Description
SCM
Role of information analysis in enterprise framework
INTRODUCTION
Information Analysis is a key constituent of effective decisions in any business unit. In the case of enterprises, the context becomes that much larger – with greater volumes of data to store, and with complex transactions to process. This Project gives an overview on the Process-People-Technology paradigm in the context of an enterprise framework. It details the need for information analysis and lists various techniques that are used in enterprises to conduct information analysis. It also provides an overview on key business processes and operations in the Transportation and Retail Banking verticals.
INTRODUCING
ENTERPRISE
FRAMEWORK.
An enterprise comprises all the establishments and stakeholders that operate under a single entity, the organization. The enterprise may be established at one or across multiple locations. This includes any subsidiary organization that the parent organization is affiliated to, and all the establishments that are directed or managed by the parent organization or by its subsidiary. An enterprise includes all the elements of the supply chain that the organization operates in, and the end customer. For example, in the case of an e-learning organization, the enterprise includes the publishers who print the course books, the organization that creates the course books, and the students who study these courses. All these combined elements form an Enterprise
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Role of information analysis in enterprise framework
Framework, which is also referred to as an Enterprise Value Chain.
The following figure illustrates an Enterprise Framework:
Supply Side
Demand Side
Supplier s
Business
Custome rs
Customer Relations hip Managem ent
Supply Chain
Managem ent
The Enterprise Framework 2
Role of information analysis in enterprise framework
Components of an Enterprise Framework.
The three basic components of any enterprise framework are:
Process People Technology
‘Process’ indicates the core and support processes that provide efficiency within and lead to effectiveness outside the organization. ‘People’ include all the key stakeholders and their set of roles and responsibilities. ‘Technology’ is largely employed as the executor and manager of the processes.
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Role of information analysis in enterprise framework
The following figure illustrates the ‘Process-People-Technology’ Peop paradigm in the context or an enterprise framework: le
Enterprise Framework
Tech nology
Proc ess
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Role of information analysis in enterprise framework
? Consider the example of a Retail bank that has comprehensive ATM network:
There are certain processes within the bank that outline and sequence the procedures in which these transactions are deployed. For example, when making a decision about where to set up a new ATM location, the management keeps certain factors in mind, such as:
• Whether the area is convenient for their target customers to access the machine. • Whether the location supports a good infrastructure.
• Whether the money transfer units (to replenish the cash) are located within convenient distances.
Only after considering all these factors a decision on the most optimum ATM location is made. All the people in the bank involved in the operations of the ATM, from making decisions about where the ATM is to be located to the people responsible for updating the transactions and loading cash periodically are key stakeholders. Finally, the platform and application software, used to execute the transaction, highlights the role of technology in the execution and management of these processes. Therefore, all three components need to operate in tandem, and as stand-alone entities.
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Role of information analysis in enterprise framework
The ‘Process’ Components of an Enterprise Framework.
Processes are a series of sequential tasks and activities that convert specified input into output. These inputs and outputs are necessary components of transactions. The resultant data of these transactions forms the basis for information analysis in any enterprise.Processes are created to focus on two interdependent qualities, efficiency and effectiveness. Based on their focus area, processes may be classified into two sets: • • Value-adding processes. Supporting processes.
? Value-adding processes. Value-adding processes, also known as core processes, directly generate revenue as part of the expected output. These delineate tasks and activities that constitute the core business of the organization, and as a result, are customer-facing processes. For example, in the case of an ATM, all processes that enable the end user to conduct transactions with the bank are value-adding processes.
?
Supporting Processes.
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Role of information analysis in enterprise framework
Processes that identify input and expected output, and measure the efficiency of the internal functioning of the organization, are known as ‘supporting processes.’ It is necessary to identify and outline the optimum supporting processes to ensure that an organization does well in its core business.Supporting processes are routinely monitored by process-owners for failure, in terms of their ability to manage and maintain internal efficiency. For example, leave management policies for the employees of a bank are an example of supporting processes. Examples of supporting processes can be found in the department of human resources, finance, and accounting.
?
Effective Output vs. Efficient Output.
The basic criteria that form the basis for evaluating the performance of an organization are the effectiveness and efficiency of the output of the processes of the organization. Efficiency is measured across output in general. Conversely, effectiveness is measured across only acceptable output. The effectiveness of an organization depends on whether the organization selects and performs correct processes. In contrast, the efficiency of an organization is dependent on whether the organization performs the processes correctly. The evaluation of process effectiveness and efficiency is initiated with the establishment of a performance measure. A performance measure is developed based on expected outcomes. These outcomes are evaluated against baselines, and continuously monitored to determine whether the desired outcomes are being achieved. Defining individual measures, quantified with targets and thresholds, creates the performance measurement baseline. An efficient output is one that is delivered according to the schedule and within the estimated cost. Conversely, an effective
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Role of information analysis in enterprise framework
output is one that demonstrates the expected results, and meets customer satisfaction and quality by making optimum use of all the available resources. Effectiveness is measured based on the achievement of the goals of the organization, quality of the end product, and satisfaction of the end users with the products.The efficiency of an organization can be measured in terms of the following queries: • Did the team effort complete within the stipulated time and the expected budget? • Are the billed rates in accordance with the ones planned in the annual budget? • How much of the product and service was produced? • How many person hours were used to complete the processes?
? The APQC Process Classification Framework
The American Productivity and quality Centre [APQC] provides a globally adapted process classification framework, which contains 13 business processes that can be applied in both manufacturing and service industries. The first seven processes are operating processes that companies follow to develop and move products to the market. The remaining six are supporting processes that enable the organization to operate efficiently. Each process, in turn, comprises a set of subprocesses that qualify what the process is intended to achieve. These processes are adaptable and applicable to any enterprise and give an overview into its working. The seven value-adding processes are:
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Role of information analysis in enterprise framework
1. Understand markets and customers. 2. Develop vision and strategy. 3. Design products and services. 4. Produce and deliver for manufacturing. 5. Produce and deliver for service-oriented organization. 6. Market and sell. 7. Invoice and services customers. The six supporting processes are: 1. Develop and manage human resources. 2. Manage information resources (across the organization). 3. Manage financial and physical resources. 4. Execute environmental management program. 5. Manage external relationships. 6. Manage improvement and change.
The following figure illustrates the APQC Process Classification Framework:
Products & deliver for manufacturin
Sup plie rs
Unders tand market s& custo mers
Devel op vision and strate
Desig n produ cts and Produce & deliver for services.
Mark et and sell
Invoic e& servic e custo
Cust ome rs 9
Role of information analysis in enterprise framework
Develop & Manage Human Resources
Manage Information Resources Manage Financial & Physical Resources Execute Environmental Management Program Manage External Relationship Manage Improvement and Change
The APQC Process Classification Framework
THE PEOPLE COMPONENT OF AN ENTERPRISE FRAME WORK
All the stakeholders of processes in an enterprise from those who create the process, monitor the processes, and support and
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Role of information analysis in enterprise framework
maintain the process to the and –user of the process, are classified under the ‘people’ component of an enterprise. All these stock holders have specific roles and responsibilities within their assigned scope. Based on their role in handling the data generated by means of processes, people can be classified into: ? Stakeholders who provide the data. ? Stakeholders who support and maintain the data. ? Stakeholders who use the data. The following figure is a visual representation of the stakeholders based on their role with the data in an enterprise framework
Provide maintain
Support &
Use
? Stakeholders who provide the data
Each person who plays any role in the processes in an enterprise ultimately contributes to providing the data that will be used for information analysis. This includes recipients of the processes (customers), process owners, process executers, as well as
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Role of information analysis in enterprise framework
suppliers. Even if the process in question is manual, data that is recorded could still be used for information analysis.
? Stakeholders who support and maintain the data
All the generated data needs to be collated, stored, and updated in analysis-friendly formats. Key roles in the enterprise that are responsible for making support and maintenance provisions include:
•
MIS developer, creates, compiles, and maintains records
of all entries in the OLTP (online transaction processing) transactions in the enterprise. The developer provides the base data that is selected, extracted, and analyzed.
•
Pre-loaded: Extracts the data from the relevant source
systems, and transported it from the OLTP applications into information analysis enabled structures.
•
Loader: Cleanses the extraneous fields, transforms the
data to suit the file structure in the IA-enabled application and loads the data into the new structure. As a part of the data transformation process, inconsistent data present in different format is transformed into a common format, and tables and other database objects are prepared, before finally being loaded onto the new structure. All these are the functions of the loader.
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Role of information analysis in enterprise framework
•
Data Warehouse manager: creates the actual design
of the data warehouse that includes tasks, such as data modeling, designing the schemas, and involving the fact tables. In addition, the DWM monitors operations and periodically checks the state of the data in the data warehouse. The DWM also provides access rights to MIS specialists who need to be run a query on the warehouse. Further, DWM has an axis to reports that are generated listing the particular fields that were accessed.
•
MIS Specialist: Presents and publishes data in response
to a question from the senior management. To do this, the MIS specialist prepares cubes to cull data from the data warehouse, creates fact and dimension tables from the data warehouse into data marts, identifies the type of storage architecture, such as ROLAP or MOLAP, and runs the final query onto the data mart.
The MIS specialist participates in the tactical decision for the benefit of the enterprise. For e.g., if the senior management has created a hypothesis to arrive at the management decision, the MIS specialist is required to validate this hypothesis with the relevant data and the appropriate query information.
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Role of information analysis in enterprise framework
? Stakeholders who use the data
The data that is complied, collated and stored is then made available for analysis to the following decision makers in the enterprise:
•
Senior Management includes the chief executive officer
(CEO) the chief operation officer (COO), the chief information officer (CIO) and the chief finance officer (CFO). The CEO and COO together work towards the identification of business change opportunities and associated risks. A CFO identifies the financial risk associated with the enterprise, which includes a returns-on-investment (ROI) analysis for business process integration (BPI) strategies. A CIO provides solutions for BPI. Additionally, CFO and CIO analyze a market and competitive environment, define the strategic goals for the enterprise and explore how to change help enterprise succeed.
•
All process owners: Includes owner of the value-adding
and supporting processes. A processes owner executes a particular process and works towards the health of the
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Role of information analysis in enterprise framework
process. An organization does not have a specific role defined for a process owner. A person who is accountable for the activities involved in the process is the process owner of that process.
•
Enterprise engineer: Identifies and integrates the
appropriate ways to improve and enterprise.
THE TECHNOLOGY COMPONENT OF AN ENTERPRISE FRAME WORK
Technology is largely viewed as the enabler, executer, and manager of enterprise-wide processes and as a means to store, transfer, and process data. Therefore, an enterprise needs to have a clear and consistent architectural framework to incorporate the entire business process requirement. Enterprise information architecture is a high level or macro view of information organization. related It component an for all requirements understanding in of an an conveys overall
component, and explains hoe this components relate to each other. An EIA aligns processes with information technology to create or preserve interoperability. This serves as the basis for involving into an integrated enterprise. In the context of
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Role of information analysis in enterprise framework
technology, the enabling information infrastructure elements of an enterprise can be functionally divided into sub elements for assessment and planning. The three sub elements and their shared enablers and tools are:
•
Networking and computer systems: Consists of the
physical network and computing hardware infrastructure of an enterprise, and all the activities associated with operating this infrastructure. The scope includes the tools and protocols to send, receive, protect, and store enterprise data and systems, and network management mechanisms. It does not include the equipment attached to the network but provides the communication infrastructure upon which the equipment and process operate.
•
Common information services: Consist of the basic
building blocks activities associated with data or information’s, such as tasks to store, protect, access, transfer, search, and locate data both within the enterprise, and to or from the enterprise and external sources. This service also includes database management systems, and information filtering and analysis tools.
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Role of information analysis in enterprise framework •
Knowledge repositories: Consist of all science based
and experience based information needed to support the enterprise in all its functions. This information is extracted from internal and external sources. The repositories include common data dictionaries, business process models, and other metadata needed to run businesses.
There are some shared enablers and tools for the three sub elements of the enabling Information infrastructure. These are higher-level generic IT tools that can be applied and combined with domain knowledge to build application that support the enterprise functions. These tools include electronic mail, decisions support tools, workflow management engines, software development and maintenance tools, mechanisms to integrate legacy applications, and training development tools. These tools do not include the domain-specific applications, but provide the frame work to build such applications. for e.g., , when multiple members of a team work on a document, there is a risk of replication or duplication of copies of the document, which may lead to wrong versions of the document getting updated. Version-control software is the solution to such problems. It allows multiple users to make changes in the sane comments indicate the nature of the changes made, along with the person’s identification. The software also allows for allocation of access rights according to the users stake in the document.
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Role of information analysis in enterprise framework
In addition to business process needs, technology components are also incorporated based on end-user requirement. Based on end-user requirements, technology components in an enterprise can be classified into: ? Technology components for providing data. ? Technology component for supporting and maintaining data. ? Technology components for using data. The following by illustrates an EIA from the perspective of technology and end users:
?
TECHNOLOGY COMPONENTS FOR PROVIDING DATA
Certain technology components enable the transferring and storing of all the data generated during transaction. All the
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Role of information analysis in enterprise framework
stakeholders that provide data use these technologic to make the data available. There are numerous sources that provide data, such as:
•
Transaction processing system (TPS): Handle
small or large volumes of transactions. The focus of TPS is to increase the efficiency of the operations by automating the business process.
•
Enterprise resource planning (ERP): automate
business function and offer an integrated data solution across an organization’s infrastructure. These are configurable information systems that integrate information and information-based processes within and across the functional areas in an organization.
•
Supply chain management (SCM): improve the
manner in which an organization sources raw components it requires to make a product or service, manufacture the product or service, and deliver it to customers. SCM software helps improve the flow and efficiency of the supply chain and reduce inventory.
•
Customer relationship management (CRM):
provide an integrated solution to plan, schedule, and control presales and post-sales activities in an organization. The objective of CRM is to enable a customer to access an organization and its services with ease.CRM utilizes the data collected during customer interactions to record demographics and determine future needs of customers.
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Role of information analysis in enterprise framework
? TECHNOLOGY COMPONENTS FOR SUPPORTING AND MAINTAINING DATA
Certain technology components exist in the enterprise expressly to preserve, maintain, and store the data in analysis-friendly formats. Update on the data is also part of the supporting and maintaining purview of these technology components. These technology components are:
•
Data Warehouse: gather and store data from numerous
internal and external sources in a single database for the purpose of analysis. The consistency of file structure and the vast repository of data that it contains enable information analysis to take place.
•
Network security layers: prevent unauthorized
modification, destruction, or disclosure of the stored data. In addition, network security layers provide data integrity assurance that the network performs its critical functions correctly.
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Role of information analysis in enterprise framework •
Front-end interface design tools: Customize
screens and datasets to suit multiple types and levels of users. By means of this, only relevant data meeting the objective of the user are displayed.
? TECHNOLOGY COMPONENTS FOR USING DATA
End-users that use data include the senior management, process owners and enterprise engineers. Typically, the primary intention for using the data is information analysis for decision-making purposes. To this end, technology components available to these stakeholders include:
•
Decision Support Systems (DSS): Use sophisticated
modeling and analysis tools to represent the data. This enables the management to take informed decisions. DSS may have inbuilt tools, such as spreadsheets and simulation tools that help analyze and model the data for the user. Using these tools the user can perform analyses such as ‘what-if ’and ‘regression’.
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Role of information analysis in enterprise framework •
Business Intelligence (BI): Are designed to extract
relevant information from extensive data collected by various business systems over time. BI Systems are used by organization to provide insights that enable the decisionmaking process. As a result, these are sometimes considered to be a subset of decision support systems.
•
Enterprise Information System (EIS): Are an
advanced form of DSS, where the output focuses on the information that the senior management requires on key factors that affect their business area. While the middle management takes transactional decisions, the senior management is required to take strategic decisions. As EIS need to cater to strategic decisions, they can be tailored to suit an executive’s decisions-making style.
•
Management Information Systems (MIS): Provide
information to carry out routine business functions across varied periodicity. The information provided can be both past and present, and in the form of weekly, monthly, or quarterly reports.
•
Data marts: Are a customized, smaller version of a Data
Warehouse. Data marts focus on the customization needs of a particular department and the end users. These provide input to the DSS.
