DEA 128: e-management concepts et méthodes (2003/2004)
Articles analysis: 1. The problem of information overload in business organizations : A review of the literature 2. Total cycle time compression and the agile supply chain
Prepared by: Zarrouck Khadija
Submitted to: Mr. Henri Isaac
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DEA 128: e-management concepts et méthodes (2003/2004)
1. The problem of information overload in business organizations : A review of the literature Written by: Angela Edmunds, Anne Morris Published in the International Journal of Information Management N°20 (2000) pages from 17 to 28
I/ Problem analysis: The authors are interested in the problem of dealing with the information overload in the business world. Nowadays, everyone is concerned with information overflowing from many sources: mails, television channels, newspapers, radio.., without control, without purposively seeking it. A major difference is made between the personal and the professional perception of this information overflow since in the personal life, one can choose to ignore that information, whereas in the workplace, no one can allow itself to ignore any information. Indeed, for organizations, information is considered as a key to success. The problem resides in the fact that technology are producing, manipulating and disseminating information faster than individuals can use. Therefore, while the availability of information is crucial, researches has proven that too much information is source of stress, loss of job satisfaction and physical illness (D. Lewis )(1). Information overflow has opposite effect: instead of helping the job accomplishment, it disseminates the control over the duty. Î The paradox brought up here is that with the enormous amount of information it is hard to find the relevant one when needed. The authors are viewing information overload as a driver instead of a tool to develop rather than to diminish individual’s life.
II/ Major concepts analysis: The problematic is around the information overload and its derivatives as well as some of its consequences. The major definitions we will be developing are: Information overload, Infoglut, Information fatigue syndrome. The information overload is a concept largely used in several disciplines such as medicine, social sciences including business studies, information science. It is also a well recognized condition; but no universally accepted definition is available. According to H. Butcher (1),information overload can mean: a. having more relevant information than one can assimilate b. being burdened with unsolicited information, including relevant ones 2
DEA 128: e-management concepts et méthodes (2003/2004)
For O.E Klapp, the abundance of information acts like noise, when the rate of information is too important compared to the capacity of processing it without distraction, stress and errors, leads to weaker information. J. Feather , considers that information overload is reached when the amount of information is so important, that one can not use it efficiently. It creates anxiety and worries as to whether or not an information might be missed. In fact this problem has an effect on the decision-making process. C.T. Meadow and W. Yuan , distinguish as D.J. Foskett information from data overload, considering data as the raw material for individuals to create information. In reality, for a data to be considered as information, it should be understood and evaluated first. Therefore, information overload is the feeling perceived when the reception of information is greater than the use of it. B.C Vickery and A. Vickery define information overload behavior’s in several ways: individuals can forget, can make errors, can pay not enough attention to a misinterpreted information, or even can let the information pilling-up for later, without always having the possibility of coming back to it.
Infoglut is a concept used by D. Shenk. It is a metaphorical approach of the information overload concept, referring to our environment surrounded with over abundance of information . This phenomenon also called data smog or muck and druck of the information age. The information fatigue syndrome is a terminology used by C. Oppenheim aiming at the physical and psychological consequences of information overload, creating a lake of control of a situation by the individuals.
III/ Methodology analysis: This article is based on the concept of information overload. It is concentrating on : 1. a selected review of the literature, 2. a historical overview of the concept and 3. an emphasis on the importance of the problem as well as the actual status of the situation. The article describes also several solutions to this phenomenon, and some openings to be investigated in future researches. Beside defining the concept, the review of the literature focused also on the theories related to the impact of information overload, distinguishing between the personal, the organizational and the customer’s approach of the problem. ¾ the theories on personal information overload focuses on its impact on the problem-solving and decision-making processes. ¾ the theories on organizational information overload is materialized by the amount of paper printed. ¾ the theories on customer information overload is based on its impact on the spending effect.
