Essential Business IT Concepts: Data, Systems, & Projects
Data & Business Intelligence Fundamentals
Data, Information, & Business Intelligence
Four Primary Traits of Data Value
- Accuracy: Correct and reliable.
- Completeness: No missing values.
- Consistency: Same data, same format across systems.
- Timeliness: Up-to-date and available when needed.
Types of Data
- Transactional Data: Supports daily tasks (e.g., sales receipts).
- Analytical Data: Supports managerial decisions (e.g., trends).
- Real-time Data: Immediate and up-to-date.
- Data Quality Issues: Inconsistency, duplication, and errors.
- Data Governance: Policies for data availability, integrity, and security.
Key Database Terminology
- Database: Stores data about objects, people, or events.
- DBMS: Software for creating and managing databases.
- Entity: A data category (e.g., Customer).
- Attribute: A data field (e.g., Name).
- Primary Key: Uniquely identifies a record.
- Foreign Key: Links tables together.
Relational Database Advantages
- Increased flexibility, scalability, and performance.
- Reduced redundancy, improved integrity, and enhanced security.
Business Intelligence Concepts
- Business Intelligence (BI): Analyzes data for better decision-making.
- Data Warehouse: Centralized storage for business decision-making.
- ETL (Extract, Transform, Load): Process to load data into a data warehouse.
- Data Mart: A subset of a data warehouse, focused on a specific business function.
- Data Lake: Stores raw, unprocessed data in its native format.
- Dirty Data: Flawed or inaccurate data.
- Data Cleansing: The process of fixing or removing dirty data.
- Data Visualization: Using graphs and charts to reveal data patterns.
Blockchain Technology
- Distributed ledger technology.
- Immutable records.
- Includes concepts like hash, proof-of-work/stake, and genesis block.
Enterprise Applications & Business Systems
Supply Chain Management (SCM)
SCM Integration Types
- Application, Data, Forward, Backward.
- Enterprise Systems: Support company-wide business processes.
- Supply Chain Activities: Plan, Source, Make, Deliver, and Return.
Three Main SCM Links
- Materials flow from suppliers.
- Transformation into products.
- Distribution to customers.
SCM Business Benefits
- Reduced buyer power, increased switching costs, improved efficiency, and higher barriers to entry.
SCM Optimization Models
- Supply Chain Optimization.
- Inventory Optimization.
- Logistics Optimization.
Technologies Reinventing SCM
- Blockchain in SCM: Improves visibility, reduces fraud, and supports traceability.
- Smart Contracts: Self-executing contracts with rules stored on a blockchain.
CRM & ERP Systems
Customer Relationship Management (CRM)
- Manages all customer interactions.
- Increases customer loyalty, retention, and profits.
- Utilizes RFM (Recency, Frequency, Monetary) for customer analysis.
Types of CRM
- Operational CRM: Supports day-to-day front-office operations (e.g., sales, customer service).
- Analytical CRM: Focuses on back-office analytics and customer trends.
CRM Technology Components
- Reporting, analysis, and predictive tools.
- Sales: Sales Force Automation (SFA), opportunity management.
- Service: Call centers, self-service portals, scripting.
- Marketing: List generators, cross-selling, and up-selling.
Enterprise Resource Planning (ERP)
- Integrates all business functions into a unified system.
- Improves decision-making with enterprise-wide data.
ERP System Components
- Core Components: Accounting, Production, Human Resources.
- Extended Components: CRM, SCM, Business Intelligence, E-business.
ERP Deployment Types
- On-Premise, Cloud, Hybrid.
Systems Development & Project Management
Systems Development Life Cycle (SDLC)
Seven Phases of SDLC
- Planning: Define project goals and high-level scope.
- Analysis: Refine project goals and user requirements.
- Design: Define system features, layout, and rules.
- Development: Code and build the system.
- Testing: Debug and verify requirements.
- Implementation: Deploy the system and go live.
- Maintenance: Ongoing updates and improvements.
Software Development Methodologies
- Waterfall: A sequential, phase-by-phase approach.
- Agile: An iterative, customer-focused approach.
- RAD (Rapid Application Development): Emphasizes rapid prototyping.
- XP (Extreme Programming): Focuses on small, complete development phases.
- RUP (Rational Unified Process): Structured with four gates (Inception, Elaboration, Construction, Transition).
- Scrum: Utilizes sprints and daily stand-ups.
Project Management Essentials
Common Reasons for Project Failure
- Poor requirements definition, skipped SDLC phases, scope creep, and unmanaged changes.
Project Feasibility Types
- Economic, Operational, Schedule, Technical, Political, and Legal.
The Triple Constraint
Scope, Time, Cost: These three project constraints are all interdependent.
Key Project Management Terms
- Project: A temporary effort to create a unique product, service, or result.
- Project Manager: Oversees project planning and execution.
- Deliverable: A measurable outcome or tangible result.
- Milestone: A key timeline point indicating significant progress.
- PMO (Project Management Office): An organizational unit that centralizes and coordinates project management.
- Stakeholder: Any individual or group affected by the project.
- Executive Sponsor: Provides project funding and high-level support.
Project Planning Diagrams
- PERT Chart (Program Evaluation Review Technique): Shows task dependencies and the critical path.
- Gantt Chart: Provides a timeline overview of project tasks.
- WBS (Work Breakdown Structure): Breaks down project goals into manageable tasks.
Outsourcing Models
- Insourcing: Internal development within the organization.
- Onshore Outsourcing: Outsourcing to a domestic company.
- Nearshore Outsourcing: Outsourcing to a company in a nearby country.
- Offshore Outsourcing: Outsourcing to a company in a distant country, often for lower costs (e.g., India, China).