Transcript Document

Slide 01.1
Chapter 01 Introduction to
Information Management
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.2
Objectives and outcomes
• Overall objective:
– To define the relationship between, and importance of,
data, information, knowledge and information systems
to the modern organization
• Learning outcomes:
– Explain how information management delivers value to
an organization
– Demonstrate the relationship between data,
information and knowledge
– Identify key management issues of information and
knowledge management
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.3
Management issues
• How do we leverage information to increase
organizational efficiency and competitiveness?
• How can we harness the knowledge within our
organization?
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.4
How important is information management?
Information
concept phrase
Phrase anywhere
on page
Phrase in title of
page (in title:)
“Information
management”
“Knowledge
management”
4,000,000
325,000
3,200,000
135,000
“Information
Systems”
“Information
Technology”
6,800,000
451,000
7,800,000
766,000
Table I Occurrences of information related concepts in web pages indexed by
Google. May 2004.
Source: Google
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.5
Where is the emphasis?
Where should it be?
Information
Technology
Information
Technology
The stress should be on the ‘I’ rather than the ‘T’ in ‘IT’ (Davenport, 2000).
Peter Drucker stressed the importance of information to organizational competitiveness in
1993 when he wrote:
‘The industries that have moved into the center of the economy in the last
forty years, have as their business, the production and distribution of
knowledge and information rather than the production and distribution of
things’.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.6
The Importance of
Information in Today’s World
Three perspectives:
1. The Information Society
2. Information Economy
3. The Information Age
What are the implications of each for us
and managers?
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.7
The Information Society
Martin (1995) says of information:
‘Without an uninterrupted flow for this vital resource,
society as we know it would quickly run into
difficulties, with business and industry, education,
leisure, travel and communications, national and
international affairs all vulnerable to disruption. In
more advanced societies, this vulnerability is
heightened by an increasing dependence on the
enabling powers of information and communications
technologies.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.8
The Information Society defined
Information Society was defined by the UK INSINC
working party on social inclusion in the information
society in 1997 as:
‘A society characterised by a high level of information
intensity in the everyday life of most citizens, in most
organizations and workplaces; by the use of common
or compatible technology for a wide range of
personal, social, educational and business activities;
and by the ability to transmit and receive digital data
rapidly between places irrespective of distance.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.9
The Information Economy
‘...every business is an information business…
information is the glue that holds together the
structure of all businesses’ (Evans and Wurster, 1997)
• 1. Reach. How many in a market who are
exchanging information.
• 2. Richness. The depth and media used for
information.
• 3. Affiliation. Effectiveness of links with
partners.
Source: Evans and Wurster (1997). Strategy and the New Economics of Information.
Harvard Business Review. September-October, 1997, 70-82.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.10
Examples of business providing
information services?
• Financial Times (Business news and information at
www.ft.com)
• Factiva (Detailed information about business
performance at www.factiva.com)
• Experian (Information about customers such as credit
ratings and profiling for targeted marketing
communications from www.experian.com)
• Questia (Online subscription-based access is
provided to published books and articles for students
at www.questia.com)
• ScienceDirect.com (Online journal access for science
and business researchers at www.sciencedirect.com)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.11
The information age – when did it start?
• 300 BC Basic Chinese characters
• 387 BC Plato founded his academy
• AD 1455 The printing of the Bible with
moveable type by Gutenberg in Germany
• 1651 – first modern library at Oxford University
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.12
Modern developments
•
•
•
•
•
•
•
•
1860 Typewriters use the QWERTY keyboard
1876 Alexander Graham Bell introduced the first telephone
1901 Marconi sends a radio signal
1937 Atanasoff-Berry Computer (ABC), the world's first electronic
digital computer
1947 First commercial computer – ENIAC (Electronic Numerical
Integrator And Computer). It weighed thirty tons and used 18,000
vacuum tubes
1969 First node on the US ARPANET, forerunner of the Internet
1971 First e-mail sent; a computer engineer named Ray Tomlinson sent
the first e-mail message. He can’t remember the message, but he does
remember choosing the @ symbol!