The following figure illustrates the technology components in an enterprise
Business Intellige nce
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Role of information analysis in enterprise framework
Data mart s
OS 1
Data wareho use
OS 2
ETL process
OLTP 1
OLTP 2
Back up OLTP 1
Back up OLTP 2
Technology components in an Enterprise CLASSIFYING ENTERPRISE BUSINESS PROCESSES IN VERTICALS 23
Role of information analysis in enterprise framework
From the business-focus perspective, enterprises are classified as verticals. This classification aims to represent the hierarchical dependencies that an organization experiences to carry out its business operations. In addition, the classification indicates the specific domain to which the organization aligns its value-adding processes. A vertical combines the scale and magnitude of the enterprise operations with domain expertise. Some examples of verticals include transportation, retail banking, insurance, and retail.
• An Overview of the Transportation Vertical
Based on means of passage, the transportation vertical is classified into four components: roadways, railways, airlines, and shipping. These components are further sub-classified on the basis of their load. This could be either freight or passenger. Each component has certain common and some unique business processes and operations. For example, the process of route selection may be common across the components, while the Frequent Flyer Program is a process unique only to Passenger Airlines. Along with internal factors, the ratio that the government and external policies play in influencing decisions also determines the level of information analysis that needs to be conducted.
• An Overview of the Retail Banking Vertical 24
Role of information analysis in enterprise framework
Based on nature of business, the retail banking vertical is classified into two components, credit and deposits. The credit component includes facilities such as credit cards and loans including personal, home, or car loans. The rate of interest that the bank charges its customers determines its level of profit. The deposits component includes bank accounts such as savings, current, or DMAT, deposits such as fixed or recurring, and allied features such as ATM usage and debit cards. Information analysis in the retail banking vertical is required to create policies for existing and potential Account holders in t he bank, and t o create schemes for credit card users. In the case of fixed deposits, the policies are determined largely by regulations formulated by the governing body.
• An overview of the Insurance Vertical
The business of insurance can be defined as a mutually agreed upon legal document that provides compensation, usually in the form of money, for specified losses in exchange of a periodic payment. An individual contract is referred to as a insurance policy, and the periodic payment is known as an insurance premium. The major types of insurance policies include: • Life Insurance: Assigns a specific sum of money to a designated beneficiary in the event of the death of the poli8cy holder, or to the policy holder after a certain age.
• Health Insurance: Compensates the expenses incurred as a result of the illness of the policy holder or the designated beneficiaries in the policy.
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Role of information analysis in enterprise framework
• Liability Insurance: Provides insurance against any valued property, such as automobiles, property, jewelry, or even against professional mishaps or natural calamities. The insurance vertical is a largely organized sector with a vast network of agents that sell insurance policies. Information analysis in the insurance vertical is required largely to analyze and create customer profiles to target sales and marketing activities, and to create new schemes and policies to meet changing customer tastes and trends. Another key purpose for which information analysis is required and utilized is ‘risk management’.
• An Overview of the Retail Vertical
Retail is defined as the process of selling directly to a consumer, as opposed to going through various channels to reach the consumer. The key Information Systems t hat ensure that retail processes are executed with ease include, Supply Chain Management Systems, Customer Relationship Management Systems, Store Systems, Point-of-sale Systems, Merchandise Management Systems, Warehouse Management Systems, Decision Support Systems, Finance Management Systems, and Human Resource Systems. Information analysis in the retail vertical is largely conducted to identify the growth areas and challenges to the various aspects related to vendor management and customer relationship management.
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Role of information analysis in enterprise framework
INFORMATION ANALYSIS REQUIREMENTS IN VERTICALS
Due to the sheer volume and magnitude of data that needs to be analyzed, comprehensive information analysis takes place only in certain key operational areas in all verticals. These key operational areas are a apart of the direct business impacting processes. This is because effective business decisions need to be taken for a successful venture.
OBJECTIVES FOR INFORMATION ANALYSIS IN BUSINESS/ ENTERPRISE FRAMEWORK:
The components of a business enterprise, namely people, process and technologies, work together to enable a business enterprise to perform its activities smoothly. But all the three components are greatly influenced by the various internal and external information factors that have a bearing on the operation of a business unit or firm. Therefore the information analysis objectives vary according to the identified information variable in the enterprise. Generally there are two types of objectives for information analysis in an enterprise framework. These objectives are classified into two groups namely- internal objectives and external objectives The following figure enlists the internal and external objectives of information analysis in an enterprise framework. Objectives of information Analysis
External objectives To be update with global economy & market
Internal objectives
To achieve organizational goals
To follow government regulations
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Role of information analysis in enterprise framework
To overcome competitors
For customer relationship management
To maintain financial health of the firm
To manage Assets & Liabilities To maintain Goodwill
To adapt to seasonal trends.
To be update with technical changes & product transitions
To manage inventory THE NEED FOR ENTERPRISE INFORMATION For effective logistical operations ANALYSIS
Effective business decisions in an enterprise are the prime reason that information analysis is conducted. The more accurate the decision, the better the impact on the business. Enterprise business decisions primarily have two objectives. These are to: • Retain existing customers. • Expand customer base. In turn, for these business objectives to be met, internal processes in the organization need to be efficient. All these objectives depend on effective information analysis for successful outcomes. Effective information analysis is a necessity to enable effective business decision, validate plans, and hypotheses for future expansion, and use the data to monitor internal processes in an enterprise. For example, a retail bank needs to make decisions about its ATM network. This may include decisions about: • The status of current ATMs that may need to relocate or discontinue operations.
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Role of information analysis in enterprise framework
• The projected success if new ATMs were to be set up in identified locations. • The reduction of processing time of requests for money. While the first decision pertains to the existing set up of the business, the second one deals with unexplored opportunity—and therefore, expansion, and finally, the third decision is based on internal process monitoring and desired outcomes. All decisions require some form of information analysis for effective decisionmaking. A basic prerequisite for this level of decision making to take place is a charted out EIA.
THE ROLE OF EIA IN EFFECTIVE INFORMATION ANALYSIS
Effective information analysis is enabled by the presence of certain essential technology components that help provide, support, and maintain data that is generated by means of transactions. Given the scale of the enterprise framework, these components are sub classified on the basis of utility. The major components or sub architectures in an EIA can be enumerated as follows: • Data architecture: Describes the entities of which the organization keeps data. • Application architecture: Describes the business processes that the organization performs.
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Role of information analysis in enterprise framework
• Network architecture: Describes the different geographical locations in which the organization performs different activities.
? COMPONENTS OF AN EIA The purpose of an EIA is to ensure that everyone related to the operations, both within and outside the enterprise, have a common understanding of organizational activities. The EIA helps ensure that databases, systems, networks, and infrastructure perform their functions. In its early stages of development, the EIA contains information about the following factors: ? The current or planned organizational structure ? The goals of the organization ? The business functions that must be carried out to archive the goals ? The types of information the organization needs to perform its functions As it is being developed, the EIA should contain the following additional information : ? The specific processes needed to carry out the functions. ? The geographic locations in which these processes are performed and the business units that perform them. ? The types of information required by the organization to run its processes, the nature of the interaction between the processes, and the data about the entities. ? The relationships that be entities have with each other, including the business rules that govern these relationship.
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Role of information analysis in enterprise framework
The following figure illustrates the components of EIA:
? ?
Business goals
Organization units
Information subjects
Business functions
? ? Business entities Business process
Business location
? ? ? Database
Application systems
Network structure
Components of Enterprise information Architecture 31
Role of information analysis in enterprise framework
INFORMATION SYSTEMS FOR ENABLING INFORMATION ANALYSIS IN ENTERPRISES
Information analysis requirements may vary according to the objective of the analysis. Various sets of Information Systems exist in the enterprise. These Provide input and data in order to analyze information for making effective business decisions. These information Systems include:
?
Decision Support Systems: Data Warehousing, business Intelligence Systems Management Information Systems: Enterprise Resource Planning Business Management Systems: CRM and SCM
?
?
Further, there exist certain tools and techniques to aid the process of information analysis Primary among these tools are reports generated at various levels by different systems. Such report s are usually classified by their demand that is further determined by the periodicity of requirement. Reports may be classified as: scheduled, real-time, on demand and exception.
For example the area operations manager at the bank prepares a weekly report of monetary transactions that have taken place in the week (scheduled) this report consists of an appendix report that includes records of each transaction made in the ATMs, while they occur (real-time). Sometimes, the branch head makes a request for the transaction report of a particular day in addition to the weekly report (on demand).
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Role of information analysis in enterprise framework
Investigation of customer complaints are recorded in a separate report (exception). Each type of report mentioned in this scenario is required at a different time and serves a specific role in the information analysis process.
THE ROLE OF INFORMATION ANALYSIS IN BUSINESS STAGES
•
The role of information analysis in existing business
Retaining existing customers being the primary objective, decisions made regarding the existing business setup assume top priority. Decisions are the results of an event or a chain of events that lead the management to conduct some form of information analysis to make appropriate decisions. The information analysis that is carried out includes the activities to:
1.
Identify the areas of business that are impacted by the current event in question .
2. Identify the appropriate data source upon which to conduct the analysis. 3. Conduct the analysis on the identified data set. 4. Make an effective decisions. For example, in the case of vendor management in the existing set up , the fact that the actual quality does not conform to the expected quality may be the trigger- event for the organization to make an appropriate decision to meet the desired level of quality.
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Role of information analysis in enterprise framework
The areas of business that are impacted include the actual product that forms the core business of the organization, in addition to all dependents of that product in the entire supply chain. The data source for this would be the SCM. Based on the facts gathered and the data analyses, the management may choose to replace the existing vendors with a new set or set up a comprehensive training program about requirements. In some cases, the trigger event may arise from a routine examination of the business management units. For example, a monthly sales review of a particular region may indicate a consistent drop in sales. In this case, there is direct adverse impact on the revenue of the organization. This may lead to information being sourced from CRM and the analysis conducted.
•
The Role of information analysis in expanding business
To expand a business is a long-term goal for any enterprise. For this to take place, the senior management creates hypotheses, which examines the plausible areas of expansion to venture into, and requires information analysis in the form of validating the same. The data for these scenarios does not exist, because these have never taken place before. However, data backing trends on similar lines, if available, may be used to validate these. For example, the management at an export house that has regular business with Japan may create a hypothesis to expend their reach to include Korea. The rationale for the decision being, both nations are similar in terms of both business and culture.
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Role of information analysis in enterprise framework
This hypothesis may be validated with data regarding sales transactions with Japan. Often, the decision to expand business is also often, the result of an examination of some trends observed by the management, witch then conducts an analysis to validate whether those trends hold true or not. For example, a trend analysis conducted on all vendors providing products and services the organization may reveal a start-to-finish drop out rate. This may lead the management to conduct information analysis to:
a. Determine the time period of the persisting trend.
b. Create alternate long-term solutions to prevent any problem (if existing) from recurring or to increase the scope of the current trend.
In this case, the management may choose to recruit new vendors from remote locations review the work of the existing vendors currently located in the same geographic area. This will save infrastructure costs and also allow for a winder range of candidates thereby, increase the probability of getting the required level of quality.
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Role of information analysis in enterprise framework
The ability to forecast trends and create hypotheses is a result of the experience that the senior management has. Information Systems cannot create these trends and hypotheses, but can only validate them for efficacy. The expansion of the business of an organization is dependent on a combination of all these factors.
THE ROLE OF INFORMATION ANALYSIS IN OPTIMIZING THE EFFICACY OF INTERNAL OPERATIONS
A basic prerequisite for the continual effectiveness of an organization’s business is that its internal process must continue to remain efficient. Just as information analysis provides vital support to make decisions regarding the effectiveness of business, it is also used to monitor and optimize the efficacy of the internal operations.
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Role of information analysis in enterprise framework
For example, a new technology that pertains to the business of the organization may have emerged in the market. However, a shift to his new technology would entail huge costs in situation where the management needs to make a decision whether to adapt the new technology or to continue with existing one. In such a situation, the ERP and the MIS of the organization would be the potential data sources for the purpose of information analyses. The various costs that needs to be taken into consideration include.
• Cost of conformance
The Cost of Conformance (COC) is a component of the Cost of Quality for a work product. Expenditures include the expenses incurred to perform quality assurance activities, such as the tasks to determine and send standards, provide training, and established and monitor processes. Further, expenditures include the costs incurred due to quality control activities such as reviews, audits, and testing. The COC of an organization indicates the investments the organization makes to ensure the quality of its products.
• Cost of Non-Conformance
The Cost of Nonconformance (CONC) is the element of the Cost of Quality that indicates the costs incurred by an organization for its inability to deliver a good quality product.
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Role of information analysis in enterprise framework
The CONC can be grouped into costs due to in-process costs such as quality failures, particularly the cost of rework, and postdelivery costs including further rework, recreation of lost work for products used internally, possible loss of business, possible legal redress, and other potential costs.
• Cost of Quality
The cost of Quality (COQ) is the cost incurred in the prevention and detection of processes. All Types of organization have to contend with costs due to poor quality, whether it is an assembly line defect or a malfunctioning machine. COQ comprises the cost incurred when the product or service is not delivered as expected (CONC) and the expenditures made to ensure the quality of the (COC). In many organization, the COQ may be as high as percent of the earnings of the organization.
• Cost of Poor Quality
The expenditure made to fill the gap between the desired output and actual output is included in the Cost of Poor Quality (COPQ). Costs due to lost opportunity, such as the loss of resources used in rectifying the defect are also included in COPQ. However, the COPQ does not include detection and prevention costs. External players, such as suppliers can also add to the costs by producing defective material and damaging material during delivery. The COPQ mainly includes the costs of labor to fix a problem, the additional input used, and the extra utilities.
• Cost of Lost Opportunity
The Cost of lost Opportunity (COLO) is incurred because of opportunity losses, such as the loss of sales and revenue or profit
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Role of information analysis in enterprise framework
margin, potential loss of market share, and lower service level to customers. In order to prevent incurring these costs and to maintain internal efficiency, designated process owners within be organization routinely moniter processesa. In the case of a process not meeting the required objective, it may either be modified or reengineered. This is achived on the basis of circumstances, and by keeping other factors, such as impact on thar processes, costs of modifying or reengineering into consideration. Two such techniques that enable an organization to monitor and review existing processe are: ? Continual process Improvement (CPI)
?
Business Process Reengineering (BPR)
The CPI model attempts to understand and measure the current process and make performance improvements accordingly. It works in the following stages: 1. Document the process as it is.
2.
Establish a way to measure the process based on the customer’s requirements.
3. Follow the existing process
4.
Measure the result of the action implemented.
5. Identify the improvement opportunities based on the data collected 6. Implement the process improvements , and measure the performance of the process
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Role of information analysis in enterprise framework
As the loop is repetitive, it is called continuous process improvement .This model is also known as Business Process Improvement or Functional Process Improvement BPR is the process of making modifications to existing organizational processes. It is a process – analysis technique that is implemented to remove obsolete business processes, and then reorganize the remaining processes into an effective flow.
There are certain questions, which need to be considered before the business is altered: ? What outlook do customers want for the business?
? ?
What outlook do other employers want for the business? What are the business practices followed by the best-in-class companies?
? How to employ new technology to the benefit of the business?
The Decision to implement either the CPI or BPR model depends upon the scope, magnitude and impact of resulting changes on the business keeping the organizational goals in mind. Several external factors also come into consideration while making the choice. For example process may require to be reengineered as a direct result of a new technology emerging in the market.
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Role of information analysis in enterprise framework
INFORMATION ANALYSIS: THE BASIS OF DECISION SUPPORT SYSTEMS
DDS are defined as interactive applications that use large volumes of data in information analysis enabled formats. DSS application offer various models that include formulae, forecasting routines, and optimization techniques specifically to support strategic decision- making in an organization.
The Decision making process.
Three phases mark any decision- making process. These are: 1. Intelligence phase-consists of identifying problems or recognizing triggers to a potential problem in the environment, which requires some decision to be made. No other phase of the decision- making process can begin with out this being identified.
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Role of information analysis in enterprise framework
2. Design phase- consists of inventing, developing and analyzing possible courses of action to solve the identified problem.
3.
Choice phase- consists of making a selection based on a number of alternate solutions that are generated. The final decision is made based on certain considerations usually dependent on circumstances.
