Transcript Chapter Five

Managing Information
CHAPTER FIVE
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
Management
3rd Edition
Chuck Williams
1
CHAPTER FIVE
What Would You Do?
You are the new CIO of the
University of Illinois
Medical Center in Chicago…

You’ve encountered problems with
inefficient and error-filled records

The problems can be solved using electronic
medical records and CPOE, but doctors are
resistant to change

And, a federal act requires electronic data
exchange of financial and administrative
information
How can you make sure the new system will
work for the hospital? What would you do?
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2
CHAPTER FIVE
Why Information Matters
After reading the next two
sections, you should be able to:
1.
explain the strategic importance of information.
2.
describe the characteristics of useful information
(i.e., its value and costs).
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3
CHAPTER FIVE
Strategic Importance of Information
First-Mover
Advantage
Sustaining a
Competitive
Advantage
1
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CHAPTER FIVE
First-Mover Advantage
First-Mover
Advantage
The strategic advantage that
companies earn by being the first to
use new information technology to
lower costs or to differentiate a product
1.1
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5
CHAPTER FIVE
Sustaining a Competitive Advantage
NO
Does the information
technology (IT)
create
YES
value?
Competitive
Advantage
NO
Is the IT different
across
competing
YES
firms?
Competitive
Advantage
NO
1.2
Adapted from Exhibit 5.2
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Is it difficult
for another firm
to create or buy
the IT?
Temporary
Competitive
Advantage
YES
Sustained
Competitive
Advantage
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CHAPTER FIVE
Characteristics of Useful Information
 Accurate
 Complete
 Relevant
 Timely
2
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7
CHAPTER FIVE
Costs of Useful Information
 Acquisition
 Processing
 Storage
 Retrieval
 Communication Costs
2
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8
CHAPTER FIVE
Blast From The Past
The History of Managing Information
 Cro-Magnons create a lunar calendar
 Travelers and town criers spread news
 Paper and printing press revolutionize
information management
 Typewriters and copy machines make
information more “routine”
 Cash registers and time clocks help with
employee management
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9
CHAPTER FIVE
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.
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10
CHAPTER FIVE
Capturing Information
Manual
Methods of
Capturing
Information
Bar Codes
Electronic
Radio Frequency
Identification Tags
Electronic Scanners
Optical Character
Recognition
3.1
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11
CHAPTER FIVE
Processing Information: Data Mining
Supervised
Data
Warehouse
Unsupervised
Affinity
Patterns
Sequence
Patterns
Predictive
Patterns
3.2
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Data
Clusters
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CHAPTER FIVE
Unsupervised Data Mining
Affinity
Patterns
Two or more database elements
occur together significantly
Sequence
Patterns
One of the elements
precedes the other
Predictive
Patterns
Helps identify database elements
that are different
Data
Clusters
Three or more database elements
occur together
3.2
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13
CHAPTER FIVE
Protecting Information
 Authentication and authorization
 Firewalls
 Antivirus software
 Data encryption
 Virtual private networks
3.2
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14
CHAPTER FIVE
Password Dos and Don’ts
1. Don’t use any public information
2. Don’t use complete words
3. Use eight or more characters
4. Use longer, unique passwords
5. Don’t write your password
6. Change it every six weeks
7. Don’t reuse old passwords
3.2
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15
CHAPTER FIVE
Accessing and Sharing
Information and Knowledge
Internal Access
and
Information Sharing
External Access
and
Information Sharing
Sharing of
Knowledge and
Expertise
4
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16
CHAPTER FIVE
Executive Information System (EIS)
 Uses internal & external data
 Used to monitor and analyze
organizational performance
 Must provide accurate,
complete, relevant, and
timely information to
managers
4.1
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CHAPTER FIVE
Characteristics of Best-Selling EIS
Ease of Use
Analysis of
Information
Identification of
Problems and
Exceptions
4.1




Few commands to learn
Important views saved
3-D charts
Geographic dimensions



Sales tracking
Easy-to-understand displays
Time periods





Compare to standards
Trigger exceptions
Drill down
Detect & alert newspaper
Detect & alert robots
Adapted from Exhibit 5.4
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CHAPTER FIVE
Intranets
 Private company networks
 Allow employees to
access, share, and
publish information
 More than 80 percent
of companies have
their own intranets
4.1
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19
CHAPTER FIVE
Why 80% of Companies Use Intranets
 Inexpensive
 Increase efficiencies and reduce costs
 Intuitive and easy to use
 Work across all computer systems
 Can be built on top of existing network
 Work with software programs that convert to HTML
 Software is available at no cost or is less expensive
Adapted from Exhibit 5.5
4.1
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CHAPTER FIVE
Corporate Portals
 Hybrid of executive information systems and
intranets
 Allow access to customized information
 Allow the completion of specialized transactions
4.1
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CHAPTER FIVE
External Access and Sharing
Electronic Data Interchange
Extranets
Web Services
Internet
4.2
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More
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CHAPTER FIVE
External Access and Sharing
Reduced costs
Increased productivity
Reduced data entry errors
Benefits of
External
Access
and Sharing
Improved customer service
Faster communications
4.2
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CHAPTER FIVE
Electronic Data Interchange (EDI)
Electronic
Data
Interchange
When two companies convert their
purchase and ordering information
to a standardized format to enable
the direct electronic transmission of
that information from one computer
system to the other.
4.2
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CHAPTER FIVE
Web Services
Web Services
Using standardized protocols to
describe data from one company in
such a way that those data can
automatically be read, understood,
transcribed, and processed by
different computer systems in
another company
4.2
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CHAPTER FIVE
Extranet
Extranet
Allows companies to exchange
information and conduct transactions
with outsiders by providing them
direct, Web-based access to
authorized parts of a company’s
intranet or information system
4.2
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26
CHAPTER FIVE
Been There Done That
Business-to-Business Information
Mark Hoffman, CEO of Commerce One…
 Companies can save money by
automating their supply chain
 The Internet can make purchasing more efficient
 Reducing the transaction costs of business can
lower infrastructure costs by a huge amount
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CHAPTER FIVE
Sharing Knowledge and Expertise
Decision
Support
System
Helps managers to understand
specific kinds of problems and
potential solutions, and to analyze
the impact of different decision
options using” what if” scenarios
Expert
System
An information system that contains
the specialized knowledge and
decision rules used by experts so
that nonexperts can draw on this
knowledge base to make decisions
4.3
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CHAPTER FIVE
What Would You Do—II?
Callaway Golf Company is entering
the $1.5 billion golf ball market,
starting from “scratch”…
 A team of experts is being assembled
 Proprietary information must not leak to
rival Taylor Made
How can you ensure that team members have
access to information, and protect it from the
competition? How can you get competitive
advantage in the ball industry?
What would you do?
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29
CHAPTER FIVE