1. LN-4 Information Management Strategy
ITECH 1005/5005: Business Information Systems
LN-4 Information Management Strategy
Dr Zhaohao Sun
GSITMS, University of Ballarat
I updated it to 39 slides on
I updated it and add two slides to 41 slides based on Chaffey 2011 on

2. Objectives and Outcomes
After reading this chapter or LN-4, you will be able to
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.

3. Management Issues
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?

4. Organisational Strategy
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

5. Strategy Elements
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

6. 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 resource
People resources
Technology resources
They must been structured and controlled.
Chaffey 2011:163

7. 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
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

8. 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 The Information lifecycle
Chaffey 2011:166

9. Organisational problems of poor data quality
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

10. Example problems with information management
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.
Note that Figure 4.2 Responsibility for data management strategy has been removed from Chaffey 2011, Z Sun
Source: Evernden and Evernden (2003)

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

12. Benefits of an IM strategy
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.
information management
Source: Orna (1999)

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

14. 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
In what follows, we review each of these schools.

15. Information Technology School
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

16. Information Management (IM) School
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
ROI:= return of investment

17. Behaviour and Control School
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
HR: human resources

18. Management Control School
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
This school

19. Strategy needed for effective BIM
IM Strategy (Ch 4)
KM Strategy (Ch 5)
IS Strategy (Ch 6)
business information management
Different forms of strategy needed for effective business information management
This is corrected from a wrong picture provided by the author.- Zsun
Figure 4.5 Different forms of strategy needed for effective business information management (Chaffey 2011:177)

20. Developing an IM strategy
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
the Strategy Process consists of five typical stages which constitute a lifecycle of the Strategy Process
(SOSAC) is based on the Chaffey 2009, E-Commerce management.

21. IM Strategy Issues
Ten strategic issues (The Hawley Committee IM Guidelines)
1 Information relevance
2 organizational significance of information management
3 Legal and ethical compliance
4 Assessing information value
5 Information quality
6 Legal and ethical compliance with specific reference to information lifecycle management
7 Information management skills of employees
8 Information security including risk management
9 Maximising value from information
10 Information systems strategy
Chaffey 2011:179
Ten strategic issues were introduced by The Hawley Committe strategic issues (1995)

22. IM is concerned with 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)
Practical Information policies by Elizabeth Ornas (1999). She believed that IM is concerned with ….

23. Information policy, audit and strategy
Elements of Information Resource Management:
1. Identification.
2. Ownership.
3. Cost and Value.
4. Development.
5. Exploitation.
Frameworks for IM 3 – The Willard model
1. Identification. The discovery of information resources and the recording of their features in an inventory
2. Ownership. The establishment of responsibility for the upkeep of an information resource
3. Cost and Value. Assessment of the cost of an information resource and its value to the organization
4. Development. The further development of an existing information resource to enhance its value to the organization
5. Exploitation. The processes which may allow a resource to generate further value through conversion into an asset or a saleable commodity
Figure 4.5 The relationship between Orna’s tools for IM (Chaffey 2011:182)
Source: BIM

24. 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:
6 themes, 5 approaches for IM strategies. I will look at each of them in a little more detail in what follows. –Zsun
All these are special topic for research in IM, IT and IS and computing and chapters in the textbook.

25. IM Theme 1: Information Value
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:
Strategic information.
Information is critical to business and of greatest value.
High potential information.
The potential value to the business may be high, but it is not confirmed.
Key operational information.
Information is essential for core processes and its value is enhanced by horizontal integration
Support information.
Needed for supporting the operation of the business
Chaffey 2011:183-4
1. Strategic information. Information is critical to business and of greatest value. This includes the information used for corporate performance management such as objectives, performance metrics and business drivers. It also refers to external information such as competitive intelligence and market information.
2. High potential information. The potential value to the business may be high, but it is not confirmed. Knowledge management could fit into this category in some organizations as they assess whether it is likely to become strategic information in future.
3. Key operational information. Information is essential for core processes and its value is enhanced by horizontal integration. This is the largest volume of information about sales transactions and customers. It is of limited value for future strategy, but relevant to implementing the current strategy.
4. Support information. Needed for supporting the operation of the business, but of little strategic value. This would include information about staff such as time sheets and holiday bookings. Management of this information is a low priority, although it still needs to be accurate and cost effective.

