1. INFORMATION
MANAGEMENT
Lecturer: Sir.Shafqatullah Shaikh
Slides Share: MADDY.KALEEM
School of Business Administration
SBBU, SBA

2. CHAPTER 01
Introduction to
Information Management
By: MADDY.KALEEM

3. Slide 01.3
MANAGEMENT ISSUES
 How do we leverage information to increase
organizational efficiency and competitiveness?
 How can we harness/bind the knowledge within
our organization?
By: MADDY.KALEEM

4. Slide 01.4
HOW IMPORTANT IS INFORMATION
MANAGEMENT?
Information
concept phrase
Phrase anywhere
on page
Phrase in title of
page (in title:)
“Information
management”
4,000,000 325,000
“Knowledge
management”
3,200,000 135,000
“Information
Systems”
6,800,000 451,000
“Information
Technology”
7,800,000 766,000
Table I Occurrences of information related concepts in web pages indexed by
Google. May 2004.
Source: Google
By: MADDY.KALEEM

5. Slide 01.5
WHERE IS THE EMPHASIS?
WHERE SHOULD IT BE?
Information Technology
Information Technology
The stress should be on the ‘I’ rather than the ‘T’ in ‘IT’ (Davenport,
2000).
Peter Drucker stressed the importance of information to organizational competitiveness
in 1993 when he wrote:
‘The industries that have moved into the center of the economy in the
last forty years, have as their business, the production and distribution
of knowledge and information rather than the production and
distribution of things’.
By: MADDY.KALEEM

6. Slide 01.6
THE IMPORTANCE OF
INFORMATION IN TODAY’S WORLD
Three perspectives:
1. The Information Society
2. Information Economy
3. The Information Age
What are the implications of each for us
and managers?
By: MADDY.KALEEM

7. Slide 01.7
THE INFORMATION SOCIETY
Martin (1995) says of information:
‘Without an uninterrupted flow for this vital
resource, society as we know it would quickly
run into difficulties, with business and
industry, education, leisure, travel and
communications, national and international
affairs all vulnerable to disruption. In more
advanced societies, this vulnerability is
heightened by an increasing dependence on
the enabling powers of information and
communications technologies.’
By: MADDY.KALEEM

8. Slide 01.8
THE INFORMATION SOCIETY
DEFINED
Information Society was defined by the UK
INSINC working party on social inclusion in
the information society in 1997 as:
‘A society characterised by a high level of
information intensity in the everyday life of
most citizens, in most organizations and
workplaces; by the use of common or
compatible technology for a wide range of
personal, social, educational and business
activities; and by the ability to transmit and
receive digital data rapidly between places
irrespective of distance.’
By: MADDY.KALEEM

9. Slide 01.9
THE INFORMATION ECONOMY
 1. Reach. How many in a market who are exchanging
information.
 2. Richness. The depth and media used for information.
 3. Affiliation. Effectiveness of links with partners.
Source: Evans and Wurster (1997). Strategy and the New Economics of Information.
Harvard Business Review. September-October, 1997, 70-82.
‘...every business is an information business…
information is the glue that holds together the
structure of all businesses’ (Evans and Wurster, 1997)
By: MADDY.KALEEM

10. Slide 01.10
EXAMPLES OF BUSINESS PROVIDING
INFORMATION SERVICES?
 Financial Times (Business news and information at
www.ft.com)
 Factiva (Detailed information about business
performance at www.factiva.com)
 Experian (Information about customers such as
credit ratings and profiling for targeted marketing
communications from www.experian.com)
 Questia (Online subscription-based access is
provided to published books and articles for
students at www.questia.com)
 ScienceDirect.com (Online journal access for
science and business researchers at
www.sciencedirect.com)
By: MADDY.KALEEM

11. Slide 01.11
THE INFORMATION AGE – WHEN
DID IT START?
 300 BC Basic Chinese characters
 387 BC Plato founded his academy
 AD 1455 The printing of the Bible with moveable type by
Gutenberg in Germany
 1651 – first modern library at Oxford University
By: MADDY.KALEEM

