Chapter 5

Managing Information

©2004 by Nelson, a division of Thomson Canada Limited

1

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?

©2004 by Nelson, a division of Thomson Canada Limited

2

Moore’s Law
Prediction that every 18 months, the cost of computing will drop by 50 percent as computerprocessing power doubles.

Adapted from Exhibit 5.1 ©2004 by Nelson, a division of Thomson Canada Limited

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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
©2004 by Nelson, a division of Thomson Canada Limited

4

Strategic Importance of Information

First-mover advantage Sustaining a competitive advantage

©2004 by Nelson, a division of Thomson Canada Limited

5

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 ©2004 by Nelson, a division of Thomson Canada Limited

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Characteristics of Useful Information
   

Accurate Complete Relevant Timely

©2004 by Nelson, a division of Thomson Canada Limited

7

The Costs of Useful Information
    

Acquisition Processing Storage Retrieval Communication

©2004 by Nelson, a division of Thomson Canada Limited

8

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
©2004 by Nelson, a division of Thomson Canada Limited

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Capturing Information

Manual

completing forms bar code electronic scanner optical character recognition

Electronic
  

©2004 by Nelson, a division of Thomson Canada Limited

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Disadvantages of Different Kinds of Storage Devices
      

Paper Microfilm CDs DVDs Data storage tapes Hard drives RAID
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Adapted from Exhibit 5.3 ©2004 by Nelson, a division of Thomson Canada Limited

Processing Information

Processing information

transforming raw data into meaningful information that can be used in decision making process of discovering unknown patterns and relationships in large amounts of data
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Data mining

©2004 by Nelson, a division of Thomson Canada Limited

Data Mining
 

Data warehouse Two types
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supervised unsupervised
   

association or affinity patterns sequence patterns predictive patterns data clusters
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©2004 by Nelson, a division of Thomson Canada Limited

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
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©2004 by Nelson, a division of Thomson Canada Limited

Security Threats to Data and Data Networks
 

Denial of service Web server attacks Corporate network attacks Unauthorized access to PCs Viruses, worms, Trojan horses

 

  

Malicious scripts and applets E-mail snooping Keystroke monitoring Referrers Spam Cookies
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Adapted from Exhibit 5.4 ©2004 by Nelson, a division of Thomson Canada Limited

Accessing and Sharing Information
   

Communication Internal access and sharing External access and sharing Sharing knowledge and expertise

©2004 by Nelson, a division of Thomson Canada Limited

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Communication
     

E-mail Voice messaging Conferencing systems Document conferencing Application sharing Desktop videoconferencing
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©2004 by Nelson, a division of Thomson Canada Limited

Internal Access and Sharing

Executive Information System (EIS)

Intranets

©2004 by Nelson, a division of Thomson Canada Limited

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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
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©2004 by Nelson, a division of Thomson Canada Limited

Characteristics of Bestselling Executive Information Systems
Ease of use

few commands, important views saved, 3-D charts, geographic dimensions sales tracking, easy-to-understand displays, time periods

Analysis of information

Identification of problems and exceptions

Adapted from Exhibit 5.5

compare to standards, trigger exceptions, drill down, detect and alert newspaper, detect and alert robots
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©2004 by Nelson, a division of Thomson Canada Limited

Intranets

Private company networks Allow employees to easily access, share, and publish information using Internet software Very popular
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©2004 by Nelson, a division of Thomson Canada Limited

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 ©2004 by Nelson, a division of Thomson Canada Limited

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External Access and Sharing
Electronic Data Exchange

Extranet

Internet

©2004 by Nelson, a division of Thomson Canada Limited

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Sharing Knowledge and Expertise
Knowledge is the understanding one gains from information. Decision support systems (DSS)

use models to acquire and analyze information Replicate experts’ decisions
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Expert systems

©2004 by Nelson, a division of Thomson Canada Limited

What Really Happened?

Dell shares information with suppliers Dell is on the cutting edge of technology Dell uses information to determine actual sales

©2004 by Nelson, a division of Thomson Canada Limited

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