26. IM Theme 2: Information Quality (Chaffey 2011:185)
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)
See Chapter 10 or LN-10 for detail

27. IM Theme 3: Information Security
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)
BS7799 standard is a security standard:
See Chapter 9 and 12. or LN-9 or LN-12 for more detail

28. IM Theme 4: Legal and Ethical Issues
Examples of information privacy issues
Sharing customer data with a third party without the customer’s consent.
Sending out unsolicited to a consumer.
An 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)
See Chapter 12, or LN-12

29. IM Theme 5: Knowledge Management
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)

30. IM Theme 6: Technology/System Support
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)

31. IM Management Approach 1: Structuring the IM function
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 information management function

32. IM Management Approach 2: Responsibilities
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
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. Managers responsible for the overall directional and control of information management. Their work involves obtaining funding for projects and systems to improve information and quality and ownership for their implementation.
2. Stewardship responsibilities. Information stewards are responsible for quality of information and this involves activities such as information capture or creation, dissemination and deletion.
3. Infrastructure responsibilities. This is creating the right environment for using information. This is a more technical role involving setting up and integrating information systems, creating database structures or information architectures for web site pages and protecting the information resource.
4. Usage responsibilities. Usage is the responsibility of the end-user of information. Beyond actually using the information, activities include assessing information for quality and highlighting problems with quality.

33. JISC Responsibilities
The joint IS committee (JISC) of the UK suggests that it is important to identify clear responsibilities for information. They envisage five main roles:
Information strategy committee.
Information (strategy) manager/director.
Information custodians.
Information users.
Information service.
Chaffey 2011:193
1. Information strategy committee. Involved in initial development of strategy and to monitor implementation and operation. It is recommended that the chair is very senior – Pro-Vice Chancellor or equivalent.
2. Information (strategy) manager/director. This person is custodian of the information strategy and is expected to be capable in project and change management.
3. Information custodians. Responsible for maintaining standards for a defined set of information items.
4. Information users. These include academic and administrative staff, students, prospective students, alumni, industry, the funding councils, research councils.
5. Information service. This is a combination of the library or information service within the university. JISC notes that some institutions have found it desirable to merge the two main information services (library and computing) under a single managerial head (and reporting to one committee) since the difference between types of information (and forms of access to them) continues to diminish.

34. The CIO 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
Information World Review (2003) reported that 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.’
ICI, the chemicals group, was one of only a few to have a traditional CIO. In ICI, it is Anthony Foster who works just below board level and reports to the chief executive since the departure of the chief operating officer. The company explained that this 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.

35. IM Management Approach 3: Information Resource Analysis
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
An information audit has been defined by the Aslib Information Resources Management Network, referenced in Orna (1999), as:
‘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.’

36. Information Mapping
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, )
Chaffey 2011:197

37. IM Management Approach 4: Information Policy
Information Policy is a statement of an organisation’s approach to IM.
Information policy should be :
At the level of principles
Fairly 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 for a specific period (yearly, three yearly).
Chaffey 2011:197
IM management approach 4. Information Policy
Orna (1999) characterises information policy as follows:
At the level of principles
Fairly 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 for a specific period (yearly, three yearly).

38. IM Management Approach 5: Risk management
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

39. Risk management assessment for IM (Chaffey 2011:199)
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
External
relations
Security procedures
Contractual measures 6
Intellectual Property Rights (IPR)
Registration of IPR 7
Destruction of facilities
Disaster recovery planning (See Chapter 11) 8
Legal
accountability
Protection and security
Employee training

40. 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 ( )

41. References
Chaffey and White (2011) Business Information Management © Pearson Education Limited
Chaffey and Wood (2005) Business Information Management © Pearson Education Limited
Harvey W. LN , UB
Sun, Z (2010), LN-4, 2010, UB.