Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © 2003 Chapter 5 Managing Information

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © What Would You Do?  The PC industry is very competitive  How can Dell and its suppliers work more closely together?  How can Dell handle all the information it generates?

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Moore’s Law Adapted from Exhibit 5.1

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © After discussing this section you should be able to: Learning Objectives Why Information Matters 1.explain the strategic importance of information 2.describe the characteristics of useful information (i.e., its value and costs)

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Strategic Importance of Information First-moveradvantage Sustaining a competitiveadvantage

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Does the information technology create value? Competitive Disadvantage Is the information technology different across competing firms? Competitive Parity Is it difficult for another firm to create or buy the information technology? No Yes Temporary Competitive Advantage Sustained Competitive Advantage No Adapted from Exhibit 5.2

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Characteristics of Useful Information Accurate Relevant Complete Timely

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © The Costs of Useful Information Acquisition Processing Storage Retrieval Communication

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © After discussing this section you should be able to: Learning Objectives Information Technologies 3.explain the basics of capturing, processing, and securing information 4.describe how companies can share and access information and knowledge

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Capturing Information  Bar Codes  Electronic Scanners  Optical Character Recognition

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Processing Information Data Mining  Data warehouse  Two types  supervised  unsupervised ªAssociation or affinity patterns ªSequence patterns ªPredictive patterns ªData clusters

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Protecting Information  Firewalls  Virus  Data encryption  Virtual private networks

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Accessing and Sharing Information and Knowledge Communication Internal Access & Sharing of Information External Access & Sharing of Information Sharing Knowledge and Expertise

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Communication

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Internal Access and Sharing Executive information systems (EIS) Intranets

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Executive Information System (EIS)  Uses internal & external data  Used to monitor and analyze organizational performance  Must be easy to use and must provide information that managers want and need

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Characteristics of Best-Selling EIS Ease of Use Few commands to learn Save important views 3-D charts Geographic dimensions Analysis of Information Track Sales Easy-to- understand displays Time periods Identifying Problems and Exceptions Compare to standards Trigger exceptions Drill down Detect & alert newspaper Detect & alert robots Adapted from Exhibit 5.6

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Intranets  Company networks  Allow employees to easily access, share, and publish information using Internet software  Growing in popularity

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Why Intranets, Not EIS Are Growing  Less expensive  Efficient  Intuitive and easy to use  Compatible with different operating systems  Can work with existing equipment  Work with most software programs

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © 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, 2e by Chuck Williams South-Western/Thompson Learning Copyright © External Access and Sharing Electronic Data Interchange Internet Extranet

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © Been There, Done That Business-to-Business Information Exchanges: Why There Time Has Come  Companies can save lots of money by automating their supply chain  The Internet can make purchasing more efficient  Reducing the transaction cost of business

Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © 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, 2e by Chuck Williams South-Western/Thompson Learning Copyright © What Really Happened?  Dell shares information with its suppliers  Dell is on the cutting edge of information technology  Use the Internet to handle customer billing