How you are going to gather information to create an information management

system to a library?
 By providing questionnaires to library staff
 Interviewing specific persons
 Observations
After gathering information what are the difficulties that you have to face when
implementing the system?
 Information may not be clear (Noisy data).
 Some information may be missing (Missing data) or invalid.
 Information may be duplicated or uncompleted.

Data pre-processing
Converting your data into valuable format before implementing the system.

Noisy Data
Noise: random error or variance in a measured variable.
Incorrect attribute values may due to
 Faulty data collection instruments
o Instrumental errors.
o Reading errors.
 Data entry problems
o Human errors.
 Data transmission problems
o Mapping available data into new system.
 Technology limitations
o Number of characters may be changed when inserting data.
 Inconsistency in naming convention
o Keywords or codes may have been used in the current system and
will not support to new system.
Major tasks in Data Pre-processing
Data cleaning
 Neglect data record which have not completed.
 Fill missing values using a standard format.
Data integration
 Grouping the data collection in a standard way.
Data transformation
 Normalization -Purpose of doing normalization
o Avoid duplicate data
o Give a unique identity to each data record
 Aggregation – make a link (define a link) between tables (entities of the
DB)
Data reduction
 Reduce volume of the DB

What is the importance of valid, current and relevant information or data to make
decision?
 To increase the accuracy of data
 Less time costed for pre-processing
 Decisions are effective
 Can easily assign data to another system

Characteristics of Valuable Information

The value can be judge based on a set of features that can be identified in the
information.
Valuable information needs to have
 Accuracy
 Complete
 Economical
 Reliable
 Relevant
 Secure
 Simple
 Flexible
 Timeliness
 Accessible – for specific people

Accurate – If we input some accurate data, after the process we can obtain
correct information.
If we input some error data, we can obtain information with errors. This process is
called as Garbage in Garbage out.

Write an example for garbage in Garbage out process.

 If we input wrong data to a library system when issuing a book, a problem
will occur when the member returning the book. Because the book that
showed in the system, isn’t matching with the book that the member
return.
Complete – When no missing values are available in the database, it helps to get
clear decisions.
Economical
Flexible – Convert the dataset (handle the database) according to the situation.
Relevant
Simple – Every user can understand attributes of the database.
 Timeliness – System should present the time and date of every data which have
inserted.
Understandable
Verifiable
Secure
Accessible - Authentication levels must be defined.

What are reports which we can generate using an available information system?
 If we take student management system as example,
o Exam results
o Attendance (Monthly, daily, yearly)
o Payment reports
o No. of students that involved in a specific course

External and internal information needs of organizations

Intelligent Information Public Information

Ex: Collected from Internal Information Ex: Filter information

stakeholders and Ex: Product info from internally operated

other companies Employees info and is important to external

environment
Decision making process
1. Identify the decision (problem)
o Evaluate how this decision is important to a organization.
2. Gather information
o Tools to analyze big data.
i. Tableu
ii. Rapid Miner
3. Identify the alternatives
o It helps to define several paths according to the situation.
4. Weigh the evidence
o Evaluate cost, benefits and the duration for each path.
5. Choose among alternatives
o Select best path

Different diagrams can be used to select best path from alternatives.

Ex: Network diagram and the Critical path analysis can be used to find the
best path comparing the duration
6. Take action
o Take an action to selected path
7. Review the decision

Tools to analyze a problem

 SWOT analysis
o Suppose that you are going to implement a library management
system. Analyze the situation using SWOT.
 Strengths: Having experienced team members,
Having a good team.
 Weaknesses: Unskilled team members,
lack of resources.
  Opportunities: Support from the library staff,
Giving the chance to let our team to implement the system
 Threats: Technical issues, Fake information given by the staff

Competitive advantage
If a company has / have a different characteristic of its products or services, which
can be used to give a competition with the other competitors, is called as
competitive advantage.
Ex: - When we consider about Atlas company, they can market their product using
these competitive advantages like lower price, higher quality pages, cover paper
is high quality and attractive etc.

Suppose that you have your own software company,

User friendly interfaces
Free maintenance after retail
Clearer user guiding
Skilled team members

What are the benefits of having a competitive advantage for a company?

