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Information Challenges
Management Challenges for 21st Century : Peter F.Drucker

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
“The most valuable assets of a 20th-century company
were its production equipment. The most valuable
asset of a 21st-century institution, whether business
or non business, will be its knowledge workers and
their productivity.”
-Peter F.Drucker (Management Challenges for 21st
Century)
Information Challenges
• The New Information Revolution

• From the ‘T’ to ‘I’ in ‘IT’ (Technology to Information technology)
• History Lesson for new technologies
• The New Print Revolution
• Information Enterprises Need
• From Cost Accounting to Result Control
• From Legal Fiction to Economic Reality
• Information for wealth creation
• The Information Executive need for their work
• Organizing Information
• Application (Going Outside)

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Weapons of Management
Information Revolution
• For 50yrs, Information Technology has centered on DATA
-their collecttion,storage,transmission,presentation
• From the ‘T’ to ‘I’ in ‘IT’ (Technology to Information
technology)
• It Has focus on T in IT
• The new information revolutions focus on “I”
• They ask, “What is the MEANING of information and its
PURPOSE ? ” And this is leading rapidly to redefining the tasks
to be done with the help of information and, with it, to
redefining the institutions that do these tasks.
Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Information Technology
From the ‘T’ to ‘I’ in ‘IT’
• The Current Information Revolution is actually the fourth
Information Revolution in Human history.
• The First one was the invention of writing five thousand to six
thousand years ago in Mesopotamia,then in china.
• The second information revolution was brought
on by the invention of the written book first in china.

• The third information revolution was set of by
Gutenberg’s invention of the printing press of
movable type, between 1450 and 1455.
• Is there anything we can lean today from what happened
five hundred years ago
From the ‘T’ to ‘I’ in ‘IT’
• The Current Information Revolution is actually the fourth
Information Revolution in Human history.
• The First one was the invention of writing five thousand to six
thousand years ago in Mesopotamia,then in china.
• The second information revolution was brought
on by the invention of the written book first in china.

• The third information revolution was set of by
Gutenberg’s invention of the printing press of
movable type, between 1450 and 1455.
• Is there anything we can lean today from what happened
five hundred years ago
Gutenberg introduces the press
• Europe consisted of hundred of monasteries ,many if
which housed large numbers of highly skilled monks.
Each one labored from down to dusk, six days a week,
coping book by hand
• An industries ,well trained Monk could do 4-25 pages a
day gives annual output of Approx 1200 -1300 hand
written pages
• Fifty years later, by 1500,the monks had become
unemployed.
• A printing team could produce annually at least 5
million printed pages ,bound into 25,000 books ready
to be sold
The Fourth Information revolution
• The cost and price reductions of the third Information
Revolution were at least as great as those of the present,
the fourth Information Revolution. And so were the
speed and the extent of its spread.
• Just as important as the reduction in costs and the
speed of the new printing technology was its impact on
what information meant
• Luther, on October 31, 1517, nailed his ninety-five
theses on a church door in an obscure German town.
These printed leaflets ignited the religious firestorm
that turned into the Reformation.

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Real New Information revolution
Evolution in Processors
Information Enterprises Need
• It is now necessary to define
• Information
• New ideas

• New paradigms.
• More data,

• more technology,
• and more speed
• Data is not information until it is organized in meaningful patterns.
Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Form Cost Accounting to Result Control
• Outside information is needed because misinformation or
wrong data may be inadvertently supplied by an
organization's own people in their rush to meet
expectations. A few years ago, before the financial collapse
in mainland Asia, there was widespread misinformation of
this sort regarding investment conditions.
• Traditional Cost Accounting by GM
• Activity based costing
• Result Control

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
From Legal Fiction to Economic reality
• Coco-cola Manufacturing in USA
• Toyota method for managing Making Distribution and
Servicing

• Sears and Marks &Spencer's Switched to Price led costing
• Outsourcing alliance and joint venture

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Organizing

• Information for wealth creation
• Foundation Information

• Productivity Information
• Competence Information
Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Organizing Information
• Drucker gives some popular methods of organizing management
data
• Key Events on which performance hinges primarily.

• Probability Theory to identify events outside a normal
probability distribution.
• Threshold Phenomenon to screen data until is passes a
threshold of Significance.
• Pay attention to unusual events and determine their significance.
• Direct impartial observations by outsiders is essential and
Commentary.
Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Going Outside
• This gets to the heart of information processes, and
personality type theory.
• If S-T-J organizations are located far away from the real
customers and suppliers, how is a balanced view possible? If
both headquarters and branch offices follow the older S-T-J
model, how can balance be achieved?
• What practices encourage more balance with the parallel NF-P poles of information? How do management personality
type norms affect management assumptions, strategies,
change leadership, and information challenges?

• Drucker advises top management to "go outside"!

Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
Thank You.
• Questions ???