The following figure illustrates a typical decision making processDecision maker Predictor system
Inpu t data
Filteri ng syste
Decisi on constr aints
Outpu t inform ation
Take decisi on
Imple ment plan
Feedback
A typical decision making process 42
Role of information analysis in enterprise framework
The following system and technology provide support to each phase in the decision-making process:
1.
Intelligence phase: support for this phase includes a comprehensive databases in turn contains data from three distinct sources ? Internal: includes the data stood from the various OLTP systems in the organization. Manual data stored in the form of vouchers, ledgers and registers is also included. ? Competitive: includes the data that pertains to competitors in the same market segment offering similar product and services. This is usually obtained by means of published reports or by conducting market research. ? Societal: includes the data about the social, legal, and economic environment in which the organization operates. This is generally obtained by means of published information or on specific request.
All this information is gathered and collated from disparate sources and is also stored in such a manner. To conduct effective information analysis, all this data needs to be stored in a common format and location.
TECHNIQUES OF INFORMATION ANALYSIS
? DATA WAREHOUSING AS A TECHNIQUE IN INFORMATION ANALYSIS 43
Role of information analysis in enterprise framework
Data warehousing is a technique that is used to support and maintain the data require information analysis. The entire process of gathering data from numerous internal and external sources, storing it in a single database for the purpose of analyzing, and help managers make better business decisions is known as data warehousing.
The following activities are performed for creating a data warehouse: ? Data validation: validation errors and inconsistencies occur if data is extracted heterogeneous sources. Data is validated at the source-database level before addicting it to the warehouse.
? Data preparation: before data is loaded into a data warehouse, table and from the database objects needed for supporting data extraction, cleansing, and transformation operations are prepared. It is then extracted from the source OLTP systems.
? Data cleansing and transformation: once the data has been extracted from the OLTP system, it undergoes cleansing and transformation. Inconsistent data that is present in different formats is transformed into a commend format before storing as an the data warehouse.
? Data loading: data is now ready to be loaded in the data warehouse.
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Role of information analysis in enterprise framework
? The tables created specially and populated with this data. These activities are collectively called the ETL process (Extraction, transformation and loading).
The following figure illustrates the described process of data warehousing as information analysis technique:
Sales
E T L
Enterpris e data Warehou se
Sale s
Repo rts
Finan ce
Finan ce
Repo rts
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Role of information analysis in enterprise framework
The process of data warehousing as an information analysis technique
For example the senior management in a garment manufacturing organization may be concerned about the stock falling short of the amount required for supply during peak season. As a result they may want to make a decision about inventory levels. The senior management frame a question-“how much stock should I requisition to be able to meet the projected supply during peak season?” this question is posed to the econometrist who needs to provide an appropriate response. The econometrist identifies and selects the various parameters that are required to best respond to the question. The econometrist then passes these parameters to the MIS developer who forms a query based on these parameters and creates a cube with the specified dimensions. The MIS specialist then extracts a data mart from the data warehouse, upon which the query is to be run. Finally, the query is run and the results are obtained. These results are published for the econometrist to analyze and to present a suitable set of alternatives for the senior management to opt from.
1.
Design phase: support for this phase includes
interactive features that enable the decision-marker to alter parameters and thereby, vary the weightage of each. This allows for the generating ofa variety of possible scenarios and solutios, the choice of which ultimately resta with the decision- maker.
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Role of information analysis in enterprise framework
2.
Choice phase- support for this phase includes
optimization models and suggestion models that can be used to prioritize and rank the possible solutions. Decision- choice procedures are then applied to make the final selection of the most optimum solution that will eventually be incorporated in the decision. Business intelligence (BI) systems use sets of tools, such as data models, meta-data and analytical application to arrive at the final choice. The final decision is based on the choice.
? BUSINESS INTELLIGENCE SYSTEM AS A TECHNIQUE IN INFORMATION ANALYSIS
BI system is designed to extract relevant information from large volumes of data collected by various business system over a period of time. This data is used by organizations to provide insights that enable the decision- making process.
While BI system are also used to store large volumes of data, these are primarily used to enable the management predict the future impact of current decision. Additionally, BI combiner’s related data disciplines, such as data mining, statistical analysis, forecasting, reporting and
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Role of information analysis in enterprise framework
querying, OLAP, and data visualization. Using the data stored in data warehouses and a combination of these tools BI system enables the information analysis process.
BI system offers a wide rage of low- end to high-end offerings, all of which facilitate the information analysis process for the users. For the front- end used, a used reporting and querying interface, typically a browserbased model is created. A high-end database platform is available to the support and maintenance provider. BI system support could be availed internally or it could be outsourced. Using external BI system to perform an information analysis on internal data is usually the recourse for organization that does not have a full strength IT staff, and would like to get results with in a short duration. Organization also widely uses both MIS and DSS to make vital decision. Therefore, it is important to realize the role of each in the decision- making process.
?
MANAGEMENT INFORMATION SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
As depicted in the preceding table. MIS provide information to carry out routine business Functions across varied periodicity. The information provided can be both past and present, and in the form of weekly , monthly , or quarterly reports .
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Role of information analysis in enterprise framework
MIS reports are segregated on a functional basis, and based on the functional focus of the information analysis , serve as input to the process . A good MIS enables the management to become more efficient and improve the tracking and monitoring of the functional targets
MIS provide managers with an insight into regular operations of an organization by aiding them with plans to organize and control work efficiently. This helps the organization provide accurate and timely information to the concerned decision – maker and therefore , achieve organizational targets , They further improve the tracking and monitoring of functional targets .Managers also use this information to provide periodic feedback to the team.
For example, during the annual employee appraisal , the area operations manager may want to examine a varied set of reports to evaluate the branch head’s all-round performance . The sources that may provide information and reports to this end may include the HR MIS, the sales and Marketing MIS, and the Operations MIS, The reports from all these sources will serves as input to the overall evaluation , and help in providing feedback to specific areas of development . MIS supports employees at all levels of management in an organization. At the top level , managers have a higher degree of decision –making authority as they plan at the strategic level and make decision that have a direct impact on corporate direction and goals . The middle management is responsible for tactical planning and associated decisions . They need to ensure that decision are based on verified facts and that these decisions are made in correct context .
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Role of information analysis in enterprise framework
The operational management in responsible for operational planning and control . Their key objective is to ensure that operations are planned , monitored and that decisions are made to control the operations to meet the goals .
The non- management employees use Information System to provide accurate information to respond to any queries .
The IT department of the organization maintains and oversees operations and transactions that take place on various MIS . It is also responsible for the frequency of updates that are required across the MIS . The output from MIS is sometimes used as input for other Information Systems. Enterprise Resource Planning (ERP) systems are one such system , in which the information from the MIS provide input to the ERP and vice-versa.
? ENTERPRISE RESOURCE PLANNING SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
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Role of information analysis in enterprise framework
Another key Information System that serves as an integrating platform across the enterprise is the Enterprise resource Planning (ERP) System. ERP aims to integrate all functions and business in the enterprise into a single database system. Each functional or business unit can share their individual information on this system , and communicate across departments , accordingly . This has led to rise in the levels of accountability and in information sharing across departments because there in one common source and database of organizational information. Enterprise – wide commonality being the terminal objective , ERP systems provide various input to the information analysis process . To this end , ERP performs the following tasks .
?
Intergrating financial information across an enterprise : Signifies that the various departments that are sources of vital financial information have a consistent figure to quote and to work on . For example , in the case of revenue figures, by means of and ERP system , the sales departments and the various business units would be in tandem and be working with the knowledge of a common figure . This is enabled as a results of the information shared by both units. Intergrating customer order information : Signifies that a customer places an order , to the point that the products reaches its end – destination , a single information system ,
?
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Role of information analysis in enterprise framework
the ERP , traces its progress and status , as opposed to a multitude of information systems performing the same function in parts.
?
Standardizing processes and automating functions: Signifies that various departments can use a standardized set of procedures to execute a process . This mitigates or negates the occurrence of a multitude of processes to achieve the same objective .This also enables the automation or the identification of the possibility of automation of certain processes.
?
Performing inventory control : Reduces the number of inventories , especially the work in progress inventory that needs to be assessed periodically . It is also drastically reduces the chances of discrepancies and leakages that may occur along the way of creation of the product .While SCM software is more focused towards this end , ERP also plays a role in this activity
?
Communicating standardized HR information: HR Departments in enterprises are responsible for information dissemination to a multitude of locations and business units . To maintain a consistency and accuracy of operations , ERP helps gather information regarding employees’ productivity and time utilization , and communicate benefits and other programs .
Due to the level and magnitude of shared information , frequent updates to the system are difficult. Thus , organizations assign a specific periodicity to the business units to update their information onto the ERP system.
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Role of information analysis in enterprise framework
In some cases of analysis ,data is required from external sources, such as customers suppliers , competitors, and stockholders . This data is not available by means of any internal information system . Companies usually have extranet links that connect them to these sources and permit the exchange of data and information. CRM systems and SCM system are two system that provide this required data to a certain extent .
?BUSINESS MANAGEMENT SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
Technological advancement in all avenues of business in compelling organizations to constantly build and apply new customer service facilities . However , new technologies are inevitably steeped in complexities . Overcoming these constraints requires an understanding of customer behavior across various channels , and a acquiring of new insights into means to provide cost effective delivery of customer service . To this end , organizations today are focusing on innovative business models that will enable them to achieve sustainable long term success . The two business objectives for this level of success are to : ? Improve the efficiency of operations ? Meet customer needs The first objective entails a number of key factors, such as the need to reduce the development cycle time, improve the product quality , and reduce the production costs to remain competitive in the market However , success depends on collaboration and interdependencies among different organizations . Organizations are increasingly inclined towards attaining high value – adding manufacturing positions to survive in the global market. This necessities the establishment and maintenance of efficient
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Role of information analysis in enterprise framework
materials flows along product supply chains. SCM system improves the way an organization locates the materials it requires to design a product or service, manufactures that product or service, and delivers it to its customers The second objective is met by adapting a customer-centric model that will enable the organization to develop more meaningful and interactive relationships with their customers , indentify products that are suited to there tastes an thereby , gain a competitive advantage .
?
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS.
Organizations are focusing more in improving their efficiency and lowering the cost of customer service while retaining profitability . This means identify the secrets of good customer conversations , identify the potential customers , and articulating the steps necessary to transform customer care into a model. CRM systems promise cost- effective delivery of customer service to enhance the competitive advantage of an organization The CRM model has the goal of building an integrated relationship by linking together all the front-office operations that involve customer care representative at a call center. In addition, customer – facing operations such as sales , marketing , call centres and online support also needs to become organizationally integrated
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Role of information analysis in enterprise framework
A few CRM strategies routinely adapted by organizations for enhancing customer relationships include: ? CRM blueprint : Enables customers to identify CRM business capabilities and gaps related to the existing processes. It aim is to : • Identify potential customers , processes, and application architectures • Prepare an implementation blueprint. ? CRM value-addition : Allows customers to define and build agreement on how CRM could create value for the organization. It enables the organization to identify initiatives that add value and weed out other initiatives. ? CRM transformation program : Allows customers to implement the desired CRM model through processes, technology , and exchange programs driven by business imperative such as customer retention.
? SUPPLY CHAIN MANAGEMENT SYSTEM AS A TECHNIQUE IN INFORMATION ANALYSIS
The field of SCM has become tremendously important to organizations in the competitive global market. The term supply chain refers to the entire network of organizations that work together to design , produce , deliver and service products .
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Role of information analysis in enterprise framework
In the past, organizations focused primarily on manufacturing and quality improvements within. Now, organization focuses their efforts beyond quality improvement to encompass the entire supply chain. The opportunities that through collaboration lead to considerable change in the way organizations interact with there supply chain partners. The five basic components of SCM are:
•
Planning: this is a strategic component of SCM. Organizations need to develop a strategy to manage all the resources that go towards meeting rising customer requirements for products or services. Planning also includes a set of metrics to monitor the supply chain so that it is efficient, costs low, and delivers high quality and valueadded products or services to customers. Procurement: it is important to select the right individuals or firms as suppliers that would deliver error-free goods and services that an organization requires to create the product or the service . Organizations also need to develop a rate list and delivery and payment processes with suppliers as well as create metrics to monitor and improve these relationships. This also requires managing the inventory of goods and services received from suppliers, including receiving shipments, validating the contents, transferring them to the manufacturing units, and approving supplier payments. Production: this is a part of manufacturing. It is important to schedule the activities necessary for production, testing,
•
•
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Role of information analysis in enterprise framework
packaging and preparation for delivery. Being a metricintensive exercise, production involves measuring quality levels, production output, and worker productivity.
•
Delivery: this is also referred to as logistics and necessitates coordinating the receipt of orders from customers, developing a network of warehouses, arranging carriers to deliver products, and setting up an invoice system to receive payments. Return: this is the most critical part of the supply chain. Organizations need to create a network to accept defective and excess products back from customers or distributors, and for supporting customers with grievances.
•
SCM is the transfer of products, information , and finances as they move sequentially in a process from the supplier, manufacturer, wholesaler, retailer, and customer. It involves coordinating and integrating these flows within and among organizations. The ultimate goal of any effective SCM system is to reduce inventory.
SCM flows can be divided into the following three types: • The product flow: includes the movement of goods from a supplier to a customer as well as any customer returns or service needs • The information flow :involves transferring orders and updating the status of delivery
•
The finance flow: consists of credit terms, payment schedules, and consignment and title ownership arrangements information provided by both CRM and
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Role of information analysis in enterprise framework
SCM play a crucial role in the information analysis process. Realism is lent to decisions that are undertaken as a result of input and information provided by these systems.
The following figure illustrates how each information system plays a role in the information analysis process.
Business intelligence system
Data mart s
Security layers
Security layers
Data warehous e ETL process
OLTP (internal process)
Enterprise resource planning
Supply chain manageme nt
Customer relationshi p manageme nt
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Role of information analysis in enterprise framework
The role of various information systems in the information analysis process
? Classifying information on the basis of periodicity
The information provided by all the systems should be accurate and comprehensive. Further, it is equally important for it to be available at the time that it is required. The requirements of information vary in different enterprises, and on the basis of periodicity of analysis. Based on these criteria, reports that contain information may be classified as : • Scheduled: are generated and made available for a specific, defined duration. These may be made available on a daily, weekly, or monthly basis. • Scheduled reports: are used in almost every aspect of information analysis because they contain specific information pertaining to a particular set of parameters in a particular time frame. • Real- time: are generated while transactions are simultaneously begin processed Real-time report proves useful when analyzing information to make tactical decisions. As opposed to strategic decisions. For example, real-time report may be used to take tactical
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Role of information analysis in enterprise framework
action in the case of an online newspaper, in the case of which storied and headlines may be adjusted as a response to audience interest. • On Demand: are generated and made available on the basis of specific requests made for a particular set of information. On Demand reports are usually required when information analysis is being conducted in response to an urgent requirement, a crucial environment change, a perceived serious threat, or in response to a complaint or statement that needs to be validated. • Exception: identify process exceptions by using data selected on the basis of a specific set of circumstances or parameters.
Generating exception reports lead to crucial insights into processes-deviants. Theses are usually created in response to an explicitly observed deviant, to validate a perceived cause of loss in revenue, or to examine a process that may not be delivering desirable results.
ILLUSTRATION
The Enterprise Framework and the Information Analysis process in the Airline Industry.
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Role of information analysis in enterprise framework
INTRODUCTION
The airlines industry is one of the most competitive and strategic industries in the world. Like any other enterprise, the foundation of this industry is dependent on three driving forces: process, people, and technology. This illustration outlines the enterprise framework in the airline industry and explains the information analysis and analysis systems used for different processes and especially that of the airline ticketing process in detail. ? PROCESSES IN THE AIRLINE INDUSTRY FRAMEWORK Processes in an enterprise exist to efficiently perform a series of tasks for a specific output. Processes are either operational processes or business processes. Each process is related to its respective departments. Senior executives head the departments and manage the processes. Some of the operational processes in the airline industry are Air traffic Management (ATM). Airport ground services, airport billing, and resource management. Broadly the output of operational processes in the airline industry is to ensure passenger’s comfort and safety and the aircraft’s worthiness. For example, the airport ground services daily assist a large number of passengers to reach their desired destinations on time. Some of the business processes in the airline industry are financial services, sales and marketing, and fleet management. The output of the business processes in the airline industry is to ensure revenue maximization. For example, the strategy of optimum airfares set by the sales and marketing process is to attract a large umber of passengers.
