Information-Driven BusinessHow to Manage Data and Information for Maximum Advantage
Information doesn't just provide a window on the business, increasingly it is the business. The global economy is moving from products to services which are described almost entirely electronically. Even those businesses that are traditionally associated with making things are less concerned with managing the manufacturing process (which is largely outsourced) than they are with maintaining their intellectual property. Information-Driven Business helps you to understand this change and find the value in your data. Hillard explains techniques that organizations can use and how businesses can apply them immediately. For example, simple changes to the way data is described will let staff support their customers much more quickly; and two simple measures let executives know whether they will be able to use the content of a database before it is even built. This book provides the foundation on which analytical and data rich organizations can be created. Innovative and revealing, this book provides a robust description of Information Management theory and how you can pragmatically apply it to real business problems, with almost instant benefits. Information-Driven Business comprehensively tackles the challenge of managing information, starting with why information has become important and how it is encoded, through to how to measure its use.
Preface xiii Acknowledgments xv Chapter 1: Understanding the Information Economy 1 Did the Internet Create the Information Economy? 2 Origins of Electronic Data Storage 2 Stocks and Flows 3 Business Data 4 Changing Business Models 5 Information Sharing versus Infrastructure Sharing 6 Governing the New Business 7 Success in the Information Economy 8 Notes 9 Chapter 2: The Language of Information 10 Structured Query Language 13 Statistics 14 XQuery Language 15 Spreadsheets 15 Documents and Web Pages 16 Knowledge, Communications, and Information Theory 17 Notes 18 Chapter 3: Information Governance 19 Information Currency 19 Economic Value of Data 21 Goals of Information Governance 23 Organizational Models 24 Ownership of Information 26 Strategic Value Models 27 Repackaging of Information 30 Life Cycle 31 Notes 32 Chapter 4: Describing Structured Data 33 Networks and Graphs 33 Brief Introduction to Graphs 35 Relational Modeling 37 Relational Concepts 38 Cardinality and Entity-Relationship Diagrams 39 Normalization 40 Impact of Time and Date on Relational Models 49 Applying Graph Theory to Data Models 51 Directed Graphs 52 Normalized Models 53 Note 54 Chapter 5: Small Worlds Business Measure of Data 55 Small Worlds 55 Measuring the Problem and Solution 56 Abstracting Information as a Graph 57 Metrics 58 Interpreting the Results 60 Navigating the Information Graph 61 Information Relationships Quickly Get Complex 62 Using the Technique 64 Note 65 Chapter 6: Measuring the Quantity of Information 66 Definition of Information 66 Thermal Entropy 67 Information Entropy 68 Entropy versus Storage 70 Enterprise Information Entropy 73 Decision Entropy 76 Conclusion and Application 78 Notes 78 Chapter 7: Describing the Enterprise 79 Size of the Undertaking 79 Enterprise Data Models Are All or Nothing 80 The Data Model as a Panacea 81 Metadata 82 The Metadata Solution 83 Master Data versus Metadata 84 The Metadata Model 85 XML Taxonomies 87 Metadata Standards 87 Collaborative Metadata 88 Metadata Technology 90 Data Quality Metadata 91 History 91 Executive Buy-in 92 Notes 93 Chapter 8: A Model for Computing Based on Information Search 94 Function-Centric Applications 95 An Information-Centric Business 96 Enterprise Search 97 Security 98 Metadata Search Repository 98 Building the Extracts 100 The Result 100 Note 102 Chapter 9: Complexity, Chaos, and System Dynamics 103 Early Information Management 103 Simple Spreadsheets 104 Complexity 105 Chaos Theory 105 Why Information Is Complex 106 Extending a Prototype 110 System Dynamics 112 Data as an Algorithm 116 Virtual Models and Integration 118 Chaos or Complexity 119 Notes 120 Chapter 10: Comparing Data Warehouse Architectures 121 Data Warehousing 121 Contrasting the Inmon and Kimball Approaches 122 Quantity Implications 123 Usability Implications 125 Historical Data 132 Summary 133 Notes 134 Chapter 11: Layered View of Information 135 Information Layers 136 Are They Real? 137 Turning the Layers into an Architecture 141 The User Interface 143 Selling the Architecture 144 Chapter 12: Master Data Management 146 Publish and Subscribe 146 About Time 148 Granularity, Terminology, and Hierarchies 148 Rule 1: Consistent Terminology 149 Rule 2: Everyone Owns the Hierarchies 150 Rule 3: Consistent Granularity 150 Reconciling Inconsistencies 151 Slowly Changing Dimensions 151 Customer Data Integration 153 Extending the Metadata Model 153 Technology 155 Chapter 13: Information and Data Quality 156 Spreadsheets 156 Referencing 157 Fit for Purpose 158 Measuring Structured Data Quality 160 A Scorecard 164 Metadata Quality 164 Extended Metadata Model 165 Notes 166 Chapter 14: Security 167 Cryptography 167 Public Key Cryptography 169 Applying PKI 170 Predicting the Unpredictable 172 Protecting an Individual’s Right to Privacy 172 Securing the Content versus Securing the Reference 175 Chapter 15: Opening Up to the Crowd 176 A Taxonomy for the Future 177 Populating the Stakeholder Attributes 179 Reducing E-mail Traffic within Projects 179 Managing Customer E-mail 180 General E-mail 180 Preparing for the Unknown 181 Third-Party Data Charters 182 Information Is Dynamic 183 Power of the Crowd Can Improve Your Data Quality 183 Note 184 Chapter 16: Building Incremental Knowledge 185 Bayesian Probabilities 187 Information from Processes 188 The MIT Beer Game 192 Hypothesis Testing and Confidence Levels 193 Business Activity Monitoring 195 Note 196 Chapter 17: Enterprise Information Architecture 197 Web Site Information Architecture 198 Extending the Information Architecture 198 Business Context 199 Users 199 Content 200 Top-Down/Bottom-Up 200 Presentation Format 201 Project Resourcing 201 Information to Support Decision Making 203 Notes 204 Looking to the Future 205 About the Author 209 Index 211
