Moore’s Law

1. Moore’s Law

2. Data versus Information • Raw data = facts + figures • Information = useful data that influences choices

3. First-MoverAdvantage Sustaining aCompetitiveAdvantage Strategic Importance of Information 1

4. First-Mover Advantage The strategic advantage that companies earn by being the first to use new information technology tolower costs or to differentiate a product First-Mover Advantage 1.1

5. AOL User Interface

6. MSN Interface

7. Does the informationtechnology (IT)createvalue? NO Is the IT differentacross competing firms? YES CompetitiveDisadvantage Is it difficultfor another firmto create or buythe IT? NO YES CompetitiveParity NO YES TemporaryCompetitiveAdvantage SustainedCompetitiveAdvantage Sustaining a Competitive Advantage 1.2 Adapted from Exhibit 17.2

8. Characteristics of Useful Information • Accurate • Complete • Relevant • Timely 2

9. Costs of Useful Information • Acquisition • Processing • Storage • Retrieval • Communication Costs 2

10. DOING THE RIGHT THING Doing the Right Thing • Recycling Computer Equipment • An estimated 250 million computers will bediscarded over the next five years • Computers and monitors contain hazardous materials, so tossing them in the trash is illegal • Recycle appropriately, or donate old computersto individuals or charitable organizations 2

11. Manual Bar Codes Electronic Radio FrequencyIdentification Tags Electronic Scanners Optical Character Recognition Capturing Information 3.1

12. RFID Technology

13. SupervisedData Mining Data Warehouse UnsupervisedData Mining AffinityPatterns SequencePatterns PredictivePatterns DataClusters Processing Information: Data Mining 3.2

14. AffinityPatterns Two or more database elementsoccur together significantly SequencePatterns One of the elements precedes the other PredictivePatterns Helps identify database elementsthat are different DataClusters Three or more database elementsoccur together Unsupervised Data Mining 3.2

15. Protecting Information • Authentication • Authorization • Two-Factor Authentication • Firewalls • Antivirus software • Data encryption • Virtual private networks • Secure Sockets Layer (SSL) Encryption 3.3

16. Password Dos and Don’ts DOING THE RIGHT THING Doing the Right Thing • Don’t use any public information • Don’t use complete words • Use eight or more characters; include unique characters • Use longer, unique passwords • Consider passphrases • Don’t write your password • Change it every six weeks • Don’t reuse old passwords 3.2

17. Internal Access andInformation Sharing External AccessandInformation Sharing Sharing ofKnowledge andExpertise Accessing and SharingInformation and Knowledge 4

18. Executive Information System (EIS) • Uses internal and external data • Used to monitor and analyze organizational performance • Must provide accurate, complete, relevant, andtimely information to managers 4.1

19. Few commands to learn Important views saved 3-D charts Geographic dimensions Characteristics of Best-Selling EIS Ease of Use Analysis of Information • Sales tracking • Easy-to-understand displays • Time periods • Compare to standards • Trigger exceptions • Drill down • Detect & alert newspaper • Detect & alert robots Identification ofProblems and Exceptions 4.1 Adapted from Exhibit 17.4

20. Intranets • Private company networks • Allow employees to access, share, and publish information • A firewall permits only authorized internalaccess 4.1

21. Why Companies Use Intranets • Inexpensive • Increase efficiencies and reduce costs • Intuitive and easy to use • Work across all computer systems • Can be built on top of existing network • Work with software programs that convert to HTML • Software is available at no cost or is less expensive 4.1 Adapted from Exhibit 17.5

22. Corporate Portals A hybrid of executive information systemsand intranets that allow managers andemployees to use a Web browser to gainaccess to customized company information and to complete specialized transactions Corporate Portals 4.1

23. Electronic Data Interchange Extranets Web Services Internet External Access and Sharing 4.2

24. Reduced costs Increased productivity Reduced data entry errors Improved customer service Faster communications Benefits of External Access and Sharing 4.2

25. Electronic Data Interchange When two companies convert their purchase and ordering informationto a standardized format to enablethe direct electronic transmission of that information from one computer system to the other. Electronic Data Interchange (EDI) 4.2

26. Web Services Web Services Using standardized protocols to describe data from one company in such a way that those data can automatically be read, understood, transcribed, and processed by different computer systems in another company 4.2

27. Extranet Extranet Allows companies to exchange information and conduct transactions with outsiders by providing them direct, Web-based access to authorized parts of a company’s intranet or information system 4.2

28. DecisionSupport System Helps managers to understand specific kinds of problems and potential solutions, and to analyze the impact of different decision options using “what if” scenarios Expert System An information system that contains the specialized knowledge and decision rules used by experts so that nonexperts can draw on this knowledge base to make decisions Sharing Knowledge and Expertise 4.3