management theory
abbdis2008
MGMT10_Williams_Ch17.pptxChapter 17 – Managing Information
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing Information
17
1
Learning Outcomes
Explain the strategic importance of information
Describe the characteristics of useful information (that is, its value and costs)
Explain the basics of capturing, processing, and protecting information
Describe how companies can access and share information and knowledge
LEARNING OUTCOMES
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Moore’s Law
Prediction that about every two years, computer processing power would double and its cost would drop by 50 percent
LO 1
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MGMT10 | CH17
3
Raw Data and Information
Raw data: Facts and figures
Information: Useful data that can influence people’s choices and behavior
Has strategic importance for organizations as it can be used to:
Obtain first-mover advantage
Sustain competitive advantage once it is created
LO 1
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MGMT10 | CH17
4
17.2 Using Information Technology to Sustain a Competitive Advantage
LO 1
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MGMT10 | CH17
Exhibit
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5
Characteristics of Useful Information
LO 2
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MGMT10 | CH17
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Accurate
Complete
Relevant
Timely
Costs of Useful Information
LO 2
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MGMT10 | CH17
7
Acquisition cost
Processing cost
Storage cost
Communication cost
Retrieval cost
Methods of Capturing Information
Manual capture
Slow, costly, labor-intensive, and inaccurate process
Entails recording and entering data by hand into a data storage device
Electronic capture
Involves using electronic storage devices to capture and record data electronically
Electronic storage devices include bar codes, radio frequency identification (RFID) tags, and electronic scanners
LO 3
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MGMT10 | CH17
8
Processing Information
Transforming raw data into meaningful information
Data warehouse: Stores huge amounts of data prepared for data mining analysis by being cleaned of errors and redundancy
Data mining: Discovering unknown patterns and relationships in large amounts of data
LO 3
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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT10 | CH17
9
Types of Data Mining
Supervised
Data mining software is used to look and test for specific patterns and relationships in a data set
Unsupervised
Data mining software is used to uncover all patterns and relationships in a data set
Helps identify:
Association or affinity patterns: Two or more database elements tend to occur together in a significant way
LO 3
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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT10 | CH17
10
Types of Data Mining (continued)
Sequence patterns: Two or more database elements occur together in a significant pattern and one of the elements precedes the other
Predictive patterns: Help identify database elements that are different
Data clusters: Three or more database elements occur together in a significant way
LO 3
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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT10 | CH17
11
Protecting Information
Process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users but no one else
Critical steps in granting access to authorized users
Authentication
Two-factor authentication: Based on what users know (a password) and what they have in possession (secure ID card or key)
Authorization
LO 3
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MGMT10 | CH17
12
Protecting Information (continued)
Precautions
Firewalls
Data encryption
Virtual private networks (VPNs)
Secure sockets layer (SSL) encryption
Hiring white hat hackers
LO 3
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MGMT10 | CH17
Security Threats to Data and Data Networks
LO 3
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MGMT10 | CH17
Denial of service
Web server attacks and corporate network attacks
Password cracking software and unauthorized access to PCs
Viruses, worms, Trojan horses, and rootkits
Malware, spyware, adware, malicious scripts, and applets
Security Threats to Data and Data Networks (continued)
LO 3
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MGMT10 | CH17
Email snooping
Keystroke monitoring
Phishing
Spam
Cookies
Technologies That Aid Internal Access and Sharing
Executive information system (EIS)
Uses internal and external data sources
Provides information required to monitor and analyze organizational performance
Intranets: Private company networks
Allow employees to easily access, share, and publish information using Internet software
Corporate portals: Hybrid of executive information systems and intranets
LO 4
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MGMT10 | CH17
16
Technologies That Aid External Access and Sharing
Electronic data interchange (EDI)
Allows two companies to convert their purchase and ordering information to a standardized format
Enables direct electronic transmission of information between company systems
Extranets
Allow companies to exchange information and conduct transactions with outsiders
LO 4
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MGMT10 | CH17
17
Technologies That Aid External Access and Sharing (continued)
Web services
Use standardized protocols to describe data that can be processed by different computer systems in companies
Internet
Allows companies to electronically automate transactions with customers
LO 4
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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT10 | CH17
18
Technologies That Help Capture and Share Knowledge and Expertise
Decision support system (DSS)
Helps managers understand specific kinds of problems and potential solutions
Acquires and analyzes information with sophisticated models and tools
Expert systems
Contain specialized knowledge and decision rules used by experts and experienced decision makers
Helps nonexperts to draw on this knowledge to make decisions
LO 4
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MGMT10 | CH17
19
Key Terms
Moore’s law
Raw data
Information
First-mover advantage
Acquisition cost
Processing cost
Storage cost
Retrieval cost
Communication cost
Bar code
Radio frequency identification (RFID) tags
Electronic scanner
Optical character recognition
Processing information
Data mining
Data warehouse
Supervised data mining
Unsupervised data mining
KEY TERMS
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Terms (continued 1)
Association or affinity patterns
Sequence patterns
Predictive patterns
Data clusters
Protecting information
Authentication
Authorization
Two-factor authentication
Firewall
Virus
Data encryption
Virtual private network (VPN)
Secure sockets layer (SSL) encryption
Executive information system (EIS)
Intranets
Corporate portal
KEY TERMS
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Terms (continued 2)
Electronic data interchange (EDI)
Web services
Extranets
Knowledge
Decision support system (DSS)
Expert system
KEY TERMS
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Summary
Information can be used to obtain first-mover advantage and sustain competitive advantage
Useful information is accurate, complete, relevant, and timely
Significant costs can be associated with useful information
Companies use information technology to capture, process, protect, access, and share information
SUMMARY
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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MGMT10 | CH17
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
