This report aims to evaluate the management of communications, information, and knowledge of Intel Corp. Further, it will try to analyse knowledge and information management particularly in its internal and external aspects. Thus, providing relevant recommendation to improve its decision making and taking.
Company Profile
Intel is a leader in semiconductor manufacturing and technology. It has established a competitive advantage through its scale of operations, plus with the agility of its factory network, and consistent execution worldwide. It was founded in 1969 and now houses around 78,000 employees. Its revenues have reached over $30.1 billion in 2003 alone with their 450+ products and services. Intel's mission is to be a worldwide, total e-Corporation that emphasizes on ‘profitability, responsiveness and innovation’. The company has ‘built its internal infrastructure and practices around its own products and technologies.’ It transacts every business aspect online, including order processing, materials management, accounts payable, and other concerns. On that note, it claims to process above 60% of its materials transactions and 85% of its customer orders electronically. Intel is a prime example of a global firm who has transferred its operations to being web-base, thereby shifting the role of MIS towards handling information flow from this source.
Critical analysis of the decisions that the organization is facing
The modern age of digital electronics made it possible for business and corporate organizations to keep up with the demands of their industries. At present, most business organizations like Intel are equipped with the latest information technology systems that enable them to function fully and effectively in the delivery of their products and services. Businesses have evolved since the emergence of this convenient and useful company resource. Communications, information, and knowledge are the blood stream of every company on which every staff, employee, and supervisor must work on to be able to meet the demands of the clients and customers of the business. This is the reason why there should be proper management flow within the organization. Managing the communications, information, and knowledge that the company uses in its daily operations is crucial in any business organization especially in its decision making.
These computer-based information systems used within an organization consist of the network of all paths of communication within an organization which assists management in collecting, manipulating, and analyzing data or information for decision-making. It operations include input of data, processing of data, storage of data and information from raw input, and the creation of management outputs such as reports and business analysis (Mourdoukoutas, 1999). The production efforts that were employed by Intel during 2003-2004 to better increase manufacturing capacity and efficiency are apparent. This is the type of commitment to continuously improved efficiency and effectiveness that has spurred the company on and made it possible for Intel to become competitive on a global scale.
Since Intel is a company that operates among 48 nations and a number of geographically separated facilities, there is a need to effectively manage the flow of information and knowledge as well as the communications necessary to its production. In spite of that given instance, the information flow within the global firm is centralized as effected by their goal to have all transactions processed electronically or online.
The Current Sources of Information
Data is engendered in all processes inside and outside the organization. Determining the possible information value of these processes and creating a system for its effective use requires specialized skills. It means that there is a need to combine in-depth business knowledge with in-depth system/process knowledge. Eventually, when the information value is close to the procedure, e.g. obtaining direct process competence, this link can often be made by the organization. This can be very difficult when information value is business-logically separated from the information source. Recognizing strategic processing strengths in one department and using them commercially in another could be an issue.
Intel’s facilitate information and knowledge flow by using their Knowledge and Learning Strategies and Solutions (KLSS) – a group with searches for business intelligence solutions to help in the monitoring and driving of Intel’s organization in terms of effectiveness. This done mostly by linking the business strategies they come up with to the firm’s performance. In business intelligence, the group acquire information that are relevant to the firm’s fields such as customer’s needs, their decision-making process, information on their competition (current and potential), industry and market conditions, and in general all the areas surrounding the business that can lead to either an advance or a setback. It also includes the economic, political, and technological trends that concern any aspect of its field. The goal of these systems is derived from the organization’s vision or mission, and could either be short term or long term in effect (Frederick, Hoffman, & Kamm, 1994).
Similar to Management Information System (MIS) techniques of other companies, wherein a firm will strive to gain a competitive edge by backing up selected core competencies and focus the decisions of management to bring these out, Intel capitalize on product quality, fast delivery, and complete product support. Core competencies are those areas of the business which have been chosen to drive its operations, so there is more concentration to improve these above the others.
