive control of access to data. Both of these extremes are undesirable.
The organization serves a variety of user groups, with differing requirements. Accordingly, the
Corporate Data Management Policies, must be flexible enough to provide access to corporate
information whilst also securing it.
Sensitive and/or classified data often needs to be protected and access to it restricted, according to
the sensitivity.

Different data elements have different levels of sensitivity and therefore access is allowed at
different levels.

42

11 - Track data errors back to the source

Definition
Data quality will be traced to the source of the error and permanent solutions will be sought to
prevent reoccurrence

Rationale
This is necessary to minimize sources of data error
Error-tracking-back-to-the-source approach is critical for a successful data integrity program.
The approach will assist to minimize the cost of the data maintenance over time.

43

12 - Manage all data sourced externally

Definition
All data must be managed across the end-to-end value chain, including data sourced externally

Rationale
Integration must be accomplished across the complete data value chain which includes all trading
partners.
Externally sourced, competitive information has value to the organization and therefore should also
be managed

44

13 - Enter the data only once

Definition
A data element instance will be entered only once in a computer system

Rationale
Repeated data entry is costly.
Event driven, single data creation enables optimal reuse of data and information.
Repeated data entry causes data integrity problems

45

14 - Manage the data life cycle

Definition
Data Owners should manage data items and data subject areas for their complete life cycle (i.e. from
creation through to disposal), according to the value of data items and data subject area to the
organization. Suitable processes should be implemented to manage each data item throughout its
life cycle.

Rationale
The life cycle of data item/subject area varies in time and therefore the organization must be
cognizant of the varying data item/subject area life cycles and the current life cycle stage each data
item/subject area is in.

46