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Module Four. Business Information Management. Business Information Management. Information Overload The volume and capacity of the information is to large until it is a difficulty for the employee to derive the benefit out from it. Information is a vital asset of every organization.
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Module Four Business Information Management
Business Information Management • Information Overload • The volume and capacity of the information is to large until it is a difficulty for the employee to derive the benefit out from it. • Information is a vital asset of every organization. • To exploit this asset effectively, organization have to counter information overload by improving quality. • Ensure that information is fit for purpose, relevant to the needs of the employee, customer and suppliers. • Aggregating, Summarizing, Filtering and Alerting.
Business Information Management • Aggregating • The “Big Picture” is presented by summing up individual data items. • Summarizing • An abstract of a technical report is one form of summarizing. • Filtering • Less relevant information can be removed, • E.g. only news item that contain the company’s name or competitor’s name are sent through to managers. • Alerting • Messages are displayed on-screen or sent via e-mail to alert managers to a newsworthy piece of information.
Using information to support processes • Business process • A set of logical related tasks performed to achieve a defined business outcome. • Organization performance is improved by reviewing how well processes work making adjustments to make them operate more efficiently and effectively. • All Business processes that make up an organization’s operations and management make extensive use of information.
Using information to support processes • There are many different types of information that support these processes. • Market and customer information • Product information • Specialist knowledge • Business process information • Management information and plans • Human resource information • Supplier information • Accountable information
Using information to support 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 – customers in different markets can be surveyed for their needs for 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.
Using information to support processes • Business intelligence • Internal information which helps managers review and improve the performance of an organization. • Business performance management • The process for improving both the quality of the information and the performance of the organization.
Using information to create value • The most critical reason for the study and practice of business information management is its strategic importance to organization. • The information management capabilities of organizations impact their position in the markets in which they operate.
Using information to create value • Information can create value for organizations in different ways: • Add Value • Value is added through providing better-quality products and services to an organization’s customer. • Information can be used to better understand customer characteristics and needs and their level of satisfaction with services. • Used to sense and respond to markets. • Information about trends in demands, competitor products and activities must be monitored so that organization can develop strategies to compete in the marketplace.
Using information to create value • Reduce Costs. • Cost reduction through information is achieved through making the business processes more efficient. • Efficiency is achieved through using information to create, market and deliver services using fewer resources than previously. • Technology is applied to reduce paperwork, reduce the human resources needed to operate the processes through automation and improve internal and external communication.
Using information to create value • Manage Risk • Risk management is well established use of information within organizations. • E.g. Finance, accounting, legal and operational risks. • Create new reality • Refer to how information and new technologies can be used to innovate, to create new ways in which products or services can be developed. • All organizations use a combination of these four approaches to using information. • Traditionally, organizations have mainly used information to reduce costs and manage risk.
Using information to create value • Information Technology • Ease risk management • Give new opportunities to create value • Cost reduction (main driver) • Enhance communication to customer, staff and suppliers.
Business Information Management • Effective BIM is dependent on effective management of different types of resources within an organization. • Information, people and technology • If there are failures in the management of any of the three resources, then BIM will be ineffectual.
Business Information Management • The process of 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. • Emphasize the need to treat information as a valuable resource which has an important role to play in delivering value to all types of organizations. • Suggest the need for specific responsibilities, strategies and tools to be created to manage the resource and improve its quality.
Business Information Management • Information management is concern with: • How information is acquired, recorded and stored. • Where information resources are located in the organization and who had responsibility for them. • How information flows within the organization and between the organization and the outside world. • How the organization uses it. • How people who handle it apply their skills and co-operate with one another. • How information technology supports the users of information. • What information costs and the value it contributes. • How effectively all these information-related activities contribute towards achievement of the organization’s objectives.
Information Resources • Data, Information and Knowledge • Data – air ticket sold • Information – Data are aggregated and summairsed into useful information. • Knowledge – combining with the users experience which is used to solve a problem. • Data – raw facts. • Information System transform data into information • Information • Information is data in context.Information is the meaning of data. so facts become understandable. • Information Systems are needed to deliver relevant, timely information which is at the right level of detail to answer each question.
Information Resources • Knowledge • Not just information known. • It is information in context. • Knowledge means understanding the significance of the information. • Value added to information by people who have the experience and acumen to understand its real potential. • Has value only when acted on.
Information Quality • The effectiveness of business information management within an organization is essentially determined by the quality of information. • In order to be effective in supporting organizational processes, its quality, “fitness for purpose” is critical. • Fitness for purpose • How well it supports the tasks performed by individuals and the decisions they take. • Poor quality information – task will be performed inefficiently, erroneous decisions will be made.
Information Quality • The characteristics of quality information. • Relevance • Information must support them in their decision making. • Accuracy • must be sufficient to base a decision on it. • Beware of duplication of information • Timeliness • Delays between the collection of data and their processing should be minimized. • Form • The presentation of the information. • Table, map or graph.
Information types • Structured Information • Presented in reports, tables and graphs. • Unstructured Information • Delivered verbally or on an ad0hoc basis. • Formal Information • Part of established reporting and communication. • Informal Information • Ad-hoc communication such as conversations or e-mail.
Information Lifecycle • The active management of information as an organizational resource to achieve better business results involves management of the information lifecycle. • Management of information through its lifecycle is one of the aims of records management. • All records have a lifecycle that can be characterized as creation, currency (actively referred to and updated), semi-currency(seldom referred to and typically placed in an archive) and finally disposal. • E.g. e-mails sent and receive
Information Lifecycle • Maintenance of information involves reviewing the quality of information and updating it as appropriate. • Include archiving information until it is no longer required. • Most information is destroyed when there is no longer a need for it or there is a legal requirement to destroy it. • E.g. Keeping of customer information. • Help to develop appropriate strategies and implement approaches to collect, organized, process and maintain information.
Information Lifecycle • Sensing of information from the external environment. • Through capturing and sensing this information, organizations are better placed to respond to external threats. • An Important sensing activity is collection of competitive intelligence (CI). • A process that transforms disaggregated information into relevant, accurate and usable strategic knowledge about competitors, position, performance, capabilities and intentions.
Technology Resources • Information Technology or Information communication Technology • Selecting the appropriate technology is undeniably important to the implementation of the strategies needed to manage the information required to support different organizational processes. • Software resources • Applications software and systems software • Different types of business software applications used to deliver business information management facilities to the stakeholders.
Technology Resources • Technology infrastructure resources. • Hardware and communications networks used to store, process and transmit the software and information in an organization. • Information systems • e-business and e-commerce • Organization Informatics • Studies the development and use of computerized information systems and communication systems in organizations. • Includes studies of their conception, design, effective implementation within organizations, maintenance, use, organizational value, conditions that foster risks of failures, and their effects for people and an organization’s clients.
People resources • People and human resources involved in business information management include internal staff and staff at other organizations such as customers, suppliers, distributors, government organizations and the media. • Knowledge worker • Actively involved in creating, using and distributing information and applying knowledge for decision making.