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Role of information analysis in enterprise framework
The following figure illustrates the main processes of the airline industry
Airline Processes
Business Processes Operational Processes
Sales & Marketing
Fleet Mgt.
Financial Air Services traffic Services
Airport Airport ground Billing Mgt.
OPERATIONAL PROCESSES Operational processes exist to manage the various operations efficiently. Operation in an enterprise include planning, structuring, and coordinating with various departments, leading and motivating employees, maintaining resources, allocating and utilizing resources, and ensuring quality service to the passengers. In the airline industry, the operations include helping the passengers to board aircrafts, managing and checking baggage, and tracking routes of aircrafts, Separate processes control each of these operations.
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Role of information analysis in enterprise framework
Here is a glimpse of some of the operational processes in the airlines industry:
•
Air Traffic Management (ATM): The primary driver of activities at airports is the flight schedule. Flights depart and arrive in close proximity. Scheduling requires an integrand management of air traffic controls. It involves monitoring aircrafts on runways and in air so that they are flown on specified routes and do not collide and cause hazards in mid air. Airport Ground service: Passenger service activity at the airport is related to the flight schedule. All these activities are controlled, coordinated, and managed by the airport ground services, which interact with passengers and politely respond to their queries. The airport ground services render services, such as assisting passengers to board flights or cancel their bookings. Some passengers need assistance for baggage claims or ground transport services. Other passengers need assistance to proceed to board connecting flights. Confirmed passengers arrive ahead of their flight for the check-in process, which includes tagging personal handbags, baggage check-in, collecting boarding coupons, and security check. Simultaneously, passengers arriving y more than one flight collect their baggage from different conveyer belts.
•
•
Airport Billing: Airport management charge a fee for the services and facilities offered to airlines and users. This fee is also called landing fee. It is used to generate revenue for the airports. The fee is based on the weight of the aircraft. Therefore, it is essential that the airport authorities have
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Role of information analysis in enterprise framework
accurate information about the date, Time, and type of facilities used by airlines.
•
Resource Management: the Resource Department manages resources including aircrafts and handles multiple services for employees, such as recruitment promotions, consultancy, contracts, training, and allocation.
Business Processes
Business processes exist to run enterprises efficiently by increasing performance levels to maximize revenues. Business processes in the airline industry revolve around planning, selling, and operating. Planning process involves scheduling and longterm services of the fleets. Selling involves setting fares of tickets and travel packages, and operating involves managing the fleet. Here is a glimpse of some of the business processes of the airline industry:
•
Financial Services: Handle revenue or yield management, accounting, and statutory services. There are three strategies used in yield management: different fares, overbooking, and loyalty programs. Sales and Marketing: Tracks competitor’s fares and is always on the lookout to increase the revenue of the airlines. The process makes fare-pricing strategies. For example, if some major airlines lower their ticket fares, the other major airlines immediately follow. The fares of tickets are subject to fluctuations in supply and demand, which are mostly based on the type of passengers, such as business and leisure. In addition, ticket fares are
•
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Role of information analysis in enterprise framework
subject to fluctuation in schedules, but these schedules rarely change. This process publicizes the fares and schedules, and provides them to travel agents. The process works closely with airport managements and stakeholders and is responsible for increasing the number of services at airports, flight frequency, and passengers who use airports. In addition, this process publicizes the fares and schedules through advertisements and promotions.
•
Fleet Management: Airlines own different types of aircrafts, such as commercial jets, regional jets and turboprops. The key tasks of fleet management are monitoring and tracking maintenance expenses of aircrafts to ensure their safety and reliability and to maximize their usage. Fleet management comprises services, such as cabin services and assigning routes to aircrafts.
The Roles of People in airlines Processes
An airline involves extensive activity and expertise. The nature of the activities performed by people ranges widely from highly technical to day-to-day operations. There are employees, such as accountants, finance officers, officers, airport managers, pilots, aeronautical engineers, flight attendants, baggage handlers, reservation agents, and software engineers. Sometimes airlines outsource chefs, cleaners, telesales executives, insurance experts, and accountants. Airline employees comprise a major part of company strength. Hence, more than one-third revenue generated each day by major airlines, goes towards making payment to its employees. The airlines industry comprises the following types of employees:
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Role of information analysis in enterprise framework •
Line Employees: include pilots, flight attendants, reservation clerks, aeronautical engineers, gate personnel, and security guards. Reservation clerks form the largest group of airline employees. The line employees are grouped under three categories:
1.
Engineers: Form about 1 percent of the airline workforce. These employees maintain aircrafts according to maintenance programs and ensure passengers comfort. Flight Operators: Are responsible for scheduling aircrafts and crews to man the aircraft. In addition they train the crew. Flight crews include pilots, attendants, and sometimes in-flight security employees. Sales and Marketing employees: Are responsible for activities such as setting ticket fares, advertising ticket fares, promoting ticket sales, and improving customer service. They use computer reservation systems for sales, ticketing, and scheduling.
2.
3.
•
Staff Employees: Include specialists in legal, finance, personnel, information services, and public relations. Their function is to support the line employees to run the airline efficiently.
INFORMATION SYSTEMS FOR INFORMATION ANALYSIS IN AIRLINES INDUSTRY
An information system is a data processing system that collects, processes, edits, stores, transmits, and supplies data related to a certain area of application. Each process of the airline industry is controlled by specific information systems. These information systems include the automaton systems, the transaction processing systems, the management information systems, and the Decision Support Systems(DSS). The automation system
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Role of information analysis in enterprise framework
automates tasks that were previously performed manually. The transaction system processes and records business activities and the management information system supplies information to managers. The DSS support the implementation of strategies of an organization and it is most useful in flight operation in the airline industry. For example, a major airline generates extensive data for more than 300 daily flights. Data features details, such as the flight route, fuel costs, and weather changes. This data is necessary in terms of weather dynamics for scheduling flights. Otherwise, fights may be delayed or even cancelled. The data is also critical to make decisions on fuel volumes to be loaded according to expected weather conditions, and determine flight routes according to expected weather conditions, and determine flight routes according to expected weather conditions. To manage this data, a flight management system is required to enable efficient operation of lights. A simple process, such as handling baggage of passengers is also an information systems, called the baggage management system, it ensures that the baggage is not mishandled so that passengers are satisfied with the airlines service. In addition, new technologies such as the radio frequency identification (RFID) tags have been developed to generate baggage-tracking data. This type of data reduces the number of mishandled episodes and reduces the time to locate baggage. Airlines continually need to identify information systems and adapt new technologies, Several technologies have been developed to ensure data security, to provide enhanced services for passengers through online reservation, and to improve air-traffic controls. These information systems help airlines to have a competitive edge over rival airlines.
AIRLINES INFORMATION SYSTEMS ARCHITECTURE
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Role of information analysis in enterprise framework
Consider the scenario, Tom Wilkins is the Chief Information Officer of Imperial Technology, a wholly owned subsidiary of imperial Airlines. Tom Manages day-to-day operations of imperial Technology with the support of nearly 100 employees. To provide real-time information to the airline and to ensure convenience for passengers, Tom now wants to set up an online reservation system for the international flights Imperial Airlines. The users of this online system would be required to provide information for the mandatory fields. For reservations passengers need to enter information on route comprising names of the origin city and destination city and the date of travel the online system would also enable passengers to reconfirm tickets and reschedule travel. Evidently, the airline industry is dependent on technologies, such as mainframe computing, and information systems such as, Global Distribution systems (GDS) and departure Control Systems (DCS).
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Role of information analysis in enterprise framework
GLOBAL DISTRIBUTION SYSTEM AS A SOURCE OF INFORMATION FOR INFORMATION ANALYSIS
GDS, a reservation system, is the central repository of the details of passenger information collected when passengers book tickets and is compiled in the computerized reservation networks. This data helps to understand a passenger’s behavior and profile.
GDSs were originally developed by the airlines to enable travel agents to book and reserve tickets, but soon its services were extended to making bookings for hotels, car, and cruise, therefore, GDS connects airlines to other airlines and to the allied services, such as travel agencies, hotels, cruises, tour operator, and car rental companies.
Example: The four major reservation system or GDS that serve the airline industry are:
•
SABRE: Is considered to be the pioneer and the largest reservation system. Sabre is constantly upgrading to meet the market requirements and technology advancements. Headquartered in Southlake, texas, it connects more than 60000 travel agency locations around the would, providing information to around 400 airlines, 55000 hotel outlets, 52 car rental companies, and several transport operators. The following figure shows the products and services elements of the home page of the Sabre website, which conveys the huge extent of information transmitted into the GDS.
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Role of information analysis in enterprise framework
•
Galileo: Is a diversified global technology leader. The company is braches in 16 countries and serves travel agents spread over 44000 locatins. Others served by Galileo are 500 airlines, 227 hotel companies, 35 car rental companies, and 368 tour operators. The following figure illustrates the products and service elements of the home page of Galileo.
•
Worldspan: Provides Web-based technologies and services to its customers, it serves around 16000 travel agencies in 90 countries and connects around 400 airlines, 200 markets spread around the world.
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Role of information analysis in enterprise framework •
Amadeus: is the most recent GDS . a leading technology provider, Amadeus serves more than 57,000 travel agency locations and 10,500 airlines sales offices in 200 markets spreads around the world. It also serves around 58000 hotels and 50 car rental companies over 24000 locations.
INFORMATION ANALYSIS IN AIRLINE TICKETING
Ticketing generates revenue for the airline industry. Airlines have ticket distribution systems. Earlier airlines sold tickets only at the airports. However, post deregulation, the distribution channel veered towards the travel agents. Airlines. Pay travel agents commission based on the price and percentage of the value of tickets sold. Commissions represent the fourth largest expense after labor, fuel, and cost of aircrafts. There are various information analysis process in the process of ticketing for different purposes like maintaining passenger records, verification of tickets, ticket bookings, facilitating different modes for ticketing and generating scheduled reports. To reduce costs, many major airlines have slashed commissions and distribute tickets through an alternate and cheaper mode, that of websites. Major airlines, such as Southwest Airlines And Delta Airlines have used this strategy to their advantage.Interestingly, this has benefited passengers who now have varied modes for purchasing tickets while retaining access to travel agencies. Sometimes, airlines also sell the tickets of other airlines. This practice enables airlines to increase sales and to expand their operations to remote areas. This type of airline partnership is called code sharing.
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Role of information analysis in enterprise framework
Any one of the following modes, offered by airlines: ? Booking an Air Ticket through Airlines Counter ? Booking an Ari Ticket through Travel Agents
? Booking an Air Ticket on Websites The online booking service of Airlines industry has triggered a good response from passengers. Online booking is quick and easy to access. It has led to customer satisfaction. There has also been a rise in ticket sales with the introduction of the service. This involves the structured format of information and passenger details to be stored and produced time to time.
SCHEDULED REPORTS
The various types of scheduled reports, such as the agency reports, ticket report, and from of payment report are generated daily through orderely information analysis on a daily basis.
The agency repot is created to manage the travel agency commissions and payment of overrides, and to determine the market share of travel agencies. It comprise parameters, such as the agency name, contact details, commission paid to the agents, total number of tickets sold, total ticket fare, airline name, class of the tickets, gross fare, and selling fare.
The ticket report comprises parameters, such as the ticket number, ticket code, date and place of issue, passenger`s
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Role of information analysis in enterprise framework
name, gross fare, selling fare, and total fare. This report helps airlines to identify the fares set by travel agents and to set the appropriate fare to attract passengers.
The form of payment report helps to identify the swindled amount and the fraudulent passengers who have paid through credit cards. These reports comprise parameters, such as the ticket num the passenger`s name, the net fare, the form of payment, and the total fare of the ticket.
• Real–time and On-demand Reports
The sale of airline tickets is based on real-time information. The fewer the seats, the higher is the price of tickets. Ondemand reports are rarely generated. If at all, these reports are generated only in critical situations. For example, passengers` data may be screened to find out details, such as the itinerary, the mode of payment, and the origin city to detect a fraudulent case. These types of reports help the senior management to take certain strategic decisions.
THE INFORMATION SYSTEM IN AIRLINE TICKETING
In the airline industry, the ticket contains all the information related to a specific booking.
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Role of information analysis in enterprise framework
This types of information is valuable because it helps to analyze multiple aspects, including human behavior and security. For example, some passengers book tickets directly through Imperial Airlines, while others book tickets through travel agents of the airline. In either case, this information will be transferred to the airlines data base.
Travelling and airlines follow a simple ticketing process which includes creating and storing ticket data as illustrated in the following figure
GDS
Bank Reconciliation
XML TAIR file Airlines OLTP
Travel agent
Travel agent Counter website
Passeng er
Airlines Counter
Information system of ticketing
DATA TRANSMISSION PROCESS OF TICKETING
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Role of information analysis in enterprise framework
The passenger purchases an air ticket either through a travel agent or the airlines counter.
• When a passenger requests the travel agent for an air ticket, the travel agent updates the data to the travel agency`s server. The data is transmitted from the server to the GDS as an XML TAIR file. Next, the data is from the GDS to the airline database (OLTP), which is a maintained and used by the IT department of the airlines.
• Similarly, in the case of booking through air lines (reservation counters or on websites), the data is transmitted to the OLTP. Next, the data is transmitted to the GDS as an XML TAIR file.
An XML TAIR file is an encoded form of a ticket. The TAIR files of ticket contains fields, such as the passenger name, date and time of travel, hotel booking, car rental, and the mode of payments. Fields are randomly arranged, and each field is followed by a backslash. Each GDS generates a different TAIR file format. For example, the TAIR file of Sabre is different from that of the Worldspan TAIR file.
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Role of information analysis in enterprise framework
INFORMATION ANALYSIS: THE BASIS FOR VERIFICATION OF AN AIR TICKET
The OLTP or the airlines data base is complete after a passenger`s Id is verified and finally updated by the airport ground staff at the check-in counters. This verification also confirms that the passenger has boarded the air craft.
The following figure illustrative the verification process at the check in counter at airports.
Counter assistan rification from ce
Airlines OLTP
Passenger checks in at the counter
Ve
Airline s OLTP 76
Role of information analysis in enterprise framework
Verification of the passenger Verification at the check-in counter
Consider this scenario. John Barrett, the CEO of Imperial air line wants to strategically use the large volumes of passenger data. There fore, the company decides to set up a data warehouse. Data marts are created from the data warehouse. Specific parameters are selected from the data marts to run queries on passengers. These queries seek information according to the need of the senior management. The analyzed data helps the senior management of Imperial air lines to devise new programmes.
CONCLUSION
From this project we can learn the fact that “Information Analysis is an inevitable process in any business enterprise”. The basic step to any strategic plan, decisions, innovations, operating techniques, management styles and the execution of the core business activity depends upon effective information analysis of the data available to the organization from the different information resources. The following points summarizes the important facts studied in the project as a concluding note:
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Role of information analysis in enterprise framework
• An enterprise comprises all the establishments and the stakeholders that operate under a single entity, the organization. • The three basic components of any enterprise framework are: Process, People and Technology.
•
EIA is a high level or macro view of informationrelated components for the information analysis requirements in an organization.
• Verticals aim to represent the hierarchical dependencies that an organization experiences to carry out its business operations. • Information analysis that is carried out in existing business comprises the following elements: ? Identifying the areas of business that are impacted by the current event in question. ? Identifying the appropriate data source upon which to conduct the analysis. ? Conducting analysis on the identified data set. ? Making an effective business decision.
• Various sets of information systems exist in the enterprise to provide input and data to make an 78
Role of information analysis in enterprise framework
effective business decision through effective information analysis. • Data warehousing is a technology that is used to support and maintain data requirement data requirement for information analysis. • Business Intelligence Systems are designed to extract relevant information from large amounts of data collected by various business systems over a period of time and are used by organization to provide insights that enable the information analysis for the decision making process.
•
MIS provide information to carry out routine business functions across varied periodicity.
• ERP systems provide a variety of input to the information analysis process.
•
SCM systems in information analysis improve the way an organization locates the materials it requires to design a product or service, manufactures that product or service, and delivers it to its customers.
