Information Rich Data Poor
It has been said that many organizations today find themselves DATA RICH → INFORMATION POOR → KNOWLEDGE STARVED It can be said today that many businesses are “data rich”, meaning that they have more raw data than they know what to do with. Most data rich businesses also find themselves “information poor”, meaning that they are not getting any useful information or value from their data. This in turn leads to organization’s becoming “knowledge starved”. In today’s competitive business environment this has many negative effects on organizations. It is vital for organizations to process as much useful information needed to be able to react to their environment and make good business decisions.
How could this happen when so many information technology products (software, hardware, ect...) are being sold as solution to business’s problems with the promise that increased productivity will quickly pay for such investments in IT? It is hard to believe that so many organizations are in this position, considering the vast amount of information technology products that are being sold as solutions to business’s problems. Companies offering these products are quick to promise a good return on investment on their products but this will not be a reality for some businesses and is more of a strong marketing technique used by suppliers. Marketers and salespeople want organizations to believe they will generate a good return on investment to generate sales on their product. Why wouldn’t organizations invest in IT if it would provide greater returns than the expenses incurred? In reality a lot of the products on the market promising good return on investments actually can if the proper system is purchased and implemented to maximize the possible value created by the system. Many systems are specific to their functions while business processes and information required can vary greatly between organizations. Therefore the right system with the proper components has to be
How could this happen when so many information technology products (software, hardware, ect...) are being sold as solution to business’s problems with the promise that increased productivity will quickly pay for such investments in IT? It is hard to believe that so many organizations are in this position, considering the vast amount of information technology products that are being sold as solutions to business’s problems. Companies offering these products are quick to promise a good return on investment on their products but this will not be a reality for some businesses and is more of a strong marketing technique used by suppliers. Marketers and salespeople want organizations to believe they will generate a good return on investment to generate sales on their product. Why wouldn’t organizations invest in IT if it would provide greater returns than the expenses incurred? In reality a lot of the products on the market promising good return on investments actually can if the proper system is purchased and implemented to maximize the possible value created by the system. Many systems are specific to their functions while business processes and information required can vary greatly between organizations. Therefore the right system with the proper components has to be
Bibliography: “Data Rich, Information Poor?”. Improve Your Business. 20 Feb. 2006. <http://egoliblog.blogspot.com/2006/02/data-rich-information-poor.html/> “Driving Business Benefits from your ERP Implementation”. Egoli Business Solutions. <http://www.egolisolutions.com/images/Driving_Business_Benefits_from_your_ERP_Implementation.PDF> “Gain Competitive Advantage by Aligning Your IT Infrastructure with Business Objectives”. IBM Corporation Software Group. <http://www.zdnet.co.uk/i/z5/ads/whitpapers/IBM/Real world mid market/ Gain Competitive Advantage by.pdf> Krigsman, Michael. “Customer blames bankruptcy on IBM IT failure”. CNET Networks. <http://blogs.zdnet.com/projectfailures/?p=583> Brynjolfsson, Erik. “The Productivity Paradox of Information Technology: Review and Assessment”. MIT Sloan School of Management. Sep. 1992. <http://ccs.mit.edu/papers/CCSWP130/ccswp130.html> Laudon, Kenneth C., Laudon, Jane P., and Brabston, Mary Elizabeth. Management Information Systems: Managing the Digital Firm. Toronto: Pearson Education Canada, 2009