Ch4 Corporate Information Systems Strategy (13.3)

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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.

Dept IS Strategy
Corporate Information Systems Strategy
NB ICT5 Ch14 is in more detail!
Dept IS Strategy
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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.

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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

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What factors influence the policy?

• The syllabus says (13.3) describe the factors
  influencing a corporate information system policy
  within an organisation
• Organisation and functions of management within a
  general organisational structure,
• Methods for planning and decision-making,
• Legal and audit requirement,
• Responsibility for the information system within
  an organisation,
• Information Flow,
• Hardware and Software,
• Standards and Behavioural factors, e.g.
  personalities, motivation, ability to adapt to
  change.

OFMfP LAR IF HS SB
The next 7 slides are about each factor ? ? ? ?
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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..

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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)

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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

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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)

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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

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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 systems
• If 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.

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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.

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Question Jan 07

• When 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
  organisations success/unhappy staff may affect
  profit margins (r).

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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.

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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!

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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. egIn a hierarchical structure usually
  info flows just between one level and the next.

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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.

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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

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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

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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

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Personnel P36-37

• The syllabus said (13.3)
• Understand the levels of task/personnel within an
  organisation strategic implementation
  (tactical) operational.
• Relate the needs of these three levels to the
  information system.

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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?)

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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.

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Answer 13.3

• O . organisation structure
• Organisational shape (hierarchical, flat etc)
• Functions in the organisation
• Organisational size (single site/national/inter
  national)
• 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