Intel’s MIS focuses on improving busing performance by aligning their activities and employees towards these objectives, with information on these areas made readily available so that management can make quick decisions and coordinate the increase of productivity and sales. With a world-wide business base, production housed in several countries, and the pressure of delivering promptly with high quality products, Intel’s MIS tries to employ a variety of tools to visibility keep tract of what is happening on all levels of the organization. This includes facilitating all dimensions of the organization so that every expectation can be met.
This level of coordination is made possible by a fluid communication path, enabled by MIS, across the organization, making it possible for management to align the workforce’s efforts. Intel’s environment is primarily on the web, making it necessary for MIS to keep a structured approach to its processes that monitors and plots out activities through this medium. Being web-based also allows management to collaborate on-line to share data and keep track of developments as they happen. This ensures that management is updated regularly, making for fast solutions and instantaneous execution of decisions through their global operations.
Being a world-wide industry leader in supplying chips, boards, and systems for other industries, Intel’s web-based environment allows it to maximize communications in its business performance. Everyday transactions supply pertinent data, such as customer orders, customer specifications, customer feedbacks, production data, marketing analysis, sales reports, supplier information and such from all over the globe. Its information system should help to improve performance in data and information handling in such as way that it increases productivity, improves sales, and saves costs. This could be done through an effective measuring system that keeps tabs of the organization’s activities, on all levels like what was mentioned before.
This system, focusing on every area’s performance, should enable measurement throughout all business aspects, from customer satisfaction, process effectiveness, and employee output and development. To be further effective the MIS should be linked to the organizational strategy (on another level it should also be hooked to departmental strategies to form a cohesive outline).
The Potential Sources of Information Needed
Aside from the internal sources present at hand, the management of Intel might also consider the following as potential sources of information:
Market research
Customers feedback mechanisms
Competitors and competition
Other related aspects within or outside the company’s environment
v Stakeholders
v Employees
v Suppliers
The diversity of the market offers many horizons in which Intel can elicit potential sources of information. However, it is still essential to undergo an in-depth investigation and feasibility study if possible (Earl, 1998). The risks of changes might be arbitrary to the goals and plans of the organization.
To fully evaluate the applicability of information (Falkenberg, Hesse, & Olive, 1995), one can utilize the following criteria of in determining valuable information.
Relevant – Information needs to address relevant organization issues which can help to the progress of a certain business or organization.
Understood – The meaning of the message must be understood. Complex indicators might be a good measure for business performance they are of no use if it is unclear how they can be influenced.
Consistent – Displaying the same information on different reports must result in the same figures. When the information is different this must be clear in the report.
Concise – The message must have a digestible format. Irrelevant or too detailed messages blur the picture. "Too much information creates a swamping effect".
Complete – Missing critical information can result in a misinterpretation of a given situation. "A little information is dangerous".
Reliable – Information integrity must be known. Unreliable messages can contain information as long as the status is known.
In time - Information must be provided at the right time. This usually means as soon as possible. This can conflict with aspects like reliable or concise. Sharing confidential information in a closed group before publishing it demands timing.
These items are not given in order of importance. The importance of each point is determined by the way in which current information does not meet this criterion. Not meeting either of these criteria will probably render the information useless.
Recommendations for Improving the Information and Knowledge Needed
To completely evaluate the information management of the organization, it is advisable to adopt the devised decision making model (Alter, 1999). The model consists of the following steps:
identify and define the problem;
identify the desired goal or condition;
consider obstacles to the goal or condition;
identify alternatives;
examine alternatives;
rank alternatives;
choose the best alternative ;
evaluate the actions.
Finally, the use of the quantities in decision-making model helps us to minimize mistakes. Aside from the steps above, it is also recognized to list all the alternatives, identify future events that may occur, and construct a pay-off table in making effective decisions.
As studied, the problem that KLSS encountered was in the way that this information was supplied to the management. Information and knowledge gathered was employed through the organization and its departments, and then implemented, and after some time has passed and evaluated the results of their implementations. To effectively bring about the organization and departmental goals of increased performance, the mentioned data trends should be gathered immediately and handed to management in real time and immediately.
