Strategic Information Management phần 2 pdf

The Evolving Information Systems Strategy 55 strategic information systems, for the organization as a whole and for individual business units. They have had some years’ experience, both in the business (or very similar businesses), and in the IT area (cf. the ‘hybrid’ concept). They may have come from either area, but are definitely cross-disciplinary. Style The predominant style is that of the Product Champion, the rugged individual who conceives of a good idea and pushes it through the necessary approval procedures in order to get it off the ground and working. In this case the idea is for information systems that will lead to a strategic advantage for the organization. Such systems are typically very hard to justify on a standard cost–benefit analysis basis. They require the whole-hearted support of powerful members of the organization to ensure that they are implemented (and even then, they run the risk of being stalled in mid-development). Skills This is the stage where IT moves out of the era of being a second string service and support unit, into being an integral part of the successful operation of the organization. The skills required to manage this transition are those of a senior executive. Entrepreneurial and marketing skills within selected IT personnel are also the basic requirements for ensuring success in this stage. Very knowledgeable IT users become quite commonplace. Successful organizations use these people to their full potential, as there is no longer any defensiveness about users acquiring in-depth knowledge about IT use. Superordinate goals Opportunity is pre-eminent during this stage. An entrepreneurial (as well as intrapreneurial) attitude is positively encouraged. Everyone is willing to identify and act on opportunities for strategic advantage. Stage 6 Integrated harmonious relationships Stage 6 is now reached, the dawning of a new age of sophistication and use of IT. At this stage, one notices harmonious working relationships between IT personnel and other staff in the organization. IT is deeply embedded throughout every aspect of the organization. Strategy During this stage, management is concerned with maintaining the comparative strategic advantage that has been hard won in the previous stage(s). This 56 Strategic Information Management involves a constant reassessment of all uses of IT, both within the organization and in its marketplace(s). Cooperative strategies (strategic alliances) are also in place. Interactive planning, involving monitoring both likely futures as well as present circumstances (cf. Ackoff, 1981), is the focus of strategy formulation. Structure The strategic coalitions between IT and business units were somewhat separate and relatively uncontrolled in the previous stage. In this stage, however, they are now centrally coordinated (although not necessarily ‘controlled’ in any strict sense). An overall corporate view is integrated with the individual business unit views (both the operational and the IT viewpoint). Systems Building on the outward-looking strategic systems of the previous stage, IT now embarks on implementing inter-organizational systems (with suppliers, customers, government, etc.). New products and services may now be developed which are IT-based (rather than the technology being first a supporting element). Staff During this stage, the IT Head becomes a member of the Board of Directors. This is not a token measure for providing the occasional piece of advice when asked, but rather, as a full member of the Board, the IT Head will play an active part in setting strategic directions. Strategic decisions will then have the required IT element when appropriate from the very beginning, rather than as an afterthought. Style The style is now one of interdependence, with IT being but one part of the business team, working together towards making and keeping the organization successful. Skills All the skills required of a member of a Board, together with being a senior manager who understands IT and its potentialities, as well as the business, are necessary at this stage. And in keeping with the team approach, IT personnel are very much in tune with the needs and aspirations of the strategic business units with which they work. The Evolving Information Systems Strategy 57 Superordinate goals Interactive planning, harmonious relationships and interdependent team work are the predominant values associated with this stage. The internal focus is on collaborative IT initiatives between groups, brought together to develop strategic information systems products. The external focus is on strategic alliances utilizing shared information systems, and the value chain is extended to include suppliers and customers. This revised ‘stages of growth’ model is summarized in Table 2.6. Application of the revised model Application of the revised model in the context of the four Perth-based organizations is described in more detail elsewhere (Galliers and Sutherland, 1991). In this context, however, and in subsequent applications, the model has proved useful not only in clarifying the location of each organization in IT maturity terms, but also in providing insights into aspects of IS management and planning which appear to require particular attention. Specific insights into the model’s application include the following: 1 Any organization is likely to display characteristics associated with a number of stages for each of the Seven ‘S’ elements. It is unlikely that any particular organization will find itself entirely within one stage. In addition, it is most likely that different parts of a single organization will be at different stages of growth at any one time. Use of the model in this context provides management with insights into areas/elements requiring particular attention. 