INF 788

Information Systems
Development – Lecture 2
Dr. Henk Pretorius
01/03/2024
 Chapter 3
Evaluating Information
 Focusing Story

1. What are some other consequences of fake

news?
2. How can you spot fake news? What aspects of a
news story might cause you to question its
truthfulness?
3. Think of a time you saw a fake news story online.
Did you believe the story at first? What led you to
realize the news was “fake”?
4. What are characteristics of good information?
 Information Evaluation

The systematic determination of the merit

and worth of information.
In traditional media, editors and publishers
evaluate the quality and correctness of
information.
On the Internet, there are few “gatekeepers”
who decide what can be posted (and provide
quality control).
• Therefore, the information consumer must perform this
evaluation
Business Impacts of Information Quality
Using information more effectively is the major reason
businesses invest in information systems.

Good-quality information improves

• Productivity
• Regulatory compliance
• High-quality decision making

Bad information can cause

• Legal issues
• Reputations to be harmed
• Missed opportunities
• Lost revenue
 Reflection:

We all face a daily torrent of information. The more

“connected” you are, the more information you face.
Think about yesterday and how you dealt with the
information you faced.

1. What strategies do you use to determine what

information is important and to reduce the amount of
information you deal with?
2. How successful are these strategies?
3. How could you improve your approach to information
filtering?
 Information Overload

Being faced with more information than one can

effectively process.

The more information we have to sift through, the less

attention we have to devote to other tasks.
It reduces productivity, increases stress, and can lead
to physical health problems.
Managers Value Information…

To improve decision making

To justify decisions
To verify previously-acquired information
To “play it safe” by making sure they do not miss any
relevant information
In the belief that the information may be useful later
Dealing with Information Overload

Withdrawal: disconnecting from sources of

information (e.g., not checking email, turning off the
TV, not surfing the Web)

Filtering: knowing what information we need and

what information merits attention and use
• Requires knowing how to evaluate information, a
critical skill in today’s information rich world
 Information Quality

Bad information can lead to bad decisions à

“Garbage in, garbage out”
Dimensions of information quality
• Intrinsic quality: important dimensions of quality regardless
of the context or how the information is represented.
• Contextual quality: dimensions that may be viewed
differently depending on the task at hand.
• Representational quality: how the information is provided
to the user.
• Accessibility quality: whether authorized users can easily
access the information.
Information Quality Dimensions
Information
Quality

Intrinsic Contextual

Accurate Relevant

Believable Timely

Objective Complete

Consistent Current

Understandable

Figure 3.1 Information Quality Dimensions

 Information Quality Intrinsic
Dimension
TABLE 3.1 Information Quality Dimension Definitions

Intrinsic Dimension Definition: Extent to which the information is:

Accurate Correct, free from error and reliable

Believable Regarded as true and credible

Objective Free from bias

Understandable Easily comprehended

Consistent Compatible with previous information

 Information Quality Contextual
Dimension
TABLE 3.1 Information Quality Dimension Definitions (Cont.)
Contextual Dimension
Definition: Extent to which the information is…:

Relevant Applicable and useful for the task at hand

Timely Available in time to perform the task at hand

Complete Of sufficient depth and breadth for the task at hand

Current Sufficiently up-to-date for the task at hand

Information Quality vs. Costs

Context of information quality matters

• For example, stock price information is often delayed
for free information services; this is acceptable to
casual investors but devastating for a day trader
High quality information, however, is costly
The goal is information that is of sufficient quality to
carry out tasks effectively.
Evaluating Information
Is the information useful?
Is the information believable?

FIGURE 3.2 Information Evaluation Framework

Evaluating Usefulness of Information

Relevance: degree to which the information is pertinent

to the task at hand.
• There are varying degrees of relevance, which are
context-dependent
Appropriateness: degree to which the information is
suitable for your purpose.
• Needs an assessment of the level of detail and depth
of information needed; which are context-dependent
Currency: degree to which the information is up-to-
date.
• Requires deciding how current the information needs
to be
Evaluating Information Believability

Credibility: whether the source of information can be

trusted.
• Formal publications, widely published authors, tend to have
more credibility
Objectivity: whether the source of information appears
unbiased.
• Language that is more fact-based and neutral is more likely
to be objective
Supported claim: whether the information provided is
supported and whether this support is of good quality.
• Involves looking at the reasonableness of the claim and
whether it is testable
Comprehensiveness: depth and breadth of the information.
• Breadth: whether all aspects of a topic are covered
• Depth: the level of detail provided.
 Chapter 4
Gaining Strategic Value
from Information
Strategic Information Systems

Designed and implemented to enable creation and

appropriation of value (competitive advantage)

No need for proprietary IT:

• Technology alone does not determine added value.
Strategic IS Planning Process
Strategic planning: a structured set of steps; an
iterative process.
Goal: identification of strategic information systems
initiatives.

