Strategic

Planning
for Information
Third
Systems
Edition

CHAPTER 10
John Ward and Joe
Peppard Strategies for
Information
Management: Towards
Knowledge Management

Oleh: Edi Surya Negara

1
 Outlines
• Information as an asset
• Information culture
• Implementing business-wide information
management
• The practice of managing the information
asset
• Policies and implementation issues

2
Information As An Asset

3
 Aims of the Information
Management Strategy
• To ensure that the organization obtains
the greatest possible value from its
information resource
• To enable its cost-effective management
and protection

4
 Information Management
• Information management embodies policies,
organizational provisions, and a comprehensive
set of activities associated with developing and
managing the information resource.
• Its effectiveness relies on implementing coherent
policies that aim to provide relevant information
of sufficient quality, accuracy and timeliness at
an appropriate cost, together with access
facilities suited to the needs of authorized users.

5
 Cont…
• It must be recognized that much of the
information used by employees in a business is
not automated, and while some information can
be tightly managed, users will gather information
from informal as well as formal sources.
• This informal information cannot be managed in
the same regulated way
• Organizations have to promote appropriate
behaviors among employees regarding
information.

6
 Information as an Asset:
Poor Quality Information
• Many managers are unaware of the quality of
information they use and often mistakenly assume that
b/c it is ‘on the computer’ that it is accurate.
• At an operational level, poor information leads directly to
customer dissatisfaction and increased cost. Costs are
increased as time and other resources are spent
detecting and correcting errors.
• Poor information quality can result in subtle and indirect
effects.
• Inaccurate information makes just-in-time manufacturing
and self-managed work teams infeasible. The right
information needs to be at the right place at the right
time.
• Poor information in financial and other management
system mean that managers cannot effectively
implement business strategies. 7
 Information as an Asset:
Obstacles
• Information resides in multiple electronic
‘libraries’ and proprietary databases and on
multiple technical platforms, which are not well
integrated or easily accessible.
• Some information is computer-based and well
structured, stored in centrally managed
databases and applications; some is less
structured and stored in many independent and
dispersed PCs or on corporate Intranets; and
there is still a huge volume of unstructured and
non-automated or unrecorded information.
8
 Cont…
• Information is created for different purposes by different
people at different times and based in different
definitions, resulting in many conflicts and
inconsistencies.
• There is both a backlog in meeting information
requirements and legacy systems, requiring integration
with newly developed and packaged applications.
• Complex information exchanges exist across
organizational boundaries, comprising a mixture of
electronic, paper-based and verbal communication.
• Addressing issues relating to information and its
management is not a task that can be abdicated outside
managerial ranks or delegated to the IS function.

9
The Senior Management Agenda
• The board should satisfy itself that its own
business is conducted so that:
– The information it use is necessary and
sufficient for its purpose
– It is aware of and properly advised on the
information aspects of all the subjects on its
agenda
– Its use of information, collectively and
individually, complies with applicable laws,
regulations and recognized ethical standards
10
 Cont…
• The board should determine the organization’s
policy for information assets and identify how
compliance with that policy will be measured and
reviewed, including:
– The identification of information assets and the
classification into those of value and importance that
merit special attention and those that do not
– The quality and quantity of information for effective
operation, ensuring that, at every level, the
information provided is necessary and sufficient,
timely reliable and consistent
– The proper use of information in accordance with
applicable legal, regulatory, operational and ethical
standards, and the roles and responsibilities for the
creation, safekeeping, access, change and
destruction to information
11
 Cont…
– The capability, suitability and training of people to
safeguard and enhance information assets
– The protection of information from theft, loss,
unauthorized access, abuse and misuse, including
information that is the property of others
– The harnessing of information assets and their proper
use for the maximum benefits of the organization,
including legally protecting, licensing, reusing,
combining, re-presenting, publishing and destroying
– The strategy for information systems, including those
using computers and electronic communications, and
the implication of that strategy with particular
reference to the costs, benefits and risks arising.
12
An Information Culture

