1. Chapter 17 Managing Information © 2015 Cengage Learning. MGMT7

2. © 2015 Cengage Learning. 17-1 explain the strategic importance of information 17-2 describe the characteristics of useful information (i.e., its value and costs) 17-3 explain the basics of capturing, processing, and protecting information 17-4 describe how companies can access and share information and knowledge

3. First-Mover Advantage The strategic advantage that companies earn by being first to use information technology to substantially lower costs or differentiate a product. © 2015 Cengage Learning. 17-1

4. Using Information Technology to Sustain a Competitive Advantage 17-1 © 2015 Cengage Learning.

5. Sustaining A Competitive Advantage The key to sustaining a competitive advantage is not faster computers or better technology. The key is using information technology to continuously improve and support the core functions of a business. © 2015 Cengage Learning. 17-1

6. Characteristics of Useful Information Accurate Complete Relevant Timely © 2015 Cengage Learning. 17-2

7. Costs of Useful Information Acquisition costs Processing costs Storage costs Retrieval costs Communication costs © 2015 Cengage Learning. 17-2

8. Capturing Information Bar codes Radio frequency identification (RFID) tags Electronic scanners – optical character recognition © 2015 Cengage Learning. 17-3

9. Processing Information Transforming raw data into meaningful information that can be applied to business decision making. © 2015 Cengage Learning. 17-3

10. Protecting Information © 2015 Cengage Learning. Process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users but no one else. Authentication –are you who you claim to be? Authorization – granting access Two-factor authentication – password & more Biometrics – fingerprint, eye, face Firewalls Data encryption Virtual private networks - Secure sockets layer encryption - SSL 17-3

11. Security Threats to Data and Data Networks 17-3 © 2015 Cengage Learning © 2015 Cengage Learning.

12. Internal Access & Sharing Executive information system (EIS) Intranets – collaboration tools – customizable email accounts – presence awareness – instant messaging – simultaneous access to files Corporate portals – hybrid EIS & Intranet © 2015 Cengage Learning. 17-4

13. Numi Organic Tea 1.What kinds of challenges does Numi face in managing information? 2.Why was it no longer sufficient for Numi to use programs like Excel and QuickBooks to manage its information? 3.What are some of the advantages Durkee mentions that have come with using the ERP system? © 2015 Cengage Learning.