Information Management & Strategic Decision Taking Tools + Key Performance Indicators (Kpis) Workbook

Information Management &
Strategic Decision Taking

Tools + Key Performance
Indicators (KPIs) Workbook
© Strategic Tools + KPI’s Workbook | 711 Information Management & Strategic Decision Taking 1
GENERAL INSTRUCTIONS
 These Strategic Tools & KPI’s must be done Individually or in Groups of Two (max)
 These strategic tools and KPIs must be submitted online through EGSM LMS
PRESENTATION OF STRATEGIC TOOLS AND KPIs

 You must include a title page that lists your name, Student ID and the unit number and
title.
 Number all pages sequentially.
 Any published material you refer to must be properly referenced (Harvard Referencing)
and included in a reference list at the end of your Strategic Tools.
STRATEGIC TOOLS AND KPIs SUBMISSION DEADLINE

Due Date: Thursday, 4 weeks from the class date
Weighing: 15% of the total assessment
LATE STRATEGIC TOOLS AND KPIs SUBMISSION POLICY

After your enrolment date, you will have 30 days to complete and submit your Tools & KPI
assessment.
The assessment submission option will only be available on EGSM LMS Portal for 30 days.
If you have not submitted your assessment within 30 days, you will be required to send an
email to studentrequest@egsm-edu.com mentioning the reason of non-submission and late
penalty may apply.
NOTE: The first page of each Strategic Tools and KPIs must include the following
declaration:
I certify that these Strategic Tools and KPIs are my own work, based on my personal study
and/or research, and that I have acknowledged all materials and sources used in the
preparation of these Strategic Tools and KPIs whether they be books, articles, reports,
lecture notes, any other kind of document, electronic or personal communication.
I also certify that these Strategic Tools and KPIs have not previously been submitted for
assessment in any other course or at any other time in this Course, unless by negotiation, and
that I have not copied in part or whole or otherwise plagiarised the work of other students
and/or persons. I have read the policy on plagiarism and understand its implications.
Strategic Tools and KPIs that do not include the above declaration will not be marked.
Strategic Tools
Data Flow Diagram (DFD)
A data-flow diagram is a way of representing a flow of a data of a process or a system. The

DFD also provides information about the outputs and inputs of each entity and the process
itself. A data-flow diagram has no control flow, there are no decision rules and no loops.
Diagram 1: Data Flow Diagram Elements
Data Flow Diagram (DFD)
(10 marks)
Diagram 2: Data flow diagram for university registration system
Question:
Draw level 1 Data flow diagram for taking a loan from the bank.
Please type your answer below.
Apply App receive

Customer 1.0
Loan Application
Loan Officer
View C. Info
Get Authorization Get Feedback Decide
5.0 4.0 3.0 2.0

Approval/ rejected Loan update Customer details
Loan type
View loan Info View C. Info

Check C. data
Give Feedback C. Info
Loan
D2: C. loan file Committee D1: C. file
Entity Relationship Diagram (ERD)
The entity-relationship (E-R) data model is based on a perception of a real world that
consists of a set of basic objects called entities, and of relationships among these objects. It
was developed to facilitate database design by allowing the specification of an enterprise
schema, which represents the overall logical structure of a database
Elements of the E-R Model
 Entities: rectangles representing entity sets
 Attributes: ellipses representing attributes.
 Identifiers
 Relationship: diamonds representing relationship sets.
E-R D which is a graphical representation of an E-R model
I. Entities
Strong Entity
An entity type that is not existence – dependent on some other entity type.
Weak Entity
An entity type that is existence-dependent on some other entity type.
EMPLOYEE Ha
s
Figure 1.1: E-R diagram with a weak entity
II. Attributes
A named property or characteristic of an entity
Name some of the attributes of STUDENT Entity
STUDENT:
Simple Attribute.
STUDENT
Composite Attribute
TEACHER
Single –valued Attribute
STUDENT
Multi-valued attribute
CUSTOMER
Derived Attributes
WINE
IV. Relationship
The glue that holds together the various components of an E-R model
Attributes on Relationships
Figure 1.2: E-R diagram with attributes on relationships
Degree of a Relationship.
The Number of Entity types that participate in a relationship.
1. Unary Relationship ( degree 1 )
One-to-many
COURSE
Figure 1.4: One to many unary relationship
2. Binary relationships ( binary )
OWNER
One-to-one
Figure 1.6: One to one binary relationship
STUDENT
One-to-many
Figure 1.7: One to many binary relationship
COURSE
Many-to-many
Figure 1.8: Many to many binary relationship
Question: (20 marks)