13
 An Information Culture
• An information culture can be defined as
the values, attitudes and behaviours that
influence the way employees at all levels
in the organization sense, collect,
organize, process, communicate and use
information

14
4 Common Information Culture:
• Functional culture – managers use information
as a means of exercising influence or power
over others
• Sharing culture – managers and employees trust
each other to use information to improve their
performance
• Enquiring culture – managers and employees
search for better information to understand the
future and ways of changing what they do to
align themselves with future trends/directions
• Discovery culture – managers and employees
are open to new insights about crisis and radical
changes and seek ways to create competitive
opportunities.
15
 Information Culture: Davenport
• Effective information management must
begin by thinking about how people use
information – not with how people use
machines.
• Changing a company’s information culture
requires altering the basic behaviours,
attitudes, values, management
expectations and incentives that relate to
information.

16
Information Culture: Strassmann
• He see information management seeking
to answer the same questions as those
raised in politics.
• Information management is the process by
which those who set policy guide those
who follow policy.
• ‘where control over information changes
the alignment of power, information politics
appears.
17
 Information Culture: Marchand
• Information orientation represent a
measure of how effectively a company
manages and use information

18
 Information Orientation
• Information technology practices – a company’s
capability effectively to manage IT applications
and infrastructure to support operations,
business processes, innovation and managerial
decision making
• Information management practices – a
company’s capability to manage information
effectively over the life cycle of information use.
• Information behaviours and values – a
company’s capability to instil and promote
behaviours and values in its people for effective
use of information. 19
 Information Orientation
IT practices
· IT for operational support
· IT for business process support
· IT for innovation support
· IT for management support

Information management practices

· Sensing information
· Collecting information
Information orientation
· Organizing information
· Processing information
· Maintaining information

Information behaviours practices

· Information integrity
· Information formality
· Information control
· Information sharing
· Information transparency
· Information proactiveness 20
Implementing Business-Wide
Information Management

21
 Implementing Business-Wide
Information Management
• Promoting the management of information as a
corporate resource does not imply building an
all-embracing corporate database but does
support information independence.
• True information independence is achieved
when there is no relationship b/w how or where
information is stored and how it is accessed and
applied by different users.
• It should be possible to vary requirements w/o
impacting the storage structure or efficiency of
information access.
• It should be possible to restructure databases
form time to time, w/o interfering with access
demands 22
Establishing the Scope and Purpose of
Information Management: Questions
• What is the extent of information that the business is
interested in?
• Why does it need the information, and what beneficial
impact can be ensured?
• How much of it resides in centrally managed computer
systems, dispersed departmental or individual PCs, in
paper-based forms or in people’s heads?
• How much of it is new or external information, currently
not collected?
• What information is strategic and linked to strategic
applications?
• What high potential information is likely to become
strategic?
….
…. 23
 A framework for Implementing
Information Management
• A set of objectives and policies for effective
information management
• A program for introducing information
management to meet the objectives
• The creation and maintenance of the information
architecture and business or enterprise model
• What information services should be provided,
and how to organize to offer them in the most
effective way
• What implementation issues exist, and how to
tackle them.

24
 Objectives of Information
Management
• The main objective is to satisfy the demand for
information, and thus deliver value to the
business.
• Value is delivered through:
– Enabling the business to make the right decisions
– Improving the effectiveness of processed and their
outcomes
– Providing timely and focused performance information
– The preservation of organizational memory
– Improving the productivity and effectiveness of
managers and staff.
25
 Cont…
• Further objectives
– Quality
– Cost
– Accessibility
– Safety
– stability

26
Delivering Value to the Business
Value/Importance defined by
Types of
Price paid or Impact of theft, Potential to
information asset
potentially paid damage or loss, increase revenue
(IPR) less costs major errors or reduce costs
Market & customer
information
Product
information
Specialist
knowledge
Business process
information
Mgt. information
and plans
Human resource
information
Supplier
information
Accountable 27
information
Value of Information to the Business
High STRATEGIC HIGH POTENTIAL