2 Elements in early stages of the model must be adequately addressed before related elements in later stages are likely to be successfully undertaken. For instance, Decision Support Systems (DSS) or Executive Information Systems (EIS) are extremely unlikely to be effective without the right kind of basic operational systems/databases in place. Furthermore, an organiza- tion simply trying to overcome the large backlog and heavy maintenance load of systems (associated with Stage 2) is unlikely to be able to develop substantial strategic information systems, without further development in, for example, skill levels and planning approaches. 3 Organizations do not need to work slavishly through all the elements of each stage, making the same mistakes as many organizations have done in the past. For example, ‘young’ organizations can make effective use of top-down information systems planning to circumvent some of the pitfalls associated with this aspect of the first two stages. Typically, however ‘skipping’ portions of the model can only be successfully accomplished when the senior management of the organization has already experienced the conditions that affect performance in the earlier stages, and thus understand the benefit/advantages of following ‘correct’ procedures. Table 2.6 A revised ‘stages of growth’ model (Sutherland and Galliers, 1989, p.23, r eproduced in Galliers, 1991, pp. 61– 62) Element Stage 1 Ad hocracy 2 Foundations 3 Centralized 4 Cooperation 5 Entrepreneurial 6 Harmonious Strategy Acquisition of hardware, software, etc. IT audit Find out and meet user needs (reactive) Top-down IS planning Integration, coordination and control Environmental scanning and opportunity seeking Maintain comparative strategic advantage Monitor futures Interactive planning Structure None IS often subordinate to accounting or finance Data processing department Centralized DP shop End-users running free at Stage 1 Information centres, library records, etc. in same unit Information services SBU coalition(s) (many but separate) Centrally coordinated coalitions (corporate and SBU views concurrently) Systems Ad hoc unconnected Operational Manual and computerized IS Uncoordinated Concentration in financial systems Little maintenance Many applications Many gaps Overlapping systems Centralized Operational Mainly financial systems Many areas unsatisfied Large backlog Heavy maintenance load Still mostly centralized Uncontrolled end- user computing Most major business activities covered Database systems Decentralized approach with some controls, but mostly lack of coordination Some DSS-ad hoc Integrated office technology systems Decentralized systems but central control and coordination Added value systems (more marketing oriented) More DSS-internal, less ad hoc Some strategic systems (using external data) Lack of external and internal data integration of communications technologies with computing Inter-organizational systems (supplier, customer, government links) New IS-based products External-internal data integration Table 2.6 Continued Element Stage 1 Ad hocracy 2 Foundations 3 Centralized 4 Cooperation 5 Entrepreneurial 6 Harmonious Staff Programmers/ contractors Systems analysts DP Manager IS planners IS Manager Data Base Administrator Data Administrator Data analysts Business analysts Information Resources Manager (Chief Information Officer) Corporate/business/IS planners (one role) IS Director/member of board of directors Style Unaware Don’ t bother me (I’m too busy) Abrogation/ delegation Democratic dialectic Individualistic (product champion) Business team Skills Technical (very low level), individual expertise Systems development methodology IS believes it knows what the business needs Project management Organizational integration IS knows how the business works Users know how IS works (for their area) Business management (for IS staff) IS Manager – member of senior executive team Knowledgeable users in some IS areas Entrepreneurial marketing skills All senior management understand IS and its potentialities Superordinate goals Obfuscation Confusion Senior management concerned DP defensive Cooperation Opportunistic Entrepreneurial Intrapreneurial Interactive planning 60 Strategic Information Management 4 The positive aspects of earlier stages of the model are not discarded when moving through to the later stages. More ‘mature’ organizations will incorporate those elements from all proceeding stages to the degree that they are consistent with the later stages. Thus, organization at Stage 5 will still perform Information Systems Planning, they will still have a DP function (of sorts) and will be likely to require Information Centres. The more mature organization will be flexible enough to determine the most appropriate nature of IT use and organization, rather than blindly following the structures and procedures adopted by other organizations. 