• CRM systems promise cost-effective delivery of customer service to enhance the competitive advantage of an organization.
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Role of information analysis in enterprise framework •
Requirements of information vary across different enterprise and on the basis of periodicity of analysis.
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doc_921290000.doc
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Role of information analysis in enterprise framework
INTRODUCTION
Information Analysis is a key constituent of effective decisions in any business unit. In the case of enterprises, the context becomes that much larger – with greater volumes of data to store, and with complex transactions to process. This Project gives an overview on the Process-People-Technology paradigm in the context of an enterprise framework. It details the need for information analysis and lists various techniques that are used in enterprises to conduct information analysis. It also provides an overview on key business processes and operations in the Transportation and Retail Banking verticals.
INTRODUCING
ENTERPRISE
FRAMEWORK.
An enterprise comprises all the establishments and stakeholders that operate under a single entity, the organization. The enterprise may be established at one or across multiple locations. This includes any subsidiary organization that the parent organization is affiliated to, and all the establishments that are directed or managed by the parent organization or by its subsidiary. An enterprise includes all the elements of the supply chain that the organization operates in, and the end customer. For example, in the case of an e-learning organization, the enterprise includes the publishers who print the course books, the organization that creates the course books, and the students who study these courses. All these combined elements form an Enterprise
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Role of information analysis in enterprise framework
Framework, which is also referred to as an Enterprise Value Chain.
The following figure illustrates an Enterprise Framework:
Supply Side
Demand Side
Supplier s
Business
Custome rs
Customer Relations hip Managem ent
Supply Chain
Managem ent
The Enterprise Framework 2
Role of information analysis in enterprise framework
Components of an Enterprise Framework.
The three basic components of any enterprise framework are:
Process People Technology
‘Process’ indicates the core and support processes that provide efficiency within and lead to effectiveness outside the organization. ‘People’ include all the key stakeholders and their set of roles and responsibilities. ‘Technology’ is largely employed as the executor and manager of the processes.
3
Role of information analysis in enterprise framework
The following figure illustrates the ‘Process-People-Technology’ Peop paradigm in the context or an enterprise framework: le
Enterprise Framework
Tech nology
Proc ess
4
Role of information analysis in enterprise framework
? Consider the example of a Retail bank that has comprehensive ATM network:
There are certain processes within the bank that outline and sequence the procedures in which these transactions are deployed. For example, when making a decision about where to set up a new ATM location, the management keeps certain factors in mind, such as:
• Whether the area is convenient for their target customers to access the machine. • Whether the location supports a good infrastructure.
• Whether the money transfer units (to replenish the cash) are located within convenient distances.
Only after considering all these factors a decision on the most optimum ATM location is made. All the people in the bank involved in the operations of the ATM, from making decisions about where the ATM is to be located to the people responsible for updating the transactions and loading cash periodically are key stakeholders. Finally, the platform and application software, used to execute the transaction, highlights the role of technology in the execution and management of these processes. Therefore, all three components need to operate in tandem, and as stand-alone entities.
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Role of information analysis in enterprise framework
The ‘Process’ Components of an Enterprise Framework.
Processes are a series of sequential tasks and activities that convert specified input into output. These inputs and outputs are necessary components of transactions. The resultant data of these transactions forms the basis for information analysis in any enterprise.Processes are created to focus on two interdependent qualities, efficiency and effectiveness. Based on their focus area, processes may be classified into two sets: • • Value-adding processes. Supporting processes.
? Value-adding processes. Value-adding processes, also known as core processes, directly generate revenue as part of the expected output. These delineate tasks and activities that constitute the core business of the organization, and as a result, are customer-facing processes. For example, in the case of an ATM, all processes that enable the end user to conduct transactions with the bank are value-adding processes.
?
Supporting Processes.
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Role of information analysis in enterprise framework
Processes that identify input and expected output, and measure the efficiency of the internal functioning of the organization, are known as ‘supporting processes.’ It is necessary to identify and outline the optimum supporting processes to ensure that an organization does well in its core business.Supporting processes are routinely monitored by process-owners for failure, in terms of their ability to manage and maintain internal efficiency. For example, leave management policies for the employees of a bank are an example of supporting processes. Examples of supporting processes can be found in the department of human resources, finance, and accounting.
?
Effective Output vs. Efficient Output.
The basic criteria that form the basis for evaluating the performance of an organization are the effectiveness and efficiency of the output of the processes of the organization. Efficiency is measured across output in general. Conversely, effectiveness is measured across only acceptable output. The effectiveness of an organization depends on whether the organization selects and performs correct processes. In contrast, the efficiency of an organization is dependent on whether the organization performs the processes correctly. The evaluation of process effectiveness and efficiency is initiated with the establishment of a performance measure. A performance measure is developed based on expected outcomes. These outcomes are evaluated against baselines, and continuously monitored to determine whether the desired outcomes are being achieved. Defining individual measures, quantified with targets and thresholds, creates the performance measurement baseline. An efficient output is one that is delivered according to the schedule and within the estimated cost. Conversely, an effective
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Role of information analysis in enterprise framework
output is one that demonstrates the expected results, and meets customer satisfaction and quality by making optimum use of all the available resources. Effectiveness is measured based on the achievement of the goals of the organization, quality of the end product, and satisfaction of the end users with the products.The efficiency of an organization can be measured in terms of the following queries: • Did the team effort complete within the stipulated time and the expected budget? • Are the billed rates in accordance with the ones planned in the annual budget? • How much of the product and service was produced? • How many person hours were used to complete the processes?
? The APQC Process Classification Framework
The American Productivity and quality Centre [APQC] provides a globally adapted process classification framework, which contains 13 business processes that can be applied in both manufacturing and service industries. The first seven processes are operating processes that companies follow to develop and move products to the market. The remaining six are supporting processes that enable the organization to operate efficiently. Each process, in turn, comprises a set of subprocesses that qualify what the process is intended to achieve. These processes are adaptable and applicable to any enterprise and give an overview into its working. The seven value-adding processes are:
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Role of information analysis in enterprise framework
1. Understand markets and customers. 2. Develop vision and strategy. 3. Design products and services. 4. Produce and deliver for manufacturing. 5. Produce and deliver for service-oriented organization. 6. Market and sell. 7. Invoice and services customers. The six supporting processes are: 1. Develop and manage human resources. 2. Manage information resources (across the organization). 3. Manage financial and physical resources. 4. Execute environmental management program. 5. Manage external relationships. 6. Manage improvement and change.
The following figure illustrates the APQC Process Classification Framework:
Products & deliver for manufacturin
Sup plie rs
Unders tand market s& custo mers
Devel op vision and strate
Desig n produ cts and Produce & deliver for services.
Mark et and sell
Invoic e& servic e custo
Cust ome rs 9
Role of information analysis in enterprise framework
Develop & Manage Human Resources
Manage Information Resources Manage Financial & Physical Resources Execute Environmental Management Program Manage External Relationship Manage Improvement and Change
The APQC Process Classification Framework
THE PEOPLE COMPONENT OF AN ENTERPRISE FRAME WORK
All the stakeholders of processes in an enterprise from those who create the process, monitor the processes, and support and
10
Role of information analysis in enterprise framework
maintain the process to the and –user of the process, are classified under the ‘people’ component of an enterprise. All these stock holders have specific roles and responsibilities within their assigned scope. Based on their role in handling the data generated by means of processes, people can be classified into: ? Stakeholders who provide the data. ? Stakeholders who support and maintain the data. ? Stakeholders who use the data. The following figure is a visual representation of the stakeholders based on their role with the data in an enterprise framework
Provide maintain
Support &
Use
? Stakeholders who provide the data
Each person who plays any role in the processes in an enterprise ultimately contributes to providing the data that will be used for information analysis. This includes recipients of the processes (customers), process owners, process executers, as well as
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Role of information analysis in enterprise framework
suppliers. Even if the process in question is manual, data that is recorded could still be used for information analysis.
? Stakeholders who support and maintain the data
All the generated data needs to be collated, stored, and updated in analysis-friendly formats. Key roles in the enterprise that are responsible for making support and maintenance provisions include:
•
MIS developer, creates, compiles, and maintains records
of all entries in the OLTP (online transaction processing) transactions in the enterprise. The developer provides the base data that is selected, extracted, and analyzed.
•
Pre-loaded: Extracts the data from the relevant source
systems, and transported it from the OLTP applications into information analysis enabled structures.
•
Loader: Cleanses the extraneous fields, transforms the
data to suit the file structure in the IA-enabled application and loads the data into the new structure. As a part of the data transformation process, inconsistent data present in different format is transformed into a common format, and tables and other database objects are prepared, before finally being loaded onto the new structure. All these are the functions of the loader.
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Role of information analysis in enterprise framework
•
Data Warehouse manager: creates the actual design
of the data warehouse that includes tasks, such as data modeling, designing the schemas, and involving the fact tables. In addition, the DWM monitors operations and periodically checks the state of the data in the data warehouse. The DWM also provides access rights to MIS specialists who need to be run a query on the warehouse. Further, DWM has an axis to reports that are generated listing the particular fields that were accessed.
•
MIS Specialist: Presents and publishes data in response
to a question from the senior management. To do this, the MIS specialist prepares cubes to cull data from the data warehouse, creates fact and dimension tables from the data warehouse into data marts, identifies the type of storage architecture, such as ROLAP or MOLAP, and runs the final query onto the data mart.
The MIS specialist participates in the tactical decision for the benefit of the enterprise. For e.g., if the senior management has created a hypothesis to arrive at the management decision, the MIS specialist is required to validate this hypothesis with the relevant data and the appropriate query information.
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Role of information analysis in enterprise framework
? Stakeholders who use the data
The data that is complied, collated and stored is then made available for analysis to the following decision makers in the enterprise:
•
Senior Management includes the chief executive officer
(CEO) the chief operation officer (COO), the chief information officer (CIO) and the chief finance officer (CFO). The CEO and COO together work towards the identification of business change opportunities and associated risks. A CFO identifies the financial risk associated with the enterprise, which includes a returns-on-investment (ROI) analysis for business process integration (BPI) strategies. A CIO provides solutions for BPI. Additionally, CFO and CIO analyze a market and competitive environment, define the strategic goals for the enterprise and explore how to change help enterprise succeed.
•
All process owners: Includes owner of the value-adding
and supporting processes. A processes owner executes a particular process and works towards the health of the
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Role of information analysis in enterprise framework
process. An organization does not have a specific role defined for a process owner. A person who is accountable for the activities involved in the process is the process owner of that process.
•
Enterprise engineer: Identifies and integrates the
appropriate ways to improve and enterprise.
THE TECHNOLOGY COMPONENT OF AN ENTERPRISE FRAME WORK
Technology is largely viewed as the enabler, executer, and manager of enterprise-wide processes and as a means to store, transfer, and process data. Therefore, an enterprise needs to have a clear and consistent architectural framework to incorporate the entire business process requirement. Enterprise information architecture is a high level or macro view of information organization. related It component an for all requirements understanding in of an an conveys overall
component, and explains hoe this components relate to each other. An EIA aligns processes with information technology to create or preserve interoperability. This serves as the basis for involving into an integrated enterprise. In the context of
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Role of information analysis in enterprise framework
technology, the enabling information infrastructure elements of an enterprise can be functionally divided into sub elements for assessment and planning. The three sub elements and their shared enablers and tools are:
•
Networking and computer systems: Consists of the
physical network and computing hardware infrastructure of an enterprise, and all the activities associated with operating this infrastructure. The scope includes the tools and protocols to send, receive, protect, and store enterprise data and systems, and network management mechanisms. It does not include the equipment attached to the network but provides the communication infrastructure upon which the equipment and process operate.
•
Common information services: Consist of the basic
building blocks activities associated with data or information’s, such as tasks to store, protect, access, transfer, search, and locate data both within the enterprise, and to or from the enterprise and external sources. This service also includes database management systems, and information filtering and analysis tools.
16
Role of information analysis in enterprise framework •
Knowledge repositories: Consist of all science based
and experience based information needed to support the enterprise in all its functions. This information is extracted from internal and external sources. The repositories include common data dictionaries, business process models, and other metadata needed to run businesses.
There are some shared enablers and tools for the three sub elements of the enabling Information infrastructure. These are higher-level generic IT tools that can be applied and combined with domain knowledge to build application that support the enterprise functions. These tools include electronic mail, decisions support tools, workflow management engines, software development and maintenance tools, mechanisms to integrate legacy applications, and training development tools. These tools do not include the domain-specific applications, but provide the frame work to build such applications. for e.g., , when multiple members of a team work on a document, there is a risk of replication or duplication of copies of the document, which may lead to wrong versions of the document getting updated. Version-control software is the solution to such problems. It allows multiple users to make changes in the sane comments indicate the nature of the changes made, along with the person’s identification. The software also allows for allocation of access rights according to the users stake in the document.
17
Role of information analysis in enterprise framework
In addition to business process needs, technology components are also incorporated based on end-user requirement. Based on end-user requirements, technology components in an enterprise can be classified into: ? Technology components for providing data. ? Technology component for supporting and maintaining data. ? Technology components for using data. The following by illustrates an EIA from the perspective of technology and end users:
?
TECHNOLOGY COMPONENTS FOR PROVIDING DATA
Certain technology components enable the transferring and storing of all the data generated during transaction. All the
18
Role of information analysis in enterprise framework
stakeholders that provide data use these technologic to make the data available. There are numerous sources that provide data, such as:
•
Transaction processing system (TPS): Handle
small or large volumes of transactions. The focus of TPS is to increase the efficiency of the operations by automating the business process.
•
Enterprise resource planning (ERP): automate
business function and offer an integrated data solution across an organization’s infrastructure. These are configurable information systems that integrate information and information-based processes within and across the functional areas in an organization.
•
Supply chain management (SCM): improve the
manner in which an organization sources raw components it requires to make a product or service, manufacture the product or service, and deliver it to customers. SCM software helps improve the flow and efficiency of the supply chain and reduce inventory.
•
Customer relationship management (CRM):
provide an integrated solution to plan, schedule, and control presales and post-sales activities in an organization. The objective of CRM is to enable a customer to access an organization and its services with ease.CRM utilizes the data collected during customer interactions to record demographics and determine future needs of customers.
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Role of information analysis in enterprise framework
? TECHNOLOGY COMPONENTS FOR SUPPORTING AND MAINTAINING DATA
Certain technology components exist in the enterprise expressly to preserve, maintain, and store the data in analysis-friendly formats. Update on the data is also part of the supporting and maintaining purview of these technology components. These technology components are:
•
Data Warehouse: gather and store data from numerous
internal and external sources in a single database for the purpose of analysis. The consistency of file structure and the vast repository of data that it contains enable information analysis to take place.
•
Network security layers: prevent unauthorized
modification, destruction, or disclosure of the stored data. In addition, network security layers provide data integrity assurance that the network performs its critical functions correctly.
20
Role of information analysis in enterprise framework •
Front-end interface design tools: Customize
screens and datasets to suit multiple types and levels of users. By means of this, only relevant data meeting the objective of the user are displayed.
? TECHNOLOGY COMPONENTS FOR USING DATA
End-users that use data include the senior management, process owners and enterprise engineers. Typically, the primary intention for using the data is information analysis for decision-making purposes. To this end, technology components available to these stakeholders include:
•
Decision Support Systems (DSS): Use sophisticated
modeling and analysis tools to represent the data. This enables the management to take informed decisions. DSS may have inbuilt tools, such as spreadsheets and simulation tools that help analyze and model the data for the user. Using these tools the user can perform analyses such as ‘what-if ’and ‘regression’.
21
Role of information analysis in enterprise framework •
Business Intelligence (BI): Are designed to extract
relevant information from extensive data collected by various business systems over time. BI Systems are used by organization to provide insights that enable the decisionmaking process. As a result, these are sometimes considered to be a subset of decision support systems.
•
Enterprise Information System (EIS): Are an
advanced form of DSS, where the output focuses on the information that the senior management requires on key factors that affect their business area. While the middle management takes transactional decisions, the senior management is required to take strategic decisions. As EIS need to cater to strategic decisions, they can be tailored to suit an executive’s decisions-making style.
•
Management Information Systems (MIS): Provide
information to carry out routine business functions across varied periodicity. The information provided can be both past and present, and in the form of weekly, monthly, or quarterly reports.