Potential value to
Critical to business
Value
business may be
and of greatest
of
high, but not
information Potential value
confirmed
to

Future
Essential for Needed for

strategy core processes and supporting business,

value enhanced by but little

Horizontal integration strategic value

Low KEY OPERATIONAL SUPPORT

High Low
28
Value of information to current strategy
 Value of Information:
Strategic Information
• Typical strategic information requirements
– Access to new information about markets, customers,
competitors, suppliers or other external bodies to
improve competitiveness.
– Establishment of electronic links with external bodies,
to speed up and improve communications, and to lock
in trading partners
– Access to external information
– Restructured existing information in order to meet the
CSFs of business or its external partners
– Capability to integrate and utilize multimedia data

29
 Cont…
– Very fast access to integrated information
– Access and filtering mechanisms for
unstructured information to satisfy executive
information needs relating to critical business
issues.
– Performance measures to monitor progress
on strategic factors
– Modelling data to perform ‘what if’ analysis on
critical business issues
– Better information about staff to enable more
effective use of the human resource 30
Responses to Meet the Strategic
Information Requirement
• Implementation of newly developed or
purchased applications to satisfy new
information requirements that cannot be met
from existing applications.
• Substantial initiatives to enable information to be
shared in a controlled manner across existing,
newly developed and packaged applications,
and to be able to ‘switch in’ and ‘switch out’
application with minimum disruption and risk.

31
 Cont…
• Short-term interim solutions, depending on
providing access to ‘locked-in’ information.
Appropriate tools are required to deliver
information to business users or enable them to
extract it themselves.
• Development of an enterprise model to facilitate
decision making such as:
– Top-level business decision consistent with the
‘declared’ IS strategy
– Process redesign proposals or new development
proposals resulting from the IS strategy.

32
 Value of Information:
High Potential Information
• High potential information is generally new
information with unproven value to the business.
• Its sources, structures and relationships may not
be fully understood.
• Their information requirements must be
confirmed in terms of defining the best way of
satisfying business needs.
• The essence of operating in this quadrant is in
rapid evaluation of a prototype application or
information acquisition, processing or
dissemination technology.
33
 Cont…
• Single-user systems need not necessarily be
subject to corporate information administration,
as long as the reliance placed on their
information is not greater than its integrity
warrants.
• It may be possibility of exploiting latent
information that is the driving forces in exploring
a high-potential opportunity
• Other high potential activity could be the trail of
some new technology that relates to information
management like desktop videoconferencing.
34
 Value of Information:
Key Operational
• The largest volume of information is probably
associated with the key operational systems,
integral to core operational processes and
essential for their effective day-to-day running.
• Requirements:
– Enhancing value through integration across
applications and process
– Enabling rapid and consistent communication
• Opportunities:
– To improve business productivity and remove
duplication and risk of misinformation
35
 Value of Information:
Support
• It is not likely to contain much latent value.
• It may even be a burden on the organization
when it is constrained by legislation or bound by
corporate instructions to supply or store
information, w/o any business benefit being
recognized.
• Effort expended on information management or
integration should be kept to a minimum,
consistent only with efficiency and necessity.
• There is no assumption that information must be
stored and transmitted via computer and
communications technology
36
 Cont…
• It may be transmitted verbally as with face-
to-face conversations, or in hard-copy
paper form in books, journals, directories,
instruction leaflets, etc.
• Emerging electronic information transfer
media such as videoconferencing,
groupware, Intranet and Internet may be
introduced to improve the richness of the
interchange.

37
 Making the Most of Current
Systems
• It is important to consider how to obtain the maximum
contribution from the information in current systems and
those still under development.
• If multiple versions of key subject databases such as
‘customer’, ‘product’ or ‘order’ exist, then it is not easy
task to rationalize the various versions and header still to
integrate them with any newly defined database.
• Until unique versions of subject databases, or identically
maintained versions, are available, managing information
globally implies managing the differences b/w actual
database versions and consistent data dictionary
definitions.

