Summary MNG2601 Learning Unit 6 Information management

6.1 Information management & the decision-making process:

Essential to narrowing down options, is information:

 Provided by an org’s info system
 Quality of a decision related to quality of info
 Quality of info depends on accuracy with which data is gather, coded, processed, stored, presented & protected =
main elements of info systems
 Vast amount of info available to managers & cost of errors very expensive
 Unwise & risky to rely on trial-&-error when making decisions
 Managers need to manage info to sustain & maintain competitive advantage



Electronic technology:

= designed to process & transport data & info has been developing at exceptional rates for more than 4 decades

INTERNAL ENVIRONENT
• org resource date
• marketing data
• fin data
• purchasing & operations
data
• human resource data
• other data
INFORMATION SYSTEM
DECISION-MAKING
EXTERNAL ENVIRONMENT • transform data into
information
• consumer data
• competitor data
• intermediaries data
• supplier data
• technological data
• ecological data
• economic data
• social change data
• international data
• other data


6.2 Managing information for a sustainable competitive advantage:

Competitive advantage:

= ability to provide greater value to customers than one’s competitors {in longer term, this is called sustainable
competitive advantage}

In order to sustain competitive advantage through info technology – orgs need to ask following 3 questions:

1. Does the use of info tech create value for org by lowering costs or providing a better product or service?
2. Is the info tech the same or different across competing orgs?
3. Is it difficult for another org to create or acquire the info tech used by the org?

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, Key to establish a sustainable competitive advantage:

= manage info tech to continuously improve & support the core business & functions of org



6.3 The basic functioning of an information system:

6.3.1 Definition of an information system:

DATA = raw, unanalysed numbers & facts about events or conditions from which info is drawn

MANAGEMENT INFORMATION = info that is timely, accurate & relevant to a particular situation

o Enables management to establish what should be done in a specific situation

SYSTEM = comprises sub-systems that form a whole

o Sub-systems linked & interact in such a way that they achieve a goal

INFORMATION SYSTEM = people, procedures & other resources that collect, transform & disseminate info in an org

o Info system accepts data resources as input & processes them into info products as output



6.3.2 The basic components of an information system:

Information system:

= Uses hardware, software & human resources to perform basic activities of input, processing, output, feedback,
control & storage



How info system works – steps:

o Info system receive data as input
o Process data by organising & analysing it in a meaningful way to provide info as output to managers to make
decisions
o Info stored
o Storage = activity by which data & info are retained for subsequent use
o Examples of storage = magnetic tape, cartridges, computer disks
o Info system provide feedback on activities to determine whether system meets established performance
standards



HARDWARE RESOURCES = a broad term referring to the physical components of a computer system

Four main categories of hardware resources:

1. Input devices = allow one to communicate with one’s computer
o Keyboards
o Optical scanning devices
o Magnetic ink character readers




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