12. Slide 01.12
MODERN DEVELOPMENTS
 1860 Typewriters use the QWERTY keyboard
 1876 Alexander Graham Bell introduced the first telephone
 1901 Marconi sends a radio signal
 1937 Atanasoff-Berry Computer (ABC), the world's first electronic
digital computer
 1947 First commercial computer – ENIAC (Electronic Numerical
Integrator And Computer). It weighed thirty tons and used 18,000
vacuum tubes
 1969 First node on the US ARPANET, forerunner of the Internet
 1971 First e-mail sent; a computer engineer named Ray Tomlinson
sent the first e-mail message. He can’t remember the message, but
he does remember choosing the @ symbol!
 1991 First web site (http://info.cern.ch) published by Tim Berners-
Lee
By: MADDY.KALEEM

13. Slide 01.13
INFORMATION IN TODAY’S
ORGANIZATION
 ‘Critically important to the survival and success of an
organization is effective management of information and related
Information Technology (IT). In this global information society
—where information travels through cyberspace without the
constraints of time, distance and speed—this criticality arises
from the:
 Increasing dependence on information and the systems that
deliver this information
 Increasing vulnerabilities and a wide spectrum of threats,
such as cyber threats and information warfare
 Scale and cost of the current and future investments in
information and information systems
 Potential for technologies to dramatically change
organizations and business practices, create new
opportunities and reduce costs’
By: MADDY.KALEEM

14. Slide 01.14
INFORMATION IN TODAY’S ORGANIZATION –
CHALLENGES – INFORMATION OVERLOAD
Storage Medium 2002
Terabytes
Upper
Estimate
2002
Terabytes
Lower
Estimate
1999-2000
Upper
Estimate
1999-
2000
Lower
Estimate
%
Change
Upper
Estimate
Paper 1,634 327 1,200 240 36%
Film 420,254 74,202 431,690 58,209 -3%
Magnetic 4,999,230 3,416,230 2,779,760 2,073,760 80%
Optical 103 51 81 29 28%
TOTAL: 5,421,221 3,416,281 3,212,731 2,132,238 69%
Table 1.2 Worldwide production of original information, if stored digitally
By: MADDY.KALEEM

15. Slide 01.15
CHALLENGES OF INFORMATION
MANAGEMENT
IN THE ORGANIZATION?
 Relevance – How do we find information relevant to our
decisions?
 Accessibility – How do organizations make relevant
information available to employees and partners through
computer applications, web and e-mail? How is the
knowledge used to apply information captured and shared
between employees?
 Legality – How do organizations ensure they are using
customer, employee and market information in accordance
with legal and ethical standards?
 Security – How do we protect this information from
accidental or deliberate threats?
 Value – How can this information help organizations
reach their business objectives?
By: MADDY.KALEEM

16. Slide 01.16
USING INFORMATION TO SUPPORT
PROCESSES
Figure 1.1 Generic organizational operating processes and management
processes
By: MADDY.KALEEM

17. Slide 01.17
HOW INFORMATION SUPPORTS
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.
 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.
By: MADDY.KALEEM

18. Slide 01.18
Figure 1.2 Capital One web site
By: MADDY.KALEEM

19. Slide 01.19MINI-CASE STUDY –
CAPITAL ONE CREATES VALUE THROUGH,
INFORMATION
 Capital One sends out one billion items of mail per year and
handles 90 million inbound calls, 300 million outbound calls,
230 million Internet impressions and 40 million transactions
per day.
 CIO Gregor Bailar highlights the role of information
management:
 ‘CIOs today need to be technology alchemists. They need to be
strong in professional technical methodologies so that their
conversation is a disciplined one but, at the same time, they need
to understand the business, be it banking, credit cards or loans.
 Their job is not to know the future of technology, nor the latest
and greatest of delivery networks, but to be focused on balancing
the set of business needs, and choosing or creating the best
possible solutions that can be provided from a technical
perspective.
 The CIO is expected to be involved not only in strategy
development, but also in business and product innovation. Now,
more than ever, CIOs are being held accountable for driving the
business value, not just for keeping the lights blinking on the
computers.’
By: MADDY.KALEEM

20. Slide 01.20
INFORMATION AND BUSINESS VALUE
Figure 1.3 An evaluation tool relating information to business value. An
organization’s use of information on each axis can be assessed from
1 (low use of information) to 10 (high use of information)
By: MADDY.KALEEM

