MSC 3824Managing IR ©2003 Professor Yang W. Lee Page 1

Managing Information Resources

Session Two Session Two Discussion NotesDiscussion Notes

MSC 3824MSC 3824

Spring, 2003Spring, 2003

Professor Yang W. LeeProfessor Yang W. LeeCollege of Business Administration College of Business Administration

Northeastern UniversityNortheastern University

Role of Information :Role of Information :The Power and Peril of Managing The Power and Peril of Managing

in an Information Agein an Information Age!! Era of networked intelligenceEra of networked intelligence!! Digital economy, digital market, digital societyDigital economy, digital market, digital society!! Information plays a critical roleInformation plays a critical role!! New role of informationNew role of information!! Requires good information, quality informationRequires good information, quality information

The Challenges of Managing in an The Challenges of Managing in an Information AgeInformation Age

!! Manage Information? Manage Information?

The Information Challenge The Information Challenge --from a managerial viewpoint, from a managerial viewpoint, the key forces shaping the IT environment and senior the key forces shaping the IT environment and senior management’s most frequent questions in assessing their management’s most frequent questions in assessing their firm’s IT activities. firm’s IT activities.

!! Three casesThree cases --A Tale of Two Airlines, CocaA Tale of Two Airlines, Coca--Cola, and Cola, and Baseball Baseball ------ are included that highlight both the power and are included that highlight both the power and peril of managing information for business. peril of managing information for business.

Challenges of Managing InformationChallenges of Managing Informationand ITand IT

!! Questions from Senior ManagementQuestions from Senior Management"" Competitive edge?Competitive edge?"" Effective development? Benchmark with other companies, Effective development? Benchmark with other companies,

industry industry surveysurvey"" IT Productivity is low: cost center IT Productivity is low: cost center "" Risks of operational disasterRisks of operational disaster

Challenges of Managing InformationChallenges of Managing Information& IT& IT

!! Responses from IT ManagementResponses from IT Management"" IT manager’s performance: CIO’s high turnIT manager’s performance: CIO’s high turn--overover"" IT Resource and Task distribution: thorny issue IT Resource and Task distribution: thorny issue

!! Knowing both sides, what would you recommend for your Knowing both sides, what would you recommend for your organization/company?organization/company?

"" Identify and address…Identify and address…"" Pay attention to Pay attention to "" Pay attention to …Pay attention to …

The Challenges of The Challenges of Managing Information ResourcesManaging Information Resources

!! Evolution: From Transactional Use to Managerial and Evolution: From Transactional Use to Managerial and Strategic Use of Information Strategic Use of Information

!! Challenges for Management Challenges for Management "" Strategic Relevance and operational necessity: core differentiatStrategic Relevance and operational necessity: core differentiator, or,

strategic enabler, operational requirementstrategic enabler, operational requirement"" Corporate Culture: shared value and operationalized Corporate Culture: shared value and operationalized

organizational processes and IT architectureorganizational processes and IT architecture"" Balancing Act: Rigid transaction processing, distributed and Balancing Act: Rigid transaction processing, distributed and

flexible endflexible end--user support, agile business needsuser support, agile business needs"" Technology and information integration: Manage “islands of Technology and information integration: Manage “islands of

technology and information” technology and information”

Evolution of IT EnvironmentEvolution of IT Environment

!! Era IEra I"" 1950s 1950s -- early 1970s, regulated monopoly, productivity/efficiency, early 1970s, regulated monopoly, productivity/efficiency,

mainframe computersmainframe computers!! Era IIEra II

"" Early 1970s Early 1970s -- early 1980s, free market, group effectiveness, early 1980s, free market, group effectiveness, minicomputersminicomputers

!! Era IIIEra III"" 1980s, regulated free market, strategic competitiveness, individ1980s, regulated free market, strategic competitiveness, individual ual

productivity, microproductivity, micro--computers, PCscomputers, PCs!! Era IVEra IV

"" 2000 and beyond 2000 and beyond -- collaboration, electronic integration, diverse and collaboration, electronic integration, diverse and emerging business model, organizational effectiveness, emerging business model, organizational effectiveness, telecommunication, Internet, Intranet, Extranet, E commercetelecommunication, Internet, Intranet, Extranet, E commerce

Evolution of Computer Hardware Evolution of Computer Hardware Industry Industry

!! Mark 1Mark 1"" Harvard LabHarvard Lab

!! Mainframe computer industryMainframe computer industry"" IBM 360, 370IBM 360, 370"" BunchBunch

!! MinicomputerMinicomputer"" DECDEC

!! PCs PCs "" Apple IIApple II"" MSMS"" “Wintel”“Wintel”