38
 Cont…
• It is essential to evaluate the contribution of
information in existing systems, with reference to
business information needs
• The evaluation purposes:
– Documentation of the information structure and
processes, and system linkages, which helps in
plotting the migration path to the desired systems and
information architecture
– Recognition of whether current systems are able to
provide information to satisfy business needs, either
directly or after enhancement.
– Identification of information that can be usefully
transferred to an intermediate base of consolidated
information for subsequent accessing 39
 Cont…
• Some CASE tools can provide reverse
engineering facilities that can backward-
track and document components of
existing systems, capturing data
definitions, data flows and data and
process models.

40
 Provision of a Stable Integrated
Information Framework
• To provide a stable information base, there are
strong arguments for it being integrated, at least
throughout the core business processes.
• It is expected that there will continue to be a
steady increase in the number of knowledge
workers, and growth in the volume and
complexity of internal and external information
needed to meet a variety of demands.
• All users can then look at the same of
consistently related models, with the same
meanings and definitions and, by and large, the
same or copied occurrences of information. 41
 Cont…
• Demands for information
– Exchange of information with trading partners
– Support within decision-making processes
– Ad-hoc end-user enquiries
– Boardroom strategy and planning systems
– Creating new knowledge by combining
specialist information
– Obtaining BI through the Internet and external
databases.
42
 Cont…
• Benefits
– Business better equipped with information to
respond as necessary
– Direct savings achieved in the long run
– Intraorganizational and interorganizational
cooperation improved by making information
available across boundaries to a broad
community of authorized users
– Support for managing business in a more
integrated way.
43
 Rapid Response to Dynamic
Business Needs
• The information framework should facilitate a
swift response to an unexpected business need
• The ability to satisfy unexpected needs can best
be provided if consideration is given to them
during the processes of information planning.
• Applying informed second-guessing, potential
information needs and their sources,
relationships and flows can be built into the
initial information architecture.

44
 Cont…
• Determining how best to implement the
conceptual architecture is part of the process to
look toward future business needs before
embarking on what could be very extensive
development or redevelopment of systems and
information structures
• Benefits:
– Identify and exploit an opportunity
– Identify and counter an unexpected competitive action
– Build pre-emptive defence against possible
competitive threats
– Supply information to assess a business risk or the
probability of its occurrence.
45
Improved Efficiency and Effectiveness
of Information Processes: Factors
• Initially, increased investment is required to
create an appropriate integrated infrastructure of
‘managed’ information.
• Critical information is consistent across the
business and not plagued by incompatibility
problems.
• If a well-constructed data dictionary is employed,
fewer information related program errors are
incurred.
• High-level languages, associated with advanced
and reliable DBMS, reduce programming effort
considerbly
46
Improved Efficiency and Effectiveness
of Information Processes
• It could be worthwhile seeking out long-standing
culprits in the form of obsolete information or
unmatched needs and supply:
– Archived information held longer than needed.
– Information disseminated when it is no longer needed.
– Useful information available, but not used.
– Inefficient methods of capture, manipulation, storage
or distribution.
– Duplication in several activities – capture, storage,
transmission.

47
Improved Efficiency and Effectiveness
of Information Processes
• Multiple databases can demonstrate a
number of differences.
• In the worst cases, they imply polarization,
mistrust, and a widespread lack of
confidence in combining and sharing
information.
• In these cases, the task is more than one
of information management
• It requires major cultural change
48
The Practice of Managing
the Information Asset

49
 The Practice of Managing the
Information Asset
• The practice of managing the information
asset is often called information asset
management (IAM) or information
resource management or corporate data
management.
• IMA seeks to build up the information
assets of an organization at an acceptable
cost, so that they can be employed to
deliver value to the business

