Information management Issues & trends January 1999

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What is information ?? Data sorted into useful categories or descriptions of data. Forms the basis of decision making in conjunction with knowledge.

What is information ?? Forms 2nd level in a 5 level hierarchy or pyramid…. Data Information Knowledge Understanding Wisdom

Key themes Rapid technology changes. Increasing pace of modern society. Increasing globalisation. Employment relationships. People issues. Properties of information.

Technology changes Rapid increase in processing speeds and capacity. Declining hardware costs. Increasing miniaturisation leading to portability. Convergence of communication and computing. Increasing deployment.

Increasing pace Increased customer expectations (“tomorrow is no longer good enough”). Increasing invasion of personal space by mobile phones and lap- tops. Declining margins make every sale that much more important.

Globalisation Markets are now global rather than regional. Decreasing cost of international communication. Increased access to global information.

Employment Factors of production during industrial age were predominantly capital plant, which was clearly owned by the employer or nobility. Factors of production in present society are based around information and analytical ability - ownership lies more and more with employees.

People issues Information is power, and can still be used (and misused) as a powerful lever. Information must generally be shared to be of any use. Information sharing depends on the strength of personal relationships - trust, honesty, integrity etc.

People issues Relationships must be sorted out as the first part of any information strategy. Investment in hardware is a total waste of money without proper relationships that will allow hardware capability to be used.

Properties Easily duplicated, making security difficult. Weightless, therefore easily transported. Can be electrically encoded, and travels at speed of light.

Information in business Purpose of information. Changed role. Information overload. Information products.

Purpose Primary role is to assist in making decisions. Decision making occurs at three levels within organisation…. Strategic (What and why). Tactical (When and how). Operational (Make it happen).

Overload Many organisations are now bogged down with excessive information. Many organisations are experiencing “paralysis by analysis”. Necessary to trade off accuracy of decisions with the limited time available to make them (“windows of opportunity”).

Changed role Most businesses now have to make decisions in a rapidly moving deregulated global environment. Decisions must be made more quickly, and often with incomplete information. Consequences of incorrect decisions can be disastrous.

Information products Some products such as finance, banking, insurance, and consultancy services always have been based around information. These naturally lend themselves to increased use of information technology eg. banking over the internet and via 0800 numbers.

Information products Information can provide a major source of competitive advantage to other products such as transport, manufacturing etc. Role of information can therefore become strategic, often at a very low cost.

Implications Information can be a major source of competitive advantage. Costs of technology make information more accessible. Potential for overload must be recognised and managed. Decisions must be made quickly. Effective information use requires strong working relationships.

Competitive advantage Information must be recognised as a source of competitive advantage as much as fixed assets, brands and natural resources. Information is a source of competitive advantage that is easily duplicated unless core information is held securely.

Costs of technology Technology is now so cheap that it has upset the balance between labor and capital costs even further. Using technology will probably require additional skilled people, offset by a reduced requirement for unskilled people. Must still be seen as an investment subject to cost-benefit analysis.

Costs of technology Twist to the cost-benefit argument is that costs and benefits are strategic rather than operational eg. loss of market share by not investing in new technology.

Overload Technology enables vast amounts of information to be rapidly retrieved at minimal cost. Decision makers are now swamped with information. Reality is that additional information adds little value to the decision making process.

Overload Windows of opportunity are too short for extensive analysis, often requiring decisions to be made with imperfect information. Requires good judgement to decide when no new information will be admitted to the decision process.

Quick decisions Rapid decision making is necessary to compete in deregulated global markets. Requires clearly devolved decision- making authority and accountabilities to enable decisions to be made at the customer interface. Staff need to be encourage to take calculated risks.

Relationships Effective exchange of information requires strong and honest relationships. Senior management must take a lead role in building a trustworthy culture. Investment in information-sharing technology is wasted unless a culture is in place that will use it.

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