Information Management and Information Technology - Essay Example

Information Management and Information Technology: Executive Summary: Information management is an important element of a business organization. Information management improves the efficiency in which an organization collects, and disseminates the data under its possession. An organization that has a proper information management system gains the capability of saving its operational costs, and saving on the time that would have been taken by the staff to peruse through numerous files for purposes of searching for particular information. This paper analyzes the importance of information management in an organization, and the role of information technology in the process. This paper gives examples of companies that have an efficient information management policy, and the information technology tool that such companies use, in order to make the management of information a success. Introduction: Information management refers to the methods in individual or an organization collects information from one or more than one sources, and distributes the information collected to specific audiences. This process must include everyone who has an interest to the specific information at hand, or those who have a claim over the specific piece of information (Luenberger, 2006, p. 46). Management of information refers to the control of the structure, organizational, processing, evaluation, and report of the contents of the information for purposes of meeting the objectives of the audience under consideration, and to efficiently enable the delivery of the specific piece of information (Khosrowpour, 2005, p. 32). During the last century, especially in the mid-1970s, information management entailed the introduction and maintenance of the file system, and the information management policies was centered on the files, and tangible records. However, with the introduction of information technology, this system changed. Practitioners of information technology began to use and maintain electronic data. On this note therefore, information management took a technological twist, because to store and disseminate information, people had to know how to operate the computer system (Thaung, 2012, p. 61). During the period of the 1990s, there was extensive use of networks to disseminate information, and there emerged the role of network managers whose main role was to manage information that was being disseminated through the electronic and computer systems. This individuals performed complex work, such as management of computer software’s and hardware’s (Lucey, 2005, p. 37). On this note therefore, information management is a powerful mechanism of controlling information, and it is essential for large business organizations to have a department of information management. In summary, information management involves mechanisms put in place to retrieve, organize, acquire, secure and maintain information. Information technology on the other hand involves the use of telecommunications, and computer structures to manipulate, transmit, store and retrieve information data. Information technology is often applied in a business environment. Information technology has several components, and they include the internet, e-commerce, and computer software’s and hardware’s. According to the definition of the American Association of Information technologists, information technology refers to the development, implementation, design and the study of information systems that apply the principles of computer management (Lee, 2012, p. 42). The objectives of this is to provide information that would help in decision making, which would enable business enterprises to associate with their customers, and therefore increase efficiency in the delivery of their products and services (Tryon, 2012, p. 12). Specialists in information technology have the responsibility of identifying the software and hardware components of a computer system, for purposes of integrating them in an organizations information technology system, so that it may satisfy the communication needs of the organization. Specialists in information technology are also concerned with the maintenance, installation, and customization of an organizations computer system (Laudon and Jane, 2009, p. 22). For example, they design an organizations website; install the networks of a computer system, administer the same network, and provide security to the computer system of an organization, in the sense that they protect it against hackers, and harmful viruses. This paper analyzes the roles of information management in an organization, and the importance of information technology in this process of management. Body: The importance of information management is a business organization is that it saves time and money. For example, integrating the concepts of information management within an organization enables the various members of an organization to share their work. If the work they are doing is similar, it minimizes chances of the other colleague re-doing the work. He can only correct areas where he feels his colleague did not perform well. In order to do this effectively, there must be a computer system, and software’s installed that would help the members of the organization to share their work (Hellriegel, 2012, p. 42). This is an aspect of information technology, since it entails the development of computer software’s, and hardware’s for use in an organization. For employees to share their work there must be the internet, whereby emails would be used for communicative purposes. The information management system also helps employees to find the information they need in a more efficient manner, and quicker. This is because the internet is a communication tool that has virtually all information needed. Internet search engines such as Google enable individuals to acquire any piece of information they need. For Google to function effectively, it must have some software’s that could enable it search for the information an individual needs. This is an aspect of information technology (Hellriegel, 2012, p. 40), because it concerns itself with the development of computer software and hardware’s. Information management