5 To be effective, organizations should consolidate in most elements up to a particular stage, and then select certain key elements (in accordance with their own planning critiera/priorities), which they should then address in moving to the next stage. Indeed, all elements should be addressed in order to pass more smoothly on to the following stage. 6 It is not necessarily the case that organizations will develop automatically towards the more mature stages. Indeed, it has been found that organizations move ‘backwards’ at times, as a result of a change in personnel or managerial attitudes, see Galliers (1991) for example. Furthermore, it has proved useful at times to chart the development of the organization over a period of time by identifying when (i.e. in what year) each particular stage was reached. The model has been found to be particularly useful in that it takes a holistic view of information systems management issues, dealing as it does with the development of information systems applications and information systems planning/strategy formulation, the changing nature of required skills, management style/involvement, and organizational structures. While the model cannot pretend to give all the answers, it does provide a framework which enables appropriate questions to be raised when setting out an appropriate strategy for information systems, giving pointers as to what is feasible as well as desirable in this regard. Further testing and refinement of the model is taking place, but after two years of application, the authors are confident that the model is sufficiently refined to provide both IT and general management with a usable and useful framework to assist in the task of marshalling their IT resources in line with business imperatives. While one might argue with the precise detail of the contents of each element at each stage of the model, this does appear not to affect the utility. Its key contribution is in focusing management attention onto a broad range of issues associated with the planning and management of information systems, in surfacing assumptions and attitudes held by key executives about the role IT does and might play in achieving/supporting business objectives The Evolving Information Systems Strategy 61 and thereby enabling a shared understanding/vision to be achieved, and (most importantly) providing an easily understood means of putting IS/IT manage- ment on the senior and middle management agenda. References Ackoff, R. L. (1981) Creating the Corporate Future, Wiley, New York. British Computer Society (1990) From Potential to Reality: ‘Hybrids’ – A Critical Force in the Application of Information Technology in the 1990s. A Report by the British Computer Society Task Group on Hybrids, 2 January. Benbasat, I., Dexter, A., Drury, D. and Goldstein, R. (1984) A critique of the stage hypothesis: theory and empirical evidence. Communications of the ACM, 27(5), 476–485. Bhabuta, L. (1988) Sustaining productivity and competitiveness by marshal- ling IT. In Proceedings: Information Technology Management for Pro- ductivity and Strategic Advantage, IFIP TC-8 Open Conference, Singapore, March. Cash, J. I. (Jr.) and Konsynski, B. R. (1985) IS Redraws competitive boundaries. Harvard Business Review, 63(2), March–April, 134–142. Earl, M. J. (1983) Emerging trends in managing new information technolo- gies, Oxford Centre for Management Studies Research Paper 83/4. In The Management Implications of New Information Technology. (ed. N. Peircy), 1986, Croom Helm, London. Earl, M. J. (1986) Information systems strategy formulation. In Critical Issues in Information Systems Research (eds R. J. Boland and R. A. Hirschheim) (1987), Wiley, Chichester. Earl, M. J. (ed.) (1988) Information Management: The Strategic Dimension, The Clarendon Press, Oxford. Earl, M. J. (1989) Management Strategies for Information Technology, Prentice Hall, Hemel Hempstead. Edwards, B., Earl, M. and Feeny, D. (1989) Any way out of the labyrinth of managing IS? RDP89/3, Oxford Institute of Information Management Research and Discussion Paper, Templeton College, Oxford University. Galliers, R. D. (1987a) Information systems planning in the United Kingdom and Australia: a comparison of current practice. In Oxford Surveys in Information Technology (ed. P. I. Zorkorczy), Vol. 4, Oxford University Press, Oxford, pp. 223–255. Galliers, R. D. (ed.) (1987b) Information Analysis: Selected Readings, Addison-Wesley, Wokingham. Galliers, R. D. (1990) Problems and answers of the IT skills shortage. The Computer Bulletin, 2(4), 25 May. 62 Strategic Information Management Galliers, R. D. (1991) Strategic information systems planning: myths, reality and guidelines for successful implementation. European Journal of Information Systems, 1, 55–64. Galliers, R. D. and Sutherland, A. R. (1991) Organizational learning and IT: steps towards managing and planning strategic information systems. Warwick Business School Working Paper, University of Warwick, January. Gibson, D. and Nolan, R. L. (1974) Managing the four stages of EDP growth. Harvard Business Review, 52(1), January–February. Gluck, F. W., Kaufman, S. P. and Walleck, A. S. (1980) Strategic management for