Business Platforms

.docx

School

California Polytechnic State University, San Luis Obispo *

*We aren’t endorsed by this school

Course

420

Subject

Information Systems

Date

Oct 30, 2023

Type

docx

Pages

Uploaded by CaptainWaterStork35

BUSINESS PLATFORMS Data Needs  Data Collecting needs  Business Operational Data needs: o Store newly generated data in their operational database:  Aimed at meeting the needs in the moment  Often referred to as operational databases store snapshot information  Tends to be business function oriented that they are supporting.  Between databases there can be a “connection”.  Databases separated by time and business functions are often disparate. (e.g. Trainings database is on Oracle 12, and HR is on SQL Server.) o Look up previously stored data .  Business decision making data needs : large amounts of historical data within organization is needed, and we can use datasets that are being provided by 3rd parties Operational database  Operational data bases are focused on transactions and each transaction is limited to a few records. In each transaction new data is added, previously stored data is changed/retrieved (the 3 actions that happen in the database). Rarely deletion sometimes happens (e.g., employee changes home address)  Data for each transaction is functionally limited to 1 database. This is what drivers the single database supporting single function type of mindset.  The biggest characteristic that drives operational database is a very large number of transactions happening daily. Anything that generates new data or uses previously stored data is considered a transaction. The database needs to be able support all of these accurately, quickly, and completely. Data Warehouse  A data warehouse is for supporting strategic decision making for which there is a need for historical data for reporting and analysis. A warehouse relies on billions of records, that needs to be analyzed.  With large amounts of data there is a need for cross functional data. These kinds of data would originate in different operational data bases.  How Databases and Data Warehouse differ: In amount of data used in making decisions and in its cross functionality of the data that is needed to inform these decisions  In addition, there is a need for external data (e.g., analyze competitor sales)  It sits separately from the database (because of the different purposes it serves)  Data Warehouse Integrating data across units: Ü All original data originates in operational databases and a source for external data . Ü Data from functional databases is Extracted Ü Then Transformed to reconcile data to a common meaning and understanding Ü Brought together for Loading. Ü This data goes into the Data Warehouse , which keeps only the consolidated data. Ü The data warehouse is at the center of business analytics: it supports OLAP Analysis, Reporting and Data Mining. Business Platforms Integrating across units Advantages of Data Share and Integration:  Common business language across units  Enhanced work task coordination & synchronizations  Enhanced operational & tactical decision making,  Quicker and less expensive digitalization projects.

Data Share and Integration Decisions  What to share? - making data available from one unit to another a  What to integrate? - both units having equal rights to use the same data  How soon to share after data is first generated?  How much data is shared?  How frequently?  Standardize or Integrate business processes decisions BUSINESS PROCESSES STANDARDIZATION system is the same not exactly the same o Reduced digitalization costs, o Fewer serious operating problems, o Leveraging of business processes improvements, o Reduced employee training & support costs. o Reduced time & cost to set up a new work location. o Examples  Franchises. Each franchise operates an independent location but operates on the exact same set of processes as other franchises. Processes are not integrated (not using the same system) but standardization allows each franchise to fully leverage on collective experience and customization.  Global operations: individual localities and their legal/cultural differences may not enable integration. But to the degree of possible standardization, it allows for a common understanding between units. (employees can move) BUSINESS PROCESSES INTEGRATION system is identical o The next level of standardization is integration o Has all of the benefits of standardization, AND o Improved and increased coordination and collaboration across units o Ability to move operations to other units if needed o it increases the coordination and collaboration across units, allows to move operations to other units if needed. o Examples  Target. Online order process is integrated with the store so returns/pickups can be done seamlessly. For delivered items process needs to be integrated with the warehouse as well. (Walmart, Best Buy and Costco are similar)  Global Operations. Delta HR is subject to each country’s regulation process and standardizing these processes is very difficult (some data shared, like employees’ names, certifications). Yet flight operations processes and data are fully shared and integrated. IN DATA SHARING AND INTEGRATION WHAT IS GOOD FOR A FIRM IT IS SUBJECT TO THE CONSTRAINTS THAT MIGHT BE IN PLACE BASED ON REGULATIONS OF COUNTRIES AND REGULATIONS ON TYPE OF DATA .  Mergers & Acquisitions. United and Continental Airlines had different business processes but after merger, they integrated. Similarly happened with Amazon & Whole Foods, and Google & Waze (data sharing in product) Important Factors to Consider  Business platform choices can be constrained by regulations, cultural difference , investment requirement and firm value with an eye to M&A.  Migration as an alternative to integration to make it easier and less risky than integration.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version