Managing Information

Markus Tschida

Key Aims
The aim of the module is to increase learners understanding of information management issues facing contemporary organisations and how systems can be utilised to ensure organisational efficiency and effectiveness:
Define the objectives and scope of system requirements in a given organisation Provide advice on the development, introduction and use of computer based information systems and e-business tools Highlight methodologies, tools and techniques applicable to managing contemporary information technology projects

At the end of the module, learners will have developed an understanding of how information systems can enhance organisational efficiencies 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: Pearson Education Recommended Reading: Keen, J, Digrius, B. (2002) Making Technology Investments Profitable: ROI Roadmap to Better Business Cases. J. Wiley and Sons Schniederjans. M, Hamaker, J. Schniederjans, A (2004) Information Technology Investment: Decision-Making Methodology. World Scientific 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: Pearson Education 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
Other 20% Financial services 26%

Services 9% Com m unicatio ns 11% Retail and w holesale 11%

M anufacturing 23%

Source: Gardner

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.
Laudon and Laudon (2007)

Software hardware networks

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, enduser 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 organisations 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