Information

Effective information management must begin by thinking about how people use information—not with

how people use machines. Thomas Davenport

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Key characteristics of the early 21st century

High velocity global changeChanging international relationshipsEmergence of China as an economic powerTrading blocsGlobalization of business

Emergence of influential information-based organizationsApple - iPod and iTuneseBay - The World’s Online Marketplace®Google - to organize the world's information and make it universally accessible and usefulMicrosoft - Windows and OfficeSAP - enterprise resource planning software

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Historical perspective

Phases of civilizationAgricultureIndustrialInformationCreation

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The information ageBuilt on sand

Silicon chipsFiber optics

BorderlessA free flow of:

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The information age

Old wealth New wealthMilitary IntelligenceNatural resources MarketingPopulation Global reachIndustry Education

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Eras of information systems

Era

Focus Period Technology Networks

1 Take information work to the computer

1950s – mid-1970s Batch Few data networks

2 Take information work to the employee

Mid-1970s – mid-1990s

Host/terminal Spread of private networks

3 Take information work to the customer and other stakeholders

Mid-1990s - present

Browser/server

Public networks

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How IS creates valueWho Every time an organization makes contact

with a stakeholder, it has an opportunity to influence, inform, or transfer work to it.

How How an organization reaches a stakeholder determines the potential success of the interaction. The higher the bandwidth of the connection, the richer the message, the greater the amount of information that can be conveyed, and the more information work that can be transferred.

Where Value is created when customers get information directly related to their current location and what local services they want to consume.

When When a firm delivers a service to a client can greatly determine its value.

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Knowledge transferWriting and paper enable accumulation and transmission of knowledgeWriting encodes informationFull writing systems are 5,000 years oldStorage medium has progressed from clay to magnetized materialLarge scale organizational memory parallels development of large organizations

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Information hardnessMinerals Scal

eData

Talc 1 Unidentified source-rumors, gossip, and hearsayGypsum 2 Identified nonexpert source - opinions, feelings, ideasCalcite 3 Identified expert source - predictions, speculations,

forecasts, estimatesFluorite 4 Unsworn testimony - explanations, justifications,

assessments, interpretationsApatite 5 Sworn testimony - explanations, justifications,

assessments, interpretationsOrthoclase

6 Budgets, formal plans

Quartz 7 News reports, non-financial data, industry statistics, survey data

Topaz 8 Unaudited financial statements, government statisticsCorundum

9 Audited financial statements, government statistics

Diamond 10 Stock exchange and commodity market data

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Information richness

Managers seek rich information to resolve equivocalityInformation systems typically deliver lean information

Richest Leanest

Face-to-face

Telephone Personal documents (letters and memos)

Impersonal written documents

Numeric documents

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Information classesClass DescriptionContent Quantity, location, and types of

itemsForm Shape and composition of an

objectBehavior

Simulation of a physical object

Action Creation of action (e.g., industrial robots)

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Information and organizational change

Organizations are goal seekingInformation supports goal seeking

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Goal setting information

Anchoring and adjustingPlanning

Demographic trendsEconomic forecasts

BenchmarkingCompetitors’actions

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Gap information

Problem identificationA gap between expectations and performance

ScorekeepingQuantitativeQualitativeUse of critical success factors to determine variables to measure

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Gap information

Detecting the gapProblem identification

Exception reportsScorekeeping

Routine reports

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ScorekeepingOrders Number of current customers

Average order sizeBatting average (orders to calls)

Sales volume Dollar sales volumeUnit sales volumeBy customer typeBy product categoryTranslated to market shareQuota achieved

Margins Gross marginNet profitBy customer typeBy product

Customers Number of new accountsNumber of lost accountsPercentage of accounts soldNumber of accounts overdueDollar value of receivablesCollection of receivables

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Change information

Closing the gapProblem solution

Determining the cause(s)Identifying alternativesAnalysis of alternatives

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Information as a means of change

Information can be a source of competitive advantageInformation can be built into products and servicesMarketing

Frequent flyer programsCustomer service

Information technology used to improve serviceEmpowerment

Sharing information with employeesGiving employees freedom to make decisions

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Managerial workManagers implement organizational changeManagerial work is:

FragmentedBriefFrequently disturbedHigh velocityAction oriented rather than contemplative

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Managerial communication

Preference for oral communicationExtensive use of networks

Information sourceWay of getting things done

Formal reporting systemsInfrequently usedSource of confirming information

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Managerial information requirements

Expect relevant informationExpectations continually change

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Demand varies with hardness of informationUse multiple sources in search of reliability

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Demand varies with responsibilities

Short-terminformation

M edium-terminformation

Seniorexecutive

Operationalmanager

Long-terminformation

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Information satisficingDecision overload is a problemSatisficing

Accept first satisfactory decisionCollect enough information to make a satisfactory decision

Lowers quality of decision making

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Information delivery systems

Organizational memory

Delivery systems

People ConversationElectronic mailMeetingReportGroupware

Files Management information system (MIS)Documents Office automation system (OAS)Images Imaging process system (IPS)Graphics Computer aided design (CAD)

Geographic information system (GIS)Voice Voice mail

Voice recording systemMathematical model Decision Support System (DSS)Knowledge Expert System (ES)Decisions Conversation

Electronic mail Meeting ReportGroupware

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File Image People FileOrganizational Memory

MIS IPS MIS E-mail

Information integration software(e.g., an EIS)

Client

Organizational memory is fragmented

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The ideal system

Information delivery system

Client

Organizational Memory

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Organizational KnowledgeCognitive knowledgeAdvanced skillsSystem understanding and trained intuitionSelf-motivated creativity

Know whatKnow howKnow why

Care why

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Skills values vs. training expenditure

Cognitive skills (know what)

Value to the firm

Advanced skills (know how)

System understanding (know why)

Motivated creativity (care why)

Training expenditure

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Types of knowledge

ExplicitCodified and transferable

TacitPersonal, experience, judgmentDifficult to codifyDifficult to transfer

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ConclusionWe are about 50 years into the information ageInformation-based organizations are the growth engines of advanced economiesEveryone needs information systems skills