•
Data marts: Are a customized, smaller version of a Data
Warehouse. Data marts focus on the customization needs of a particular department and the end users. These provide input to the DSS.
The following figure illustrates the technology components in an enterprise
Business Intellige nce
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Role of information analysis in enterprise framework
Data mart s
OS 1
Data wareho use
OS 2
ETL process
OLTP 1
OLTP 2
Back up OLTP 1
Back up OLTP 2
Technology components in an Enterprise CLASSIFYING ENTERPRISE BUSINESS PROCESSES IN VERTICALS 23
Role of information analysis in enterprise framework
From the business-focus perspective, enterprises are classified as verticals. This classification aims to represent the hierarchical dependencies that an organization experiences to carry out its business operations. In addition, the classification indicates the specific domain to which the organization aligns its value-adding processes. A vertical combines the scale and magnitude of the enterprise operations with domain expertise. Some examples of verticals include transportation, retail banking, insurance, and retail.
• An Overview of the Transportation Vertical
Based on means of passage, the transportation vertical is classified into four components: roadways, railways, airlines, and shipping. These components are further sub-classified on the basis of their load. This could be either freight or passenger. Each component has certain common and some unique business processes and operations. For example, the process of route selection may be common across the components, while the Frequent Flyer Program is a process unique only to Passenger Airlines. Along with internal factors, the ratio that the government and external policies play in influencing decisions also determines the level of information analysis that needs to be conducted.
• An Overview of the Retail Banking Vertical 24
Role of information analysis in enterprise framework
Based on nature of business, the retail banking vertical is classified into two components, credit and deposits. The credit component includes facilities such as credit cards and loans including personal, home, or car loans. The rate of interest that the bank charges its customers determines its level of profit. The deposits component includes bank accounts such as savings, current, or DMAT, deposits such as fixed or recurring, and allied features such as ATM usage and debit cards. Information analysis in the retail banking vertical is required to create policies for existing and potential Account holders in t he bank, and t o create schemes for credit card users. In the case of fixed deposits, the policies are determined largely by regulations formulated by the governing body.
• An overview of the Insurance Vertical
The business of insurance can be defined as a mutually agreed upon legal document that provides compensation, usually in the form of money, for specified losses in exchange of a periodic payment. An individual contract is referred to as a insurance policy, and the periodic payment is known as an insurance premium. The major types of insurance policies include: • Life Insurance: Assigns a specific sum of money to a designated beneficiary in the event of the death of the poli8cy holder, or to the policy holder after a certain age.
• Health Insurance: Compensates the expenses incurred as a result of the illness of the policy holder or the designated beneficiaries in the policy.
25
Role of information analysis in enterprise framework
• Liability Insurance: Provides insurance against any valued property, such as automobiles, property, jewelry, or even against professional mishaps or natural calamities. The insurance vertical is a largely organized sector with a vast network of agents that sell insurance policies. Information analysis in the insurance vertical is required largely to analyze and create customer profiles to target sales and marketing activities, and to create new schemes and policies to meet changing customer tastes and trends. Another key purpose for which information analysis is required and utilized is ‘risk management’.
• An Overview of the Retail Vertical
Retail is defined as the process of selling directly to a consumer, as opposed to going through various channels to reach the consumer. The key Information Systems t hat ensure that retail processes are executed with ease include, Supply Chain Management Systems, Customer Relationship Management Systems, Store Systems, Point-of-sale Systems, Merchandise Management Systems, Warehouse Management Systems, Decision Support Systems, Finance Management Systems, and Human Resource Systems. Information analysis in the retail vertical is largely conducted to identify the growth areas and challenges to the various aspects related to vendor management and customer relationship management.
26
Role of information analysis in enterprise framework
INFORMATION ANALYSIS REQUIREMENTS IN VERTICALS
Due to the sheer volume and magnitude of data that needs to be analyzed, comprehensive information analysis takes place only in certain key operational areas in all verticals. These key operational areas are a apart of the direct business impacting processes. This is because effective business decisions need to be taken for a successful venture.
OBJECTIVES FOR INFORMATION ANALYSIS IN BUSINESS/ ENTERPRISE FRAMEWORK:
The components of a business enterprise, namely people, process and technologies, work together to enable a business enterprise to perform its activities smoothly. But all the three components are greatly influenced by the various internal and external information factors that have a bearing on the operation of a business unit or firm. Therefore the information analysis objectives vary according to the identified information variable in the enterprise. Generally there are two types of objectives for information analysis in an enterprise framework. These objectives are classified into two groups namely- internal objectives and external objectives The following figure enlists the internal and external objectives of information analysis in an enterprise framework. Objectives of information Analysis
External objectives To be update with global economy & market
Internal objectives
To achieve organizational goals
To follow government regulations
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Role of information analysis in enterprise framework
To overcome competitors
For customer relationship management
To maintain financial health of the firm
To manage Assets & Liabilities To maintain Goodwill
To adapt to seasonal trends.
To be update with technical changes & product transitions
To manage inventory THE NEED FOR ENTERPRISE INFORMATION For effective logistical operations ANALYSIS
Effective business decisions in an enterprise are the prime reason that information analysis is conducted. The more accurate the decision, the better the impact on the business. Enterprise business decisions primarily have two objectives. These are to: • Retain existing customers. • Expand customer base. In turn, for these business objectives to be met, internal processes in the organization need to be efficient. All these objectives depend on effective information analysis for successful outcomes. Effective information analysis is a necessity to enable effective business decision, validate plans, and hypotheses for future expansion, and use the data to monitor internal processes in an enterprise. For example, a retail bank needs to make decisions about its ATM network. This may include decisions about: • The status of current ATMs that may need to relocate or discontinue operations.
28
Role of information analysis in enterprise framework
• The projected success if new ATMs were to be set up in identified locations. • The reduction of processing time of requests for money. While the first decision pertains to the existing set up of the business, the second one deals with unexplored opportunity—and therefore, expansion, and finally, the third decision is based on internal process monitoring and desired outcomes. All decisions require some form of information analysis for effective decisionmaking. A basic prerequisite for this level of decision making to take place is a charted out EIA.
THE ROLE OF EIA IN EFFECTIVE INFORMATION ANALYSIS
Effective information analysis is enabled by the presence of certain essential technology components that help provide, support, and maintain data that is generated by means of transactions. Given the scale of the enterprise framework, these components are sub classified on the basis of utility. The major components or sub architectures in an EIA can be enumerated as follows: • Data architecture: Describes the entities of which the organization keeps data. • Application architecture: Describes the business processes that the organization performs.
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Role of information analysis in enterprise framework
• Network architecture: Describes the different geographical locations in which the organization performs different activities.
? COMPONENTS OF AN EIA The purpose of an EIA is to ensure that everyone related to the operations, both within and outside the enterprise, have a common understanding of organizational activities. The EIA helps ensure that databases, systems, networks, and infrastructure perform their functions. In its early stages of development, the EIA contains information about the following factors: ? The current or planned organizational structure ? The goals of the organization ? The business functions that must be carried out to archive the goals ? The types of information the organization needs to perform its functions As it is being developed, the EIA should contain the following additional information : ? The specific processes needed to carry out the functions. ? The geographic locations in which these processes are performed and the business units that perform them. ? The types of information required by the organization to run its processes, the nature of the interaction between the processes, and the data about the entities. ? The relationships that be entities have with each other, including the business rules that govern these relationship.
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Role of information analysis in enterprise framework
The following figure illustrates the components of EIA:
? ?
Business goals
Organization units
Information subjects
Business functions
? ? Business entities Business process
Business location
? ? ? Database
Application systems
Network structure
Components of Enterprise information Architecture 31
Role of information analysis in enterprise framework
INFORMATION SYSTEMS FOR ENABLING INFORMATION ANALYSIS IN ENTERPRISES
Information analysis requirements may vary according to the objective of the analysis. Various sets of Information Systems exist in the enterprise. These Provide input and data in order to analyze information for making effective business decisions. These information Systems include:
?
Decision Support Systems: Data Warehousing, business Intelligence Systems Management Information Systems: Enterprise Resource Planning Business Management Systems: CRM and SCM
?
?
Further, there exist certain tools and techniques to aid the process of information analysis Primary among these tools are reports generated at various levels by different systems. Such report s are usually classified by their demand that is further determined by the periodicity of requirement. Reports may be classified as: scheduled, real-time, on demand and exception.
For example the area operations manager at the bank prepares a weekly report of monetary transactions that have taken place in the week (scheduled) this report consists of an appendix report that includes records of each transaction made in the ATMs, while they occur (real-time). Sometimes, the branch head makes a request for the transaction report of a particular day in addition to the weekly report (on demand).
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Role of information analysis in enterprise framework
Investigation of customer complaints are recorded in a separate report (exception). Each type of report mentioned in this scenario is required at a different time and serves a specific role in the information analysis process.
THE ROLE OF INFORMATION ANALYSIS IN BUSINESS STAGES
•
The role of information analysis in existing business
Retaining existing customers being the primary objective, decisions made regarding the existing business setup assume top priority. Decisions are the results of an event or a chain of events that lead the management to conduct some form of information analysis to make appropriate decisions. The information analysis that is carried out includes the activities to:
1.
Identify the areas of business that are impacted by the current event in question .
2. Identify the appropriate data source upon which to conduct the analysis. 3. Conduct the analysis on the identified data set. 4. Make an effective decisions. For example, in the case of vendor management in the existing set up , the fact that the actual quality does not conform to the expected quality may be the trigger- event for the organization to make an appropriate decision to meet the desired level of quality.
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Role of information analysis in enterprise framework
The areas of business that are impacted include the actual product that forms the core business of the organization, in addition to all dependents of that product in the entire supply chain. The data source for this would be the SCM. Based on the facts gathered and the data analyses, the management may choose to replace the existing vendors with a new set or set up a comprehensive training program about requirements. In some cases, the trigger event may arise from a routine examination of the business management units. For example, a monthly sales review of a particular region may indicate a consistent drop in sales. In this case, there is direct adverse impact on the revenue of the organization. This may lead to information being sourced from CRM and the analysis conducted.
•
The Role of information analysis in expanding business
To expand a business is a long-term goal for any enterprise. For this to take place, the senior management creates hypotheses, which examines the plausible areas of expansion to venture into, and requires information analysis in the form of validating the same. The data for these scenarios does not exist, because these have never taken place before. However, data backing trends on similar lines, if available, may be used to validate these. For example, the management at an export house that has regular business with Japan may create a hypothesis to expend their reach to include Korea. The rationale for the decision being, both nations are similar in terms of both business and culture.
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Role of information analysis in enterprise framework
This hypothesis may be validated with data regarding sales transactions with Japan. Often, the decision to expand business is also often, the result of an examination of some trends observed by the management, witch then conducts an analysis to validate whether those trends hold true or not. For example, a trend analysis conducted on all vendors providing products and services the organization may reveal a start-to-finish drop out rate. This may lead the management to conduct information analysis to:
a. Determine the time period of the persisting trend.
b. Create alternate long-term solutions to prevent any problem (if existing) from recurring or to increase the scope of the current trend.
In this case, the management may choose to recruit new vendors from remote locations review the work of the existing vendors currently located in the same geographic area. This will save infrastructure costs and also allow for a winder range of candidates thereby, increase the probability of getting the required level of quality.
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Role of information analysis in enterprise framework
The ability to forecast trends and create hypotheses is a result of the experience that the senior management has. Information Systems cannot create these trends and hypotheses, but can only validate them for efficacy. The expansion of the business of an organization is dependent on a combination of all these factors.
THE ROLE OF INFORMATION ANALYSIS IN OPTIMIZING THE EFFICACY OF INTERNAL OPERATIONS
A basic prerequisite for the continual effectiveness of an organization’s business is that its internal process must continue to remain efficient. Just as information analysis provides vital support to make decisions regarding the effectiveness of business, it is also used to monitor and optimize the efficacy of the internal operations.
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Role of information analysis in enterprise framework
For example, a new technology that pertains to the business of the organization may have emerged in the market. However, a shift to his new technology would entail huge costs in situation where the management needs to make a decision whether to adapt the new technology or to continue with existing one. In such a situation, the ERP and the MIS of the organization would be the potential data sources for the purpose of information analyses. The various costs that needs to be taken into consideration include.
• Cost of conformance
The Cost of Conformance (COC) is a component of the Cost of Quality for a work product. Expenditures include the expenses incurred to perform quality assurance activities, such as the tasks to determine and send standards, provide training, and established and monitor processes. Further, expenditures include the costs incurred due to quality control activities such as reviews, audits, and testing. The COC of an organization indicates the investments the organization makes to ensure the quality of its products.
• Cost of Non-Conformance
The Cost of Nonconformance (CONC) is the element of the Cost of Quality that indicates the costs incurred by an organization for its inability to deliver a good quality product.
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Role of information analysis in enterprise framework
The CONC can be grouped into costs due to in-process costs such as quality failures, particularly the cost of rework, and postdelivery costs including further rework, recreation of lost work for products used internally, possible loss of business, possible legal redress, and other potential costs.
• Cost of Quality
The cost of Quality (COQ) is the cost incurred in the prevention and detection of processes. All Types of organization have to contend with costs due to poor quality, whether it is an assembly line defect or a malfunctioning machine. COQ comprises the cost incurred when the product or service is not delivered as expected (CONC) and the expenditures made to ensure the quality of the (COC). In many organization, the COQ may be as high as percent of the earnings of the organization.
• Cost of Poor Quality
The expenditure made to fill the gap between the desired output and actual output is included in the Cost of Poor Quality (COPQ). Costs due to lost opportunity, such as the loss of resources used in rectifying the defect are also included in COPQ. However, the COPQ does not include detection and prevention costs. External players, such as suppliers can also add to the costs by producing defective material and damaging material during delivery. The COPQ mainly includes the costs of labor to fix a problem, the additional input used, and the extra utilities.
• Cost of Lost Opportunity
The Cost of lost Opportunity (COLO) is incurred because of opportunity losses, such as the loss of sales and revenue or profit
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Role of information analysis in enterprise framework
margin, potential loss of market share, and lower service level to customers. In order to prevent incurring these costs and to maintain internal efficiency, designated process owners within be organization routinely moniter processesa. In the case of a process not meeting the required objective, it may either be modified or reengineered. This is achived on the basis of circumstances, and by keeping other factors, such as impact on thar processes, costs of modifying or reengineering into consideration. Two such techniques that enable an organization to monitor and review existing processe are: ? Continual process Improvement (CPI)
?
Business Process Reengineering (BPR)
The CPI model attempts to understand and measure the current process and make performance improvements accordingly. It works in the following stages: 1. Document the process as it is.
2.
Establish a way to measure the process based on the customer’s requirements.
3. Follow the existing process
4.
Measure the result of the action implemented.
5. Identify the improvement opportunities based on the data collected 6. Implement the process improvements , and measure the performance of the process
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Role of information analysis in enterprise framework
As the loop is repetitive, it is called continuous process improvement .This model is also known as Business Process Improvement or Functional Process Improvement BPR is the process of making modifications to existing organizational processes. It is a process – analysis technique that is implemented to remove obsolete business processes, and then reorganize the remaining processes into an effective flow.
There are certain questions, which need to be considered before the business is altered: ? What outlook do customers want for the business?
? ?
What outlook do other employers want for the business? What are the business practices followed by the best-in-class companies?
? How to employ new technology to the benefit of the business?
The Decision to implement either the CPI or BPR model depends upon the scope, magnitude and impact of resulting changes on the business keeping the organizational goals in mind. Several external factors also come into consideration while making the choice. For example process may require to be reengineered as a direct result of a new technology emerging in the market.
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Role of information analysis in enterprise framework
INFORMATION ANALYSIS: THE BASIS OF DECISION SUPPORT SYSTEMS
DDS are defined as interactive applications that use large volumes of data in information analysis enabled formats. DSS application offer various models that include formulae, forecasting routines, and optimization techniques specifically to support strategic decision- making in an organization.
The Decision making process.
Three phases mark any decision- making process. These are: 1. Intelligence phase-consists of identifying problems or recognizing triggers to a potential problem in the environment, which requires some decision to be made. No other phase of the decision- making process can begin with out this being identified.
