Managing Information

Markus Tschida

Key Aims

The aim of the module is to increase learners’ understanding ofinformation management issues facing contemporary organisations andhow systems can be utilised to ensure organisational efficiency andeffectiveness:

– Define the objectives and scope of system requirements in a givenorganisation

– Provide advice on the development, introduction and use of computerbased information systems and e-business tools

– Highlight methodologies, tools and techniques applicable to managingcontemporary information technology projects

At the end of the module, learners will have developed anunderstanding of how information systems can enhance organisationalefficiencies that can ultimately support competitiveness.

Overview

• Information systems – overview• Knowledge management & knowledge intensive firms• Knowledge management case study• IT project management• Performance management (including a case study)• Outsourcing• E-commerce• Web 2.0/social media• Enterprise systems• Round-up & future developments

Source materials

Core Reading:• Laudon, K. and Laudon, J (2007) Management Information

Systems: Managing the Digital Firm (10th Edition). Harlow: PearsonEducation

Recommended Reading:• Keen, J, Digrius, B. (2002) Making Technology Investments

Profitable: ROI Roadmap to Better Business Cases. J. Wiley andSons

• Schniederjans. M, Hamaker, J. Schniederjans, A (2004) InformationTechnology Investment: Decision-Making Methodology. WorldScientific Publishing Company

Source materials

The powerpoint presentation is based on the following sources:• Laudon, K. and Laudon, J (2007) Management Information

Systems: Managing the Digital Firm (10th Edition) Harlow: PearsonEducation

• Bocij, P. et al (2003) Business Information Systems: Technology,Development and Management for the e-business (2nd Edition)Harlow: Pearson Education

Information systems

Overview – Information Systems

• History• Data, information, knowledge• Computer systems• Information systems• Types of applications• Enterprise systems

History

• Documentation (3500 BC to AD 1452)– written language

• Mass publication (1452-1946)– Gutenberg press

• Automation (1946-1978)– electric power; switching devices

• Mass interaction (1978-1985)– microprocessor, personal computer, word processing,

spreadsheets• Infrastructure (1985-1993)

– LAN, WAN, GUI• Mass communication (today)

– internet, world wide web

Bocij, P. et al (2003)

History – Silicon Valley

• 1939 - Hewlett Packard (oscillators, electronic products)• Semiconductor industry – Intel, AMD• Software industry – Oracle, Sun, Electronic Arts• Internet – Yahoo, Ebay, Google• Web 2.0 – Facebook, MySpace• Venture capital

Worldwide IT spend

• Forecast for 2009 in USD (approx. 1,900bn):– Financial services (503bn)– Manufacturing (433bn)– Retail and wholesale trade (211bn)– Communications (202bn)– Services (172bn)– Other (373bn)

Source: Gardner

Worldwide IT spend

Source: Gardner

Financial services

26%

Manufacturing23%

Services9%

Other20%

Retail and wholesale

11%

Communications

11%

Data – information - knowledge

• Data– Raw facts; observations; little or no value until put into

context• Information

– Processed and interpreted data; meaningful• Knowledge

– Applied information; problem-solving• Transformation processes required

Information systems

A set of interrelated components that collect/retrieve, process, store, and distribute information to support

decision making and control in an organisation.Laudon and Laudon (2007)

Computer system

• Software - series of detailed instruction that control the operation of a computer system

• Hardware – physical component of the computer system

Software

• Systems software - manages and controls the operation of computer systems– Operating systems (interact with hardware) – Utility programs (support operation/management of a system)– Development programs (develop new software)

• Application software – perform specific information processing activities– General-purpose software (word processing, spreadsheets)– Application-specific software (specific purpose)

Bocij, P. et al (2003)

Hardware

• Physical component of the computer system• Input, processing, output• For example: ROM/RAM chips, microprocessor

Networks

• Link two or more computers to share information or resources

• Internet – global network using universal standards• Intranet – internal corporate networks• Extranets – private intranets extended to authorised

users outside the organisation

Information systems

A set of interrelated components that collect/retrieve, process, store, and distribute information to support

decision making and control in an organisation.

Software – hardware – networks

Laudon and Laudon (2007)

Information systems

• Strategic business objectives/key drivers– Operational excellence (e.g. speed, quality)– New products, services, and business models– Customer and supplier intimacy (CRM)– Improved decision making– Competitive advantage– Survival (regulation, legal compliance)

Laudon and Laudon (2007)

Information systems

• Complementary assets– Business models– Business processes– Organisational culture– Management behaviour– Technology standards/information architecture– Regulations and laws

Laudon and Laudon (2007)

Functions of an Information System

Laudon and Laudon (2007)

Information systems

• Examples:– Operations information systems– Management information systems– Expert systems, business information systems, end-

user computing systems, strategic information systems

Operational information systems

• Critical to the success of a business• Directly affects customer experience,

profitability, cashflow• Examples:

– Transaction processing systems – customer orders, supplier purchases, payments, payroll

– Office automation systems – groupware and workflow systems for collaboration

– Process control systems - manufacturing

Decision support systems

• Assist in decision making processes• Feedback on organisational activities• Examples:

– Expert systems allow non-specialists to take unstructured decision outside their area of expertise (knowledge base and a set of rules)

– Executive information systems provide senior managers with an overview of the business

– Data warehouses provide a repository for transaction data with analysis tools

Managerial decisions

• Operational– Sales order; quality control

• Tactical– Foreign market entry; pricing structure for a product

• Strategic– Business area; organisational structure; distribution

channel

Managerial decisions

• Characteristics– Time: long - short– Type: structure – unstructured– Impact: large – small– Frequency: infrequent – frequent

• Scope and level of detail of underlying information needs to be compatible

Management structure and systems

• Senior management – decision support systems, executive support systems

• Middle management – management information systems

• Operational management – transaction processing systems

Management information systems

• Multidisciplinary approaches– Technical

• Computer science• Management science• Operations research

– Behavioural• Psychology• Economics• sociology

Enterprise resource planning (ERP)

• Designed to coordinate multiple functions and business processes

• Integrate key internal business processes of a firm into a single software system

• Improve coordination, efficiency, and decision making

Laudon and Laudon (2007)

Enterprise systems

Laudon and Laudon (2007)

Enterprise resource planning (ERP)

• Examples:– Supply chain management systems (SCM)– Customer relationship management systems (CRM)– Knowledge management systems (KMS)

Laudon and Laudon (2007)

Enterprise Application Architecture

Laudon and Laudon (2007)

Business Information Value Chain

Laudon and Laudon (2007)

Supply chain management systems

• Help firms to manage their relationships with suppliers• Optimise the planning, sourcing, manufacturing, and

delivery of products and services

Laudon and Laudon (2007)

Customer relationship management systems

• Coordination of all of the business processes in relation to the organisation’s interaction with its customers

• Optimise firm revenue and customer satisfaction• Example: sales and accounting workflow

Laudon and Laudon (2007)

Knowledge management systems

• Enable organisations to optimise the creation, sharing, storing, and distribution of knowledge

• Technological and behavioural component

Laudon and Laudon (2007)

Summary

• History• Data, information, knowledge• Computer systems• Information systems• Types of applications• Enterprise systems