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==Strategic information management== ===Background=== According to the Carnegie Mellon School an organization's ability to process information is at the core of organizational and managerial [[competence (human resources)|competency]], and an organization's strategies must be designed to improve information processing capability <ref name="Cyert">Cyert, R.M. & March, J.G., 1959. A behavioural theory of organizational objectives. ''Modern Organization Theory'', Wiley, New York, pp.76–90</ref> and as information systems that provide that capability became formalised and automated, competencies were severely tested at many levels.<ref name="Morton">Morton, M.S.S., 1991. ''The corporation of the 1990s: Information technology and organizational transformation'', Oxford University Press</ref> It was recognised that organisations needed to be able to learn and adapt in ways that were never so evident before <ref name="Senge">Senge, P.M., 1990. ''The fifth discipline'', Doubleday</ref> and academics began to organise and publish definitive works concerning the strategic management of information, and information systems.<ref name="Ward and Peppard"/><ref name="Earl">Earl, M.J., 1989. ''Management Strategies for Information Technology'', Upper Saddle River, NJ, USA: Prentice-Hall, Inc.</ref> Concurrently, the ideas of [[business process]] management<ref name="Hammer and Champy">Hammer, M. & Champy, J., 2009. ''Reengineering the Corporation: Manifesto for Business Revolution'', A, Zondervan</ref> and [[knowledge management]]<ref name="Nonaka and Takeuchi">Nonaka, I. & Takeuchi, H., 1995. ''The knowledge creating company: how Japanese companies create the dynamics of innovation'', New York, NY, USA: Oxford University Press</ref> although much of the optimistic early thinking about [[business process redesign]] has since been discredited in the information management literature.<ref name="Belmiro">Belmiro, T., Gardiner, P. & Simmons, J., 1997. Business process re-engineering—A discredited vocabulary? ''International Journal of Information Management'', 17(1), pp.21–33</ref> In the strategic studies field, it is considered of the highest priority the understanding of the information environment, conceived as the aggregate of individuals, organizations, and systems that collect, process, disseminate, or act on information. This environment consists of three interrelated dimensions which continuously interact with individuals, organizations, and systems. These dimensions are the physical, informational, and cognitive.<ref>Chairman of the Joint Chiefs of Staff, U.S. Army (2012). Information Operations. Joint Publication 3-13. Joint Doctrine Support Division, 116 Lake View Parkway, Suffolk, VA., p. 18.</ref> ===Aligning technology and business strategy with information management=== Venkatraman has provided a simple view of the requisite capabilities of an organisation that wants to manage information well – the [[DIKAR]] model (see above). He also worked with others to understand how technology and business strategies could be appropriately aligned in order to identify specific capabilities that are needed.<ref name="Henderson and Venkat">Henderson, J.C. & Venkatraman, N., 1993. Strategic alignment: leveraging information technology for transforming organizations. ''IBM Systems Journal'', 32(1), pp.4–16</ref> This work was paralleled by other writers in the world of consulting,<ref name="Zachman">Zachman, J. A. (1987). A framework for information systems architecture. ''IBM Systems Journal'', 26(3), 590–616</ref> practice,<ref name="Cross">Cross, J., 1995. IT outsourcing : British Petroleum's competitive approach. ''Harvard Business Review'', 73(3), p.94</ref> and academia.<ref name="Ward2">Ward, J. & Daniel, E., 2005. ''Benefits Management: Delivering Value from IS and IT Investments'', Chichester: Wiley</ref> ===A contemporary portfolio model for information=== Bytheway has collected and organised basic tools and techniques for information management in a single volume.<ref name="Bytheway" /> At the heart of his view of information management is a portfolio model that takes account of the surging interest in external sources of information and the need to organise un-structured information external so as to make it useful (see the figure). [[File:An Information Portfolio.jpg|thumb|upright=1.3|This portfolio model organizes issues of internal and external sourcing and management of information, that may be either structured or unstructured.]] Such an information portfolio as this shows how information can be gathered and usefully organised, in four stages: '''Stage 1''': Taking advantage of [[public information]]: recognise and adopt well-structured external schemes of reference data, such as post codes, weather data, GPS positioning data and travel timetables, exemplified in the personal computing press.