Question

Critically analyse how managers can exploit the value generated by the information infrasturcture. Justify your answer providing examples of managerial actions that are useful to exploit the value generated by the information infrasturcture.

Answer 1

The value created by Information infrastructure:

Irrespective of the industry or organization, information infrastructure is used to generate massive value. Value is generated in terms of record-keeping, faster execution, accurate calculations, etc. It is also helpful in document storage, communication records, revision histories, etc. Understanding of such systems can help in planning and accurate decision making.

• Computerized systems can offer more than just storage value.
• They save money and time for managers.
• The managerial effectiveness is also improved for the managers.
• The probability of the organization's success depends highly on the utilization of the information system they are using.

Examples of managerial efforts useful to utilize this value:

1. Shop floor system:

To help in the production and increase the percentage of results on newly created micro-circuits, the managers of such companies like to install information systems called the shop floor system.

• The daily reports on piece work are submitted by the operators including the date, person identification, yield, etc.
• It helps in creating productivity data.
• It also helps in workflow investigation, monitors the bugs, and inquire about queries.

2. Portfolio system:

For trading decisions, managers like to use on-line systems that help in the analysis of the portfolios of people. It helps in forgoing time-consuming activities and methods.

• The up-to-date information can be saved in a format understandable.
• Depending on scenario one is in, the portfolio system helps in ranking and grouping.
• This helps in acquiring data about risk levels in the industry.

3. Sales systems:

Such information systems are used to execute operations in a cost-effective and timely fashion. The information derived from the sales information system is kept in order. It is used while deciding on the proprietary model.