Ch4 Corporate Information Systems Strategy (13.3)

An organisation must establish a Corporate Information Systems Strategy so that the

information needs of everyone in the organisation can be met efficiently using similar procedures.

Corporate Information Systems Strategy

Dept IS Strategy

Dept IS StrategyNB ICT5 Ch14 is in more detail!

Who should draw up the Strategy?

• The Director of the Information Technology section

• As he/she knows more about the factors to consider than other directors.

• He/she would consider opinions from strategic and tactical management as these managers would have to carry out the policy.

Why have an IS Strategy?• Must have guidelines for managers making IT decisions

so decisions are consistent within the organisation

• To ensure the consistency of hardware and software (factor 6)

– so maintenance and support is at a realistic cost – technicians can have in depth knowledge of some systems as apposed to brief knowledge of many.

– Staff can move across departments with the minimum of re-training.

• To ensure different IT systems compliment each other so common data can be used without retyping (factor 6)

• To have known timescales to replace/update old hardware and software so managers can plan budgets and not get left behind in the race for useful new technology. (factor 6)

There are other reasons – see Ch 14

What factors influence the policy?

The syllabus says (13.3) describe the factors influencing a corporate information system policy within an organisation:

1. Organisation and functions of management within a general organisational structure,

2. Methods for planning and decision-making, 3. Legal and audit requirement, 4. Responsibility for the information system within an

organisation, 5. Information Flow, 6. Hardware and Software,7. Standards and Behavioural factors, e.g. personalities,

motivation, ability to adapt to change.

O&F

MfP

L&A

R

IF

H&S

S&B

The next 7 slides are about each factor

1. Organisation and Functions of management (General Organisational

Structure)

General organisation structure must be considered with a description of the current departments and how information is used within the department. The I.S. must provide info to the right person at the right level at the right detail.

Eg An organisation managed geographically will have regional managers who require reports summarising performance within that region.

Eg A formal hierarchical structure require a method to pass the info up and down the structure in an appropriate timely manner – Email, Intranet..

2. Methods for planning and decision-making

The nature of the I.S. depends on who makes the decisions in the company.

Eg Chief Executive (CEO), Managing director, Board of Directors

Eg Extensive use of committees

Eg Delegation to less senior staff (Flat structures)

(This is part of the Information Flow in the company)

3. Legal and Audit Requirement

This will vary from business to business:

Eg Data Protection Act – must comply with the 8 principles

Eg Financial data must be archived for 7 years – so audits can take place

4. Responsibility for the particular information system within an organisation

This will vary from business to business:

Eg In a large company it lies within the company computer department – technical knowledge is better than knowledge of a particular company department. It is usual to have the Head of Technical Services within the senior management team of the company.

Eg In a small company it may lie within the department that uses it – technical knowledge is not as good as knowledge of department procedures. However it is usual to have a maintenance contract with the supplier of the IS to provide a help desk and software upgrades.

The nature of the I.S. will depend on who makes the decisions for the I.S., who has responsibility for carrying them out and who has the responsibility for maintaining it. They may be 3 different sets of people. Also different personnel will be responsible for writing the ICT strategy and purchasing the ICT hardware.

(This is part of the organisation and personnel in the company)

5. Information Flow

The I.S. should enable good communication and should take account of the information flow around the organisation

Eg The use of a company email system can be used to get info to different groups of managers quickly and efficiently – eg distribution lists attaching management reports

Eg The use of a company Intranet can be used to get info to different groups of employees ensuring the up-to-date copy always accessible in one place

6. Hardware and Software

Continuity is very important and any new I.S. should consider:

• being able to read existing data files• Being able to run old software and peripherals

from new computers and operating systemsIf existing data files, hardware and software are not

considered then the new I.S. will be much harder to implement as it may cause existing systems to fail; excessive time and money spent on training and file conversions.

However aging hardware and software may be the reason why a new I.S. is needed. New facilities.

7. Standards and Behavioural factors

• Standards laid down in the ICT strategy of a company may influence a I.S. and the way it is implemented.

• Behavioural traits in key personnel may have some influence: personalities, motivation, ability to adapt to change.Eg the head of department may resist an I.S. because they are close to retirement and lack the motivation to introduce something they personally will not use.