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Role of information analysis in enterprise framework
2. Design phase- consists of inventing, developing and analyzing possible courses of action to solve the identified problem.
3.
Choice phase- consists of making a selection based on a number of alternate solutions that are generated. The final decision is made based on certain considerations usually dependent on circumstances.
The following figure illustrates a typical decision making processDecision maker Predictor system
Inpu t data
Filteri ng syste
Decisi on constr aints
Outpu t inform ation
Take decisi on
Imple ment plan
Feedback
A typical decision making process 42
Role of information analysis in enterprise framework
The following system and technology provide support to each phase in the decision-making process:
1.
Intelligence phase: support for this phase includes a comprehensive databases in turn contains data from three distinct sources ? Internal: includes the data stood from the various OLTP systems in the organization. Manual data stored in the form of vouchers, ledgers and registers is also included. ? Competitive: includes the data that pertains to competitors in the same market segment offering similar product and services. This is usually obtained by means of published reports or by conducting market research. ? Societal: includes the data about the social, legal, and economic environment in which the organization operates. This is generally obtained by means of published information or on specific request.
All this information is gathered and collated from disparate sources and is also stored in such a manner. To conduct effective information analysis, all this data needs to be stored in a common format and location.
TECHNIQUES OF INFORMATION ANALYSIS
? DATA WAREHOUSING AS A TECHNIQUE IN INFORMATION ANALYSIS 43
Role of information analysis in enterprise framework
Data warehousing is a technique that is used to support and maintain the data require information analysis. The entire process of gathering data from numerous internal and external sources, storing it in a single database for the purpose of analyzing, and help managers make better business decisions is known as data warehousing.
The following activities are performed for creating a data warehouse: ? Data validation: validation errors and inconsistencies occur if data is extracted heterogeneous sources. Data is validated at the source-database level before addicting it to the warehouse.
? Data preparation: before data is loaded into a data warehouse, table and from the database objects needed for supporting data extraction, cleansing, and transformation operations are prepared. It is then extracted from the source OLTP systems.
? Data cleansing and transformation: once the data has been extracted from the OLTP system, it undergoes cleansing and transformation. Inconsistent data that is present in different formats is transformed into a commend format before storing as an the data warehouse.
? Data loading: data is now ready to be loaded in the data warehouse.
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Role of information analysis in enterprise framework
? The tables created specially and populated with this data. These activities are collectively called the ETL process (Extraction, transformation and loading).
The following figure illustrates the described process of data warehousing as information analysis technique:
Sales
E T L
Enterpris e data Warehou se
Sale s
Repo rts
Finan ce
Finan ce
Repo rts
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Role of information analysis in enterprise framework
The process of data warehousing as an information analysis technique
For example the senior management in a garment manufacturing organization may be concerned about the stock falling short of the amount required for supply during peak season. As a result they may want to make a decision about inventory levels. The senior management frame a question-“how much stock should I requisition to be able to meet the projected supply during peak season?” this question is posed to the econometrist who needs to provide an appropriate response. The econometrist identifies and selects the various parameters that are required to best respond to the question. The econometrist then passes these parameters to the MIS developer who forms a query based on these parameters and creates a cube with the specified dimensions. The MIS specialist then extracts a data mart from the data warehouse, upon which the query is to be run. Finally, the query is run and the results are obtained. These results are published for the econometrist to analyze and to present a suitable set of alternatives for the senior management to opt from.
1.
Design phase: support for this phase includes
interactive features that enable the decision-marker to alter parameters and thereby, vary the weightage of each. This allows for the generating ofa variety of possible scenarios and solutios, the choice of which ultimately resta with the decision- maker.
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Role of information analysis in enterprise framework
2.
Choice phase- support for this phase includes
optimization models and suggestion models that can be used to prioritize and rank the possible solutions. Decision- choice procedures are then applied to make the final selection of the most optimum solution that will eventually be incorporated in the decision. Business intelligence (BI) systems use sets of tools, such as data models, meta-data and analytical application to arrive at the final choice. The final decision is based on the choice.
? BUSINESS INTELLIGENCE SYSTEM AS A TECHNIQUE IN INFORMATION ANALYSIS
BI system is designed to extract relevant information from large volumes of data collected by various business system over a period of time. This data is used by organizations to provide insights that enable the decision- making process.
While BI system are also used to store large volumes of data, these are primarily used to enable the management predict the future impact of current decision. Additionally, BI combiner’s related data disciplines, such as data mining, statistical analysis, forecasting, reporting and
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Role of information analysis in enterprise framework
querying, OLAP, and data visualization. Using the data stored in data warehouses and a combination of these tools BI system enables the information analysis process.
BI system offers a wide rage of low- end to high-end offerings, all of which facilitate the information analysis process for the users. For the front- end used, a used reporting and querying interface, typically a browserbased model is created. A high-end database platform is available to the support and maintenance provider. BI system support could be availed internally or it could be outsourced. Using external BI system to perform an information analysis on internal data is usually the recourse for organization that does not have a full strength IT staff, and would like to get results with in a short duration. Organization also widely uses both MIS and DSS to make vital decision. Therefore, it is important to realize the role of each in the decision- making process.
?
MANAGEMENT INFORMATION SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
As depicted in the preceding table. MIS provide information to carry out routine business Functions across varied periodicity. The information provided can be both past and present, and in the form of weekly , monthly , or quarterly reports .
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Role of information analysis in enterprise framework
MIS reports are segregated on a functional basis, and based on the functional focus of the information analysis , serve as input to the process . A good MIS enables the management to become more efficient and improve the tracking and monitoring of the functional targets
MIS provide managers with an insight into regular operations of an organization by aiding them with plans to organize and control work efficiently. This helps the organization provide accurate and timely information to the concerned decision – maker and therefore , achieve organizational targets , They further improve the tracking and monitoring of functional targets .Managers also use this information to provide periodic feedback to the team.
For example, during the annual employee appraisal , the area operations manager may want to examine a varied set of reports to evaluate the branch head’s all-round performance . The sources that may provide information and reports to this end may include the HR MIS, the sales and Marketing MIS, and the Operations MIS, The reports from all these sources will serves as input to the overall evaluation , and help in providing feedback to specific areas of development . MIS supports employees at all levels of management in an organization. At the top level , managers have a higher degree of decision –making authority as they plan at the strategic level and make decision that have a direct impact on corporate direction and goals . The middle management is responsible for tactical planning and associated decisions . They need to ensure that decision are based on verified facts and that these decisions are made in correct context .
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Role of information analysis in enterprise framework
The operational management in responsible for operational planning and control . Their key objective is to ensure that operations are planned , monitored and that decisions are made to control the operations to meet the goals .
The non- management employees use Information System to provide accurate information to respond to any queries .
The IT department of the organization maintains and oversees operations and transactions that take place on various MIS . It is also responsible for the frequency of updates that are required across the MIS . The output from MIS is sometimes used as input for other Information Systems. Enterprise Resource Planning (ERP) systems are one such system , in which the information from the MIS provide input to the ERP and vice-versa.
? ENTERPRISE RESOURCE PLANNING SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
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Role of information analysis in enterprise framework
Another key Information System that serves as an integrating platform across the enterprise is the Enterprise resource Planning (ERP) System. ERP aims to integrate all functions and business in the enterprise into a single database system. Each functional or business unit can share their individual information on this system , and communicate across departments , accordingly . This has led to rise in the levels of accountability and in information sharing across departments because there in one common source and database of organizational information. Enterprise – wide commonality being the terminal objective , ERP systems provide various input to the information analysis process . To this end , ERP performs the following tasks .
?
Intergrating financial information across an enterprise : Signifies that the various departments that are sources of vital financial information have a consistent figure to quote and to work on . For example , in the case of revenue figures, by means of and ERP system , the sales departments and the various business units would be in tandem and be working with the knowledge of a common figure . This is enabled as a results of the information shared by both units. Intergrating customer order information : Signifies that a customer places an order , to the point that the products reaches its end – destination , a single information system ,
?
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Role of information analysis in enterprise framework
the ERP , traces its progress and status , as opposed to a multitude of information systems performing the same function in parts.
?
Standardizing processes and automating functions: Signifies that various departments can use a standardized set of procedures to execute a process . This mitigates or negates the occurrence of a multitude of processes to achieve the same objective .This also enables the automation or the identification of the possibility of automation of certain processes.
?
Performing inventory control : Reduces the number of inventories , especially the work in progress inventory that needs to be assessed periodically . It is also drastically reduces the chances of discrepancies and leakages that may occur along the way of creation of the product .While SCM software is more focused towards this end , ERP also plays a role in this activity
?
Communicating standardized HR information: HR Departments in enterprises are responsible for information dissemination to a multitude of locations and business units . To maintain a consistency and accuracy of operations , ERP helps gather information regarding employees’ productivity and time utilization , and communicate benefits and other programs .
Due to the level and magnitude of shared information , frequent updates to the system are difficult. Thus , organizations assign a specific periodicity to the business units to update their information onto the ERP system.
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Role of information analysis in enterprise framework
In some cases of analysis ,data is required from external sources, such as customers suppliers , competitors, and stockholders . This data is not available by means of any internal information system . Companies usually have extranet links that connect them to these sources and permit the exchange of data and information. CRM systems and SCM system are two system that provide this required data to a certain extent .
?BUSINESS MANAGEMENT SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS
Technological advancement in all avenues of business in compelling organizations to constantly build and apply new customer service facilities . However , new technologies are inevitably steeped in complexities . Overcoming these constraints requires an understanding of customer behavior across various channels , and a acquiring of new insights into means to provide cost effective delivery of customer service . To this end , organizations today are focusing on innovative business models that will enable them to achieve sustainable long term success . The two business objectives for this level of success are to : ? Improve the efficiency of operations ? Meet customer needs The first objective entails a number of key factors, such as the need to reduce the development cycle time, improve the product quality , and reduce the production costs to remain competitive in the market However , success depends on collaboration and interdependencies among different organizations . Organizations are increasingly inclined towards attaining high value – adding manufacturing positions to survive in the global market. This necessities the establishment and maintenance of efficient
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Role of information analysis in enterprise framework
materials flows along product supply chains. SCM system improves the way an organization locates the materials it requires to design a product or service, manufactures that product or service, and delivers it to its customers The second objective is met by adapting a customer-centric model that will enable the organization to develop more meaningful and interactive relationships with their customers , indentify products that are suited to there tastes an thereby , gain a competitive advantage .
?
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS AS A TECHNIQUE IN INFORMATION ANALYSIS.
Organizations are focusing more in improving their efficiency and lowering the cost of customer service while retaining profitability . This means identify the secrets of good customer conversations , identify the potential customers , and articulating the steps necessary to transform customer care into a model. CRM systems promise cost- effective delivery of customer service to enhance the competitive advantage of an organization The CRM model has the goal of building an integrated relationship by linking together all the front-office operations that involve customer care representative at a call center. In addition, customer – facing operations such as sales , marketing , call centres and online support also needs to become organizationally integrated
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Role of information analysis in enterprise framework
A few CRM strategies routinely adapted by organizations for enhancing customer relationships include: ? CRM blueprint : Enables customers to identify CRM business capabilities and gaps related to the existing processes. It aim is to : • Identify potential customers , processes, and application architectures • Prepare an implementation blueprint. ? CRM value-addition : Allows customers to define and build agreement on how CRM could create value for the organization. It enables the organization to identify initiatives that add value and weed out other initiatives. ? CRM transformation program : Allows customers to implement the desired CRM model through processes, technology , and exchange programs driven by business imperative such as customer retention.
? SUPPLY CHAIN MANAGEMENT SYSTEM AS A TECHNIQUE IN INFORMATION ANALYSIS
The field of SCM has become tremendously important to organizations in the competitive global market. The term supply chain refers to the entire network of organizations that work together to design , produce , deliver and service products .
55
Role of information analysis in enterprise framework
In the past, organizations focused primarily on manufacturing and quality improvements within. Now, organization focuses their efforts beyond quality improvement to encompass the entire supply chain. The opportunities that through collaboration lead to considerable change in the way organizations interact with there supply chain partners. The five basic components of SCM are:
•
Planning: this is a strategic component of SCM. Organizations need to develop a strategy to manage all the resources that go towards meeting rising customer requirements for products or services. Planning also includes a set of metrics to monitor the supply chain so that it is efficient, costs low, and delivers high quality and valueadded products or services to customers. Procurement: it is important to select the right individuals or firms as suppliers that would deliver error-free goods and services that an organization requires to create the product or the service . Organizations also need to develop a rate list and delivery and payment processes with suppliers as well as create metrics to monitor and improve these relationships. This also requires managing the inventory of goods and services received from suppliers, including receiving shipments, validating the contents, transferring them to the manufacturing units, and approving supplier payments. Production: this is a part of manufacturing. It is important to schedule the activities necessary for production, testing,
•
•
56
Role of information analysis in enterprise framework
packaging and preparation for delivery. Being a metricintensive exercise, production involves measuring quality levels, production output, and worker productivity.
•
Delivery: this is also referred to as logistics and necessitates coordinating the receipt of orders from customers, developing a network of warehouses, arranging carriers to deliver products, and setting up an invoice system to receive payments. Return: this is the most critical part of the supply chain. Organizations need to create a network to accept defective and excess products back from customers or distributors, and for supporting customers with grievances.
•
SCM is the transfer of products, information , and finances as they move sequentially in a process from the supplier, manufacturer, wholesaler, retailer, and customer. It involves coordinating and integrating these flows within and among organizations. The ultimate goal of any effective SCM system is to reduce inventory.
SCM flows can be divided into the following three types: • The product flow: includes the movement of goods from a supplier to a customer as well as any customer returns or service needs • The information flow :involves transferring orders and updating the status of delivery
•
The finance flow: consists of credit terms, payment schedules, and consignment and title ownership arrangements information provided by both CRM and
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Role of information analysis in enterprise framework
SCM play a crucial role in the information analysis process. Realism is lent to decisions that are undertaken as a result of input and information provided by these systems.
The following figure illustrates how each information system plays a role in the information analysis process.
Business intelligence system
Data mart s
Security layers
Security layers
Data warehous e ETL process
OLTP (internal process)
Enterprise resource planning
Supply chain manageme nt
Customer relationshi p manageme nt
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Role of information analysis in enterprise framework
The role of various information systems in the information analysis process
? Classifying information on the basis of periodicity
The information provided by all the systems should be accurate and comprehensive. Further, it is equally important for it to be available at the time that it is required. The requirements of information vary in different enterprises, and on the basis of periodicity of analysis. Based on these criteria, reports that contain information may be classified as : • Scheduled: are generated and made available for a specific, defined duration. These may be made available on a daily, weekly, or monthly basis. • Scheduled reports: are used in almost every aspect of information analysis because they contain specific information pertaining to a particular set of parameters in a particular time frame. • Real- time: are generated while transactions are simultaneously begin processed Real-time report proves useful when analyzing information to make tactical decisions. As opposed to strategic decisions. For example, real-time report may be used to take tactical
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Role of information analysis in enterprise framework
action in the case of an online newspaper, in the case of which storied and headlines may be adjusted as a response to audience interest. • On Demand: are generated and made available on the basis of specific requests made for a particular set of information. On Demand reports are usually required when information analysis is being conducted in response to an urgent requirement, a crucial environment change, a perceived serious threat, or in response to a complaint or statement that needs to be validated. • Exception: identify process exceptions by using data selected on the basis of a specific set of circumstances or parameters.
Generating exception reports lead to crucial insights into processes-deviants. Theses are usually created in response to an explicitly observed deviant, to validate a perceived cause of loss in revenue, or to examine a process that may not be delivering desirable results.
ILLUSTRATION
The Enterprise Framework and the Information Analysis process in the Airline Industry.