1991 First web site (http://info.cern.ch) published by Tim Berners-Lee
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.13
Information in today’s organization
• ‘Critically important to the survival and success of an organization
is effective management of information and related Information
Technology (IT). In this global information society—where
information travels through cyberspace without the constraints of
time, distance and speed—this criticality arises from the:
• Increasing dependence on information and the systems that
deliver this information
• Increasing vulnerabilities and a wide spectrum of threats, such
as cyber threats and information warfare
• Scale and cost of the current and future investments in
information and information systems
• Potential for technologies to dramatically change organizations
and business practices, create new opportunities and reduce
costs’
Source: COBIT (2000) IT Governance framework
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.14
Information in today’s organization –
Challenges – information overload
Storage Medium
2002
Terabytes
Upper
Estimate
2002
Terabytes
Lower
Estimate
1999-2000
Upper
Estimate
19992000
Lower
Estimate
%
Change
Upper
Estimate
Paper
1,634
327
1,200
240
36%
Film
420,254
74,202
431,690
58,209
-3%
Magnetic
4,999,230
3,416,230
2,779,760
2,073,760
80%
Optical
103
51
81
29
28%
TOTAL:
5,421,221
3,416,281
3,212,731
2,132,238
69%
Table 1.2 Worldwide production of original information, if stored digitally
Source: Lyman and Varian (2003)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.15
Challenges of information management
in the organization?
• Relevance – How do we find information relevant to our
decisions?
• Accessibility – How do organizations make relevant
information available to employees and partners through
computer applications, web and e-mail? How is the
knowledge used to apply information captured and shared
between employees?
• Legality – How do organizations ensure they are using
customer, employee and market information in accordance
with legal and ethical standards?
• Security – How do we protect this information from
accidental or deliberate threats?
• Value – How can this information help organizations reach
their business objectives?
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.16
Using information to support processes
Figure 1.1 Generic organizational operating processes and management
processes
Source: PricewaterhouseCoopers, 2002
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Slide 01.17
How information supports processes
Information enables organizations to:
• Sense what is happening in the external
environment and respond accordingly through their
strategy and tactics.
• Research demand for new products.
• Monitor and control operating processes for
efficiency and improve them to save time or money.
• Exchange information with partners such as
suppliers as part of their operational processes.
• Communicate messages about brands and
products internally and externally.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.18
Figure 1.2 Capital One web site
Source: www.capitalone.com
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.19
Mini-case study –
Capital One creates value through, information
• Capital One sends out one billion items of mail per year and
handles 90 million inbound calls, 300 million outbound calls, 230
million Internet impressions and 40 million transactions per day.
• CIO Gregor Bailar highlights the role of information management:
• ‘CIOs today need to be technology alchemists. They need to be
strong in professional technical methodologies so that their
conversation is a disciplined one but, at the same time, they need
to understand the business, be it banking, credit cards or loans.
• Their job is not to know the future of technology, nor the latest and
greatest of delivery networks, but to be focused on balancing the
set of business needs, and choosing or creating the best possible
solutions that can be provided from a technical perspective.
• The CIO is expected to be involved not only in strategy
development, but also in business and product innovation. Now,
more than ever, CIOs are being held accountable for driving the
business value, not just for keeping the lights blinking on the
computers.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.20
Information and business value
Figure 1.3 An evaluation tool relating information to business value. An
organization’s use of information on each axis can be assessed from
1 (low use of information) to 10 (high use of information)
Source: Marchand (2000)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.21
Why businesses adopt technology
Figure 1.4 Reasons cited by businesses for adoption of information technology
Source: DTI www.ukonlineforbusiness.gov.uk/benchmarking 2003
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.22
Fundamentals of Information Management
Figure 1.5 The three strands of Business Information Management (Information, People
and Technology resources)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.23
What is Business Information Management
The process of actively managing information
as a strategic resource for improving
organizational performance.
This process involves developing strategies
and introducing systems and controls to
improve information quality to deliver value.
What are the key Who, What, When, Why, Where and How of BIM?