<ref name="Ashbrook">Ashbrook, D. & Starner, T., 2003. Using GPS to learn significant locations and predict movement across multiple users. ''Personal and Ubiquitous Computing'', 7(5), pp.275–286</ref> '''Stage 2''': Tagging the noise on the [[World Wide Web]]: use existing schemes such as [[post code]]s and [[GPS]] data or more typically by adding “tags”, or construct a formal [[ontology (information science)|ontology]] that provides structure. Shirky provides an overview of these two approaches.<ref name="Shirky">Shirky, C., 2005. Shirky: Ontology is Overrated -- Categories, Links, and Tags. ''Clay Shirky's Writings About the Internet''. Available at: http://shirky.com/writings/ontology_overrated.html {{Webarchive|url=https://web.archive.org/web/20161220122714/http://www.shirky.com/writings/ontology_overrated.html |date=December 20, 2016 }} [Accessed May 23, 2013]</ref> '''Stage 3''': Sifting and analysing: in the wider world the generalised ontologies that are under development extend to hundreds of entities and hundreds of relations between them and provide the means to elicit meaning from large volumes of data. Structured data in databases works best when that structure reflects a higher-level information model – an ontology, or an [[entity-relationship model]].<ref name="Noy">Noy, N.F., McGuinness, D.L. & others, 2001. Ontology development 101: A guide to creating your first ontology, ''Stanford knowledge systems laboratory technical report KSL-01-05 and Stanford medical informatics technical report SMI-2001-0880''</ref> '''Stage 4''': Structuring and archiving: with the large volume of data available from sources such as the [[social web]] and from the miniature [[telemetry]] systems used in personal [[health management]], new ways to archive and then trawl data for meaningful information. [[Map-reduce]] methods, originating from [[functional programming]], are a more recent way of eliciting information from large archival [[dataset]]s that is becoming interesting to regular businesses that have very large data resources to work with, but it requires advanced multi-processor resources.<ref name="Chu">Chu, C. et al., 2007. Map-reduce for machine learning on multicore. ''Advances in neural information processing systems'', 19, p.281</ref> ===Competencies to manage information well=== In 2004, the management system "[[Information Management Body of Knowledge]]" was first published on the World Wide Web<ref name="IMBOK">IMBOK, 2004. ''The Information Management Body of Knowledge''. Available at: http://www.imbok.org [Accessed May 12, 2015]</ref> and set out to show that the required management competencies to derive real benefits from an investment in information are complex and multi-layered. The framework model that is the basis for understanding competencies comprises six "knowledge" areas and four "process" areas: [[File:IMBOK Framework.jpg|thumb|upright=1.3|This framework is the basis of organising the "Information Management Body of Knowledge" first made available in 2004. This version is adapted by the addition of "Business information" in 2014.]] ;The information management knowledge areas The IMBOK is based on the argument that there are six areas of required management competency, two of which ("business process management" and "business information management") are very closely related.<ref name="Bytheway2">Bytheway, A., 2015. ''Investing in Information: the Information Management Body of Knowledge'', Geneva: Springer, p29</ref> * '''Information technology''': The pace of change of [[technology]] and the pressure to constantly acquire the newest technological products can undermine the stability of the [[infrastructure]] that supports systems, and thereby optimises [[business process]]es and delivers benefits. It is necessary to manage the "[[supply side]]" and recognise that technology is, increasingly, becoming a [[commodity]].<ref name="Carr">Carr, N., 2003. IT doesn't matter. In ''Wringing real value from IT''. HBR OnPoint, pp. 3–10</ref> * '''Information system''': While historically information systems were developed [[in-house]], over the years it has become possible to acquire most of the software systems that an organisation needs from the [[Application software|software package]] industry. However, there is still the potential for [[competitive advantage]] from the implementation of new systems ideas that deliver to the strategic intentions of organisations.<ref name="Ward and Peppard"/> * '''Business processes and Business information''': [[Information system]]s are applied to [[business process]]es in order to improve them, and they bring data to the business that becomes useful as [[business information]]. [[Business process management]] is still seen as a relatively new idea because it is not universally adopted, and it has been difficult in many cases; business ''information'' management is even more of a challenge.