FID/II FID Information for Industry Committee THE FID KNOWLEDGE FORUM

STRATEGIC INFORMATION MANAGEMENT

I. Introduction

a. Companies are changing

• Globalization
• Advances in IT, information technologies (computing and telecommunication)
• Business process reorganization
• Growing experience in managing the changed organization making use of IT information,
• Taking better control of their fate
• Information Services (IS), IT, Information Resource Management (IRM) moved from a remote/isolated role to the center of the organization

b. Latin American companies are in a good position to have a jump-start developing useful information services (IS) and managing their information resources

• Socio-political climate
• Mercosur and the Andean Group activities
• Dynamics of the countries
• Few old computing and communication "legacy "systems weighing down organizations

c. Role of IS/IT recent views

• Company's view
• IS view
• IT view
• Relationship to other parts of the organization
• Why IRM?

II. Some definitions

a. Data--information--knowledge-wisdom

b. What are information resources?

• Intellectual capital?
  • Information stored within company
  • Patents / disclosures
  • Knowledge of staff
  • Knowledge of company of business processes
  • Ability to tap internal and external information
  • IT

  • Equipment, software, hardware, networking capabilities

III. Strategic planning throughout the organization

a. The strategic plan is a road map for the organization

b. To develop such a plan it is necessary for the company to

• Define its mission
• Develop a vision
• Determine desired outcomes

c. Each business area must then

• Define its own mission-vision-outcome
• Develop its strategic plan
• Aligned with that of the company
• This will define the initiatives and programmes in which it will be engaged and what their output of these programmes will be
  IS and IT must also determine their mission-vision-outcome develop their strategic plan

  IS/IT are central to all corporate activities, they are of strategic importance,
  supporting their organization to carry out its objectives

IV. Successful IS and IRM attitudes

For IS to be fully functional it is necessary for corporate management to understand how IS/IT can contribute to corporate profits/organizational success and for IS professionals to see their own role in a different light

a. IS relationship in the organization

• Understand own role
• Understand entire organization - internal and external relationships
• Learn their needs for data/information
• Develop partnerships within and outside the organization
  • internal users
  • suppliers

b. Approaches

• Show what IS/IT can provide
  • Focus on strategies
  • Recognize business information is important
• Determine what services/ products are most useful
• Determine what is cost effective
• Eliminate / outsource trivial services/operations
• Be alert to changes in corporate environment
• Be alert to changes in new technologies
• Be alert to changes in to shift services as needed

c. Working within company

• Take strategic positions
  • Be an active participant/partner in the change process
  • Work improvement processes
  • Cross-organizational/interdepartmental committees
• Establish means for clients to communicate easily with IS
• Identify barriers
• Agree on/Develop measures to evaluate services
• Stake strategic position
  • Aggressively demonstrate its usefulness
  • Develop positive proposals
• Publicize activities
• Determine with user groups responsibility for specific IS activities:
  • user
  • IS
  • IT
  • outside organization

d. Quality

Establish means to ensure quality of data and information sources

Provide only quality controlled internal and external information

Clear interpretation of information

--people want answers to questions, not information

provide a reliable bridge between information to knowledge

e. Standards

Time consuming but critical

Data, data architecture

Database, database architecture

Software

Hardware architecture

Review standards

In large organizations, global companies many local initiatives exist

standards will have to he harmonized

f. IS staff

Determine priorities

Focus on competence

in change process

in work with clients and customers

skill in technology use, implementation, evaluation

in information and document flow

processes

analysis

problem solving

Support, advance them

Provide leadership strength/attitudes

to deal with change process

to approach problems holistically

to work in a cross functional mode

Develop own measures to evaluate quality /contribution to organization

Encourage individual initiatives

V. The role of IS/IT

a. IS/IT is one of the organizational resources to improve communication

between individuals

organizational units

external organizations

outside organizations

b. Communication links individuals to data and information
to people and organizations whatever the distance

c. IS/IT as a resource

expensive, powerful,

has potential for great benefit if well handled

even more costly when misapplied or misused

d. Like other units of the organization, its activities must be carefully

planned

tested

evaluated

monitored

Develop own measures to evaluate quality /contribution to organization

when alternatives are better

processes, equipment, even attitudes

must be changed or discarded

e. Must aggressively demonstrate its value to company

Seize initiative

f. IS/IT can contribute to the profitability of the company

but can not solve management and

other problems inherent in the organization

VI. Changes and new technologies

a. An important aspect of applying new technologies (should be):

