Transcript Chapter 17 - Cengage Learning

Chapter
17
Managing
Information
Management
4th Edition
Chuck Williams
Chapter 17
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Prepared by
Deborah Baker
Texas Christian University
1
What Would You Do?
Mayor’s Office, London, England.

London’s traffic problems are
the worst in Europe—
horse-drawn carriages in
1903 moved faster than traffic
today!

The roads are antiquated
and always congested.

A “Congestion Zone” fee has been created, and now a
technological process must be designed to collect fees.
How do you process data into useful information
to assess and collect the appropriate fees?
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2
Moore’s Law
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3
Why Information Matters
After reading these sections,
you should be able to:
1.
2.
explain the strategic importance of information.
describe the characteristics of useful information
(i.e., its value and costs).
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4
Data versus Information

Raw data = facts + figures

Information = useful data that influences
choices
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5
Strategic Importance of Information
First-Mover
Advantage
Sustaining a
Competitive
Advantage
1
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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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7
AOL User Interface
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MSN Interface
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Sustaining a Competitive Advantage
NO
Does the information
technology (IT)
create
YES
value?
Competitive
Disadvantage
NO
Is the IT different
across
competing
YES
firms?
Competitive
Parity
NO
1.2
Is it difficult
for another firm
to create or buy
the IT?
Temporary
Competitive
Advantage
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YES
Sustained
Competitive
Advantage
Adapted from Exhibit 17.2
10
Characteristics of Useful Information




Accurate
Complete
Relevant
Timely
2
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11
Costs of Useful Information





Acquisition
Processing
Storage
Retrieval
Communication Costs
2
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12
Doing the Right Thing
Recycling Computer
Equipment
•An estimated 250 million
computers will be
discarded over the next
five years
•Computers and monitors
contain hazardous
materials, so tossing
them in the trash is illegal
2
•Recycle appropriately, or
donate old computers
to individuals or
charitable organizations
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13
Getting and Sharing Information
After reading these sections,
you should be able to:
3.
4.
explain the basics of capturing, processing,
and protecting information.
describe how companies can share and access
information and knowledge.
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14
Capturing Information
Manual
Bar Codes
Electronic
Radio Frequency
Identification Tags
Electronic Scanners
3.1
Optical Character
Recognition
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RFID Technology
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16
Processing Information: Data Mining
Supervised
Data Mining
Data
Warehouse
Unsupervised
Data Mining
Affinity
Patterns
Sequence
Patterns
Predictive
Patterns
Data
Clusters
3.2
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17
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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18
Protecting Information

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



Authentication
Authorization
Two-Factor Authentication
Firewalls
Antivirus software
Data encryption
Virtual private networks
Secure Sockets Layer (SSL) Encryption
3.3
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19
Doing the Right Thing
Password Dos and Don’ts
1.
2.
3.
4.
5.
6.
7.
8.
Don’t use any public information
Don’t use complete words
Use eight or more characters;
include unique characters
Use longer, unique passwords
Consider passphrases
Don’t write your password
Change it every six weeks
Don’t reuse old passwords
3.2
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20
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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21
Executive Information System (EIS)


Uses internal and external data

Must provide accurate,
complete, relevant, and
timely information to
managers
Used to monitor and analyze
organizational performance
4.1
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22
Characteristics of Best-Selling EIS
4.1
Ease of Use



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Few commands to learn
Important views saved
3-D charts
Geographic dimensions
Analysis of
Information

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
Sales tracking
Easy-to-understand displays
Time periods
Identification of
Problems and
Exceptions





Compare to standards
Trigger exceptions
Drill down
Detect & alert newspaper
Detect & alert robots
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Adapted from Exhibit 17.4
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Intranets


Private company networks

A firewall permits
only authorized internal
access
Allow employees to
access, share, and
publish information
4.1
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24
Why Companies Use Intranets

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
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
4.1
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Adapted from Exhibit 17.5
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Corporate Portals
Corporate Portals
A hybrid of executive information systems
and intranets that allow managers and
employees to use a Web browser to gain
access to customized company
information and to complete specialized
transactions
4.1
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External Access and Sharing
Electronic Data Interchange
Extranets
Web Services
Internet
4.2
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Benefits of External Access
and Sharing
Reduced costs
Increased productivity
Reduced data entry errors
Improved customer service
Faster communications
4.2
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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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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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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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31
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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