Strategic Information Systems

Definitions and context

Week #1 pt. A

Information technology (IT) is arguably the most disruptive force

for organizations in nearly a century.

Information Technology

• Computer technology• Hardware and software• Information creation and storage

• Telecommunications technology• Information transmission• Networks

• Process and Infrastructure

WHAT IS THE BUSINESS VALUE OF INFORMATION?

The Information Age

The business value of IT…

Because of the value of information.

Organizations in the Information Age

E-business:

•Processes enabled by Information Technology

•Netcentric

E-business vs. E-commerce?

Information as an Organizational Asset

• What is information?

• How is it created?

Information Hierarchy

(Waves of Wisdom)

(00) >> Data >> Information >> Knowledge >> Wisdom

Assets:

Added Value

Information as an Asset

(00) NO DATA

DATA

Stage #1:

Stage #2:

data collection

Information as an Asset

DATA

Stage #2:

• Raw Values: Facts, Numbers, Text, Images, Sound, Video

• Issues of data collection

• Data properties

What data properties would a data administrator be concerned about?

Information as an Asset

DATA

Stage #2:

“DATA IS LIFE…

GUARD IT FIERCELY”

*Amdahl Computers advertisement

Information as an Asset

DATA

INFORMATION

Stage #2:

Stage #3:

Information is PROCESSED Data

Information as an Asset

INFORMATION

Stage #3:

Information is PROCESSED data

• Organize data

• Select data

• Mathematical analysis on data

Information as an Asset

INFORMATIONStage #3:

input outputprocess

data information

Quality?Quality?Quality?

Information quality is a function of data quality and process quality.

Information as an AssetINFORMATIONStage #3:

Companies are drowning in data,

but starving for information.

The INFORMATION GAP

Most systems developed for …

Operational processing

Not Informational processing.

Operational => transaction oriented

Informational => detailed and summarized data for decision-support

Lots of Data.What about Information?

Information as an AssetINFORMATIONStage #3:

Some CHALLENGES of Enterprise Information:

Appropriate information for person, place, time

Appropriate data structures (metadata)

Discovery/indexing/cataloging

Security, privacy

Can impose “limits” on views/attitudes/creativity

Information as an Asset

INFORMATION

KNOWLEDGE

Stage #3:

Stage #4:

Knowledge is information put to productive use.

Knowledge

Region 1 $10,450,345.32

Region 2 $5,323,198.80

Region 3 $9,098,087.96

Region 4 $11,478,980.53

Sales Figures by Region

Knowledge basics

"Knowledge" - Information that can create value through action

Explicit - “Captured Information”

Formal Process Maps

Objective Directories

Data Policies and Procedures

Tacit - “Untamed Information”

Insights Context Specific

Judgment Know-how

Intuition Beliefs

Types of KnowledgeKnowledge basics

26%

20%12%

42%

PaperDocumentationElectronicDocumentationElectronicKnowledgebaseEmployee's Brains

A recent Delphi study found that on average, corporations believe that 42% of corporate knowledge is housed exclusively in the brains of employees.

Delphi Group, 1999

Information as an Asset

INFORMATION

KNOWLEDGE

Information can be managed as an asset.

Can knowledge be managed as an asset?

Knowledge Management/ Best Practices

Information as an Asset

KNOWLEDGE

WISDOM

Stage #4:

Stage #5:

Wisdom is the RIGHT application of knowledge.

ETHICS

Traditional Systems Model:

technology

people data/information

processes

System purpose

The Systems Model (revised):

relationships

Relationships:

Internal

External

The Extended Systems Model:

technology

people data/information

processes

System purpose

relationships

The Systems Model... For Structuring/informing Analysis

• Technology (hardware, software, infrastructure)

• Processes

• People

• Data/Information

• Relationships

(intra-organizational; inter-organizational)

The Systems Model...IT Asset Leadership

What are the IT assets of an organization?

• Technology assets

• Process assets

• People assets

• Data/Information assets

• Relationship assets

The Systems Model...IT Asset Leadership

Enterprise Design Challenges:

Complexity

•Integration of technologies

Pace of change and growth

Ubiquitous computing (anytime, anywhere)

Competitive demands

•Better, faster, cheaper

Huge resource investments

The Systems Model...

What is the difference between...

IT Management

IT Leadership

The Systems Model...

IT Leadership:

Direction Strategy

Trends Innovation

Exploiting IT

High-level view of organization

IT Asset Leadership

The Systems Model...

IT Leadership must understand

Organizational Impact of IT:

IT is changing the way organizations function, what they do, how people work in

those organizations, and even the very structure of organizations.

IT Asset Leadership

END