competitive advantage. Harvard Business Review, 58(4), July– August. Greiner, L. E. (1972) Evolution and revolution as organisations grow. Harvard Business Review, 50(4), July–August. Hamilton, S. and Ives, B. (1982) Knowledge utilisation among MIS researchers. MIS Quarterly, 6(12), December. Hirschheim, R., Earl, M., Feeny, D. and Lockett, M. (1988) An exploration into the management of the information systems function: key issues and an evolutionary model. Proceedings: Information Technology Management for Productivity and Strategic Advantage, IFIP TC-8 Open Conference, Singapore, March. King, J. and Kraemer, K. (1984) Evolution and organizational information systems: an assessment of Nolan’s stage model. Communications of the ACM, 27(5), May. Land, F. F. (1982) Adapting to changing user requirements. Information and Management, 5, Reproduced in Galliers, R. D. (ed.) (1987) Information Analysis: selected readings, Addison-Wesley, Wokingham, pp. 203–229. McFarlan, F. W. and McKenney, J. L. (1982) The Information archipelago: gaps and bridges. Harvard Business Review, 60(5), September–October. McFarlan, F. W., McKenney, J. L. and Pyburn, P. (1983) The information archipelago: plotting a course. Harvard Business Review, 61(1), January– February. Nolan, R. (1979) Managing the crises in data processing. Harvard Business Review, 57(2), March–April. Nolan, R. (1984) Managing the advanced stages of computer technology: key research issues. In The Information Systems Research Challenge (ed. F. W. McFarlan), Harvard Business School Press, Boston, pp. 195–214. Oliver, I. and Langford, H. (1984) Myths of demons and users. Proceedings: Australian Computer Conference, Australian Computer Society Inc., Sydney, November. Reproduced in Galliers, R. D. (ed.) (1987) Information Analysis: selected readings, Addison-Wesley, Wokingham, pp. 113–123. Pascale, R. T. and Athos, A. G. (1981) The Art of Japanese Management, Penguin, Harmondsworth. The Evolving Information Systems Strategy 63 Sobkowich, R. (1985) When the company picks a CIO, will you be IT? Computerworld, 24 June. Somogyi, E. K. and Galliers, R. D. (1987a) Applied information technology: from data processing to strategic information systems. Journal of Information Technology, 2(1), 30–41, March. Somogyi, E. K. and Galliers, R. D. (1987b) Towards Strategic Information Systems, Abacus Press, Cambridge MA. Sullivan, C. H. (1985) Systems planning in the information age. Sloan Management Review, Winter. Sutherland, A. R. and Galliers, R. D. (1989) An evolutionary model to assist in the planning of strategic information systems and the management of the information systems function. School of Information Systems Working Paper. Curtin University of Technology, Perth, Western Australia, February. Ward, J., Griffiths, P. and Whitmore, P. (1990) Strategic Planning for Information Systems, Wiley, Chichester. Reproduced from Galliers, R. D. and Sutherland, A. R. (1991) Information systems management and strategy formulation: the ‘stages of growth’ model revisited. Journal of Information Systems, 1(2), 89–114. Reprinted by permission of the Publishers, Blackwell Scientific Ltd. Questions for discussion 1 The authors, in describing the Nolan model, state that ‘different parts of a single organization may well be at different stages of growth with respect to a single IT’. What implications does this have for the management of IT and for IT strategy? 2 The authors describe several prior models to IT evolution in organizations. What are the relative strengths of the models in (a) their applicability to describe actual situations, and (b) in their usefulness for managers of IT? 3 Do you agree with the underlying assumption that moving through the stages represents a desired advancement in the use of IT in an organization? 4 Can you think of some contextual factors that might predict in which phase an organization would be placed regarding their management of IT and whether they move slowly or quickly through the phases? 5 What implications does the increasing pace of technology advances and the increasingly networked world have for the revised stages of growth model? 3 Information Strategy Assessment of information strategies in insurance companies M. T. Smits, K. G. van der Poel and P. M. A. Ribbers This chapter describes the information strategies of three major insurance companies in the Netherlands. A research model was developed as an aid to describe how managers nowadays deal with information strategy. We report on the linkages between information strategies and business strategies, the roles of the stakeholders involved, and how the results are perceived. We found that in all three companies the executive board, IT management and line management are heavily involved in the information strategy process. The main focus in the three companies is on adjusting IT to business goals and processes, with only some attention directed towards creating a competitive advantage with IT. With respect to the effects of information strategy, we found that none of the three companies systematically evaluate the effects of information strategies on an organizational or a business process level. More case study research is required to look into the evolutionary changes of information strategies within organizations, and the effects of information strategies on the business processes and the use of IT over time. 1 Introduction The concept of ‘strategy’ carries several connotations. Its roots in military tradition indicate innovative leadership and bold visions. Anthony (1965) has defined strategic planning as the definition of goals and objectives. Ansoff (1984) sees strategy as a mechanism for coping with a complex and changing environment. Mintzberg (1980) views strategy in five different ways: as a plan (rules leading to a goal); a ploy (a trick to beat competitors); a pattern (a way of behaving); a position (a safe place); and a perspective (a vision, a set of assumptions). Andrews (1980) defines strategy as: ‘the pattern of decisions [...]