<ref name="Belmiro0">Belmiro, T.R. et al., 2000. Are BPR practitioners really addressing business processes? ''International Journal of Operations & Production Management'', 20(10), pp.1183–1203</ref><ref name="Davenport">Davenport, T.H. & Short, J., 2003. Information technology and business process redesign. ''Operations management: critical perspectives on business and management'', 1, p.97</ref> * '''Business benefit''': What are the benefits that we are seeking? It is necessary not only to be brutally honest about what ''can'' be achieved, but also to ensure the active management and assessment of benefit delivery. Since the emergence and popularisation of the [[Balanced scorecard]]<ref name="Kaplan and Norton">Kaplan, R. & Norton, D., 1996. ''The balanced scorecard - translating strategy into action'', Boston MA: Harvard University Press</ref> there has been huge interest in business performance management but not much serious effort has been made to relate business performance management to the benefits of information technology investments and the introduction of new [[information system]]s until the turn of the [[millennium]].<ref name="Ward2" /> * '''Business strategy''': Although a long way from the workaday issues of managing information in organisations, [[strategy]] in most organisations simply has to be informed by information technology and information systems opportunities, whether to address poor performance or to improve differentiation and [[Competition (companies)|competitiveness]]. Strategic analysis tools such as the [[value chain]] and [[critical success factor]] analysis are directly dependent on proper attention to the information that is (or could be) managed <ref name="Ward and Peppard"/> ;The information management processes Even with full capability and competency within the six knowledge areas, it is argued that things can still go wrong. The problem lies in the migration of ideas and information management value from one area of competency to another. Summarising what Bytheway explains in some detail (and supported by selected secondary references):<ref name="Bytheway3">Bytheway, A., 2015. ''Investing in Information: the Information Management Body of Knowledge'', Geneva: Springer, p31</ref> * '''Projects''': Information technology is without value until it is engineered into information systems that meet the needs of the business by means of good [[project management]].<ref name="Schwalbe">Schwalbe, K., 2013. ''Information technology project management'', Cengage Learning</ref> * '''Business change''': The best information systems succeed in delivering benefits through the achievement of change within the business systems, but people do not appreciate change that makes new demands upon their skills in the ways that new information systems often do. Contrary to common expectations, there is some evidence that the [[public sector]] has succeeded with information technology induced [[business change]].<ref name="Scholl">Scholl, H.J., 2005. E-government-induced business process change (BPC): An empirical study of current practices. ''International Journal of Electronic Government Research'' (IJEGR), 1(2), pp.27–49</ref> * '''Business operations''': With new systems in place, with [[business process]]es and [[business information]] improved, and with staff finally ready and able to work with new processes, then the business can get to work, even when new systems extend far beyond the boundaries of a single business.<ref name="Seed">Saeed, K.A., Malhotra, M.K. & Grover, V., 2005. Examining the Impact of Interorganizational Systems on Process Efficiency and Sourcing Leverage in Buyer–Supplier Dyads. ''Decision Sciences'', 36(3), pp.365–396</ref> * '''Performance management''': [[Investment]]s are no longer solely about financial results, financial success must be balanced with internal efficiency, [[customer satisfaction]], and with [[organisational learning]] and development.<ref name="Kaplan and Norton" /> ===Summary=== There are always many ways to see a business, and the information management viewpoint is only one way. Other areas of business activity will also contribute to strategy – it is not only good information management that moves a business forwards. [[Corporate governance]], [[human resource management]], [[product development]] and [[marketing]] will all have an important role to play in strategic ways, and we must not see one domain of activity alone as the sole source of strategic success. On the other hand, corporate governance, human resource management, product development and marketing are all dependent on effective information management, and so in the final analysis our competency to manage information well, on the broad basis that is offered here, can be said to be predominant.
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