Transcript Chapter 6
Chapter 6 Managing Information Management, by Williams South-Western College Publishing Copyright © 2000 2 What Would You Do? A telecommunications company with high phone bills Easy phone access is your competitive advantage How do you cut costs without hurting sales? Management, by Williams South-Western College Publishing Copyright © 2000 3 Learning Objectives Why Information Matters After discussing this section, you should be able to: describe the characteristics of useful information. explain the strategic importance of information. Management, by Williams South-Western College Publishing Copyright © 2000 4 Moore’s Law Adapted from Figure 6.1 Management, by Williams South-Western College Publishing Copyright © 2000 5 Characteristics of Useful Information Accurate Complete Relevant Timely Management, by Williams South-Western College Publishing Copyright © 2000 6 The Costs of Useful Information Acquisition Processing Storage Retrieval Communication Management, by Williams South-Western College Publishing Copyright © 2000 7 Strategic Importance of Information First-mover advantage Sustaining a competitive advantage Management, by Williams South-Western College Publishing Copyright © 2000 8 Does the information technology create value? No Competitive Disadvantage Yes Is the information technology different across competing firms? Yes No Competitive Parity Is it difficult for another firm to create or buy the information No technology? Temporary Competitive Advantage Adapted from Figure 6.2 Sustained Competitive Advantage Yes Management, by Williams South-Western College Publishing Copyright © 2000 9 Learning Objectives Information Technologies After discussing this section, you should be able to: explain the basics of capturing, storing, and processing information. describe how companies can share and access information and knowledge. Management, by Williams South-Western College Publishing Copyright © 2000 10 Capturing Information Bar Codes Electronic Scanners Optical Character Recognition Management, by Williams South-Western College Publishing Copyright © 2000 11 Storing Information Microfilm CD-ROM Digital video disks Data storage tapes Primary Storage Redundant array inexpensive disk (RAID) archived data secondary storage Management, by Williams South-Western College Publishing Copyright © 2000 12 Processing Information Centralized Processing •transaction processing •automated processing Distributed Processing •desktop computers Shared Processing •client/server network Management, by Williams South-Western College Publishing Copyright © 2000 13 Back to the Future Can You Strike Gold with Data Mining? Data Mining - looking for patterns supervised and unsupervised IBM Creates “Advanced Scout” allows NBA teams to find effective strategies Management, by Williams South-Western College Publishing Copyright © 2000 Cost and Configuration for Desktop, Server, and Mainframe Computers Computer Price Desktop $1,000 to $3,000 Servers $5,000 to $20,000 Mainframes $500,000 to $5,000,000 Adapted from Table 6.1 Processor Memory 200-400 MHz 32-64 Pentium II megabytes processor 14 Storage 4-8 gigabytes Up to 4 400 MHz Pentium II processors Up to 4 gigabytes Up to 350 gigabytes of total storage Up to 20 500 MHz processors 8-32 gigabytes 4-8 terabytes Management, by Williams South-Western College Publishing Copyright © 2000 Accessing and Sharing Information and Knowledge 15 Communication Internal Access & Sharing of Information External Access & Sharing of Information Sharing Knowledge and Expertise Management, by Williams South-Western College Publishing Copyright © 2000 16 Communication Management, by Williams South-Western College Publishing Copyright © 2000 17 Internal Access and Sharing Executive information systems (EIS) Intranets Management, by Williams South-Western College Publishing Copyright © 2000 18 Executive Information System (EIS) Uses internal & external data Use it to monitor and analyze organizational performance Must be easy to use and must provide information that managers want and need Management, by Williams South-Western College Publishing Copyright © 2000 19 Characteristics of Best-Selling EIS Ease of Use • Few commands to learn • Save important views • 3-D charts • Geographic dimensions Adapted from Table 6.2 Analysis of Information • Track Sales • Easy-tounderstand displays • Time periods Identifying Problems and Exceptions • Compare to standards • Trigger exceptions • Drill down • Detect & alert newspaper • Detect & alert robots Management, by Williams South-Western College Publishing Copyright © 2000 20 Intranets Company networks Allow employees to easily access, share, and publish information using Internet software Growing in popularity Management, by Williams South-Western College Publishing Copyright © 2000 21 Why Intranets, Not EIS are Growing Less expensive Intuitive and easy to use Compatible with different operating systems Can work with existing equipment Work with most software programs Management, by Williams South-Western College Publishing Copyright © 2000 22 Blast From The Past The History of Managing Information Cro-Magnons create 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 Management, by Williams South-Western College Publishing Copyright © 2000 23 External Access and Sharing Electronic Data Interchange Internet Management, by Williams South-Western College Publishing Copyright © 2000 24 Been There, Done That United Airlines uses Information Technology to boost profits They now sell software they have developed Better relationships forged between IS and users More customers electronically ticketed Management, by Williams South-Western College Publishing Copyright © 2000 25 Sharing Knowledge and Expertise Knowledge is the understanding one gains from information Decision support systems (DSS) uses models to analyze information Expert systems replicate experts’ decisions Management, by Williams South-Western College Publishing Copyright © 2000 26 What Really Happened? Replaced phone-based system with a secure company intranet Use e-mail rather than voice mail Use the Internet to handle customer billing Management, by Williams South-Western College Publishing Copyright © 2000