CRICOS Provider Number 00103D 1 LN-4 Information Management Strategy ITECH 1005/5005: Business Information Systems Dr Zhaohao Sun GSITMS, University of.

CRICOS Provider Number 00103D

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LN-4 Information ManagementStrategy

ITECH 1005/5005: Business Information Systems

Dr Zhaohao SunGSITMS, University of Ballarat

[email protected]


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After reading this chapter or LN-4, you will be able toJustify the need for a defined information management

(IM) strategy;Relate IM strategy to other organizational strategies;Describe the management issues that need to be

addressed in an IM strategy.

Objectives and Outcomes


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Typical questions facing managers related to this topic:Do we need an IM strategy?How does the IM strategy relate to IT/IS and

knowledge management (KM) strategies?How should we structure and resource information

management?Which management controls should be built into an

information strategy?

Management Issues


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Organisational strategy defines the future direction and actions of an organization or part of an organization. For example, Johnson and Scholes (2003) define organizational or corporate strategy as:

‘the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a changing environment to meet the needs of markets and to fulfil stakeholder expectations.’ Chaffey 2011:163

Organisational Strategy


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This definition highlights the following elements of strategy:1. Strategies define the future direction of an organization.2. Strategies are devised to achieve advantage for the

organization (strategic objectives).3. Strategies define the allocation of resources to achieve

this advantage.4. Strategies are primarily driven by the needs of the

organization, but also by the needs of stakeholders such as shareholders, customers, suppliers or employees.

5. Strategies should be responsive to the dynamic environment in which an organization operates.Chaffey 2011:163

Strategy Elements


IM Strategy IM Strategy define management approaches to the

organisation, control and application of organisational information resources through coordination of people and technology resources in order to support organisational strategy and processes. Information assets of an organisation is a resourcePeople resourcesTechnology resourcesThey must been structured and controlled. Chaffey 2011:163

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Why is an IM strategy needed?

Information is an asset Knowledge is power Data and information Data are the raw numbers or facts. Information is

produced when those data are analysed. Knowledge is having an understanding of the significance of that information

Data and information needs-concerns about data quality Data and information needs-concerns over time, quality

and cost. Chaffey 2011:164

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The Information lifecycle

The sequence of activities involved in IM from creation through to permanent deletion of information.

Information lifecycle consists of the following activities (steps): capture, organise, process, maintain, and destroy.

See Fig. 4.1. The Information lifecycle Chaffey 2011:166

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Poor customer service (can’t answer queries) Poor decision making (relevant info unavailable) Difficult to win new business (B2B) Poor understanding of market dynamics and customer needs

(B2C and B2B) Difficult to control through management metrics Information cannot be used to deliver value

Organisational problems of poor data quality


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Mini case 1 – the utility company Utility companies are fighting tooth and claw to gain and retain

customers. One utility company estimated that it lost an average of 30 customers per day or more than 10,000 customers per year, because staff did not have access to the right information to handle customer queries. This was equivalent to $5.5 million in lost revenue.

Mini case 2 – the bank Inconsistent information and structures between different systems

often means that the same data have to be entered into more than one system. A study at a UK bank estimated that duplication of effort totalled more than $3.2 million per year.

Mini case 3 – the insurance company An insurance company spent $67 million developing a replacement

information system. After acquisition of another company, they found it would cost nearly the same amount to adapt the system to their new requirements. If the previous system had an adaptive information architecture this effort and cost would have been avoided.

Source: Evernden and Evernden (2003)

Example problems with information management


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Figure 4.2 Problems with organizational data quality (Chaffey 2011:168)

Problems with organisational data quality


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It becomes possible to integrate all information activities, and to use all information quickly and effectively to make efficient business decisions.

Promotes openness of communications throughout the company, both between and within levels.

Will foster a culture of innovation and knowledge sharing. Forms a sound strategy for investment in information

systems and technology. Ensures that awareness of opportunities and threats is

communicated throughout the company, and allows timely responses to these.