• Comments #@$%
• Concerns !!!
facebook.com/renzilde
twitter.com/renzilde
linkedin.com/in/renzilde

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Contemporary management : Information Challenges

  • 1. Information Challenges Management Challenges for 21st Century : Peter F.Drucker Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 2. “The most valuable assets of a 20th-century company were its production equipment. The most valuable asset of a 21st-century institution, whether business or non business, will be its knowledge workers and their productivity.” -Peter F.Drucker (Management Challenges for 21st Century)
  • 3. Information Challenges • The New Information Revolution • From the ‘T’ to ‘I’ in ‘IT’ (Technology to Information technology) • History Lesson for new technologies • The New Print Revolution • Information Enterprises Need • From Cost Accounting to Result Control • From Legal Fiction to Economic Reality • Information for wealth creation • The Information Executive need for their work • Organizing Information • Application (Going Outside) Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 5. Information Revolution • For 50yrs, Information Technology has centered on DATA -their collecttion,storage,transmission,presentation • From the ‘T’ to ‘I’ in ‘IT’ (Technology to Information technology) • It Has focus on T in IT • The new information revolutions focus on “I” • They ask, “What is the MEANING of information and its PURPOSE ? ” And this is leading rapidly to redefining the tasks to be done with the help of information and, with it, to redefining the institutions that do these tasks. Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 7. From the ‘T’ to ‘I’ in ‘IT’ • The Current Information Revolution is actually the fourth Information Revolution in Human history. • The First one was the invention of writing five thousand to six thousand years ago in Mesopotamia,then in china. • The second information revolution was brought on by the invention of the written book first in china. • The third information revolution was set of by Gutenberg’s invention of the printing press of movable type, between 1450 and 1455. • Is there anything we can lean today from what happened five hundred years ago
  • 8. From the ‘T’ to ‘I’ in ‘IT’ • The Current Information Revolution is actually the fourth Information Revolution in Human history. • The First one was the invention of writing five thousand to six thousand years ago in Mesopotamia,then in china. • The second information revolution was brought on by the invention of the written book first in china. • The third information revolution was set of by Gutenberg’s invention of the printing press of movable type, between 1450 and 1455. • Is there anything we can lean today from what happened five hundred years ago
  • 9. Gutenberg introduces the press • Europe consisted of hundred of monasteries ,many if which housed large numbers of highly skilled monks. Each one labored from down to dusk, six days a week, coping book by hand • An industries ,well trained Monk could do 4-25 pages a day gives annual output of Approx 1200 -1300 hand written pages • Fifty years later, by 1500,the monks had become unemployed. • A printing team could produce annually at least 5 million printed pages ,bound into 25,000 books ready to be sold
  • 10. The Fourth Information revolution • The cost and price reductions of the third Information Revolution were at least as great as those of the present, the fourth Information Revolution. And so were the speed and the extent of its spread. • Just as important as the reduction in costs and the speed of the new printing technology was its impact on what information meant • Luther, on October 31, 1517, nailed his ninety-five theses on a church door in an obscure German town. These printed leaflets ignited the religious firestorm that turned into the Reformation. Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 11. Real New Information revolution
  • 13. Information Enterprises Need • It is now necessary to define • Information • New ideas • New paradigms. • More data, • more technology, • and more speed • Data is not information until it is organized in meaningful patterns. Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 14. Form Cost Accounting to Result Control • Outside information is needed because misinformation or wrong data may be inadvertently supplied by an organization's own people in their rush to meet expectations. A few years ago, before the financial collapse in mainland Asia, there was widespread misinformation of this sort regarding investment conditions. • Traditional Cost Accounting by GM • Activity based costing • Result Control Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 15. From Legal Fiction to Economic reality • Coco-cola Manufacturing in USA • Toyota method for managing Making Distribution and Servicing • Sears and Marks &Spencer's Switched to Price led costing • Outsourcing alliance and joint venture Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 16. Organizing • Information for wealth creation • Foundation Information • Productivity Information • Competence Information Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 17. Organizing Information • Drucker gives some popular methods of organizing management data • Key Events on which performance hinges primarily. • Probability Theory to identify events outside a normal probability distribution. • Threshold Phenomenon to screen data until is passes a threshold of Significance. • Pay attention to unusual events and determine their significance. • Direct impartial observations by outsiders is essential and Commentary. Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 18. Going Outside • This gets to the heart of information processes, and personality type theory. • If S-T-J organizations are located far away from the real customers and suppliers, how is a balanced view possible? If both headquarters and branch offices follow the older S-T-J model, how can balance be achieved? • What practices encourage more balance with the parallel NF-P poles of information? How do management personality type norms affect management assumptions, strategies, change leadership, and information challenges? • Drucker advises top management to "go outside"! Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde
  • 19. Thank You. • Questions ??? • Comments #@$% • Concerns !!! facebook.com/renzilde twitter.com/renzilde linkedin.com/in/renzilde