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DEA 128: e-management concepts et méthodes (2003/2004) IV/ Outcomes and results: -1- Historical overview: Even though the overflow of information is not a new phenomenon, the fifth and the most developed section of this article is first of all locating historically when it started . According to Klapp, the phenomenon was discovered in social science back in 1950 by G Simmel when dealing with city dwellers. K Deutsch considered information overflow as a disease of cities, Meier and Oppenheim predicted a saturation and a crisis in communications flow by the end of the twentieth century. J.M Noyes and P.J Thomas emphasis on the ignorance when the problem emerged and when it will be terminating. However, the fairly recent development of the World Wide Web and the Internet, suppose that the information overload is a recent problem. Nonetheless, back in 1880, solutions were seeked for filling books and papers and S.L Haynes found out that by the end of 1800th century the problem existed as per law cases raising the issue of too much information and too many sources… According to: 9 D. Shenk, since 1970’s with the development of information technology, and computer processing speed has changed the American economy is based more on information processing than material goods handling . 9 C. Meadow, automation has promoted pressure instead of leisure; 9 C. Handy, the focus is on the rule ½ by-2-by-3, where businesses enroll half as many employees paid 2 times better and producing 3 times more; 9 Oppenheim, gathering information is a condition to keep-up with customers and competitors and 9 S. Bjorner, the speed of mechanical information production is indubitably higher than human information processing. -2- Causes of information overload: Ö
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1st Cause: Internet: has been, without contest, an electronic source of information overload according to G. Swash, whereas D. Nicholas et al., conducted a research among media professionals and discovered that information overload was not part of their problems. 2nd Cause: Electronic mail: creates personal information management as per S. Whittaker and C. Sidner, whereas R.E Kraut and P. Attewell considered the positive effect of e-mails on organizational knowledge and commitment. 3rd Cause: H. Butcher’s factors: as per managers being overwhelmed with information • They collect information to indicate a commitment to rationalism and competence which they believe improves decision making; • They receive enormous amounts of unsolicited information; • They seek more information to check out the information already acquired; • They collect information just in case it may be useful; • They play safe and get all information possible; They like to use information as a currency.
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DEA 128: e-management concepts et méthodes (2003/2004) Ö
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4th Cause: Excess of information and shortage of useful information: the paradox: according to W. Martin as well as J. Katzer and P. Fletcher, managers are oversupplied with information without getting all the ones needed for their duties: this is what they call: the dilemma. 5th Cause: Information literacy: for P. Koniger and K. Janowitz the information from electronic media is intangible which leads the formal methods of handling information is inadequate to the amount and shape of the modern information. For A. Mutch “information literacy” requires to focus more on the nature of information creation rather than identification and retrieval of data. 6th Cause: Extent of information overload: Oppenheim focused on the amount of information and its impact on work, relationship and quality of life.
V/ Solutions ? -1- According to P. Wilson considers information overload as a threat in the context of maintaining currency. For D.M Laskin, time is often wasted with duplication of information trough the development of the professional journals. He urges as a solution the concentration on concepts and principles rather than details and data. For T.P Klassen et al., a systematic review accompanied with relevant studies can help reduce information overload. -2- Personal Information Management (P.I.M) for R.S Jones and P.J Thomas, electronic PIM technologies are used with traditional technologies (pocket diaries, personal organizer). For B. Etzel, a PIM strategy should encompass which medium to use and be adapted to each individual, or personalized (ex: visual or spatial recalls): it should be an integrated approach rather than a product dependency. -3- The push technology, consists on recalling notices of pre-selected information on the desk top alerting on new or updated information; as opposed to the traditional “pull” or seeked for information. But for N.K Herther, this technology can contribute increasing the information overload. For E. Cerami push technology is “an annoying nuisance” imposed to the users. Also for D. Senk this technology can lead to shrink worlds since some information will be unwanted and displaces serendipity. -4- Intelligent agents as a tools which scans, comprehends, summaries and automatically routes the information which has value-added to it, for the users. For T. Belfourd and J. Furner these agents are autonomous, and are able to predict the interest for the user. But for J. Tegenbos and P. Nieuwenhusen the time saving benefit can be offset by the unreliability and lack of control of intelligent search agents. -5- As per Badenoch et al., since not all information is necessarily useful, it needs a filtering mechanism (whether human like a librarian or automated like a software). C. Simpson and L. Prusak recommend a conceptual model where providers and users of information have respective views of each other’s roles emphasizing on valueadded information containing: truth, guidance, scarcity, accessibility and weight. -6- Information specialists are lacking concern with the information science literature. The reliability is more on IT (Information Technology) specialist’s shoulders who provides fast access to large amount of information rather than on quality information, “value-added” information. 5
DEA 128: e-management concepts et méthodes (2003/2004) VI/ The achievements of the present article: The article we are analyzing has the indubitable advantage of covering comprehensively the information overload phenomenon. As a researcher, reading it will provide a precise and global view of this inescapable modern problem, in a wide range of fields, not only in computer and information sciences, but also in social science, medicine and business studies.