Source: Orna (1999)

Benefits of an IM strategy


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Figure 4.4 Principal options for ownership of IM strategy Chaffey 2011:174

Principal options for ownership of IM strategy


Schools of Studying Business IM

Different academic fields of study related to business IM also have different emphases. These naturally mirror the information-led and

technology-led approaches of business The main fields of study are (named as school of)

IM, IT/IS, Knowledge management (KM)Behaviour control Management control.

Chaffey 2011:175

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Focus:Selecting appropriate technology to support decision

making Typical job titles:

IT or IS Manager Strengths (+) and weaknesses (-):

- IT applied to support operational and tactical decision making

- IT less effective in supporting strategic decisions involving unstructured dynamic information

- Focus on Return on Investment (RoI) of new systems - Limited focus on how information is

used by people

Chaffey 2011:176

Information Technology School


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Focus:Managing the information lifecycle for different types of

information. Knowledge management. Typical job titles:

Chief Information Officer (CIO),Information or library services manager

Strengths (+) and weaknesses (-):+ Information viewed as a strategic resource to be

managed- IM not commonly viewed as of strategic importance,

so often relegated to low-level departmental roles- Difficult to establish value of information and

ROI for knowledge management (KM) initiatives

Chaffey 2011:176

Information Management (IM) School


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Focus:Improving people’s information usage behaviours and

values (Informal, but related to KM activities sometimes instigated through human resources)

Typical job title:HR Managers

Strengths (+) and weaknesses (-)+ Recognises the importance of motivating, rewarding and

managing staff to promote change to best practices - Improving Information usage and behaviours not seen as

a significant part of the role for HR - Limited research and dissemination of best practice

on this topic Chaffey 2011:176

Behaviour and Control School


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Focus: Using information to manage people and link their performance to

business performance Typical job titles:

Chief Executive Officer (CEO), senior managers and directors Strengths (+) and weaknesses (-):

+ Helps to link individual and business unit performance to company performance

- Control viewed negatively by staff as a way of making them ‘work harder’ rather than ‘work smarter’

Chaffey 2011:176

Management Control School


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Figure 4.5 Different forms of strategy needed for effective business information management (Chaffey 2011:177)

Strategy needed for effective BIM

IM Strategy (Ch 4)

IS Strategy (Ch 6)

KM Strategy (Ch 5)


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Stages in the Strategy Process (SOSAC)1. ‘Where are we now?’ – the situation analysis (S).2. ‘Where do we want to be?’ –the vision and objectives

(O).3. ‘How are we going to get there?’ – the strategy (S).4. ‘How do we introduce the changes?’ – the

implementation of the strategy (Action: A). 5. ‘How are we doing?’ – the monitoring and control of

strategy (Control: C).

Chaffey 2011:177

Developing an IM strategy


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Ten strategic issues (The Hawley Committee IM Guidelines)1 Information relevance2 organizational significance of information management3 Legal and ethical compliance4 Assessing information value5 Information quality6 Legal and ethical compliance with specific reference to

information lifecycle management7 Information management skills of employees8 Information security including risk management9 Maximising value from information10 Information systems strategy

Chaffey 2011:179

IM Strategy Issues


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How information is acquired, recorded and stored Where information resources are located in the

organization and who has responsibility for them How information flows within the organization and

between the organization and the outside world How the organization uses it [information quality] How people who handle it apply their skills and co-operate

with one another How information technology supports the users of

information What information costs and the value it contributes How effectively all these information-related activities

contribute towards achievement of the organization’s objectives

Chaffey 2011:177; Ornas IM issues (1999)

IM is concerned with


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Figure 4.5 The relationship between Orna’s tools for IM (Chaffey 2011:182) Source: BIM

Information policy, audit and strategy


IM Themes and approaches

There are many themes and approaches in IM Strategies. themes and approaches:= topics.