Evolution: Operating SystemsEvolution: Operating Systems

!! MulticsMultics"" MIT: multiple interaction MIT: multiple interaction

!! UnixUnix"" AT & T: one interactionAT & T: one interaction

!! Windows 95Windows 95"" ease of useease of use

!! Windows NT (server and workstation)Windows NT (server and workstation)"" security and C/S networksecurity and C/S network

!! Windows XP and beyondWindows XP and beyond

Evolution: Database Industry Evolution: Database Industry !! Hierarchical DB (IBM’s IMS)Hierarchical DB (IBM’s IMS)------ 1960s1960s

"" Tree: cannot handle “m to n” (many to many) relationships Tree: cannot handle “m to n” (many to many) relationships

!! Networked DB (Charley Bachman: Pointers to navigate DB Networked DB (Charley Bachman: Pointers to navigate DB systems) IDMS systems) IDMS ------ 1970s1970s"" Efficient networks: programming orientedEfficient networks: programming oriented

"" handles “m to n” relationshiphandles “m to n” relationship

!! Relational DBRelational DB"" Codd’sCodd’s article, “Relational View of Data”, article, “Relational View of Data”, Communications of ACM, Communications of ACM,

1971.1971.

!! ObjectObject--oriented DBoriented DB"" Reusable objectsReusable objects

Evolution: Database IndustryEvolution: Database Industry

!! System R (IBM’s mainframe): +10 yrs after theorySystem R (IBM’s mainframe): +10 yrs after theory------1980s1980s

!! DB2 (IBM’s mainframe): 1990s DB2 (IBM’s mainframe): 1990s !! DB2 for PC environment : 1990sDB2 for PC environment : 1990s

"" communicates with PC environment (servercommunicates with PC environment (server--based)based)"" trends in micro computing trends in micro computing

!! Oracle, Sybase, Informix, Ingres (Berkeley Oracle, Sybase, Informix, Ingres (Berkeley ------ now CA)now CA)"" mini computers environment +mini computers environment +

!! Dominant players for today:Dominant players for today:"" IBM for mainframe environmentIBM for mainframe environment"" Oracle and Sybase for mini computers environmentOracle and Sybase for mini computers environment"" MS/SQL Server for PC environmentMS/SQL Server for PC environment

New Business: Data/Information New Business: Data/Information IndustryIndustry

!! Data Product Data Product !! Data ServiceData Service!! Data Quality ManagementData Quality Management!! Data Quality AdministrationData Quality Administration!! Data Quality Management SoftwareData Quality Management Software

Manage Your Information as a Manage Your Information as a ProductProduct

!! Companies believe that quality information is critical to Companies believe that quality information is critical to their success, but do they act on this belief? their success, but do they act on this belief?

!! They must treat information as product They must treat information as product ---- as an endas an end--deliverable that satisfies consumer needs. deliverable that satisfies consumer needs.

!! Contrast this product approach to the often observed Contrast this product approach to the often observed treatment of information as treatment of information as byby--productproduct..

Four Principles for Managing Four Principles for Managing Information as Product:Information as Product:

1.1. Understand the consumer’s information needsUnderstand the consumer’s information needs

2.2. Manage information as the product of a wellManage information as the product of a well--defined production defined production processprocess

3.3. Manage information as a product with a life cycleManage information as a product with a life cycle

4. Appoint an Information Product Manager (IPM) to manage the 4. Appoint an Information Product Manager (IPM) to manage the information product.information product.

Four CasesFour CasesFinancial CompanyStore and manufactureinformation product basedon customers' needs.

Chemical CompanyCheck life-cycle of itsinformation product.

Eyewear CompanyHigh-quality informationproduction processdelivers high-quality lenses.

Data CompanyManufacturing cost fromall informationproduction processesmust be accounted forin the informationproduct.

1995 Fact

Sheet

1997

Don’t Manage Information as Don’t Manage Information as ByBy--ProductProduct

Manage Information as Product vs. By-ProductProduct By-Product

What ismanaged?

• Information• Information product life cycle

• Hardware and software• Systems life cycle

How is itmanaged?

• Integrated, cross-functional approach• Encompass information suppliers,

manufacturers, and consumers

• Integrate stove-pipesystems

• Control of individualcomponents

• Cost controlsWhymanage it?

• Deliver quality information products toconsumers

• Implement qualityhardware and softwaresystem

What issuccess?

• Quality information productcontinuously delivered over theproduct life cycle!

• No garbage-in-garbage-out (GIGO)!

• The system works!• No bugs!

Whomanages it?