VII/ The need for additional research… The problem is still nowadays without solution, and even as per one of the Reuters report, it is less of a problem. Additional research in this field can be valuable .
VIII/ Personal Comment: It is unavoidable nowadays to be feeling overloaded with information. Before reading this article I was seeking the possibility of developing the issue of information overflow in entrepreneurship, based on the assumption: the more information we possess, the more we think and the less we want to take the risky decision of starting a new business. So I still might be developing for my major paper “ the role of information overload on deciding to create a new business”.
Articles bibliography (1). All the authors’ references are available in pages 27 & 28 of the article under consideration. Personal Bibliography “ Why do people use information technology “, Information and Management Vol . 40 n 3
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DEA 128: e-management concepts et méthodes (2003/2004)
2. Total cycle time compression and the agile supply chain Written by: Rachel Mason-Jones, Denis R. Towill Published in the International Journal of Production Economics N°62 (1999) pages from 61 to 73
I/ Problem analysis and authors’ aim: Manufacturers are under a constant pressure to develop, produce and get to the market, their goods. Thus cycle time (time span from production to customer satisfaction) is becoming a critical variable to many business decisions. This paper shows the influence of the Total Cycle Time (TCT) compression paradigm applied to individual business and complete supply chain. This influence is measured by targeting TCT reduction using the Business Systems Engineering (BSE). If the TCT reduction mashes material flow lead time, it remain insufficient, indeed, it requires a similar reduction in the information lead times. Therefore, the analysis will focus on what is considered as one of the steps required to achieve virtual corporations agility goal. The ultimate objective of the authors is to provide a Route-Map which indicates the steps to follow in business scenarios in order to reach supply chain agility and then a competitive advantage.
II/ Major concepts analysis: The analysis key words proposed : 1)° Agile . A virtual corporation is considered agile if it uses market knowledge to exploit profitable opportunities in a volatile market place as per B. Naylor, M.M Naim and D. Berry’s (1) approach. 2)° Supply-chain. A supply-chain is “encompassing all activities associated with the flow and transformation of goods from raw material stage through to the end user, as well as to associated information flows” (2). 3°) Information. ( the common element with the article: the problem of information overload); can be defined as a data that have been shaped into a form that is meaningful and useful to human beings. 4)° Competitive advantage: is obtained with the integration of the BSE as a way to improve individual company competitiveness. This advantage is also obtained with a proper supply chain management. 5)° Speed of response: is the key element to achieve the main objective: TCT compression. If the speed of response is practiced, the time cycle is necessarily reduced. The additional concepts defined: 7
DEA 128: e-management concepts et méthodes (2003/2004) 1)° Virtual Corporation: “refers to a new organization form characterized by a temporary or permanent collection of geographically dispersed individuals, groups, or organization departments not belonging to the same organization- or entire organization, that are dependant on electronic communication for carrying out their production process.”(7) 2)° (Information) Lead times. Is recognized as an important metric for assessing the performance of a business process. 3)° Information enriched : is an information improved trough the compression of lead times just like the compression of the material flow lead time. 4)° Total Cycle Time : defined by P.R. Thomas “ as the elapse time between customer enquiry and customer need being met”. 5°) Information system. Automates the relationship between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of products and services (8) 6°) Data. Steams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.
III/ Methodology analysis: The most important concept used for the appropriate methodology of the paper is : the Business Systems Engineering (BSE). The reasoning is that organizations which use a systems approach ends-up with an improved engineering for all its activities. The main objective is the development of appropriate operations in order to convert effectively customer need into customer satisfaction. This methodology is named: Business Systems Engineering. For G.H.W. Watson (4) it “ provides a structured way of simultaneously maximizing both customer value and the performance of the total supply chain to the benefit of all the stakeholders therein”. The system in this methodology is defined as an “integrated combination of components and activities designed to follow a common purpose”, whereas systems engineering for H.J Johansson, P. McHugh, A.J Pendlebury and W.A Wheeler (5) “is based in part on control engineering principles”. In the real world BSE is not only applicable to large scale mechanical engineering artifacts but also various sectors such as: automotive, aerospace, electronic products, banking and insurance. Therefore, as systems thinking, BSE is used by the authors as the appropriate methodology for the analysis, modeling and design of supply chain. The time compression paradigm has been used to promote the idea that the TCT compression is a key enabler to promote business performance ( the “bottom-line” or net income of a corporation will be improved.) So squeezing properly TCT by using BSE will have a consequential benefit increase.
