Management by chuch williams chapter 17

Chapter 17

Managing Information
MGMT
Chuck Williams

Designed & Prepared by
B-books, Ltd.
1


Moore’s Law

2


Why Information Matters
After reading these sections,
you should be able to:

1. explain the strategic importance of information.
2. describe the characteristics of useful
information (i.e., its value and costs).

3


Data versus Information
• Raw data = facts + figures
• Information = useful data
that influences choices

4


Strategic Importance of
Information
First-Mover
Advantage
Sustaining a
Competitive
Advantage

1
5


First-Mover Advantage
First-Mover Advantage
The strategic advantage that
companies earn by being the first to
use new information technology to
lower costs or to differentiate a product.

1.1
6


Cable versus DSL
Cable companies
have invested $90

billion over the last
decade to create a
first-mover
advantage in
delivering highspeed Internet.
7


Fast Facts on First Movers
ON AVERAGE:

First movers earn a 30% market
share.
Later movers earn a 19% share.
Of market leaders, a whopping 70%
were first movers.
8


Sustaining a Competitive
Advantage
NO

Does
Doesthe
theinformation
information
technology
technology(IT)
(IT)

create
create
YES
value?
value?

Competitive
Competitive
Disadvantage
Disadvantage

NO

IsIsthe
theIT
ITdifferent
different
across
across
competing
competing
YES
firms?
firms?

Competitive
Competitive
Parity
Parity

1.2

NO

IsIsititdifficult
difficult
for
another
for anotherfirm
firm
to
tocreate
createor
orbuy
buy
the
theIT?
IT?

Temporary
Temporary
Competitive
Competitive
Advantage
Advantage

YES

Sustained
Sustained

Competitive
Competitive
Advantage
Advantage
9


Characteristics of Useful Information
•
•
•
•
•
•
•

Accurate
Verifiable
Timely
Organized
Accessible
Relevant
Complete

2
10


Costs of Useful Information
•

•
•
•
•

Acquisition
Processing
Storage
Retrieval
Communication Costs

2
11


Getting and Sharing
Information
After reading these sections,
you should be able to:

3. explain the basics of capturing, processing,
and protecting information.
4. describe how companies can access and share
information and knowledge.

12


Capturing Information
Manual

Manual

Bar
BarCodes
Codes

Electronic
Electronic

Radio
RadioFrequency
Frequency
Identification
IdentificationTags
Tags
Electronic
ElectronicScanners
Scanners

3.1

Optical
OpticalCharacter
Character
Recognition
Recognition
13


Processing Information: Data Mining

Data
Data
Warehouse
Warehouse

Supervised
Supervised
Data
Data Mining
Mining

Unsupervised
Unsupervised
Data
Data Mining
Mining

Affinity
Affinity
Patterns
Patterns
Sequence
Sequence
Patterns
Patterns
Predictive
Predictive
Patterns
Patterns

3.2

Data
Data
Clusters
Clusters
14


Unsupervised Data Mining
Affinity
Affinity
Patterns
Patterns

Two
Two or
or more
more database
database elements
elements
occur
occur together
together significantly
significantly

Sequence
Sequence
Patterns
Patterns

One
One of
of the
the elements
elements
precedes
precedes the
the other
other

Predictive
Predictive
Patterns
Patterns

Helps
Helps identify
identify database
database elements
elements
that
that are
are different
different

Data
Data
Clusters
Clusters

Three
Three or
or more
more database
database elements
elements
occur
occur together
together

3.2
15


Protecting Information
 Authentication
 Authorization
 Two-factor authentication
 Firewalls
 Antivirus software
 Data encryption
 Virtual private networks
 Secure Sockets Layer (SSL) encryption
3.3
16


Protecting Information


Firewall - Security system consisting of hardware
and/or software that prevents unauthorized intrusion

17


Protecting Information
• What is a biometric device?
 Authenticates person’s
identity using personal
characteristic


Fingerprint, hand geometry, voice,
signature, and iris

18
Next


Protecting Information
• What is encryption?





Safeguards against information theft
Process of converting plaintext (readable data) into ciphertext

(unreadable characters)
Encryption key (formula) often uses more than one method
To read the data, the recipient must decrypt, or decipher, the data

19

Next
Next


Tips for Protecting Data

Beyond the Book

• Rule #1: Understand the real value
of data (not just the value of the
disk it’s on) and treat it accordingly.
• Encrypt data.
• Track data that you send to
someone else.
• Use a coding system to label the
value of a disk or a memory stick.
Source: B. Worthen, “Workers Losing Computer Data May Lack Awareness of its Value,” The Wall
Street Journal, 27 November 2007, B3.

20


Accessing and Sharing
Information and Knowledge

Internal
InternalAccess
Access
and
and
Information
Information Sharing
Sharing
External
ExternalAccess
Access
and
and
Information
Information Sharing
Sharing

4

Sharing
Sharing of
of
Knowledge
Knowledge and
and
Expertise
Expertise
21

Executive Information System (EIS)

• Uses internal and external data
• Used to monitor and analyze
organizational performance
• Must provide accurate,
complete, relevant, and
timely information to
managers
4.1
22


Intranets
• Private company networks
• Allow employees to
access, share, and
publish information
• A firewall permits
only authorized internal
access
4.1
23


Why Companies Use Intranets
• Inexpensive
• Increase efficiencies and reduce costs
• Intuitive and easy to use
• Work across all computer systems

• Can be built on top of existing network
• Work with software programs that convert to HTML
• Software is available at no cost or is less expensive
4.1
24


Corporate Portals
Corporate Portals
A hybrid of executive information systems
and intranets that allow managers and
employees to use a Web browser to gain
access to customized company information
and to complete specialized transactions.

4.1
25