ROBERT HILLARD is an original founder of MIKE2.0 (www.openmethodology.org), which provides a standard approach for information and data management projects. He has held international consulting leadership roles and provided advice to government and private sector clients around the world. He is a partner with Deloitte with more than twenty years' experience in the discipline, focusing on standardized approaches to information management, including being one of the first to use XBRL in government regulation and the promotion of information as a business asset rather than a technology problem. Find out more at www.infodrivenbusiness.com.
Information-Driven Business How to Manage Data and Information for Maximum Advantage "The question that any organization needs to ask itself is whether it is using information to create the most dynamic, responsive, and adaptable enterprise possible or is it using information to satisfy the need for power by a privileged few?" —from Information-Driven Business: How to Manage Data and Information for Maximum Advantage Managing information has become as vital to a business as managing financial information is to its accounting functions. With information pervading every aspect of your organization—from reporting and marketing to product development and resource allocation—it only makes sense for your business to turn its data into functional knowledge that powers revenues, manages costs, and achieves a consistent level of profitability. Drawing from techniques that author Robert Hillard has applied in some of the world's largest companies and government departments, Information-Driven Business reveals how business leaders can more effectively govern, manage, and exploit their company's most important asset: information. Authoritative guidance is provided on the Internet's role in creating our information economy; measuring the quantity and usability of information; the goals of information governance; describing structured data; the role of master data management; and defining an enterprise information architecture. In almost every organization, executives and even technology professionals are increasingly being made accountable for the mountains of data that exist in databases, file systems, and other repositories. Information-Driven Business helps your business become information-centric and attain significant benefits as a result. How wisely or poorly your organization manages its information will drive its success or failure. Realize the greatest possible value for your business with the solid guidance found in Information-Driven Business. Its easy-to-apply techniques show you how to pragmatically apply it to real business problems, with practically instant results.
Praise for Information-Driven Business How to Manage Data and Information for Maximum Advantage "Robert Hillard gets it! The sheer quantity of information that is descending upon our organizations means that we can't just 'wing it' when it comes to managing information. The strategic imperative to manage information effectively is now irreversible—with devastating consequences for those who assume it is otherwise. The book provides you with a thorough understanding of how to find, control, and optimize your information assets." —Atle Skjekkeland, Vice President, The Association for Information and Image Management (AIIM) "Information-Driven Business takes a highly complex subject like information theory and makes it far more accessible for the general reader. It is truly a call to action for an effective transition to the new information economy. If you are a student preparing to join the workforce, a seasoned information management professional, or an executive looking to make your business thrive through better information, you'll benefit from Hillard's innovative thinking and pragmatic recommendations." —Sean McClowry, Senior Vice President, Knowledge Management, Global Carbon Capture and Storage Institute "The book brilliantly combines a broad historical view of information management foundations with cutting-edge advances in information governance, including the notion of Economic Value of Information the author pioneered. Information governance metrics: what are they? The book provides some unique answers to this very important question. This is a great book for business executives, information technology professionals, and others who want to better understand the role of information in our society and for the corporate world." —Lawrence Dubov, PhD, coauthor of Master Data Management and Customer Data Integration for a Global Enterprise Information doesn't just tell you about your business. It is your business. As data becomes more and more prevalent in businesses, leaders must find ways to leverage this asset. Even businesses that are traditionally associated with manufacturing products are increasingly concerned with maintaining their intellectual property. Information-Driven Business helps you understand this change and find the hidden value in your data. Author and information management leader Robert Hillard explains the techniques your business can apply immediately and provides the foundation on which analytical and data-rich organizations can be created. Innovative and revealing, this essential book unveils how you can more effectively govern, manage, and exploit your company's most important asset, information, with workable solutions to real business problems—and virtually instant benefits.
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