to take a fresh look at the organization

consider where/how it would be useful and what its negative effects, hidden costs might be

b. Often traditional operations are computerized without such concerns

When building a new road, "paving the towpath" attitude is costly

c. When better solutions are available changes must be made

processes, equipment, even attitudes must be changed or discarded

d. Recent IT developments brought about a shift

• Change from purely intuitive way to run a business rely more on information
• Instead of focusing on specific operations to improve a product or service
  • management now looks at the entire process
  • --where we start - what we want to accomplish

Instead of issuing invoices or receipts, the entire process might be redesigned: from determining what needs to be ordered through issuing payments for products or services received might be revised. As a result some traditional departments may be eliminated and jobs redesigned.

e. Review as a result of new /improved technologies lead also to

• redesigning databases, networks, etc.
• discovering what information exists in the company but is unavailable
• identifying bottlenecks
• determining what information is used by different groups/individuals
• establishing who 'owns' the data/database, i.e. allowed to make changes

what is the implication for IS?

VII. Establishing the IS/IT function

a. Identify corporate needs

b. Define narrowly corporate resources assignable to task

• Money
• Time
• People
• Technical resources available both in house and externally
• Management interest
• Corporate culture

c. Parallel task identify corporate needs

. Etc, etc

d. Define programmes for service or products

consider one new initiative task for operations and one for services

e. Define meaningful measures of services and of success

f. Determine which clients/units/customers would benefit from it

g. Focus on business support

h. Determine compatibility with architectures

i. Determine what software, groupware exist

j. Identify bottlenecks

k. Seek buy-in from staff, clients, management

l. Seek out/partner with users

m. Establish/participate in trans-company committees

n. Identify powerful management sponsor

o. Allow for ample implementation time

VIII. Integration of IS/IT into corporate structure

a. Who are the clients?

• Internal
• External
  • Individuals
  • Organizations

b. Identification of useful information sources-in whatever media

c. Consider how to link these together

d. Cost/benefit analyses

e. Consider alternative operations

f. Consider alternative roles within the organization

g. Consider potential services

IX. Estimate cost

a. Hardware/software related purchases

b. Programming (in house or outsourced)

c. Training and operating manuals

d. Training

• Instruction time
• Trainee time and loss of use
• Hidden cost of training

e. Start-up time

f. Maintenance costs

g. Cost of mistakes

h. Dislocation of existing staff

X. Obtain management confirmation of tasks

a. Typically cost will be much higher and delivery date much later than scheduled

b. Keep management sponsor advised

• also clients
• EDI partners and others as needed

c. Define IS/IT authority

d. Define approval procedure

XI. Develop

a. User defines functionality

b. Human interface is critical.

Get IT operator input in design

c. Start with pilot project

d. Keep system modular

XII. Install

a. Be generous estimating training time

b. Thorough testing necessary

many, many dry runs before public release

c. At first, run in parallel with existing system

XIII. Conclusions

a. Focus on corporate needs

b. Recognize importance of business requirements

c. Develop partnerships within and outside of organization

d. Keep the big picture in mind as you focus on details

e. Think process-not operation

f. Establish well defined targets, quantifiable measures of success

g. Constantly compare progress with schedule

h. Work with clients to determine tasks what he/she wants

what client needs---Find out

i. Do not assume client (or senior management)

-1- knows how IS/IT can best contribute to the corporate mission

-2- can best participate in corporate activities or

-3- how the organization can make full use of its intellectual capital

j. Negotiate IS offerings and market them

k. Bring in new ideas and test them carefully before adoption

l. Satisfy clients' needs; if it cannot be done, discuss, offer alternatives

m. Information is owned by the client

n. Value added activities by IS/IT:

structure activities so that client makes decisions;

IS/IT provides expert support

o. Value your staff ­p; they are your critical resources

p. IS is central to the organization

enabling people to do their jobs better

and units to carry out their objectives

in line with corporate mission - vision and strategic plan