To grow a profit
To maintain a name among customers
When defining a competitive advantage, it should be unique and sustainable.
Competitive Strategies
Suppose that you have your own bank. Strategies which can be used to gain a
competitive advantage are;
 Cost Leadership
o Have a good capital when comparing with other banks.
 Differentiation and innovation
o Introducing new account types.
o Introducing new loan schemes
 Growth
o If market share value is increasing rapidly, we can use that term.
o Ex: Our market value is greater than other banks.
 Alliance
The role of Information Systems in Strategic Management
 Innovative applications
o If a company has an application which can be used to communicate
directly with the customers, it can be called as an innovative
application.
 Competitive weapons
o Amazon’s one-click shopping system is considered significant and
important to the company’s reputation for superior customer service
that it has patented the system
 Changes in processes
o If an information system can be used to do a manual process, it is
called as changes in processes.
o Ex: If a bank user can deposit money via online system, it will not
change the amount of work of bank employees. But is will help to
increases number of customers.
 Links with business partners
o It helps to attract customers
o Ex: Pizza hut web site display an advertisement that if a customer
gets one large pizza, they give one large coke free.
  Cost reduction
o If a customer does an online payment without going to the company,
it will reduce the travelling cost of the customer.
 Relationship with suppliers and customers
o Before ordering a pizza, we can search offers using the website.
 New products
o If Esoft website displays new courses which are offered by Esoft.
 Competitive intelligence
o To do the assignment, you can use a website to collect, analyze the
company details.

Models for identifying competitive advantage using

information system
Porter’s Five Forces Model
 Threat of new entrance
o Economies of scale
o Product differentiation
o Capital requirements
o Switching costs
o Access to distribution channels

 Threats of substitute products

o Consumer switching costs are low.
o Substitute product is cheaper than the industry product.
o Substitute product quality is equal or superior to industry product
quality.
o Substitute product performance is equal or superior to industry
product performance.

 Bargaining power of suppliers

o Ex: If our company buy products from Manchee and sell again, we
can get the reputation which Manchee have from the customers.
  Competitive rivalry
o If same product is sold by different companies, each company should
have their own competitive advantage.

 Overall cost leadership

o Being low cost producer while maintaining the quality in the industry.

 Differentiation
o Maintaining the low cost is not practical in every time. In that
situation, differentiating the product create uniqueness among the
customers.
How can we gain a competitive advantage for a product?
 Lowest price.
 Stainless steel and silver build.
 Analog and digital time display.
 Good customer care.
 5 years global warranty from company.

Porter’s Value Chain Model

Explains how to add a value to a product or service.
When adding a value to a product, there are five primary activities should be
concerned.
Primary activities are the activities which are directly related to the production
and distribution of the product.
Ex: - Adding a value to a chocolate bar.

Primary activities
 Inbound logistics – Purchasing cocoa, milk, essence, aluminum foil, Sugar,
paper etc..., Storing row martials, delivering row martials to the company.
  Production – Process cocoa and mix with milk, essence and sugar, freezing
chocolate, testing the chocolate, packing the product.

 Outbound logistics - Storing products in proper environment, Loading the

product creates to a container, distributing product to the market.

 Marketing and sales – Promoting, advertising.

 Service – This factor is only valid for product which gives services after sale.

Supporting activities
Activities which supports to primary activities, called as supporting services.
 Firm infrastructure – Pay water bills, electricity bills, handling machines.
 Human resource management – Recruiting a new staff member, conducting
training workshops.
 Technology development – Purchasing a new machine to make chocolates,
purchasing a new machine to mix ingredients, introducing a new software
to handle documents.
 Procurement - Maintain vehicles

Use of information systems in value chain

 Inbound logistics – Introducing an EDI based purchasing system.
 Production – Introducing a programmed software to automate the process.
 Outbound logistics – Using storage management software, introduce
delivery tracking system.
 Marketing and sales –Using a web-based marketing system.
 Service –
Value web
A common platform which is used to produce a one item by coordinating many
companies.
Wiseman’s Strategic planning Process
Wisemen emphasizes that the company should not have a competitive advantage
to maintain the company.