In short, Intel needed a way to monitor performance (on all levels) in real time, making it possible to trace the progress of strategic developments and change them if necessary. The problem was in finding the correct system to supply the solution to their business needs such as: providing performance visibility so that productivity and savings can be maximized, linking management systems to the over-all organizational performance objectives, and coordinating the workforce efforts to promote one set of organizational goals (goals were stated in the preceding sections of this paper).
To answer these needs, KLSS needed to utilize a balanced scorecard solution which monitors business performance across the organization’s multiple areas. For this they chose Microsoft Office’s Business Scorecards Accelerator which runs on Intel Architecture, thus extending Intel’s current infrastructure and processes so they actually saved on implementing this solution. Using this implementation, Intel was able to have ready access to information for employees, specifically information on processes and initiative already linked to formed strategies and decision-making and taking.
In relation to knowledge management, Intel’s executives may choose to adopt any one of the following approaches or combine several approaches that are applicable for their company. These three general approaches that stand out (Skyrme, 2002) and used by organizations and companies of today are: 1) Sharing existing knowledge – the thrust of many early knowledge initiatives; 2) Creating and converting new knowledge – the innovation thrust; and 3) A growing external focus on the approach – leading to an upsurge in the interest in customer relationship management systems and interest in knowledge markets.
Direct link between the supervisors and the subordinate employees should be efficient enough to answer to the daily work loads of the members of the organization. Communication between and among the members of the organization should be prioritized in order to provide a well-functioning business operation within and outside an organization.
In terms of internal and external decision-making and taking, Intel authorities must execute wise manipulation of information and knowledge as well as the suitable communications medium to be used. The collaboration of in-depth study results, marketing methods, strategic plans, and business trends will eventually create a boom in the company’s performance and success.
Conclusion
Based on the discussions above, it is found out that information is a key resource of the organization, together with people, finances and material assets. Thus, it is accepted to state that information is a business issue. The discussion above revealed that through effective information management of the organization’s resources and systems, organization administrators can add value to the services delivered to customers, reduce risks in the organization’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. To employ these processes, there is the need to consider the risks, the opportunities, ability of the employees to handle and use, and the effectiveness in the locale or the setting. Intensive preparation and study should be conducted in order to ensure that these systems are successful and are able to perform its programmed tasks or functions. The shaped information will have value and increases insight into information needs and the way the business is looked at. Adding more and more information to the system and solving the problems as they occur will eventually lead to a system as mentioned. In fact, that is the way any functional Information System is developed. Having an experienced team helping you take the first steps and educating your staff in the first period can make all the difference.
The emergence of digitalization and globalization in all operating industries in the world paved way to the further improvements of their communications, information, and knowledge management techniques. Regardless of the unprecedented drawbacks of the technology being used, every company, like Intel must manage its information and knowledge resources the best possible and beneficial way possible. Every decision made by the management must be directed to the welfare of the whole industry. With the right communications, information, and knowledge management techniques used by such firms, eventual growth, market dominance, competitive edge, and success is not far at hand.
References
Alter, S. (1999) Information Systems: A Management Perspective. 3rd ed. Reading, MA: Addison-Wesley Longman.
Corporate Profile from Intel. Retrieved March 28, 2006 from http://www.intel.com
Earl, M. (1998) Information Management: The Organizational Dimension. Oxford:
Oxford University Press.
Falkenberg, E.D., Hesse, W. & Olive, A. eds. (1995) Information System Concepts: toward a consolidation of views. Proceedings of the IFIP international working conference on information system concepts, Marburg, Germany, Mar. 28-30, 1995. London: Chapman & Hall.
Frederick, R.E., Hoffman, M.W., & Kamm, J.B. (1994). Emerging Global
Business Ethics. Westport, CT: Quorum Books.
Skyrme, D.J. (2002). Knowledge Management: Approaches and Policies.
Retrieved March 28, 2006 from www.kmadvantage.com
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