... on Information Systems, 12( 2), 150–173 Ward, J., Griffiths, P and Whitmore, P (1990) Strategic Planning for Information Systems, Wiley, Chichester Wilson, T D (1989) The implementation of IS strategies in UK companies International Journal of Information Management, 9(4), 24 5 25 8 Zachman, J A (19 82) Business system planning and business information control study: a comparison IBM Systems Journal, 21 ,... Conference, pp 119– 126 Fitzgerald, E P (1993) Success measures for information systems strategic planning Journal of Strategic Information Systems, 2( 4), 335–350 Galliers, R D (1991) Strategic information systems planning, myths and reality European Journal of Information Systems, 1(1), 55–64 Galliers, R D (1993) Towards a flexible information architecture: integrating business strategies, information systems... the environment into a set (O) of mission, Information Strategy Environment Information Strategy Effects Figure 3 .2 Information Strategy Process Information Strategy Form and Contents Research model describing four components of information strategy 68 Strategic Information Management Table 3.1 Summary of the information strategies in three insurance companies Information strategy Components/aspects Environment... G and King, W R (1991) Assessing strategic information systems planning Long Range Planning, 24 , 41–58 Rockart, J F (1979) Chief executives define their own data needs Harvard Business Review, 57(3), 81–93 Ruohonen, M (1991) Information management education in human resource strategy International Journal of Information Management, 11 (2) , 126 –143 Saaksjarvi, M (1988) Information systems planning: what... Conrath, D W., Ang, J S K and Mattay, S (19 92) Strategic planning for information systems: a survey of Canadian organisations Infor, 30(4), 364–378 Earl, M J (1989) Management Strategies for Information Technology, Prentice Hall, London Earl, M J (1993) Experiences in strategic information systems planning MIS Quarterly, 17(1), 1 24 Feeney, D F and Edwards, B (19 92) Understanding the CEO/CIO relationship... business process redesign Journal of Information Systems, 3(3), 199 21 3 Henderson, J C and Sifonis, J G (1988) The value of strategic IS planning: understanding consistency, validity, and IS markets MIS Quarterly, 12( 2), 186 20 0 Henderson, J C and Venkatraman, N (1993) Strategic alignment: leveraging information technology for transforming organizations IBM Systems Journal, 32( 1), 4–16 Hopstaken, B A A and... probleem Informatie, 27 (11), 988–998 Johnson, G and Scholes, K (1989) Exploring Corporate Strategy, Prentice Hall, New York King, W R (1988) How effective is your information systems planning? Long Range Planning, 21 (5), 103–1 12 Lane, D C (19 92) Modelling as learning: a consultancy approach European Journal of Operations Research, 59, 64–84 (special issue) 86 Strategic Information Management Laudon,... use this model to analyse the information strategy within three major insurance organizations and compare the findings with related research, respectively 2 Literature on information strategy Information strategy began to attract interest at the beginning of the 1970s, and many terms have been used since then to address the alignment of 66 Strategic Information Management information systems and business... strategy Similar terms are, for example, information systems strategy (ISS), information systems strategic planning (ISSP) and strategic information systems planning (SISP) For an extensive review of the literature we refer to Earl (1989), Ward et al (1990), Galliers (1993) and Fitzgerald (1993) A frequently used term, related to information strategy, is strategic information systems planning (SISP), defined... distribution channel Special factor Recently merged Company $20 00M revenue Employees 20 00 Business Explicit, strategy known Internal Product organization oriented Management Positive attitude to IT IT . answers of the IT skills shortage. The Computer Bulletin, 2( 4), 25 May. 62 Strategic Information Management Galliers, R. D. (1991) Strategic information systems planning: myths, reality and guidelines. of Business strategy Business processes IT strategy IT processes 66 Strategic Information Management information systems and business strategy. Similar terms are, for example, information systems strategy (ISS), information systems strategic planning (ISSP). mission, Figure 3 .2 Research model describing four components of information strategy 68 Strategic Information Management Table 3.1 Summary of the information strategies in three insurance companies Information