enables the electronic storage of data; therefore the absence of an employee cannot comprise the work of the organization because the information needed is stored in the computer system (Frenzel, 1992, p. 33). This saves money and time, because the organization won’t have to hire people to re-do the work, or look for the missing information. This is possible because of the emergence of the computer system, which is the main component of information technology (Zhu, 2012, p. 24). Looking at these factors therefore, information management helps an organization to save on its operational costs, such as the development of the manual filing system, which is expensive and time consuming. Instead, data and information is stored electronically, and when required, it is easy to get the specific information. Ms. Office packages are mostly used in organizations, for purposes of developing information, and disseminating the same pieces of information (Dua, 2012, p. 51). This replaces the traditional use of paper, and it therefore contributes in increasing the efficiency in the manner in which an organization stores and disseminates its pieces of information. Without knowledge in information technology, it is impossible to use Ms. Word packages. On this note therefore, information technology has played an important role in enhancing the manner in which an organization develops, stores and disseminate information under its possession. It is through the knowledge obtained by studying Information Technology that an individual can use Ms. Word, Ms. Project, and Ms. PowerPoint, and this are the major technological pieces that organizations use to develop their information. Information management helps business organization to develop data, and information for purposes of relaying the same information to regulatory authorities, shareholders of the organization, and for using the same information in order to meet its own objectives. This aspect of information management is important in banking organizations because of the large amount of data, and information it has. To relay this information in the most accurate manner, banking organizations use information technology tools of warehousing and data mining. The use of these tools of information management is critical to the banking system because of their branch networks. Apart from the use of warehousing and data mining tools, banking organizations use the total branch computerization software to transact their businesses. This software’s are used for the daily operations of the banking businesses, and for purposes of balancing the financial transactions of the branch under consideration. The use of data mining and warehousing techniques enables the consolidation of data, at a central location, which is termed as a data warehouse. This method of information dissemination is recommended for organizations with many local branches, such as large multinational organizations. However, it is commonly used by banking organizations because of their large branching networks. However, for purposes of ensuring the security of privacy of its information, banking organizations have a warehouse facility at every region of the branch networks. Data mining involves the manner, in which an individual can access information, and there are a variety of techniques in use, which includes classification, segmentation, clustering and sequencing. On this basis therefore, business organizations can collect data, and disseminate it, in an accurate and most efficient method. This is because it is possible to analyze data, without consuming time, and manipulating its contents. It is also possible to classify information by their importance, and this will help the organization to achieve profitability because they will act on the information presented. Information management helps in creating a competitive advantage between the organizations, therefore increasing the profitability of the organization. Efficient management of information helps in improving the quality of a product, for purposes of creating value (Sorokin, 2012, p. 56). This leads to an increase in the sales of their products, and therefore enhances their profitability. To effectively analyze the role of information management in increasing the profitability of a business organization, it is important to look critically at the notion of value chain. In definition, a value chain is a series of activities that an organization that operates in a specific sector undertakes in order to deliver a service or a product for a specific market (Gleick, 2011, p. 11). According to this concept, every step of production ensures that the product gains some value. Information management is present at every step of the processing of a service or product. It has an impact on the manner in which the products are made, for purposes of satisfying the needs of customers. In production of goods and services, the activities that involve the production of the finished product must involve the information processing and the physical component. The components in information processing are steps undertaken to collect data, manipulate it, and thereafter disseminate the information for purposes of producing the product under consideration (DHS, 2004, p. 3). This is an aspect of information management, and efficiency in collecting and disseminating the information under consideration will result to the production of a high quality product or service, and therefore increasing its sale. Information technology as a tool of information management is present in each and every step of these processes. Information Technology helps to generate information, and makes it possible for the organization to identify and capture information that was not within its possession. It also enables analysis of the same data that the company has acquired. An example of a company that uses information technology to analyze and disseminate the data under its possession is the Hunt Wesson food company (Laudon and Jane, 2012, p. 33). The company hired the services of Vanstar cooperation to develop computer software that would help the company to evaluate variables, scenarios, and strategies that business organizations in the food sector had never used before. Through