Policy and Strategy
The Challenge of Information Management
A few decades ago, businesses would tend to have one mainframe computer to process data for payroll, stock etc. Nowadays, businesses have company-wide intranets that are available to everyone, not just IT professionals. Even customers can use the system through cashpoints, touch screens or the Internet.
Information is different from other resources. It is not depleted when used. It is not normally possible to claim exclusive "ownership" of information (it is usually a shared resource).
Management may want to formulate an "information management policy" that will help them manage computing resources to maximise the benefits of information.
Consistency with Business Priorities
A company's information system strategy should be linked to its business plan. A method called CSF (Critical Success Factors) encourages senior executives to identify the company's primary goals. They will then identify performance indicators for each of the CSFs and they should make sure that the systems are in place to collect and use this information.
A typical example of a CSF could include:
Improving customer service
Improving relationships with suppliers
Holding the right stock, at the right time, in the right quantity
Using human resources efficiently
What performance indicators would be used to measure these CSFs?
Centralisation and Decentralisation
Systems analysts, programmers and data entry clerks are obviously all computer users but they are distinct from the "end-users" who are the ultimate consumers of computer processing and information.
Three types of information system are:
Transaction Processing Systems (used by clerical workers, sales people and customers)
Knowledge Work Systems (used by middle management and professionals)
Management Information Systems (used by senior management)
End users require software that is easy to use but also has enough features to help them get their job done effectively.
Centralisation v Decentralisation
The information systems department within an organisation has responsibility for the maintenance of the IT systems and for the development of new systems.
In some organisations all the tasks connected with managing IT resources (e.g. hardware and software purchases) are the responsibility of the Information Systems Department. In other organisations, however, a decentralised (or "distributed") system is run, whereby each department (e.g. Sales, Human Resources, Marketing etc.) are given freedom to make their own decisions. They can develop their own applications. This system can unlock the creativity of employees.
However, there are lots of advantages of having a centralised system, such as:
Making sure that hardware and software is compatible across a company network
Bulk orders can give the company better value for money on orders (e.g. getting a "site licence" for software)
Employees don't have to learn a new system if they move to another department
There can be a company-wide training strategy
The company has better control over unlicensed software
Data can be exchanged more easily between similar types of computer
Upgrading
Computer systems have a very short life-expectancy. Because of the rapid pace of technical developments, organisations have to frequently upgrade.
There is often a problem with "Legacy Systems". These are systems written years ago (as early as the 1960s) as systems for accounting or invoicing, that have been upgraded time and time again. This can make a computer system very fragile. Starting again from scratch would be a good idea but because the system "works" management may be reluctant to provide funds.
It is not always necessary for everyone in an organisation to have their hardware or software upgraded. Different people do different jobs and, therefore, have different needs. Someone who is doing very technical work (e.g. heavy graphics or multimedia work) may need a powerful computer to do his job properly. However, someone who only used the computer for word processing could comfortably make do with a very low spec. machine.
It is impossible to "future proof" the IT system but, generally speaking, organisations should purchase computers more powerful than they currently need. Going for a cheaper option usually means that the hardware will become obsolete more quickly.