Draw and Entity Relationship Diagram (ERD) for Carrefour Supermarket
Task 1: Name all entities for Carrefour Supermarket.
1. Supermarket
2. Employee
3. Department
4. Branch
5. Customer
6. Purchase
7. Product
8. Store
9. Supplier
Task 2: Name all attributes for each entity.
1. Supermarket = ID, Name, Telephone number (hot line)

2. Employee = ID, Name, Job title, Gender
3. Department = ID, Name, Telephone number, Field
4. Branch = ID, Address, Telephone number
5. Customer = Name, ID card, Telephone number
6. Purchase = Code, Price, Date, Time, Casher number, change
7. Product = Code, Price, Name, Category, Expiring date, production date,
company
8. Store = ID, Telephone number, Address, Branch
9. Supplier = ID, Name, Telephone number, Address
Task 3: Draw the complete ERD diagram with entities, attributes, identifies, relationship and
cardinalities.
Note: Please used Microsoft Word draw your ERD diagram.

Name Tel No
ID
1st Name
Works at Carrefour
surname
Supermarket
Name
ID
Job Tittle Employee Has Address
Gender Suppliers
Tel No Name
Field
Name ID
Department Supplier
Tel No Tel No
Has Supplier
ID Address
ID
Name Branch Has Store
ID Price
Has Expiration Date

ID card
Category
Tel No
Customer Product
Name Company
1st Name
Address
Has Comprises Change
Code
Surname
Prod date
Purchase Change
Code
© Strategic Tools + KPI’s Workbook | 711 Information Management & Strategic Decision Taking Teller
Teller No
No 12
Date Price Time
KPI’s
Customer Profitability Score
Why is this indicator important?

Satisfying or, more likely, ‘delighting’ customers has, in recent times, become nothing less than a
corporate mantra, the belief being that it is by satisfying the needs of customers that organizations can
make a profit and therefore grow and prosper .
Although the basic argument is fundamentally sound (orgnsiations can only make money if their
customers buy the supply orgnsiation’s products or services), there is caveat not all customers are
equal. Some customers contribute substantially to an orgsation’s profit line while others actually lead
to the supplying organisation losing money – that is, the cost of delivering the product of service is
more than the revenue generated from that transaction.
In their zeal to ‘delight’ customers, organisations run the serious risk of moving into a loss-making
situation. Organisations offer, but do not recover the costs of delivering, additional product features
and services to their customers.
This customer profitability inequality has been known for several decades and verified by numerous
studies. As one powerful example, a customer analysis of a US-based insurance company found that
15-20% of customers generate 100% (or more) of profits. Further analysis found that the most
profitable customers generate 130% of annual profits, the middle 55% of customers break even and
the least profitable 5% of customers incur losses equal to 30% of annual profits (see working example
on page 16).
Simply put, a measure of customer profitability ensure that an organsiation does not lose sight of its
ultimate objective: to make a profit from selling products or services.
How do I measure it?

Data collection method
Analysis of marketing and accounting data as well as the output from activity-based costing
exercise.
Formula
Customer profitability is the difference between the revenues earned from and the costs
associated with the customer relationship in a specified period. Put another way, customer
profitability is the net dollar contribution made by individual customers to an orgnsiation.
As customer profitability covers several time-frames, it is not in itself a single measure. There
are found primary measurements of customer values.
 Historical value of a customer, which looks at the value earned from a customer
relationship over an extended period of time, such as prior fiscal quarter, prior year or
since the start of the relationship. It can be measured as a simple average of previous
periods or can be time weighted, placing higher emphases on recent periods.
Averaging in this manner has the effect of smoothing reported results for a customer,
lending consistency to the reported values.

