1. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.1 Chapter 04 Information Management Strategy

2. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.2 Learning outcomes Justify the need for a defined information management strategy; Relate information management strategy to other organizational strategies; Describe the management issues that need to be addressed in an information management strategy.

3. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.3 Management issues Do we need an information management strategy? How does the information management strategy relate to IT/IS and knowledge management strategies? How should we structure and resource information management? Which management controls should be built into an information strategy?

4. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.4 Organizational strategy Organizational 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 organization over the long-term: which achieves advantage for the organization through its configuration of resources within a changing environment to meet the needs of markets and to fulfil stakeholder expectations.’ How does information management contribute?

5. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.5 Strategy elements This definition highlights these 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. How does information management contribute?

6. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.6 Organizational 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

7. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.7 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. Source: Evernden and Evernden (2003)

8. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.8 Figure 4.1 Problems with organizational data quality Source: PricewaterhouseCoopers (2001)

9. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.9 Figure 4.2 Responsibility for data management strategy Source: BIM

10. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.10 Benefits of an information management 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 awareness of opportunities and threats is communicated throughout the company, and allows timely responses to these. Source: Orna (1999)

11. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.11 Figure 4.3 Principal options for ownership of information management strategy Source: Business Information Management

12. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.12 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 Source: Marchand et al. (2002)

13. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.13 Information Management School Cont’d 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 –- Information management 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 initiatives Source: Marchand et al. (2002)

14. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.14 Behaviour and Control School Focus: –Improving people’s information usage behaviours and values (Informal, but related to Knowledge Management 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 Source: Marchand et al. (2002)

15. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.15 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’ Source: Marchand et al. (2002)

16. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.16 Figure 4.4 Different forms of strategy needed for effective business information management Source: BIM

17. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.17 Stages in the Strategy Process 1. ‘Where are we now?’ – the situation analysis. 2. ‘Where do we want to be?’ –the vision and objectives. 3. ‘How are we going to get there?’ – the strategy. 4. ‘How do we introduce the changes?’ – the implementation of the strategy. 5. ‘How are we doing?’ – the monitoring and control of strategy.

18. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.18 Frameworks for IM 1 – The Hawley Ctte strategic issues 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

19. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.19 Frameworks for IM 2 – Ornas IM issues 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

20. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.20 Figure 4.5 The relationship between Orna’s tools for information management Source: BIM

21. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.21 Frameworks for IM 3 – The Willard model Elements of Information Resource Management: 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

22. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.22 IM Theme 1 Information Value 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.

23. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.23 IM Theme 2 Information quality 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)

24. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.24 IM Theme 3 Information security BS7799 standard defines the following process: –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: –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

25. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.25 IM Theme 4 Legal and ethical compliance 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.

26. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.26 IM Theme 5 Knowledge Management Typical questions facing managers related to this topic (Chapter 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?

27. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.27 IM Theme 6 Technology / systems support Typical questions facing managers related to this topic (Chapter 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?

28. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.28 IM management approach 1. Structuring the information management function An information management unit provides a focus for improving information management that everyone in the organization is aware of. The creation of this unit demonstrates a commitment by senior management to information management since they have empowered the group with the resource and responsibility to improve information management.

29. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.29 UK Health Service example There is now a large separate organization known as the NHS Information Authority (www.nhsia.nhs.uk). This has a wider remit than information management, evident from its objectives, which are to:www.nhsia.nhs.uk Support the effective use of national electronic health records to improve patient care through the provision of the Integrated Care Record System (ICRS); Provide information services and knowledge for decision-making for staff, patients and public; Establish and maintain Health Informatics as a recognised and respected national profession; Provide reliable and secure information infrastructure services; Provide specialist support services for national initiatives.

30. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.30 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.

31. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.31 JISC responsibilities 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.

32. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.32 The CIO 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.

33. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.33 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.’

34. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.34 Burk (1988) Infomap Using this technique ‘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)

35. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.35 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).

36. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.36 IM management approach 5a. Risk management 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.

37. Chaffey and Wood Business Information Management © Pearson Education Limited 2005 Slide 04.37 IM management approach 5b. Risk management Area of riskSolution for reducing risk 1Accidental damage or loss (including disk corruption) Back up and restore procedures (See Chapter 11 for further details) User education 2Deliberate acts of theft, abuse, vandalism etc. Security procedures such as anti-virus software, firewalls (See Chapter 11) Employee contracts and disciplinary procedures 3Loss of peopleEmployee contracts Succession planning 4Inaccurate or untimely informationValidation and verification procedures (see Chapter 11) Staff development and training 5External relations Security procedures Contractual measures 6Intellectual Property Rights (IPR)Employee contracts Registration of IPR 7Destruction of facilitiesDisaster recovery planning (See Chapter 11) 8Legal accountability Protection and security Employee training