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Explore how Dell can enhance collaboration with suppliers, manage generated information effectively, and leverage information technologies to gain a competitive advantage in a fast-paced industry.
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Chapter 5 Managing Information
What Would You Do? • The PC industry is very competitive • How can Dell and its suppliers work more closely together? • How can Dell handle all the information it generates?
Moore’s Law Adapted from Exhibit 5.1
Learning ObjectivesWhy Information Matters • explain the strategic importance of information • describe the characteristics of useful information (i.e., its value and costs) After discussing this section you should be able to:
Strategic Importance of Information First-mover advantage Sustaining a competitive advantage
Is the information technology different across competing firms? Does the information technology create value? Yes Yes Is it difficult for another firm to create or buy the information technology? No No Competitive Parity Competitive Disadvantage No Temporary Competitive Advantage Yes Sustained Competitive Advantage Adapted from Exhibit 5.2
Characteristics of Useful Information Accurate Complete Relevant Timely
The Costs of Useful Information Acquisition Processing Storage Retrieval Communication
Learning ObjectivesInformation Technologies • explain the basics of capturing, processing, and securing information • describe how companies can share and access information and knowledge After discussing this section you should be able to:
Capturing Information • Bar Codes • Electronic Scanners • Optical Character Recognition
Processing InformationData Mining • Data warehouse • Two types • supervised • unsupervised • Association or affinity patterns • Sequence patterns • Predictive patterns • Data clusters
Protecting Information • Firewalls • Virus • Data encryption • Virtual private networks
Accessing and Sharing Information and Knowledge Communication Internal Access & Sharing of Information External Access & Sharing of Information Sharing Knowledge and Expertise
Communication E-mail Voice messaging Conference systems Document conferencing Application sharing Desktop videoconferencing
Internal Access and Sharing Executive information systems (EIS) Intranets
Executive Information System (EIS) • Uses internal & external data • Used to monitor and analyze organizational performance • Must be easy to use and must provide information that managers want and need
Characteristics of Best-Selling EIS • Ease of Use • Few commands to learn • Save important views • 3-D charts • Geographic dimensions • Analysis of Information • Track Sales • Easy-to-understand displays • Time periods • Identifying Problems and Exceptions • Compare to standards • Trigger exceptions • Drill down • Detect & alert newspaper • Detect & alert robots Adapted from Exhibit 5.6
Intranets • Company networks • Allow employees to easily access, share, and publish information using Internet software • Growing in popularity
Why Intranets, Not EIS Are Growing • Less expensive • Efficient • Intuitive and easy to use • Compatible with different operating systems • Can work with existing equipment • Work with most software programs
Blast From The PastThe History of Managing Information • Cro-Magnons create lunar calendar • Travelers and town criers spread news • Paper and printing press revolutionize information management • Typewriters and copy machines make information more “routine” • Cash registers and time clocks help with employee management
External Access and Sharing Electronic Data Interchange Internet Extranet
Been There, Done ThatBusiness-to-Business Information Exchanges: Why There Time Has Come • Companies can save lots of money by automating their supply chain • The Internet can make purchasing more efficient • Reducing the transaction cost of business
Sharing Knowledge and Expertise • Knowledge is the understanding one gains from information • Decision support systems (DSS) • uses models to analyze information • Expert systems • replicate experts’ decisions
What Really Happened? • Dell shares information with its suppliers • Dell is on the cutting edge of information technology • Use the Internet to handle customer billing