Information Systems and Knowledge Management
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1 Information Systems and Knowledge Management Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2013 website, Cengage in whole Learning. or part. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1. Know and distinguish the concepts of data, information, and intelligence 2. Understand the four characteristics that describe data 3. Know the purpose of research in assisting business operations 4. Know what a decision support system is and does 5. Recognize the major categories of databases 2-2 Delivery, Data, and UPS United Parcel Service (UPS) is the largest package delivery company in the world. Integrated data collection and management system that incorporates all levels of services, both global and domestic, in one pickup and delivery system. Telemetrics incorporates GPS with package information
2 Information, Data, and Intelligence Data Facts or recorded measures of certain phenomena (things or events). Information Data formatted (structured) to support decision making or define the relationship between two facts. Business intelligence The subset of data and information that actually has some explanatory power enabling effective decisions to be made. 2 4 Characteristics of Valuable Information Relevance Reflects how pertinent these particular facts are to the situation at hand. Quality Degree to which data represent the true situation. Timeliness Data are current enough to still be relevant. Information Completeness Having the right amount of information. 2 5 Knowledge Management Knowledge A blend of previous experience, insight, and data that forms organizational memory. Knowledge Management The process of creating an inclusive, comprehensive, easily accessible organizational memory, which is often called the organization s intellectual capital
3 Are Businesses Clairvoyant? Active data warehousing allows companies to integrate data with research results, allowing them to predict consumer preferences and even cyclical usage patterns quite accurately. Customers can voluntarily enter data or block certain data from being transmitted. 2-7 Global Information Systems An organized collection of computer hardware, communication equipment, software, data, and personnel. Designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities. 2 8 Functions of Business Research Foundational answers basic questions. What business should we be in? Testing addresses things like new product concepts or promotional ideas. How effective will they be? Issues examines how specific issues impact the firm, such as organizational structure. Performance which metrics are critical in real-time management and what insights can be gained from what-if analyses of policy changes? 2 9 3
4 Decision Support Systems (DSS) Helps decision makers confront problems through direct interaction with computerized databases and analytical software programs. Stores data and transforms them into organized information that is easily accessible to managers. A customer relationship management (CRM) system is the part of the DSS that addresses exchanges between the firm and its customers EXHIBIT 2.2 Decision Support System 2 11 Databases and Data Warehousing Database A collection of raw data arranged logically and organized in a form that can be stored and processed by a computer. Data warehousing The process allowing important day-to-day operational data to be stored and organized for simplified access. Data warehouse The multitiered computer storehouse of current and historical data
5 Input Management Input All numerical, text, voice, and image data entered into the decision support system. Major Sources of Input Internal records Proprietary business research Salesperson input Behavioral tracking Outside vendors and external distributors 2 13 Types of Databases Statistical databases Contain numerical data for analysis and forecasting. Geographic information systems use geographical databases and powerful software to prepare computer maps of relevant variables. Scanner data are a common source. Financial databases Includes competitors and customers financial data, such as income statements and balance sheets. Example: CompuStat Video databases Video databases and streaming media are having a major impact How is the Internet Useful in Research? Accessing available data Allows instantaneous and effortless access to a great deal of information. Collecting data Questionnaires can be posted on a Web site, cutting down on costs and reducing errors. Consumers usage leaves a record that can be traced and observed
6 Interactive Media and Environmental Scanning Interactive medium A medium, such as the Internet, that a person can use to communicate with and interact with other users. Environmental scanning Entails all information gathering designed to detect changes in the external operating environment of the firm Intranet A company s private data network that uses Internet standards and technology. The information data, graphics, video, and voice is available only inside the organization or to those individuals whom the organization deems as appropriate participants. Firewall Security software installed to limit access to only those persons authorized to enter an Intranet Additional sources Starkey, K. Tempest, S. McKinlay, A. (2004) How Organizations Learn; managing the search for knowledge, 2 nd edn. Thomson. Von Krogh, G., Ichijo, K., & Nonaka, I. (2000). Enabling knowledge creation: How to unlock the mystery of tacit knowledge and release the power of innovation. Oxford university press. Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization science, 5(1), Rasula, J., Vuksic, V. B., & Stemberger, M. I. (2012). The impact of knowledge management on organisational performance. Economic and Business Review for Central and South-Eastern Europe, 14(2),
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