• CIO• Information Product Manager

• CIO• IT director and database

administrators

Managing Information as Managing Information as Product Product AddsAdds ValueValueCase Key Product Value Added

FinancialCompany

FinancialServices

• Enhance risk management• Improve customer service

EyewearCompany

Eyeglasses • Reduce cost• Reduce cycle time

ChemicalCompany

Chemicals • Prevent product liabilitylawsuits

DataCompany

Information • Determine product cost• Increase revenue

The Four IP Principles The Four IP Principles RevisitedRevisited

!! Information ConsumersInformation Consumers

!! Information Production ProcessInformation Production Process

!! Information Product Life CycleInformation Product Life Cycle

!! The Information Product ManagerThe Information Product Manager

The Information Product The Information Product ManagerManager

ProductLife-Cycle

InformationProductManager

ProductLife-Cycle

InformationProduct

ChangingConsumer

needs

Consumer

InformationProduction Process

! Firms will exploit IT or go out of business! But exploiting IT for what purpose? Deliver quality information. ! Until firms manage information as product , quality information

will not be delivered to consumers. ! The results will be lower margins, missed opportunities, and

tarnished images.

! Top management must commit to the IP approach! The IPM is the agent for the transition to an information product

approach. ! IPM to properly frame problem and develop solution within the

context of the firm’s business. ! IPM to adapt best practices and establish or adopt appropriate

methodologies

Act Now !Act Now !

Why Quality Information Why Quality Information and Knowledge? and Knowledge?

!! Firms must create and use a reservoir of quality Firms must create and use a reservoir of quality

information.information.

!! Firms must create and use a wealth of organizational Firms must create and use a wealth of organizational

knowledge.knowledge.

Case Analysis 2Case Analysis 2--1 1 !! Two Airline CompaniesTwo Airline Companies

"" Describe and assess the information flow in the airline Describe and assess the information flow in the airline companies. Where was the weakest link? companies. Where was the weakest link?

"" What issues are closely related to the problems described in theWhat issues are closely related to the problems described in theLondonLondon--based airline company?based airline company?

"" Identify problems and possible solutions for the LondonIdentify problems and possible solutions for the London--based based airline company.airline company.

Lessons from Lessons from Case Analysis Case Analysis

!! Increased service standards and expectation from customersIncreased service standards and expectation from customers

!! Customer’s point of viewCustomer’s point of view

"" Airline service: ticketing service, gold card membership, connecAirline service: ticketing service, gold card membership, connecting flightting flight

!! Airline’s point of viewAirline’s point of view

"" Each unit working as independent unit Each unit working as independent unit

"" Data/information based on each work unitData/information based on each work unit

!! Information management point of view (think about your bank statInformation management point of view (think about your bank statement)ement)"" Data/information based on a customerData/information based on a customer

"" Information available for service at each point, any timeInformation available for service at each point, any time

Lessons from Lessons from Case Analysis Case Analysis

!! Platforms for higher service levelPlatforms for higher service level

"" IntraIntra--organizational information flow?organizational information flow?

"" InterInter--organizational information share?organizational information share?

"" Quality information beyond IS view?Quality information beyond IS view?

"" Global connectivity?Global connectivity?

Lessons learned Lessons learned from Case Analysis from Case Analysis

!! Industry Strategy (Product centricIndustry Strategy (Product centric----> Service centric> Service centric----> >

Information centric) Information centric)

"" Airlines ( core service focused)Airlines ( core service focused)----> Travel service agency > Travel service agency

(customer service focused)(customer service focused)----> Travel aggregators (customers > Travel aggregators (customers

doing homework)doing homework)

"" Supply logic(production initiated) Supply logic(production initiated) ----> Demand logic(market > Demand logic(market

demand focused) demand focused) ----> information intermediary( broker > information intermediary( broker

information that links demand and supply)information that links demand and supply)

Lessons learned Lessons learned from Case Analysis from Case Analysis

!! Information Age for whom and for what purpose?Information Age for whom and for what purpose?

!! Expectation of what constitutes Expectation of what constitutes good servicegood service has been dramatically has been dramatically

increased.increased.

!! Information required for good service?Information required for good service?

"" Quality informationQuality information

"" Integration of different types of technologies, databases: Does Integration of different types of technologies, databases: Does it integrate data?it integrate data?

"" Accessible dataAccessible data

»» Intra organizational accessIntra organizational access

»» Inter organizational access Inter organizational access ------Data can be passed across organizations: opportunities Data can be passed across organizations: opportunities

for use/ abuse by another partyfor use/ abuse by another party

Lessons learned Lessons learned from Case Analysis from Case Analysis

!! Role of Information learned from all casesRole of Information learned from all cases

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