21. Slide 01.21
WHY BUSINESSES ADOPT TECHNOLOGY
Figure 1.4 Reasons cited by businesses for adoption of information technology
By: MADDY.KALEEM

22. Slide 01.22
FUNDAMENTALS OF INFORMATION
MANAGEMENT
Figure 1.5 The three strands of Business Information Management (Information, People
and Technology resources)
By: MADDY.KALEEM

23. Slide 01.23
WHAT IS BUSINESS INFORMATION
MANAGEMENT
The process of actively 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.
What are the key Who, What, When, Why, Where and How of BIM?
By: MADDY.KALEEM

24. Slide 01.24
DATA AND INFORMATION DEFINED
English (1999) defines the relationship between
data and information as follows:
‘Information is data in context. Information is
usable data. Information is the meaning of data,
so facts become understandable.’
By: MADDY.KALEEM

25. Slide 01.25
THE DATA-INFORMATION-KNOWLEDGE
TRANSFORMATION PROCESS
Figure 1.6 The data to information to knowledge transformation process
By: MADDY.KALEEM

26. Slide 01.26
DATA VISUALISATION EXAMPLE
Figure 1.7 Summary information view of European flights from Birmingham International
airport
By: MADDY.KALEEM

27. Slide 01.27
THE 4CS OF INFORMATION
TRANSFORMATION
 Context – Displaying a data item relative to other
data items, such as in a time series or trend graph.
Sorting data alphabetically or numerically is another
example of contextualization. Discrete
 Calculation – producing derived metrics such as
calculating a percentage capacity utilisation.
 Classification or categorization – grouping
information into different categories, e.g. all flights
into a particular country.
 Condensation – Aggregating or totalling/
summarizing information is always important in
presenting business event data as summary
information – for example, total sales on a route.
Filtering is also used to summarise information, for
example, “show me all flights that were delayed by at
least two hours”.
By: MADDY.KALEEM

28. Slide 01.28
KNOWLEDGE DEFINED
English (1999) builds on his definition of information to define
knowledge as follows:
‘Knowledge is not just information known, it is information in
context.
Knowledge means understanding the significance of the
information.
Knowledge is the value added to information by people who have
the experience and acumen/insight/good judgement to
understand its real potential.
Knowledge has value only to the extent that people are
empowered to act based on that knowledge. In other words,
knowledge has value only when acted on.’
By: MADDY.KALEEM

29. Slide 01.29
THE ORGANIZATIONAL SYSTEM
Figure 1.8 The organizational system
By: MADDY.KALEEM

30. Slide 01.30
THE ORGANIZATIONAL ENVIRONMENT
Figure 1.9 The organizational environment
By: MADDY.KALEEM

31. Slide 01.31
DIFFERENT FORMS OF INFORMATION
Figure 1.10 Different forms of information
By: MADDY.KALEEM

32. Slide 01.32
WEB PAGES INDEXED BY SEARCH
ENGINES
Figure 1.11 Trends in number of web pages indexed by major search engines
By: MADDY.KALEEM

33. Slide 01.33
THE INFORMATION LIFECYCLE MODEL
Figure 1.13 The Information Lifecycle
By: MADDY.KALEEM

34. Slide 01.34
KNOWLEDGE MANAGEMENT
DEFINED
The European Guide to Best Practice in
Knowledge Management defines knowledge
as:
‘The combination of data and information to
which is added expert opinion, skills and
experience to result in a valuable asset which
can be used to make decisions. It is the
essential factor in adding meaning to
information. Knowledge may be explicit
and/or tacit, individual and/or collective.’
(Mekhilef et al., 2003)
By: MADDY.KALEEM

35. Slide 01.35
PROBLEMS WITH KM
Knowledge Management issues are highlighted by the findings
of a
1999 IDC survey of 255 US CIOs. The main problems noted
were:
 Lack of understanding of KM and its benefits (55 per cent)
 Lack of employee time for KM (45 per cent)
 Lack of skill in KM techniques (40 per cent)
 Lack of encouragement in the current culture for sharing (35
per cent)
 Lack of incentives/rewards to share (30 per cent)
 Lack of funding for KM initiatives (24 per cent)
 Lack of appropriate technology (18 per cent)
 Lack of commitment from senior management (15 per cent)
By: MADDY.KALEEM