By : Ridhima Bhatt(09609037) Akhil Laroiya (09609107) Riki Jain (09609149

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The Business Case for Information Management

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Just like every other asset in the organization, be it capital, labour, materials, or facilities, information needs to be managed. Without reliable and timely information there is no way to sustain in a business The business case is found in how information management supports the business, like with any other asset

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Information management : All processes and technologies that help create high quality information, where all elements are clearly defined and can be combined with each other in a meaningful way, in order to support the management processes.

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‡ Data quality ± to create high quality information ‡ Metadata management ± to clearly define all elements ‡ Master data management ± to be able to combine information from different domains and sources on all levels of aggregation through a common set of hierarchies ‡ Data integration ± to bring the data together (physical or virtual) for all management processes to use

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It covers all processes and technologies to make sure all relevant information is complete and correct. Data quality management needs to be: ‡ Preventive, having processes and systems that do not allow any data capture mistakes; ‡ Detective, to check if this is the case, as one may not have control over all necessary data; and ‡ Corrective, to make sure problems with data quality are solved
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Metadata management consists of all processes and technologies aimed at creating the ³single version of the truth´ for the definitions of all relevant business entities. For metadata management, an organization requires a repository, to be used by all management processes, in which the definitions are stored, harmonized, and efficiently be maintained over time.

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The consistent and uniform set of identifiers and extended attributes that describe the core entities of the enterprise²and are used across multiple business processes. Examples departments or cost centers, customers, products, a central time table, accounts (in short, every list of things needed to do business)

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Data integration consists of a wide variety of techniques to enable companies to access, integrate, transform, and move any type of data between a source and a target system, in any frequency, and in any format, thereby eliminating data fragmentation across the enterprise.

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Business case for information management is aimed at enabling management processes Viewpoints of organizations may differ:
Business Tactical Strategic Transformational IT Making changes easier, faster, less error prone and less costly Closing the books faster Enabling EIM Value chain integration Mass customization Enabling SOA

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Foundational

Business/IT alignment Framework for IT, content for business
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Information used changes whenever there is a change within the business Making changes in multitude of systems involves manual processing Managers and Analysts prepare new reports( Excel based), which contains no checks on quality and completeness of data involved
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Issues:
y Senior Management: Spends time on comparing different

reports having different views on business y Knowledge workers: Spend valuable time on creating reports and reworking in case of errors y Operational Managers: Repetition of information
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Solution:
Single management system, with a central repository for metadata and master data, creates a more reliable process and contributes to savings

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Tactical benefit:
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Saving costs in management processes is a tactical benefit, it does not improve the business itself 9/28/2010 The Business Case for Information Management

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Advantages of closing the books faster:
y y y y

Create earlier feedback to senior management Gives controllers more time to analyze Allows organization to file external reports earlier Reporting fast recognized as parameter of control and competence, by analysts and shareholders

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Need for ³Single version of truth´:
40% or more of time spent on closing the books is spent on manual reconciliation between various administrations. Data is not comparable because of:
y Differences in chart of accounts, different views on organizational hierarchy y Terms used in the various data streams often have slightly different definitions y Data elements are missing or not correct and need to be manually fixed

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Solution:
Single management system is used to eliminate manual steps and reduce time needed to close books

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Strategic benefit:
More accurate and timely numbers can be reported with confidence
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EIM( Enterprise Information Management):
y Allows various systems to interchange

data in a real-time fashion.

y EIM

changes the role of the data warehouse, making it part of a ³closed loop´ architecture. warehouse not only receives information from various sources to integrate and enrich it for the purposes of management information, but also, on the granular level, it feeds data back to the various source systems to offer, for example, an integrated customer view. can only freely flow between systems if they share the same definition and the same master data.
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y Data

y Data

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SOA-Creating an EIM( enterprise information management) which is a tightly integrated but loosely coupled portfolio of systems is enabled by a service-oriented architecture(SOA). A component based approach to systems architecture requires a separation of process and data The business case for such an IT architecture lies in flexibility (being able to perform multiple tasks) and agility(being able to change those tasks).
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Mass Customization ± through a standard mass production process, many different product configurations can be manufactured, to create highly tailored products. It combines the best of both worlds of mass and bespoke production. In many cases customization is driven by the customer, who configures the product or service him or herself. The organization is moving from process driven to customer driven
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Business and IT alignment-IT is responsible for providing a centralized framework for metadata, master data and data quality management. It tracks the audit trail on all changes, and makes sure there are no compliance issues with imposed regulations and makes sure that there is a single version of truth of the data to all the ones that are authorized are the ones who model the metadata and master data.
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Information management helps in crating high quality information whose elements are clearly defined(metadata) and the information of different sources and domains are combined (master data) and are brought together to be used by all management processes(data integration) ` The information management business case includes (.) tactical-make changes easier, faster, less error prone, and less costly. For large organization, the savings are significant.
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(.)strategic-timely reporting of data faster and with confidence
creates earlier feedback and gives controller more time to analyze but also recognized by analysts and shareholders as a sign of being in control and competent and it sets a benchmark for the rest of the market .Improves the organization¶s public image, leading to a higher valuation (.)Transformational- creating a tightly integrated but loosely coupled portfolio (EIM) of systems by enabling a serviceoriented architecture. Such that all the components have access of their data and data of other components. (.)Foundational-using IT for recording all the changes of data and providing a consistent view of data ³ single version of truth´.

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The Business Case for Information Management

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