Themes (5)Information value, Information quality, Information

security, legal and ethical compliance, KM, Technology support

Approaches (6): Structuring the IM function, Responsibilities, Information

resource analysis, Information policy, risk management

Chaffey 2011:183-202

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An IM strategy forces an organisation to question the value of its information.

Information can be classified into 4 categories according to its value to current strategy and future strategy:

1. Strategic information. Information is critical to business and of greatest value.

2. High potential information. The potential value to the business may be high, but it is not confirmed.

3. Key operational information. Information is essential for core processes and its value is enhanced by horizontal integration

4. Support information. Needed for supporting the operation of the business

Chaffey 2011:183-4

IM Theme 1: Information Value


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Content dimension

Accuracy Information correct

Relevance Information can support decision making

Completeness No data items missing

Conciseness Information is not too detailed

Scope May be broad or narrow, internal or external to the organization

Time dimension

Timeliness Available when needed. Immediate or real-time information is a common requirement. Alerts are also a requirement

Currency Information is up-to-date.

Frequency Information supplied at appropriate regular intervals

Time period A time-series covers the right period of time

Form dimension

Clarity Information readily interpreted

Detail Both summary ‘dashboard’ views and detailed ‘drill-down’ views may be required

Order Data sorted in a logical order and can be modified

Presentation Tabulations and graphs

Media Hard copy (print-outs) and soft copy (electronically stored and displayed)

IM Theme 2: Information Quality (Chaffey 2011:185)


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BS7799 standard defines the following process for information security: Plan - business risk analysis Do - internal controls to manage the applicable risks Check - a management review to verify effectiveness Act - action as necessary

Ten guiding principles (see LN-11): 1. Security Policy 2. Security Organization 3. Asset Classification & Control 4. Personnel Security 5. Physical & Environmental Security 6. Communication & Operations Management 7. Access Control 8. Systems Development & Maintenance 9. Business Continuity Planning 10. Compliance

(Chaffey 2011:186-7)

IM Theme 3: Information Security


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Examples of information privacy issues Sharing customer data with a third party without the customer’s

consent. Sending out unsolicited e-mail to a consumer. An e-mail from an employee which denigrates another

organization or defames an individual. Monitoring employee access to data and online services. Not providing online access suitable for those with visual

impairment. Records access – The modification, the person who modified it

and time it was made should be recorded. Records Disposal – The information policy may need to specify

how long records are kept before they are deleted for legal compliance.

(Chaffey 2011:187-8)

IM Theme 4: Legal and Ethical Issues


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Typical questions facing managers related to KM (Week 5, LN-5):How do we use knowledge to increase organizational

efficiency and competitiveness?How can ICT support a knowledge management

strategy?What are typical barriers to effective knowledge

management?How should knowledge management

strategy be aligned with corporate strategy? (Chaffey 2011:188)

IM Theme 5: Knowledge Management


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Typical questions facing managers related to this topic (Chapter, 2, 3, 6):How should we align IS strategy with business

strategy?How should Information and Knowledge management

strategies be integrated with IS strategy?Who should be responsible for IS strategy within an

organization?How can organizations evaluate and control the

effectiveness of IS strategy? (Chaffey 2011:188)

IM Theme 6: Technology/System Support


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An information management unit is responsible for IM strategy within an organisation. provides a focus for improving IM that everyone in the

organization is aware of. The creation of this unit demonstrates a commitment by

senior management to IM since they have empowered the group with the resource and responsibility to improve IM.