information technology, companies have managed to integrate their computer systems to help in the production of goods and services. They achieve this by programming their computer systems to control the manufacturing process. Through information technology, companies get the capability to manage their actions, so that it may reflect the needs of their customers, and suppliers. Through these efforts, companies have become innovative, just to stay ahead of their competitors. Take an example of Citi group, a large multinational banking organization. Through innovation, and the application of information technology concepts, the company has managed to create an online portal whereby their customers can transact their businesses electronically, and they can also open accounts through the internet (Laudon and Jane, 2012, p. 22). This has made it possible for the company to achieve profitability, as well as attract a large number of customers. On this basis therefore, information management helps in creating a competitive advantage and this results to an increase in the profitability of a business organization (Oz, 2002, p. 31). Information management also improves the efficiency in which an organization carry’s out its functions by altering the structure of the industry. The structure of an industry has five competitive elements, namely; the ability of the customers, the capability of the suppliers, threats that emanate from new entrants, threats posed by substitute products, and rivalry that emanates from competing companies. The manner in which an organization collects and disseminates information in each and every element of these competitive factors of an industry would determine its attractive to the various stakeholders concerned, and hence result to its profitability (Currie and Robert, 1999, p. 21). During these processes, information management experts use tools made available by knowledge in information technology. Take for instance companies operating in the assembling industries. They might use automated bills to provide customers with information concerning the prices of the materials, making it easier for buyers to analyze them, and thereafter make a decision on whether to buy from the company or not. This is an efficient way of marketing, as it increases the knowledge base of a buyer, as well as advertising the products of the company, resulting to an increase in sales. Another example is in the banking industry, whereby due to an increase in competition, and in order to attract corporate customers, these organizations have developed a software system whereby companies can access and transact their businesses through the internet, or in an electronic manner. An example of a company that used information technology for purposes of improving its information management capability in order to increase the knowledge base of its customers is First Boston Corporation Company (Papathanassis, 2012, p. 41). This is a financial institution, headquartered in New York, and it developed computer software known as Shelternet. This computer package makes it possible for real estate agents to get information quickly on the nature of mortgage packages available for its customers. The software enables the agents to know on whether a customer qualifies for a particular mortgage package or not. On this basis, this software has made it possible to improve the capability of buyers, and mortgage agents by providing such kind of important information. On this basis therefore, information management, through the use of information technology tools has the capability of altering the five elements of an industrial structure, for purposes of increasing its profitability, and gaining an advantage over its main competitors (Brien and James, 2006, p. 37). Conclusion: In conclusion, technology plays an important role in enhancing efficiency in the manner in which an organization manages its information. However information management is not all about technology. This is because it entails business processes, and policies that lead to the creation and dissemination of the information under consideration. On this note therefore, information management concerns itself with particular information, and this includes its structure, and metadata. In this processes, information technology plays a role in influencing the manner the information under consideration is crafted, designed, stored and thereafter disseminated. On this note, technology is only an aspect of the process, and other elements of information management such as the content of the information, the process put in place for collecting and designing the specific information, and the people involved must be there to ensure that the process of information management is a success. This article has only dealt with the role of information technology in enhancing efficiency in the manner in which an organization manages its information/data. This article has managed to give a definition of information management, and identifies it as a process of collecting, controlling and disseminating information. This article denotes that, in the current century, most organizations use electronic means for purposes of managing information under their possession. To efficiently do this, these organizations must have people skilled in using the tools of information technology. This is because information technology has played a great role, in changing the manner in which organizations transact their businesses. This paper has managed to give examples of institutions that uses information technology for purposes of capturing the market of their operation, and thus increasing profitability. On this basis, organizations that have not incorporated the elements of information technology cannot compete effectively with other companies, in their areas of operation. Works Cited: Brien, James A., and George M. Marakas. Management information systems. 7th ed. Boston: McGraw-Hill Irwin, 2006. Print. Currie, Wendy, and Robert Galliers. Rethinking management information systems an interdisciplinary perspective. New York: Oxford University Press, 1999. Print. DHS management of automated procurement systems needs improvement. 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