Question Jan 07When writing a Corporate Information Systems Strategy for an organisation, various factors have to be taken into account, including the structure of the organisation. Give five other factors that might be considered when writing a Corporate Information Systems Strategy and, for each one, give a reason why it might be considered. (10 m)

1 for factor (f), 1 for reason for consideration (r) to max 5 x (2,1,0)• Business strategy/Business objectives (f) + (r)• Legal and Audit requirements (f) + (r)• Information flow within the organisation (f) + (r)• Staff knowledge and experience with ICT (f), + (r)• Management style and methods/culture (f), + (r)• Responsibilities for ICT (f), + (r)• Personalities within org (f), + (r)• Ability to adapt to change (f), + (r)• Motivation of staff (f), + (r)• Training facilities for staff (f), + (r)• Hardware/technology available/considerations (f) + (r)• Software/applications/systems available/considerations (f) + (r)• Standards in use within organisation/within the industry (f) + (r)• The need for security (f) + (r)e.g. Legal & Audit requirements (f) because it is important to work within the laws of the country in which the organisation operates (r).Motivation of staff (f) because the staff should be regarded a big contributor to the organisation’s success/unhappy staff may affect profit margins (r).

Information Flow P33-36

The syllabus said (13.3):

• Describe the methods and mechanisms of information flow within an organisation, both formal and informal, and the constraints imposed upon that flow by organisational structures.

Managers Need Information

To be relevant, timely and accurate to the task in hand. This helps them plan, to control and to make the right decisions.

The better the information, the greater their knowledge, the better the decision!

External and Internal Flow

External: between the company and the outside world eg: Email from a customer and automatic response if employee is out of the office

Internal: between the company and the company eg: How are management reports sent to managers from the I.S. eg:In a hierarchical structure usually info flows just between one level and the next.

Formal Flow

Flow of information created by the procedures of an organisation. EGs:

• Formal minutes of meetings

• Internal memos to individual or groups of staff

• Intranet used for storing the most up to date policy documents so all staff can access them.

Informal Flow

Flow of information not created by the procedures of an organisation. This may be less accurate or reliable EGs:

• Phone calls

• The office grape vine

• Stories in the press or rumours

• Personal conversation or observation

Information Flow and Structure P35/36

• Size, type and structure of an organisation EGs:

• The amount of information EGS

• The nature of the information EGS

Jun 2006 Question(a) What is meant by formal information flow? Give an example of

a formal information flow mechanism. (3 m)(b) What is meant by informal information flow? Give an example

of an informal information flow mechanism. (2 m)

(a)• A system with fully documented and agreed procedures (1)• Stating stages of information flow including the medium, channel of

communication, and distribution list of personnel. (1)• Such as Business letter, memorandum, formal meeting, meeting

agenda and minutes, email (1)• NOT plain (unqualified) /letter or meeting

(b)• Information that naturally arises/not structured/ad-hoc (1) • Such as a phone call, personal conversation, during a meeting or by

observation, e-mail, bulletin board, special interest group, texting (1)• NOT memo NB. Do not give positive/negative as 2 marks

Personnel P36-37

The syllabus said (13.3):

1. Understand the levels of task/personnel within an organisation: strategic; implementation (tactical); operational.

2. Relate the needs of these three levels to the information system.

Personnel issues that influence IS Strategy• Attitudes/personalities (Some staff maybe terrified

technophobes or advocates of any new technology regardless of use, or preferred pragmatists who introduce new technology only if useful)

• Motivation/leaders (encourage whole company policy within a department without any complaint to subordinates about negative effects at a departmental level, manage change successfully, streamline IS procedures)

• Working in teams (flexibility of team – are teams used to being broken apart and reformed into other teams according to the task)

• Ability to adapt to change (too much change can de-motivate staff, need periods of consolidation of procedures, staff recruited with this personal quality….)

• Skills of staff (Training needs in correct medium at correct time. Eg?)

• Levels of personnel (Strategic, tactical, operational – info appropriate to the level of need. Eg?)

13.3 The 20 marker Jan 2006 A long-standing national chain of shoe shops has built up its information systems one at a time, and without an overall plan. It is now having difficulty in getting these systems to work together effectively and has therefore decided to create a Corporate Information Systems Strategy. Discuss the influence of the following factors when planning a Corporate Information Systems Strategy:• the structure of the organisation;• information flow around the organisation;• personnel in the organisation.The Quality of Written Communication will be assessed in your answer. (20 marks)

Continuous prose is expected for this answer. Discuss is the question, so each point made must be full, not just a single word/phrase. Mark as O, F or P for three bullets. A full explanation/description gets an extension mark (Oe, Fe or Pe) .

No more than 6 marks awarded in each section - to a maximum of 16 content marks.

Answer 13.3O . organisation structure• Organisational shape (hierarchical, flat etc)• Functions in the organisation• Organisational size (single site/national/international)• Centralised/Distributed management• Levels of personnel or task (or in P)• Different levels need different tasks (or in P)• Business objectives

F . information flow .• Formal methods• Informal methods• Planning and decision making methods• Examples of information flow• Effects of legislation on flow

P . people• Behavioural factors• Attitudes/personalities• Motivation/leaders• Working in teams• Ability to adapt to change• Skills of staff (Training needs)• Levels of personnel (instead of in O)