IV/ Solutions ? The objective of this paper is to demonstrate that the compression of the TCT and the smashing of the information lead times are a prerequisite to reach the agile supply chain. 8
DEA 128: e-management concepts et méthodes (2003/2004) The battle takes place in three fronts: 1. providing each company in the chain with quick and improved information about orders , new products and special needs . 2. shortening work cycles trough obstacles removal . 3. synchronization of lead times and capacities among levels and tiers of the supplychain “ so that more work can flow in a coordinated fashion up and down the chain”
¾ the main contribution of this paper is the establishment of a “Routemap” defining steps to climb in order to obtain an agile supply chain in nowadays business environment. What is a “Route-map”? ( also known as Roadmap) “is the view of a group of stakeholders as to how to get where they want to go to achieve their desired objective”(6) Under the “Route-map” , to obtain an agile supply chain, the upper battle on the three fronts is developed with the following actions: 4. implementation of good Decision Support Systems 5. compression of material and information flow lead times 6. reliability and availability of operations information ( political issue) 7. elimination of repetitive actions 8. flexibility as to the capacity to meet customer demand 9. acting to reserve capacity, not to buy materials.
VI/ The need for additional research… If TCT compression is considered as a favorable attitude toward efficiency, it has been useful to locate the pressures that burdens the supply-chain mechanism. On the other hand, offering a route-map to reduce the TCT, has theorical advantages; but the main issue would be to test it in the empirical world
VII/ Personal Comment: The strength of this paper is to provide a technology Road-Map which can help companies to survive in turbulent environment. In the company’s perspective, it allows technology developments to be integrated with business planning. It indicates also for a particular group of stakeholders in a technology or application area, how to capture the threats and opportunities. It provides a look at the future of the supply chain management in our case , from the collective knowledge and the imagination of the authors, driving change in that field. The impact of time as a critical variable in business decisions is not a new issue; it has been also developed and discussed in marketing and purchasing literature (Handfield (1993)(9), Inman (1992)(10) and many others).
VIII/ Links between theses two articles: Ö The distinction between the two articles is: 1. While the first article is self explanatory and historical in nature, proposing future solutions of the information overload problem using the TCT
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DEA 128: e-management concepts et méthodes (2003/2004) compression paradigm to achieve the goal of virtual corporations’ agility as a condition to obtain a competitive advantage, 2. The second article requires much more in depth investigations to apprehend and be able to analyze. This explains the reason why the personal bibliography is more developed in the second case. Ö The common link between the two articles is based on today’s fundamental economic value, the most valuable intangible good of the 21st century: “INFORMATION”. While the first article pledges for surrounding the overload of today’s information; the second urges to compress time on the supply chain through mainly working on information load times and information enriched concepts (as defined above). In nowadays environment, a firm can be competitive if it is capable of maintaining a certain level of agility. This agility is reachable mainly through a good information management. This is what we consider to be the common point of the two articles.
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DEA 128: e-management concepts et méthodes (2003/2004) Articles’ bibliography (1) B. Naylor, M.M Naim and D. Berry, “ Leagality: Integrating the lean and agile manufacturing paradigms in the total supply chain”, the International Journal of Production Economics N°62 (1999). (3) P.R.Thomas, “Competitiveness Though Total Cycle Time”, McGraw Hill, NY, 1990
Personal Bibliography (2) R. Handfield, E. Nichols, “Supply chain management”, Upper Saddle River, NY, Prentice Hall (1999). (4) H.W Watson, “Business Systems Engineering”, Wiley, NY, 1994 (5) H.J Johansson, P. McHugh, A.J Pendlebury and W.A Wheeler, “Business Process Reengineering. Breakpoint strategy for market dominance” Wiley, Chichester,1993 (6) D.P. Robert , M. Radnor, “Corporate roadmappers create value with product and technology roadmaps” Research technology management, Vol. 46, n° 2, March-April 2003 (7) Travica (1997), in P. Sieber and J. Griese (Eds) “ Organizational virtualness” in Proceedings of the VoNet-Workshop, April 27-28,1998- http://virtualorganization.net (8) R.B Handfield: “The role of Materials Management in developing time based competition”, International Journal of Purchasing and Materials Management (1993), p2-10 (9) A. Inman, “Time Based Competition Strategies for Industrial Purchasers”, Industrial Management , 1992, p31-32.
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