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Role of information analysis in enterprise framework
INTRODUCTION
The airlines industry is one of the most competitive and strategic industries in the world. Like any other enterprise, the foundation of this industry is dependent on three driving forces: process, people, and technology. This illustration outlines the enterprise framework in the airline industry and explains the information analysis and analysis systems used for different processes and especially that of the airline ticketing process in detail. ? PROCESSES IN THE AIRLINE INDUSTRY FRAMEWORK Processes in an enterprise exist to efficiently perform a series of tasks for a specific output. Processes are either operational processes or business processes. Each process is related to its respective departments. Senior executives head the departments and manage the processes. Some of the operational processes in the airline industry are Air traffic Management (ATM). Airport ground services, airport billing, and resource management. Broadly the output of operational processes in the airline industry is to ensure passenger’s comfort and safety and the aircraft’s worthiness. For example, the airport ground services daily assist a large number of passengers to reach their desired destinations on time. Some of the business processes in the airline industry are financial services, sales and marketing, and fleet management. The output of the business processes in the airline industry is to ensure revenue maximization. For example, the strategy of optimum airfares set by the sales and marketing process is to attract a large umber of passengers.
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Role of information analysis in enterprise framework
The following figure illustrates the main processes of the airline industry
Airline Processes
Business Processes Operational Processes
Sales & Marketing
Fleet Mgt.
Financial Air Services traffic Services
Airport Airport ground Billing Mgt.
OPERATIONAL PROCESSES Operational processes exist to manage the various operations efficiently. Operation in an enterprise include planning, structuring, and coordinating with various departments, leading and motivating employees, maintaining resources, allocating and utilizing resources, and ensuring quality service to the passengers. In the airline industry, the operations include helping the passengers to board aircrafts, managing and checking baggage, and tracking routes of aircrafts, Separate processes control each of these operations.
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Role of information analysis in enterprise framework
Here is a glimpse of some of the operational processes in the airlines industry:
•
Air Traffic Management (ATM): The primary driver of activities at airports is the flight schedule. Flights depart and arrive in close proximity. Scheduling requires an integrand management of air traffic controls. It involves monitoring aircrafts on runways and in air so that they are flown on specified routes and do not collide and cause hazards in mid air. Airport Ground service: Passenger service activity at the airport is related to the flight schedule. All these activities are controlled, coordinated, and managed by the airport ground services, which interact with passengers and politely respond to their queries. The airport ground services render services, such as assisting passengers to board flights or cancel their bookings. Some passengers need assistance for baggage claims or ground transport services. Other passengers need assistance to proceed to board connecting flights. Confirmed passengers arrive ahead of their flight for the check-in process, which includes tagging personal handbags, baggage check-in, collecting boarding coupons, and security check. Simultaneously, passengers arriving y more than one flight collect their baggage from different conveyer belts.
•
•
Airport Billing: Airport management charge a fee for the services and facilities offered to airlines and users. This fee is also called landing fee. It is used to generate revenue for the airports. The fee is based on the weight of the aircraft. Therefore, it is essential that the airport authorities have
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Role of information analysis in enterprise framework
accurate information about the date, Time, and type of facilities used by airlines.
•
Resource Management: the Resource Department manages resources including aircrafts and handles multiple services for employees, such as recruitment promotions, consultancy, contracts, training, and allocation.
Business Processes
Business processes exist to run enterprises efficiently by increasing performance levels to maximize revenues. Business processes in the airline industry revolve around planning, selling, and operating. Planning process involves scheduling and longterm services of the fleets. Selling involves setting fares of tickets and travel packages, and operating involves managing the fleet. Here is a glimpse of some of the business processes of the airline industry:
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Financial Services: Handle revenue or yield management, accounting, and statutory services. There are three strategies used in yield management: different fares, overbooking, and loyalty programs. Sales and Marketing: Tracks competitor’s fares and is always on the lookout to increase the revenue of the airlines. The process makes fare-pricing strategies. For example, if some major airlines lower their ticket fares, the other major airlines immediately follow. The fares of tickets are subject to fluctuations in supply and demand, which are mostly based on the type of passengers, such as business and leisure. In addition, ticket fares are
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subject to fluctuation in schedules, but these schedules rarely change. This process publicizes the fares and schedules, and provides them to travel agents. The process works closely with airport managements and stakeholders and is responsible for increasing the number of services at airports, flight frequency, and passengers who use airports. In addition, this process publicizes the fares and schedules through advertisements and promotions.
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Fleet Management: Airlines own different types of aircrafts, such as commercial jets, regional jets and turboprops. The key tasks of fleet management are monitoring and tracking maintenance expenses of aircrafts to ensure their safety and reliability and to maximize their usage. Fleet management comprises services, such as cabin services and assigning routes to aircrafts.
The Roles of People in airlines Processes
An airline involves extensive activity and expertise. The nature of the activities performed by people ranges widely from highly technical to day-to-day operations. There are employees, such as accountants, finance officers, officers, airport managers, pilots, aeronautical engineers, flight attendants, baggage handlers, reservation agents, and software engineers. Sometimes airlines outsource chefs, cleaners, telesales executives, insurance experts, and accountants. Airline employees comprise a major part of company strength. Hence, more than one-third revenue generated each day by major airlines, goes towards making payment to its employees. The airlines industry comprises the following types of employees:
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Line Employees: include pilots, flight attendants, reservation clerks, aeronautical engineers, gate personnel, and security guards. Reservation clerks form the largest group of airline employees. The line employees are grouped under three categories:
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Engineers: Form about 1 percent of the airline workforce. These employees maintain aircrafts according to maintenance programs and ensure passengers comfort. Flight Operators: Are responsible for scheduling aircrafts and crews to man the aircraft. In addition they train the crew. Flight crews include pilots, attendants, and sometimes in-flight security employees. Sales and Marketing employees: Are responsible for activities such as setting ticket fares, advertising ticket fares, promoting ticket sales, and improving customer service. They use computer reservation systems for sales, ticketing, and scheduling.
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Staff Employees: Include specialists in legal, finance, personnel, information services, and public relations. Their function is to support the line employees to run the airline efficiently.
INFORMATION SYSTEMS FOR INFORMATION ANALYSIS IN AIRLINES INDUSTRY
An information system is a data processing system that collects, processes, edits, stores, transmits, and supplies data related to a certain area of application. Each process of the airline industry is controlled by specific information systems. These information systems include the automaton systems, the transaction processing systems, the management information systems, and the Decision Support Systems(DSS). The automation system
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automates tasks that were previously performed manually. The transaction system processes and records business activities and the management information system supplies information to managers. The DSS support the implementation of strategies of an organization and it is most useful in flight operation in the airline industry. For example, a major airline generates extensive data for more than 300 daily flights. Data features details, such as the flight route, fuel costs, and weather changes. This data is necessary in terms of weather dynamics for scheduling flights. Otherwise, fights may be delayed or even cancelled. The data is also critical to make decisions on fuel volumes to be loaded according to expected weather conditions, and determine flight routes according to expected weather conditions, and determine flight routes according to expected weather conditions. To manage this data, a flight management system is required to enable efficient operation of lights. A simple process, such as handling baggage of passengers is also an information systems, called the baggage management system, it ensures that the baggage is not mishandled so that passengers are satisfied with the airlines service. In addition, new technologies such as the radio frequency identification (RFID) tags have been developed to generate baggage-tracking data. This type of data reduces the number of mishandled episodes and reduces the time to locate baggage. Airlines continually need to identify information systems and adapt new technologies, Several technologies have been developed to ensure data security, to provide enhanced services for passengers through online reservation, and to improve air-traffic controls. These information systems help airlines to have a competitive edge over rival airlines.
AIRLINES INFORMATION SYSTEMS ARCHITECTURE
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Consider the scenario, Tom Wilkins is the Chief Information Officer of Imperial Technology, a wholly owned subsidiary of imperial Airlines. Tom Manages day-to-day operations of imperial Technology with the support of nearly 100 employees. To provide real-time information to the airline and to ensure convenience for passengers, Tom now wants to set up an online reservation system for the international flights Imperial Airlines. The users of this online system would be required to provide information for the mandatory fields. For reservations passengers need to enter information on route comprising names of the origin city and destination city and the date of travel the online system would also enable passengers to reconfirm tickets and reschedule travel. Evidently, the airline industry is dependent on technologies, such as mainframe computing, and information systems such as, Global Distribution systems (GDS) and departure Control Systems (DCS).
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GLOBAL DISTRIBUTION SYSTEM AS A SOURCE OF INFORMATION FOR INFORMATION ANALYSIS
GDS, a reservation system, is the central repository of the details of passenger information collected when passengers book tickets and is compiled in the computerized reservation networks. This data helps to understand a passenger’s behavior and profile.
GDSs were originally developed by the airlines to enable travel agents to book and reserve tickets, but soon its services were extended to making bookings for hotels, car, and cruise, therefore, GDS connects airlines to other airlines and to the allied services, such as travel agencies, hotels, cruises, tour operator, and car rental companies.
Example: The four major reservation system or GDS that serve the airline industry are:
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SABRE: Is considered to be the pioneer and the largest reservation system. Sabre is constantly upgrading to meet the market requirements and technology advancements. Headquartered in Southlake, texas, it connects more than 60000 travel agency locations around the would, providing information to around 400 airlines, 55000 hotel outlets, 52 car rental companies, and several transport operators. The following figure shows the products and services elements of the home page of the Sabre website, which conveys the huge extent of information transmitted into the GDS.
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Galileo: Is a diversified global technology leader. The company is braches in 16 countries and serves travel agents spread over 44000 locatins. Others served by Galileo are 500 airlines, 227 hotel companies, 35 car rental companies, and 368 tour operators. The following figure illustrates the products and service elements of the home page of Galileo.
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Worldspan: Provides Web-based technologies and services to its customers, it serves around 16000 travel agencies in 90 countries and connects around 400 airlines, 200 markets spread around the world.
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Amadeus: is the most recent GDS . a leading technology provider, Amadeus serves more than 57,000 travel agency locations and 10,500 airlines sales offices in 200 markets spreads around the world. It also serves around 58000 hotels and 50 car rental companies over 24000 locations.
INFORMATION ANALYSIS IN AIRLINE TICKETING
Ticketing generates revenue for the airline industry. Airlines have ticket distribution systems. Earlier airlines sold tickets only at the airports. However, post deregulation, the distribution channel veered towards the travel agents. Airlines. Pay travel agents commission based on the price and percentage of the value of tickets sold. Commissions represent the fourth largest expense after labor, fuel, and cost of aircrafts. There are various information analysis process in the process of ticketing for different purposes like maintaining passenger records, verification of tickets, ticket bookings, facilitating different modes for ticketing and generating scheduled reports. To reduce costs, many major airlines have slashed commissions and distribute tickets through an alternate and cheaper mode, that of websites. Major airlines, such as Southwest Airlines And Delta Airlines have used this strategy to their advantage.Interestingly, this has benefited passengers who now have varied modes for purchasing tickets while retaining access to travel agencies. Sometimes, airlines also sell the tickets of other airlines. This practice enables airlines to increase sales and to expand their operations to remote areas. This type of airline partnership is called code sharing.
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Any one of the following modes, offered by airlines: ? Booking an Air Ticket through Airlines Counter ? Booking an Ari Ticket through Travel Agents
? Booking an Air Ticket on Websites The online booking service of Airlines industry has triggered a good response from passengers. Online booking is quick and easy to access. It has led to customer satisfaction. There has also been a rise in ticket sales with the introduction of the service. This involves the structured format of information and passenger details to be stored and produced time to time.
SCHEDULED REPORTS
The various types of scheduled reports, such as the agency reports, ticket report, and from of payment report are generated daily through orderely information analysis on a daily basis.
The agency repot is created to manage the travel agency commissions and payment of overrides, and to determine the market share of travel agencies. It comprise parameters, such as the agency name, contact details, commission paid to the agents, total number of tickets sold, total ticket fare, airline name, class of the tickets, gross fare, and selling fare.
The ticket report comprises parameters, such as the ticket number, ticket code, date and place of issue, passenger`s
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name, gross fare, selling fare, and total fare. This report helps airlines to identify the fares set by travel agents and to set the appropriate fare to attract passengers.
The form of payment report helps to identify the swindled amount and the fraudulent passengers who have paid through credit cards. These reports comprise parameters, such as the ticket num the passenger`s name, the net fare, the form of payment, and the total fare of the ticket.
• Real–time and On-demand Reports
The sale of airline tickets is based on real-time information. The fewer the seats, the higher is the price of tickets. Ondemand reports are rarely generated. If at all, these reports are generated only in critical situations. For example, passengers` data may be screened to find out details, such as the itinerary, the mode of payment, and the origin city to detect a fraudulent case. These types of reports help the senior management to take certain strategic decisions.
THE INFORMATION SYSTEM IN AIRLINE TICKETING
In the airline industry, the ticket contains all the information related to a specific booking.
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This types of information is valuable because it helps to analyze multiple aspects, including human behavior and security. For example, some passengers book tickets directly through Imperial Airlines, while others book tickets through travel agents of the airline. In either case, this information will be transferred to the airlines data base.
Travelling and airlines follow a simple ticketing process which includes creating and storing ticket data as illustrated in the following figure
GDS
Bank Reconciliation
XML TAIR file Airlines OLTP
Travel agent
Travel agent Counter website
Passeng er
Airlines Counter
Information system of ticketing
DATA TRANSMISSION PROCESS OF TICKETING
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The passenger purchases an air ticket either through a travel agent or the airlines counter.
• When a passenger requests the travel agent for an air ticket, the travel agent updates the data to the travel agency`s server. The data is transmitted from the server to the GDS as an XML TAIR file. Next, the data is from the GDS to the airline database (OLTP), which is a maintained and used by the IT department of the airlines.
• Similarly, in the case of booking through air lines (reservation counters or on websites), the data is transmitted to the OLTP. Next, the data is transmitted to the GDS as an XML TAIR file.
An XML TAIR file is an encoded form of a ticket. The TAIR files of ticket contains fields, such as the passenger name, date and time of travel, hotel booking, car rental, and the mode of payments. Fields are randomly arranged, and each field is followed by a backslash. Each GDS generates a different TAIR file format. For example, the TAIR file of Sabre is different from that of the Worldspan TAIR file.
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INFORMATION ANALYSIS: THE BASIS FOR VERIFICATION OF AN AIR TICKET
The OLTP or the airlines data base is complete after a passenger`s Id is verified and finally updated by the airport ground staff at the check-in counters. This verification also confirms that the passenger has boarded the air craft.
The following figure illustrative the verification process at the check in counter at airports.
Counter assistan rification from ce
Airlines OLTP
Passenger checks in at the counter
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Airline s OLTP 76
Role of information analysis in enterprise framework
Verification of the passenger Verification at the check-in counter
Consider this scenario. John Barrett, the CEO of Imperial air line wants to strategically use the large volumes of passenger data. There fore, the company decides to set up a data warehouse. Data marts are created from the data warehouse. Specific parameters are selected from the data marts to run queries on passengers. These queries seek information according to the need of the senior management. The analyzed data helps the senior management of Imperial air lines to devise new programmes.
CONCLUSION
From this project we can learn the fact that “Information Analysis is an inevitable process in any business enterprise”. The basic step to any strategic plan, decisions, innovations, operating techniques, management styles and the execution of the core business activity depends upon effective information analysis of the data available to the organization from the different information resources. The following points summarizes the important facts studied in the project as a concluding note:
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• An enterprise comprises all the establishments and the stakeholders that operate under a single entity, the organization. • The three basic components of any enterprise framework are: Process, People and Technology.
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EIA is a high level or macro view of informationrelated components for the information analysis requirements in an organization.
• Verticals aim to represent the hierarchical dependencies that an organization experiences to carry out its business operations. • Information analysis that is carried out in existing business comprises the following elements: ? Identifying the areas of business that are impacted by the current event in question. ? Identifying the appropriate data source upon which to conduct the analysis. ? Conducting analysis on the identified data set. ? Making an effective business decision.
• Various sets of information systems exist in the enterprise to provide input and data to make an 78
Role of information analysis in enterprise framework
effective business decision through effective information analysis. • Data warehousing is a technology that is used to support and maintain data requirement data requirement for information analysis. • Business Intelligence Systems are designed to extract relevant information from large amounts of data collected by various business systems over a period of time and are used by organization to provide insights that enable the information analysis for the decision making process.
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MIS provide information to carry out routine business functions across varied periodicity.
• ERP systems provide a variety of input to the information analysis process.
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SCM systems in information analysis improve the way an organization locates the materials it requires to design a product or service, manufactures that product or service, and delivers it to its customers.
• CRM systems promise cost-effective delivery of customer service to enhance the competitive advantage of an organization.
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Requirements of information vary across different enterprise and on the basis of periodicity of analysis.
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