 Current value of a customer, which look to a shorter time-frame, often a month (in
order to concede with reporting cycles). Current value is often volatile, since cyclical
factors in the relationship are often not reflected within a single month. Current value
has the advantage of highlighting the effects of changes in the customer relationship
when compared to previous period current values. It is most useful for quantifying
the benefit of campaigns, new offers and pricing changes on customer value.
 Present value of a customer, which is a future-oriented measurement that typically
considers the future revenue and cost streams of the customer’s existing business.
This measure is usually only extended to include the contractual lifetime of ongoing
products or services. Present value is useful for ranking customers according to value
and determining such compensation rates, and is frequently used as a basis for
modeling.
Example
Here is an example of calculating customer profitability in a bank.
1. Establish the costs per customer: using activity-based costing models the bank has
established ocsts for different customer services or customer interactions. For
example, mailing of statmenet = $1.00, calling the banks contact centre = $2.00,
vesting the branches = $3.00. it then estimates the behaviours of customers and might
even be able to put them into different categories e.g. customers over 50 who are
more likely to visit the branch. However, to keep this example simple we say that on
average a customer receives a statement one a month, visit the branch once a month
and phones the contact centre once every two months. This now means that it costs
the bank on average (12 x $1.00) + (12 x $3.00) +(6 x $2.00) = $12 + $36 + $12 =
#12 = #60 per year to do business which an average customer.
2. Establish profit per customer. In this example, the bank knows that on average it is
able to generate a 3.5% profit on each dollar it can invest. So if customer a has a
deposit of $1,500 and customer B has a deposit of $15,000, the customer profitability
looks like this:
Customer A
 Generate a profit of $1,500 x 0.035 = $52.50
 But overall is not profitable when subtracting the average costs per customers from
the profits. In this case the customer portability score is $52.50 - £60 = - $7.50 (a loss
of $7.50)
Customer B
 Generates a profit of $15,000 x 0.035 = $525.00
 And therefor a healthy profit. In this case the customer profitability score is $525.00 -
$60.00 = - %465 (a profit of $465)
Exercise:
(10 marks)
If the average annual cost per customer of a software house is $1592, customer A generates a
profit of $365, and Customer B generates a profit of $1425. Calculate the CPS and compare
the results.
Cost per customer = 1592

Customer A profit = 365
Customer B profit = 1425
CPS = Revenue earned from a customer minus cost supporting customer

Customer A
365 - 1592 = - 1227
Customer B
1425 – 1592 = - 167
Comparing the results.

Customer profitability is the profit the firm makes from serving a customer over a
specify period of time. From the above calculation, the firm lost against both customers
though the company lost less with customer B than customer A. IT implies the company
is spending more on getting customers.
Search Engine Rankings (by keyword) and
click-through rate
Why is this indicator important?

Along with page views and bounce rates (see KPI on page 155), search engine rankings (by
keyword) and click-through rate are among a number of metrics that are used in website
traffic analytics for assessing the effectiveness of an organisation’s internet strategy in
attracting and gaining value from visitors.
Search engine rankings (by keyword) is simply a measure of website ranking based on
relevant keywords. Unlike web directories, which are maintained by human editors, search
engines operate algorithmically or are a mixture of algorithmically and human input.
The goal of achieving a high search engine ranking is to increase website visits. Sinply put,
the higher the ranking the greater the likelihood that a person browsing the web (a searcher)
will visit your site (obviously they are more likely to look at a website that appears on the
first page than at one that appears on page 9 or 10 – see Tips/warnings). This is called the
click-through rate (CTR), which. CTRs are impacted significantly by the search engine
ranking for a particular keyword. At present, the most dominant search engine worldwide is
Google.
How do I measure it? simply means the percentage of time that a searcher clicks on a
website displayed in their search results versus a different site
Data collection method
The online collection of rankings from search engines, such as Google.
Formula
A search engine ranking is simply a website’s position on the search engine ranking.
Consider the following as an example of measuring a click-through rate. A reported in the
book The Small Business Owner’s Handbook to Search Engine Optimization (see
References), a site that has earned a Google ranking of number one for a particular keyword
produces a Google click-through rate of 42% versus the site that is ranked number 10, which
produces a meager 6.06% ctr.
Example
This example comes from www.SEbook.com (see References) for predicting an increase in
online sales for each keyword. For example say an organisation scored a Google website
ranking of number one for a keyword that, according to the SEOBook.com Keyword Selector
Tool (which provides a list of up to 15 of the most popular search queries for each word you
enter), was searched on 100 times per day in Google. The site ranking number one would
Search Engine Rankings (by keyword) and

