One crucial factor in information handling and decision making is an individual's ability to process information and to make decisions under limitations that might derive from the context: a person's age, the situational complexity, or a lack of requisite quality in the information that is at hand — all of which is exacerbated by the rapid advance of technology and the new kinds of system that it enables, especially as the social web emerges as a phenomenon that business cannot ignore.
And yet, well before there was any general recognition of the importance of information management in organisations, March and Simon  argued that organizations have to be considered as cooperative systems , with a high level of information processing and a vast need for decision making at various levels. Instead of using the model of the " economic man ", as advocated in classical theory  they proposed " administrative man " as an alternative, based on their argumentation about the cognitive limits of rationality.
Additionally they proposed the notion of satisficing , which entails searching through the available alternatives until an acceptability threshold is met - another idea that still has currency. In addition to the organisational factors mentioned by March and Simon, there are other issues that stem from economic and environmental dynamics. There is the cost of collecting and evaluating the information needed to take a decision, including the time and effort required.
In particular, established organizational rules and procedures can prevent the taking of the most appropriate decision, leading to sub-optimum outcomes. According to the Carnegie Mellon School an organization's ability to process information is at the core of organizational and managerial competency , and an organization's strategies must be designed to improve information processing capability  and as information systems that provide that capability became formalised and automated, competencies were severely tested at many levels.
This environment consists of three interrelated dimensions which continuously interact with individuals, organizations, and systems. These dimensions are the physical, informational, and cognitive. Venkatraman has provided a simple view of the requisite capabilities of an organisation that wants to manage information well — the DIKAR model see above.
He also worked with others to understand how technology and business strategies could be appropriately aligned in order to identify specific capabilities that are needed. Bytheway has collected and organised basic tools and techniques for information management in a single volume. Such an information portfolio as this shows how information can be gathered and usefully organised, in four stages:. Stage 1 : Taking advantage of public information : recognise and adopt well-structured external schemes of reference data, such as post codes, weather data, GPS positioning data and travel timetables, exemplified in the personal computing press.
Shirky provides an overview of these two approaches. Stage 3 : Sifting and analysing: in the wider world the generalised ontologies that are under development extend to hundreds of entities and hundreds of relations between them and provide the means to elicit meaning from large volumes of data. Structured data in databases works best when that structure reflects a higher-level information model — an ontology, or an entity-relationship model. Stage 4 : Structuring and archiving: with the large volume of data available from sources such as the social web and from the miniature telemetry systems used in personal health management , new ways to archive and then trawl data for meaningful information.
Map-reduce methods, originating from functional programming , are a more recent way of eliciting information from large archival datasets that is becoming interesting to regular businesses that have very large data resources to work with, but it requires advanced multi-processor resources. The Information Management Body of Knowledge was made available on the world wide web in  and sets out to show that the required management competencies to derive real benefits from an investment in information are complex and multi-layered.
Even with full capability and competency within the six knowledge areas, it is argued that things can still go wrong. The problem lies in the migration of ideas and information management value from one area of competency to another. Summarising what Bytheway explains in some detail and supported by selected secondary references : . There are always many ways to see a business, and the information management viewpoint is only one way.
It is important to remember that other areas of business activity will also contribute to strategy — it is not only good information management that moves a business forwards. Corporate governance , human resource management , product development and marketing will all have an important role to play in strategic ways, and we must not see one domain of activity alone as the sole source of strategic success. On the other hand, corporate governance, human resource management, product development and marketing are all dependent on effective information management, and so in the final analysis our competency to manage information well, on the broad basis that is offered here, can be said to be predominant.
Organizations are often confronted with many information management challenges and issues at the operational level , especially when organisational change is engendered. The novelty of new systems architectures and a lack of experience with new styles of information management requires a level of organisational change management that is notoriously difficult to deliver.
As a result of a general organisational reluctance to change, to enable new forms of information management, there might be for example : a shortfall in the requisite resources, a failure to acknowledge new classes of information and the new procedures that use them, a lack of support from senior management leading to a loss of strategic vision, and even political manoeuvring that undermines the operation of the whole organisation. In early work, taking an information processing view of organisation design, Jay Galbraith has identified five tactical areas to increase information processing capacity and reduce the need for information processing.
This brings together the vertical hierarchical view of an organisation and the horizontal product or project view of the work that it does visible to the outside world. The creation of a matrix organization is one management response to a persistent fluidity of external demand, avoiding multifarious and spurious responses to episodic demands that tend to be dealt with individually. From Wikipedia, the free encyclopedia. Not to be confused with Content management or Knowledge management.
IT-enabled business transformation: from automation to business scope redefinition. Sloan Management Review , 35 2 , pp. Transformation of the IT function at British Petroleum.
Sociology and economic man. The satisficing principle in capability learning. Strategic Management Journal , 21 , pp. J , Management and Organizational Behaviours , 3rd ed. A behavioural theory of organizational objectives. Business process re-engineering—A discredited vocabulary? International Journal of Information Management , 17 1 , pp. Army Information Operations.
Joint Publication Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal , 32 1 , pp. For example, several retail chains were targeted recently by hackers who stole customer information from their information systems and distributed Social Security numbers and credit card data over the Internet.
Implementation expenses — to integrate the information system it require pretty good amount of cost in a case of software, hardware and people. Software, hardware and some other services should be rented, bought and supported. Employees need to be trained with unfamiliar information technology and software. Information systems contribute to the efficient running of organizations.
Information systems are showing the exponential growth in each decades. Modern medicine has benefited the most with better information system using the latest information technology. By understanding and learning what advantages and disadvantages it can bring, we have to try, believe and put an effort with our best to make that existing advantage much better and navigate the disadvantages to have a less impact on organizations and society.
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