Transcript Chapter 17 Managing Information

Chapter 17
Managing
Information
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MGMT7
17-1 explain the strategic importance of
information
17-2 describe the characteristics of useful
information (i.e., its value and costs)
17-3 explain the basics of capturing, processing,
and protecting information
17-4 describe how companies can access and
share information and knowledge
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Moore’s Law
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17-1
First-Mover Advantage
The strategic advantage that companies
earn by being first to use information
technology to substantially lower costs or
differentiate a product.
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17-1
Using Information Technology to Sustain a
Competitive Advantage
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17-1
Sustaining A Competitive Advantage
The key to sustaining a competitive
advantage is not faster computers or
better technology. The key is using
information technology to continuously
improve and support the core functions of
a business.
17-1
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Characteristics of Useful
Information
• Accurate
• Complete
• Relevant
• Timely
17-2
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Costs of Useful Information
• Acquisition costs
• Processing costs
• Storage costs
• Retrieval costs
• Communication costs
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17-2
Capturing Information
• Bar codes
• Radio frequency identification (RFID)
tags
• Electronic scanners
– optical character recognition
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17-3
Processing Information
Transforming raw data into meaningful
information that can be applied to
business decision making.
17-3
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Data Mining
The process of discovering patterns and
relationships in large amounts of data.
Can be supervised or unsupervised.
•Supervised
•Unsupervised
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17-3
Data Patterns
• Association (affinity)
• Sequence
• Predictive
• Data clusters
17-3
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Protecting Information
Process of ensuring that data are reliably and
consistently retrievable in a usable format for authorized
users but no one else.
• Authentication
• Authorization
• Two-factor authentication
• Biometrics
• Firewalls
• Data encryption
• Virtual private networks
• Secure sockets layer encryption
17-3
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Security Threats to Data and Data Networks
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17-3
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Internal Access & Sharing
• Executive information system (EIS)
• Intranets
– collaboration tools
– customizable email accounts
– presence awareness
– instant messaging
– simultaneous access to files
• Corporate portals
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17-4
External Access & Sharing
• Electronic data interchange (EDI)
• Web services
• Extranet
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17-4
Sharing Knowledge & Expertise
• Knowledge
– the understanding that one gains from
information. It does not reside in
information, but in people.
• Decision support system (DSS)
• Expert systems
17-4
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Numi Organic Tea
<click screenshot for video>
1. What kinds of challenges
does Numi face in
managing information?
2. Why was it no longer
sufficient for Numi to use
programs like Excel and
QuickBooks to manage its
information?
3. What are some of the
advantages Durkee
mentions that have come
with using the ERP system?
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