Transcript Chapter 5
Management Second Canadian Edition Chuck Williams Alex Z. Kondra Conor Vibert Slides Prepared by: Kerry Rempel, Okanagan College ©2008 by Nelson, a division of Thomson Canada Limited 1 Chapter 5 Managing Information ©2008 by Nelson, a division of Thomson Canada Limited 2 What Would You Do? London has the worst traffic in Europe How can London use information technology to solve its traffic problem? How can London handle the amount of data collected from so much traffic? ©2008 by Nelson, a division of Thomson Canada Limited 3 Moore’s Law Prediction that every 18 months, the cost of computing will drop by 50 percent as computer-processing power doubles. Adapted from Exhibit 5.1 ©2008 by Nelson, a division of Thomson Canada Limited 4 Learning Objectives: Why Information Matters After reading this section, you should be able to: 1. explain the strategic importance of information 2. describe the characteristics of useful information ©2008 by Nelson, a division of Thomson Canada Limited 5 Strategic Importance of Information First-mover advantage Sustaining a competitive advantage ©2008 by Nelson, a division of Thomson Canada Limited 6 Using Information for First Mover Advantage Information Technology can: Substantially lower costs Differentiate a product or service from competitors. Adapted from Exhibit 5.2 ©2008 by Nelson, a division of Thomson Canada Limited 7 Using Information to Sustain a Competitive Advantage Does the information create value? Is the information different across firms? Can another firm create or buy the technology? Adapted from Exhibit 5.2 ©2008 by Nelson, a division of Thomson Canada Limited 8 Characteristics of Useful Information Accurate Complete Relevant Timely ©2008 by Nelson, a division of Thomson Canada Limited 9 The Costs of Useful Information Acquisition Processing Storage Retrieval Communication ©2008 by Nelson, a division of Thomson Canada Limited 10 Learning Objectives: Getting and Sharing Information After reading the next two sections, you should be able to: 3. explain the basics of capturing, processing, and protecting information 4. describe how companies can share and access information and knowledge ©2008 by Nelson, a division of Thomson Canada Limited 11 Capturing Information Manual completing forms Electronic bar code electronic scanner optical character recognition ©2008 by Nelson, a division of Thomson Canada Limited 12 Advantages and Disadvantages of Different Kinds of Data Storage Devices Paper Microfilm CDs DVDs Data storage tapes Hard drives RAID Adapted from Exhibit 5.3 ©2008 by Nelson, a division of Thomson Canada Limited 13 Processing Information Processing information transforming raw data into meaningful information that can be used in decision making Data mining process of discovering unknown patterns and relationships in large amounts of data ©2008 by Nelson, a division of Thomson Canada Limited 14 Data Mining Data warehouse Two types supervised unsupervised association or affinity patterns sequence patterns predictive patterns data clusters ©2008 by Nelson, a division of Thomson Canada Limited 15 Protecting Information Protecting information Process of insuring that data are reliably and consistently retrievable for authorized users only firewalls virus data encryption virtual private networks ©2008 by Nelson, a division of Thomson Canada Limited 16 Security Threats to Data and Data Networks Denial of service Web server attacks Corporate network attacks Unauthorized access to PCs Viruses, worms, Trojan horses Adapted from Exhibit 5.4 ©2008 by Nelson, a division of Thomson Canada Limited Malicious scripts and applets E-mail snooping Keystroke monitoring Referrers Spam Cookies 17 Accessing and Sharing Information Communication Internal access and sharing External access and sharing Sharing knowledge and expertise ©2008 by Nelson, a division of Thomson Canada Limited 18 Communication E-mail Voice messaging Conferencing systems Document conferencing Application sharing Desktop videoconferencing ©2008 by Nelson, a division of Thomson Canada Limited 19 Internal Access and Sharing Executive Information System (EIS) Intranets ©2008 by Nelson, a division of Thomson Canada Limited 20 Executive Information System Uses internal and external sources of data Used to monitor and analyze organizational performance Must be easy to use and must provide information that managers want and need ©2008 by Nelson, a division of Thomson Canada Limited 21 Characteristics of Best-selling Executive Information Systems Ease of use few commands, important views saved, 3-D charts, geographic dimensions Analysis of information sales tracking, easy-to-understand displays, time periods Identification of problems and exceptions compare to standards, trigger exceptions, drill down, detect and alert newspaper, detect and alert robots Adapted from Exhibit 5.5 ©2008 by Nelson, a division of Thomson Canada Limited 22 Intranets Private company networks Allow employees to easily access, share, and publish information using Internet software Very popular ©2008 by Nelson, a division of Thomson Canada Limited 23 Why 80% of Companies Now Use Intranets Intranets: are inexpensive increase efficiencies and reduce costs are intuitive and easy to use work across all computer systems and platforms can be built on top of existing networks work with programs to convert electronic documents to HTML Adapted from Exhibit 5.6 ©2008 by Nelson, a division of Thomson Canada Limited 24 External Access and Sharing Electronic Data Exchange Extranet ©2008 by Nelson, a division of Thomson Canada Limited Internet 25 Sharing Knowledge and Expertise Knowledge is the understanding one gains from information. Decision support systems (DSS) use models to acquire and analyze information Expert systems Replicate experts’ decisions ©2008 by Nelson, a division of Thomson Canada Limited 26 What Really Happened? London broke the project into smaller pieces which could be handled efficiently and independently on their own. London utilized information technology to allow people to pay online, via cell phone text message or kiosks. Congestion dropped by 30% ©2008 by Nelson, a division of Thomson Canada Limited 27