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.24
Data and Information defined
English (1999) defines the relationship
between data and information as follows:
‘Information is data in context. Information is
usable data. Information is the meaning of
data, so facts become understandable.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.25
The data-information-knowledge
transformation process
Figure 1.6 The data to information to knowledge transformation process
Source: BIM
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.26
Data visualisation example
Figure 1.7 Summary information view of European flights from Birmingham International
airport
Source: www.flightmapping.com/Europe/flights-map.swf
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.27
The 4Cs of information transformation
• Context – Displaying a data item relative to other data
items, such as in a time series or trend graph. Sorting
data alphabetically or numerically is another example of
contextualization.
• Calculation – producing derived metrics such as
calculating a percentage capacity utilisation.
• Classification or categorization – grouping information
into different categories, e.g. all flights into a particular
country.
• Condensation – Aggregating or totalling information is
always important in presenting business event data as
summary information – for example, total sales on a
route. Filtering is also used to summarise information,
for example, “show me all flights that were delayed by
at least two hours”.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.28
Knowledge defined
English (1999) builds on his definition of information to define
knowledge as follows:
‘Knowledge is not just information known, it is information in
context.
Knowledge means understanding the significance of the
information.
Knowledge is the value added to information by people who have
the experience and acumen to understand its real potential.
Knowledge has value only to the extent that people are
empowered to act based on that knowledge. In other words,
knowledge has value only when acted on.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.29
The organizational system
Figure 1.8 The organizational system
Source: BIM
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Slide 01.30
The organizational environment
Figure 1.9 The organizational environment
Source: BIM
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Slide 01.31
Different forms of information
Figure 1.10 Different forms of information
Source: BIM
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Slide 01.32
Web pages indexed by search engines
Figure 1.11 Trends in number of web pages indexed by major search engines
Source: www.searchenginewatch.com/reports
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Slide 01.33
Autonomy Portal-in-a-Box™
Figure 1.12 Autonomy Portal in a Box™
Source: www.autonomy.com
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Slide 01.34
The Information Lifecycle model
Figure 1.13 The Information Lifecycle
Source: BIM
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Slide 01.35
Records management for lifecycle management
British Standards Institute (BSI, 2001) defines records as:
• ‘information created, received, and maintained as evidence
and information by an organization or person, in pursuance
of legal obligations or in the transaction of business.’
Records management is:
• ‘field of management responsible for the efficient and
systematic control of the creation, receipt, maintenance, use
and disposition of records, including processes for capturing
and maintaining evidence of and information about business
activities and transactions in the form of records.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.36
Knowledge management defined
The European Guide to Best Practice in Knowledge
Management defines knowledge as:
‘The combination of data and information to which is
added expert opinion, skills and experience to result
in a valuable asset which can be used to make
decisions. It is the essential factor in adding meaning
to information. Knowledge may be explicit and/or
tacit, individual and/or collective.’
Mekhilef et al., 2003
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Slide 01.37
European KM framework
Figure 1.14 The European Knowledge Management Framework
Source: Heisig and Iske (2003)
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Slide 01.38
Problems with KM
Knowledge Management issues are highlighted by the findings of a
1999 IDC survey of 255 US CIOs. The main problems noted were:
• Lack of understanding of KM and its benefits (55 per cent)
• Lack of employee time for KM (45 per cent)
• Lack of skill in KM techniques (40 per cent)
• Lack of encouragement in the current culture for sharing (35 per
cent)
• Lack of incentives/rewards to share (30 per cent)
• Lack of funding for KM initiatives (24 per cent)
• Lack of appropriate technology (18 per cent)
• Lack of commitment from senior management (15 per cent)
See Chapter 6 for further details
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.39
Does IT Matter?
Carr (2003) suggests that Information Technology has become
commoditised to such an extent that it no longer delivers a
competitive advantage. Carr says:
‘What makes a resource truly strategic – what gives it the capacity
to be the basis for a sustained competitive advantage is not
ubiquity, but scarcity.
You only gain an edge over rivals by having something that they
can’t have or can’t do.
