Lecture Business management information system - Lecture 17: Managing information

Lecture Business management information system - Lecture 17: Managing information. This chapter presents the following content: Managing information and types of information, data warehouses and managing data warehouses, document management, content management, case studies.

Managing Information

Lecture 1/

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Today’s Lecture

= We will cover today,

Managing Information and types of information

Data Warehouses and Managing Data Warehouses

Document Management Content Management

Case Studies

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Managing Information

= Once enterprises get their data into shape, that data

can more easily be turned into information

“Information is power.”

“We are in the Information Age.”

Mi These and similar statements would lead you to believe

that managing information Is a key corporate activity

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Managing Information

Technology = infrastructure;

Asset = information that runs on that infrastructure

= It also raises a number of management issues

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Managing Information Four Types of Information

= In Figure 7-3 we looked at a matrix representing the full scope of data information resources:

# Internal record-based information, such as those found in databases

Which we discussed in detail but there are others:

" Internal document-based information, such

as reports, opinions, e-mails and proposals

Pertains to concepts: ideas, thoughts, etc

" External/record-based information, such as

acquisition from external databases

" External/document-based: WWW

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Internal External

Record Traditional Public

Based EDP/MIS Databases

Data Records Documents

Item of interest Entity Concept or idea

A group of related files Database File cabinet

A collection of databases Application system Library, records center

FIGURE 7-4 Structure of Information

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Managing Information Four Types of Information cont

= Internal record-based information was the original focus

of IS departments because It is the type of information

that computer applications generate and manage easily

=" External record-based = accessible via Internet or public databases

Including subscription

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Managing Information Four Types of Information cont

= Until recently = little attention to internal and external

document-based information because It was so difficult

to manipulate in computers

Intranets changed this

Documents = integral part of information on these sites

“ Responsibility = now on IS, even if just for technical issues

= Four areas were responsibility of different areas but now

IS is likely to be involved in some way

record-based systems processing Data dictionaries information department Organizational Enterprise

units data analysis

techniques Internal Administrative Corporate Word processing document-based vice president memos, letters, Micrographics

information Word processing center repor's forms, Reprographics

Records management — Text-retrieval

products External End users Public databases Internet-based

record-based Corporate planning services

information Financial analysis Public networks

Marketing Analysis packages External Corporate library Public literature Bibliographic

document-based News services services

information Catalogs and indexes Environmental

scanning Subscriptions

Purchased reports Public networks

FIGURE 7-5 The Scope of Information Management

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Managing Information Data Warehouses

" Data warehouse: Houses data used to make decisions

This data is obtained periodically from transaction databases

The warehouse provides a snapshot of a situation at

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Managing Information

Data Warehouses

Data warehouses = not so ‘time critical’

Like ERP systems, they, too, spurred getting record- based data into shape

=" The most common data warehoused are customer data,

used to discover how to more effectively market to

Current customers as well as non-customers with the same characteristics

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Managing Information

Data Warehouses cont

= The simplest (MIS) tools generate perforated reports or

permit ad hoc queries

= Warehouses are reaching beyond reporting internal

data They are being combined with purchased data,

such as demographic data, late breaking news and even weather reports, to uncover trends or

correlations that competitors might not spot

To give a company a competitive edge

Managing Information Key Concept2Afa Warehouses cont

= Metadata: The part of the warehouse that defines the

data Metadata means “data about data.”

Metadata explains the meaning of each data element, how each element relates to each other, etc

lt sets the standard — without it data from different

legacy systems cannot be reconciled, so the data will not be “clean”

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Managing Information

Data Warehouses cont

=" Quality data: Is the cleaning process to adhere to

metadata standards

The older the data the more suspect Its quality

= Data marts: Is a subset of data pulled off the warehouse for a specific group of users

In the early 1990s, one huge warehouse was

envisaged, but proved un-practical due to long search times and large cost factors

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Managing Information

Data Warehouses cont

5 Steps in a Data Warehousing Project:

Define the business uses of the data Create the data model for the warehouse

= e defining the relationships between the data

elements

Cleanse the data Select the user tools

= Consider the users point of view by selecting the

tools they will use & then training them on tool use

Monitor usage and system performance

Managing Information

Data Warehouses cont

M Data warehouses are seen as strategic assets that can

yleld new insights into customer behavior, internal

operations, product mixes and the like

M But to gain the benefits, companies must take the step

of reconciling data from numerous legacy systems

= Make sure the data Is ‘right’

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OWENS & MINOR

Case Example: Data Warehousing

= Illustrates numerous ways O&M are using its data for

competitive advantage

= Includes us of

ERP Data warehousing

Web

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OWENS & MINOR Case Example: Data Warehousing

@ Not only for internal use but as the basis for new

revenue-generating services to customers and Suppliers

M Shows how innovative companies can use advanced

Information management technologies

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OWENS & MINOR Case Example: Data Warehousing cont

M This distributor of name-brand medical and surgical

Supplies uses ERP, data warehousing, and the Web

Not only for internal use of data But as the basis for new revenue-generating services to customers and suppliers

M@ itis using its data for competitive advantage

lt augmented its ERP system to automate order forecasting, which:

Improved inventory turns

Lowered ordering rates from five-times-a-week to once-a-week, and

Improved customer service

over the Internet, even using handheld devices

lt even offered access to Its data warehouse and decision support software to customers and

Suppliers who use the data to run their businesses

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OWENS & MINOR Case Example: Data Warehousing cont