click-through rate
receive a Google CTR of approximately 40%. This would translate into 40 visits to the
website each day (100 searches x 40% CTR = 40 visits), or 1,200 visits per month.
Now we will convert the 1,200 visits into dollars. For this we will assume that the website
delivers the average 2-4% conversion rate (sales from visits). This means that the 1,200 visits
should produce approximately 24 to 48 orders per month (1,200 unique visitors x 2-4% = 24
to 48). We will also assume that your average online order is approximately %50. We will
also assume that your average online order is approximately %50. Therefore, a single
keyword with a Google website ranking of number one could drive between $1,200 and
$2,400 of online sales for your business each month, or $14,400 to $28,800 annually.
Exercise:
(15 marks)
Answer the following question.
1. What is the difference between organic click-through rate and inorganic click-through
rate?
Organic click-through rate is a measure of people who actual click on the a link to a
website while inorganic click-through rate is when you buy an ad to reach out to your
audience
2. How is click through rate linked to Search Engine Optimization?

Link click-through rate is metric used frequently in various marketing crafts from
copywriting to users experience, usually comes up in regard to SEO. So investing in
CTR optimization can bring a ton of ROI to your overall SEO effort, hence click through
rate is a part of search engine optimization
3. How can organic click through rate be improved?

Researching long-tail keyword and integrating it into your website increase the volume of related
organic queries you rank for. Writing effective Meta descriptions make up the majority of your SERP
entry by telling potential visitor what to expect when clicking a link. Implementing structured date is
the key component to much of the rich, interactive content found on Google SERP. Creating posts
with images and using descriptive URLs improves organic click through rate
Marking Rubric
Marks
Marks
Strategic Tools Receive Comments
Allocated
d
Data Flow Diagram (DFD) 10
Entity Relationship Diagram (ERD) 20
Marks
Marks
KEY Performance Indicators Receive Comments
Allocated
d
Customer Profitability Score (CPS) 10
Search Engine Rankings (by keyword)
15
and click-through rate
TOTAL 50 0

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Information Management &

Strategic Decision Taking

PRESENTATION OF STRATEGIC TOOLS AND KPIs

STRATEGIC TOOLS AND KPIs SUBMISSION DEADLINE

LATE STRATEGIC TOOLS AND KPIs SUBMISSION POLICY

A data-flow diagram is a way of representing a flow of a data of a process or a system. The

Diagram 1: Data Flow Diagram Elements

Diagram 2: Data flow diagram for university registration system

Apply App receive

5.0 4.0 3.0 2.0

View loan Info View C. Info

E-R D which is a graphical representation of an E-R model

An entity type that is existence-dependent on some other entity type.

Figure 1.1: E-R diagram with a weak entity

Single –valued Attribute

Figure 1.2: E-R diagram with attributes on relationships

Figure 1.4: One to many unary relationship

2. Binary relationships ( binary )

Question: (20 marks)

Task 1: Name all entities for Carrefour Supermarket.

Please type your answer below.

Task 2: Name all attributes for each entity.

Please type your answer below.

1. Supermarket = ID, Name, Telephone number (hot line)

Entity Relationship Diagram (ERD)

Note: Please used Microsoft Word draw your ERD diagram.

Please type your answer below.

Job Tittle Employee Has Address

Has Expiration Date

Why is this indicator important?

How do I measure it?

Customer Profitability Score

Customer Profitability Score

Cost per customer = 1592

CPS = Revenue earned from a customer minus cost supporting customer

Comparing the results.

Why is this indicator important?

Search Engine Rankings (by keyword) and

2. How is click through rate linked to Search Engine Optimization?

3. How can organic click through rate be improved?

Data Flow Diagram (DFD) 10

Entity Relationship Diagram (ERD) 20

Customer Profitability Score (CPS) 10

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