By now the core functions of IT – data storage, data processing
and data transport have become available and affordable to
all…They are becoming costs of doing business that must be paid
by all but provide distinction to none.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.40
The Productivity Paradox
In 1987, the MIT professor and Nobel economist Robert Solow,
said:
‘We see the computer age everywhere except in the productivity
statistics.’
• Financial Times (2003) reported that in the US, the annual rate of
increase in output per hour from:
• Late 1970s and early 1980s was 2.6%
• Late 1987 to 1995, it dropped to only 1.5%, despite the increase in
use of personal computer technology in organizations.
• BUT 1995 increased to an average of 2.5%
• 2002 5.3%
• Third quarter of 2003 reached 9.4%, the highest rate for 20 years.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.41
IT investment is not only about hardware – advantage
comes through where and how implementation occurs
‘… Prof Brynjolfsson and colleagues found that of the
$20m total cost of an enterprise resource planning
(ERP) system, only about $3m goes to the software
supplier and perhaps $1m towards the acquisition of
new computers.
The $16m balance is spent on business process
redesign, external consultants, training and
managerial time. The ratio between IT investment
and this "supporting" expenditure varies across
projects and companies. But, over a range of IT
projects, Prof Brynjolfsson believes that a 10:1 ratio
is about right. Returns on these investments
commonly take 5 years to materialise.’
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.42
People resources – Perspective 1
Internal end-user concerns include:
• Data quality – is it relevant, timely, accurate and easy
to understand? (Chapter 10)
• Service quality – are the systems available when
required at the speed required? (Chapter 11)
• Developing IT Skills – do I have the best skills to use
information and technology? (Chapter 4)
• Applications – do I have the right tools to do the job?
(Chapters 2, 3, 6 and 9)
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Slide 01.43
People resources – Perspective 2
Departmental manager or process owner issues
include:
• Selecting providers – which internal and external
suppliers of information management services do I
select? (Chapters 2, 3 and 11)
• Applications selection – are the right applications
available to support the performance of the area I am
responsible for? (Chapters 2, 6)
• Integrating with other functions – how can I share
information with other departments and shared
processes? (Chapters 2, 10)
• Knowledge Management – how can the knowledge of
my staff be shared and enhanced? (Chapter 5)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.44
People resources – Perspective 3
Chief Executive Officer (CEO) perspective includes:
• Contribution of IS to business – in terms of valueadding and cost control (Chapter 4)
• Strategic impact of IS – how can improved
information management yield competitive
advantage? (Chapter 4)
• Legal implications of information management – what
are the legal risks? What are senior managers liable
for in law? (Chapter 12)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.45
People resources – Perspective 4
IS Manager / CIO perspective includes:
• IS Strategy – how can IS expenditure support
corporate strategy? (Chapter 4)
• Managing change and minimising risk – as new
applications are introduced (Chapter 7)
• Resourcing – which technologies should be
outsourced and which should be kept in house
(Chapters 7 and 10)
• Security – are information services secure? (Chapter
11)
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.46
People resources – Perspective 5
•
•
•
•
Customer or partner perspective
includes:
Supply of quality information from organization
Security of own information
Integration of systems for transfer of
information
Support through enquiries made of partner
organization
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.47
Information orientation
Information Orientation
• A concept or metric used to assess how effectively people use
information and IT to improve business performance.
• 1. IO incorporates a people-centric view of information use [as
opposed to a technological orientation].
• 2. IO is causally linked to business performance [hence our
selection of ‘improving organizational performance’ as the sub-title
of this text]
• 3. IO is an organization-wide issue, not limited to the IT
department or other information management support functions.
• 4. IO applies universally across international borders. There are no
significant differences between the senior manager responses in
North America and Europe.
• 5. IO can be used as a key performance indicator over time to
assess the effectiveness of management actions to improve
information behaviours and values, information management
practice and IT practices.
Chaffey and Wood Business Information Management © Pearson Education Limited 2005
Slide 01.48
Different ways to categorize information resources
Figure 1.15 Different ways to categorize information resources
Source: BIM
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