Figure 4.1 Information Systems Strategic Planning Process

Step 1: Strategic Business Planning

Know Who You Are

Identify the organization’s:

• Mission
• Strategies (How to achieve the mission)
• Goals and objectives
 Step 2: Information Systems
Assessment
Know Where You Start

Assessment of the organization’s current IS

resources and how well they fulfill the needs of the
organization

But…
• IS resources ¹ IT resources
• Technical resources
• Data and information resources
• Human resources
Step 3: Information Systems Vision

Know Where You Want To Go

Broad statement of how the organization should

use and manage its information systems for
strategic purposes
Information Systems Vision

Freestockphotos.biz
aligned and reflect

Firm’s Business Strategy

 Step 4: Information Systems
Architecture
Know How You Are Going to Get There

How IS resources should be used and how they

should work together.

Architectural guidelines can include statements about

all information resources
• hardware, software, networks
 Step 5: Strategic Initiatives
Identification
Know What You Need
Proposals
• Long-term (two to five year)
• Identify new systems, new projects, or new
directions for the organization.

Frameworks
• IS SWOT Analysis
• Porter Five Competitive Forces Model
• Porter’s Value Chain
• Virtual Value Chain
Advantages of the IS Strategic
Planning Process
Improved Communication

Improved Coordination
• Shared mental image of initiatives
• Clear responsibilities agreed upon

Improved Decision Making

• Clear guidelines and criteria
• Consistent decisions making over time
Information Systems SWOT Analysis
(Strengths, Weaknesses, Opportunities, and Threats)

Table 4.1 SWOT Analysis Components

Component Description Example for Amazon.com
Strengths What gives the organization advantages over Leadership position in online retailing
others in their industry?

Weaknesses What creates disadvantages for the Increased size of the company requires
organization relative to others in their industry? more investments

Opportunities What activities or factors could help the Expand to services instead of just
organization get new advantages over others in retailing
their industry?

Threats What activities or factors could create Increasing global competition from
disadvantages or troubles for the organization online retailers
relative to others in their industry?
 Porter’s Five Competitive Forces
Model
Analysis of how competitive an industry.
Can determine if a particular market could be attractive
for an organization to consider.

Figure 4.2 Porter’s Five

Competitive Forces Model
Five Competitive Forces Model
(macro/external environment)
 Porter’s Value Chain

¡ Two types of activities: primary and support

¡ Competition can come from two sources:
l Lowering cost to perform an activity
l Adding value to product or service

Figure 4.3 Porter’s Value Chain in Manufacturing Firm

Virtual Value Chain

Figure 4.4 Virtual Value Chain: Handling Information

Evaluating Strategic Initiatives

Cannot implement all initiatives

Therefore, evaluate them with tools like:
• Critical Success Factors
• Important considerations to be achieved for
organizational survival and success
• Not focused on technology!
• Aligned with business vision and mission
• Only a few critical success factors

• Priority Matrix
Priority Matrix

Figure 4.5 Sample Priority Matrix

Hyper-competition: Sustainability
of Competitive Advantage
D’Aveni’s 7Ss suggest:
• Every competitive advantage is eroded
• Sustaining an advantage can be a deadly distraction
• Goal of advantage should be disruption, not
sustainability
• Initiatives are achieved through series of small steps
 D’Aveni’s 7Ss for Hyper-competition
Table 4.3 D’Avenis’ 7Ss

Approach Definition

Superior stakeholder Maximizing customer satisfaction by adding value strategically.

satisfaction

Strategic soothsaying Using new knowledge to predict or create new windows of

opportunity.

Positioning for speed Preparing the organization to react as fast as possible.

Positioning for surprise Preparing the organization to respond to the marketplace in a
manner that will surprise competitors.

Shifting the rules of competition Finding new ways to serve customers, transforming the industry.

Signaling strategic intent Communicating intentions to stall responses by competitors.

Simultaneous and sequential Taking steps to stun and confuse competitors to disrupt or block
strategic thrusts their efforts.
 Reflection Activity

1. If the strategic planning process has the benefits of

improved communication, coordination, and decision
making, could it be used or applied by students for
group projects? How?
2. Name situations in your personal life where you could
apply a SWOT analysis (not for a course)?
3. How does the priority matrix relate to critical success
factors?
4. Do you believe that hyper-competition exists today? If
so, do you think it will continue to happen in the future?
Questions / Comments / Feedback