Chaffey 2011:189

IM Management Approach 1: Structuring the IM function


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Evernden and Evernden (2003) suggest that when developing an information architecture for an organization, there should be four types of responsibility or ownership:

1. Governance responsibility.

2. Stewardship responsibilities.

3. Infrastructure responsibilities.

4. Usage responsibilities.

Chaffey 2011:192

IM Management Approach 2: Responsibilities


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The joint IS committee (JISC) of the UK suggests that it is important to identify clear responsibilities for information. They envisage five main roles:

1. Information strategy committee.

2. Information (strategy) manager/director.

3. Information custodians.

4. Information users.

5. Information service.

Chaffey 2011:193

JISC Responsibilities


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Chief information officer (CIO)Managers with responsibility for information assets and/or

IS strategy. CIO is a senior post with a wide remit and that it has a 'dotted

line' chain of command linking the CIO into decisions made on IT and information services within each of ICI's four business units.

in several cases, companies were confused by the question of whether they had someone that fitted the description of a chief information officer (CIO). They tended to say:‘Yes, we have a CIO, but he (and it is usually a he) handles

IT without ever getting involved with information services.’

Chaffey 2011:194

The CIO


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Information audit and information mapping are two techniques for Information resource analysis

a systematic examination of information use, resources and flows, with a verification by reference to both people and existing documents, in order to establish the extent to which they are contributing to an organization's objectives.

Information audit: an evaluation of the usage and flows of information within an organisation.

Chaffey 2011:192

IM Management Approach 3: Information Resource Analysis


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An approach for identifying the value of and relationships between organisational information resources.

Using this approach ‘information resource entities (IREs)’ are identified. These include information sources, systems and services. IREs are then plotted on a organizational information matrix with these axes:Information holdings (goods that produce revenues

and reports)Information handling function (responsibilities for

managing information such as library or information resource)

Information content (specific content)Information media (form in which information is

captured, stored or accessed such as internal mail, application, intranet, e-mail)Chaffey 2011:197

Information Mapping


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Information Policy is a statement of an organisation’s approach to IM.

Information policy should be :At the level of principlesFairly short statements (providing principles by which

future action may be conditioned)Each developed at one go (as a result of preparatory

work)Meant to be robust enough to last (not detailed action

plans) This differs from the information strategy which is used to

support action through a plan fora specific period (yearly, three yearly).Chaffey 2011:197

IM Management Approach 4: Information Policy


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Risk management is used to identify potential risks in a range of situations and then take actions to minimize the risks.

Risk management typically has these four steps:

1. Identify risks including their probabilities and impacts.

2. Identify possible solutions to these risks.

3. Implement the solutions targeting the highest impact, most likely risks.

4. Monitor the risks to learn for future risk assessment.

Chaffey 2011:199

IM Management Approach 5: Risk management


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Area of risk Solution for reducing risk

1 Accidental damage or loss (including disk corruption)

Back up and restore procedures (See Chapter 11 for further details)User education

2 Deliberate acts of theft, abuse, vandalism etc.

Security procedures such as anti-virus software, firewalls (See Chapter 11)Employee contracts and disciplinary procedures

3 Loss of people Employee contracts Succession planning

4 Inaccurate or untimely information Validation and verification procedures (see Chapter 11)Staff development and training

5 Externalrelations

Security proceduresContractual measures

6 Intellectual Property Rights (IPR) Employee contractsRegistration of IPR

7 Destruction of facilities Disaster recovery planning (See Chapter 11)

8 Legalaccountability

Protection and securityEmployee training

Risk management assessment for IM (Chaffey 2011:199)


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Summary

Justify the need for a defined information management (IM) strategy;

Relate IM strategy to other organizational strategies; Describe the management issues that need to be

addressed in an IM strategy. Read the summary in Chaffey (202-203)


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References

Chaffey and White (2011) Business Information Management © Pearson Education Limited

Chaffey and Wood (2005) Business Information Management © Pearson Education Limited

Harvey W. LN-4 2008, UB Sun, Z (2010), LN-4, 2010, UB.

CRICOS Provider Number 00103D 1 LN-4 Information Management Strategy ITECH 1005/5005: Business Information Systems Dr Zhaohao Sun GSITMS, University of.

Documents

information strategy

information data

information management

information activities

right information

information assets

d im strategy im strategy

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