1. Management, by Williams South-Western College Publishing Copyright © 2000 Chapter 6 Managing Information

2. Management, by Williams South-Western College Publishing Copyright © 2000 2 What Would You Do? 4A telecommunications company with high phone bills 4Easy phone access is your competitive advantage 4How do you cut costs without hurting sales?

3. Management, by Williams South-Western College Publishing Copyright © 2000 3 After discussing this section, you should be able to: Learning Objectives Why Information Matters ¬describe the characteristics of useful information. ­explain the strategic importance of information.

4. Management, by Williams South-Western College Publishing Copyright © 2000 4 Moore’s Law Adapted from Figure 6.1

5. Management, by Williams South-Western College Publishing Copyright © 2000 5 Characteristics of Useful Information Accurate Relevant Complete Timely

6. Management, by Williams South-Western College Publishing Copyright © 2000 6 The Costs of Useful Information Acquisition Processing Storage Retrieval Communication

7. Management, by Williams South-Western College Publishing Copyright © 2000 7 Strategic Importance of Information First-moveradvantage Sustaining a competitiveadvantage

8. Management, by Williams South-Western College Publishing Copyright © 2000 8 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 Figure 6.2

9. Management, by Williams South-Western College Publishing Copyright © 2000 9 After discussing this section, you should be able to: Learning Objectives Information Technologies ®explain the basics of capturing, storing, and processing information. ¯describe how companies can share and access information and knowledge.

10. Management, by Williams South-Western College Publishing Copyright © 2000 10 Capturing Information 4Bar Codes 4Electronic Scanners 4Optical Character Recognition

11. Management, by Williams South-Western College Publishing Copyright © 2000 11 Storing Information 4Microfilm 4CD-ROM 4Digital video disks 4Data storage tapes Tarchived data Tsecondary storage 4Primary Storage 4Redundant array inexpensive disk (RAID)

12. Management, by Williams South-Western College Publishing Copyright © 2000 12 Processing Information Centralized Processing transaction processing automated processing Distributed Processing desktop computersdesktop computers Shared Processing client/server networkclient/server network

13. Management, by Williams South-Western College Publishing Copyright © 2000 13 Back to the Future Can You Strike Gold with Data Mining? 4Data Mining - looking for patterns Tsupervised and unsupervised 4IBM Creates “Advanced Scout” Tallows NBA teams to find effective strategies

14. Management, by Williams South-Western College Publishing Copyright © 2000 14 Cost and Configuration for Desktop, Server, and Mainframe Computers Adapted from Table 6.1

15. Management, by Williams South-Western College Publishing Copyright © 2000 15 Accessing and Sharing Information and Knowledge Communication Internal Access & Sharing of Information External Access & Sharing of Information Sharing Knowledge and Expertise

16. Management, by Williams South-Western College Publishing Copyright © 2000 16 Communication

17. Management, by Williams South-Western College Publishing Copyright © 2000 17 Internal Access and Sharing Executive information systems (EIS) Intranets

18. Management, by Williams South-Western College Publishing Copyright © 2000 18 Executive Information System (EIS) 4Uses internal & external data 4Use it to monitor and analyze organizational performance 4Must be easy to use and must provide information that managers want and need

19. 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 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 Table 6.2

20. Management, by Williams South-Western College Publishing Copyright © 2000 20 Intranets 4Company networks 4Allow employees to easily access, share, and publish information using Internet software 4Growing in popularity

21. Management, by Williams South-Western College Publishing Copyright © 2000 21 Why Intranets, Not EIS are Growing 4Less expensive 4Intuitive and easy to use 4Compatible with different operating systems 4Can work with existing equipment 4Work with most software programs

22. Management, by Williams South-Western College Publishing Copyright © 2000 22 Blast From The Past The History of Managing Information 4Cro-Magnons create lunar calendar 4Travelers and town criers spread news 4Paper and printing press revolutionize information management 4Typewriters and copy machines make information more “routine” 4Cash registers and time clocks help with employee management

23. Management, by Williams South-Western College Publishing Copyright © 2000 23 External Access and Sharing Electronic Data Interchange Internet

24. Management, by Williams South-Western College Publishing Copyright © 2000 24 Been There, Done That United Airlines uses Information Technology to boost profits 4They now sell software they have developed 4Better relationships forged between IS and users 4More customers electronically ticketed

25. Management, by Williams South-Western College Publishing Copyright © 2000 25 Sharing Knowledge and Expertise 4Knowledge is the understanding one gains from information 4Decision support systems (DSS) Tuses models to analyze information 4Expert systems Treplicate experts’ decisions

26. Management, by Williams South-Western College Publishing Copyright © 2000 26 What Really Happened? 4Replaced phone-based system with a secure company intranet 4Use e-mail rather than voice mail 4Use the Internet to handle customer billing