M Delivering this information over the Web has:

Strengthened its relationships with trading partners

Given it a market-leading feature to entice new customers, and

Turned the data warehouse into a new source of revenue

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OWENS & MINOR Case Example: Data Warehousing cont

M@ When the system was rolled out, it was the first “e-

business Intelligence application” in the medical and Surgical supply distribution industry

M Asaresult, O&M has become an important

“infomediary” in its industry

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Managing Information

Document Management

=" Even in today’s Internet-rich world, paper still plays a

major role in most enterprises

= There is also a need to move seamlessly between digital

and printed versions of documents; hence, the

importance of document management

= The field of electronic document management (EDM)

uses new technologies to manage information resources that do not fit easily into traditional databases

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Managing Information

Document Management cont

= — It is hard to think of anything more pervasive and

fundamental to an organization than documents

The impact of applying emerging technologies to

document management Is potentially significant EDM contributes to business process redesign

= — Numerous EDM applications generate value The ‘Big

3° are:

To improve the publishing process

To support organizational processes

To support communications among people and groups

= The concept of just-in-time (printing, publishing and

forms processing) pervades the design philosophy in

all three areas

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Document Management:

Improving the Publishing Process

= Technology enables a major restructuring of the process

of publishing and distributing paper documents

= Traditional Process — designed primarily for high volume

and high quality documents — shown in Figure 7-6

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Document Management:

Improving the Publishing Process

Process has inefficiencies:

Infrequent long print run requires storing documents

which become obsolete between runs 60% of the total cost of delivering theses documents

is In storage & transportation

FIGURE 7-6 Traditional Publishing Process

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Document Management:

Improving the Publishing Process cont

= Figure /-/ shows the steps in the revised

publishing/distribution process using newer

technologies

Documents are stored electronically, shipped over a

network, and printed when they are needed

= The major benefits result from reducing

obsolescence, eliminating warehouse costs & reducing or eliminating delivery time

HICSS PERSONAL PROCEEDINGS

= Additional papers can be printed individually using a

“orint on demand” service

For a ‘nominal’ fee

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Document Management:

Supporting Communication Among People and Groups

= The value of documents is that they transfer information across time and space

Internet can help but often still rely on ‘paper’

documents

" EDM can be used to facilitate such communications

among people and groups

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TAPIOLA INSURANCE GROUP

Case Example —- EDM: Supporting Communications

Among People and Groups

= Tapiola Group offered 150 kinds of insurance policies with 300 different insurance policy forms

All preprinted by an outside print shop

=" Reprinting new forms often took weeks

Which represents possible loss of revenue

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TAPIOLA INSURANCE GROUP Case Example —- EDM: Supporting Communications Among People and

Groups cont

Document Processing Goals

= Investigate alternate way to print policies & statements

Goals:

Reduce costs Stop using preprinted forms

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TAPIOLA INSURANCE GROUP Case Example - EDM: Supporting Communications Among People and Groups

TAPIOLA INSURANCE GROUP Case Example —- EDM: Supporting

cef@9Eamalnieations Among People and

Groups cont

= Switched to plain paper printers from Rank Xerox

= Products for electronic document processing — document can included text, data, image & graphics

Conversion of the output equipment took 15 months = reduce 300 preprinted forms to 4

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Case Example —- EDM: Supporting Communications Among

People and Groups cont

Decentralized Expansion

= Document processing conversion — one part of the effort to Improve & humanize their customer correspondence

= Moved much of the printing of customer

correspondence to their 62 branch offices

TAPIOLA INSURANCE GROUP

Case Example —- EDM: Supporting Communications

Among People and Groups cont

= Mission accomplished:

$$$ OOO

Tapiola is seen by Finland citizens as a

dynamic company - & have the best

reputation among young people of all

insurance groups

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Document Management:

Supporting Organizational Processes

= Documents are still the vehicle for accomplishing most

processes In organizations

Many such = “Workflow systems” — heavily based on

the physical circulation of paper forms

= The use of technology to support processes generates Significant value in reducing physical space for handling forms, faster routing of forms, and managing and

tracking forms flow & workload

= In addition to improving transaction-oriented business processes with EDM, many organizations are improving the management processes of reporting, control,

decision making, and problem solving as well

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TENNESSEE VALLEY AUTHORITY

Case Example: EDM: Supporting Organizational

Processes

Largest supplier of power in US

Revamped maintenance management system System relies on documents such as manuals, drawing & work instructions that are regulated by

the government

M Analyzed & charted existing work processes,

determined which improvements were most needed

M investigate how to do so and discovered work orders

were inextricably linked to document workflow & the

ways procedures were managed

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TENNESSEE VALLEY AUTHORITY

Case Example: EDM: Supporting Organizational

Processes cont

M New process -— electronically combined maintenance

orders in one system with procedural document management in another system, & eliminated a

number of existing systems that didn’t talk to one

another

Maintenance workers can now access documentation on equipment, parts and records as well as work instructions from desktop machines

Work orders are generated electronically and then routed for approval with the most current drawings and procedures attached

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TENNESSEE VALLEY AUTHORITY

Case Example: EDM: Supporting Organizational

Processes cont

= The system has been successful — BUT — the team

underestimated the change management effort needed

Including bringing many employees up to speed on

using computers

= Labor savings were large

The average amount of human time spent processing a work order has decreased by almost half from 39 hours to 23 hours

contributing to knowledge management