50
 IMA and Its Constituents
• IMA is a holistic approach to the management of the
information assets of an organization. The emphasis is
on integral, efficient and economic management of all
the organization’s information. It means getting the right
information to the right people at the right time.
• Data (information) administration is the identification and
classification of business information and associated
requirements, development of procedures and guidelines
for identifying and defining business data (information)
• Data dictionary administration entails describing and
cataloguing the information available

51
 IMA and Its Constituents
• Database administration involves design and
development of a database environment for
recording and maintaining data, development of
procedures and control to ensure correct usage
and privacy of data, operational timing,
monitoring and housekeeping
• Information-access services ensure provision of
support services and hardware and software to
enable end-users to locate, access, correctly
interpret and, where appropriate, manipulate the
information available
52
 Provisions of IAM
• Principles and guidelines
• Policies and procedures
• A business encyclopaedia
• An enterprise model
• Multimedia information
• Services, methods and tools
• Services to deliver information to users
• Mechanisms for enabling information sharing
• Skills, competencies and knowledge
53
 Principles and Guidelines for
IAM
• Determining the cost VS. value of providing information
• Defining standards of information quality, accuracy,
security and timeliness
• Responsibilities and allocation of ownership
• Satisfying the individual’s need for information
• Sources and types of information to be created for
• What levels and forms of information should be provides
• How to determine the scope and methods for key
practices
• Principles relating to making the user community aware
of the scope of IAM, and how to optimize their use of
information.
• What constitutes an issue that needs to be resolved, and
the means to do so.
54
Determining the Right Scope & Structure
of Information to be Managed & Modelled
• The total information environment does
not stop at an organization’s boundaries.
• It extends into the external environment,
inhabited by customers, buyers,
competitors and other organizations and
influences.

55
 Information Environments
Paper
records Private
records
Management
Personal information
databases External
Operational
databases information

Official
information
records

Unrecorded

Total Automated Possible

information environment scope of
environment managed 56
information
Determining the Right Scope & Structure
of Information to be Managed & Modelled
• Centralization or decentralization of
decision making?
• Steering mechanism?
• Location of applications and resources?

Chapter 8

57
Determining the Right Scope & Structure
of Information to be Managed & Modelled
• Only certain parts of the architecture may be
analyzed, but piece by piece the information
relevant to the business’s key processes will be
added until an information blueprint is complete
to an appropriate level.
• This is likely to be a continuous process, and it
will never be static, as new information is taken
into the managed resource and perhaps other
information is excluded as not having current
significance.
58
 Cont…
• There is no suggestion that the information in
the business environment should be stored in a
single comprehensive database.
• It is almost certain that there will be a number of
separate database in use.
• Every attempt should be made to retain
consistency of definitions across all databases
and to confine the entry of information so that it
is only input once.

59
 Information Sharing
• Information sharing means that only one
copy of a piece of information is held and
that all authorized users have access to it.
• This is very difficult to accomplish b/c the
same information is often used by several
legacy applications, each with their own
databases, and by installed packaged
applications.

60
Information Sharing Possibilities
• Single vendor solutions
• Point-to-point integration
• Data access
• Integration using middleware

61
Information Sharing Possibilities:
Single Vendor Solutions
• This approach has the great advantage that all
functionality comes already integrated, but it is a
feasible solution only if the organization is willing
to lock into a single vendor and is also willing to
sacrifice the existing applications.
• This may be successful when requirements are
relatively uniform and it meets information
management and information-sharing
requirements internally.

62
Information Sharing Possibilities:
Single Vendor Solutions
• Drawbacks:
– Except the simplest, not single vendor solution will
meet all requirements, and the shortfalls have to be
procured from other vendors and then integrated with
the main applications
– Having to replace existing applications may produce a
poor on investment for those applications, plus the
high cost of new software and training costs
– The chosen solution may not be a good fit for all
SBUs it is implemented across the whole organization
– There is a higher risk in depending on a single
vendor, who may also charge higher-than-average
rates for support and development of the applications.
63
Information Sharing Possibilities:
Point-to-Point Integration
• Tight connections are built b/w applications that
need to share data in an integrated environment.
• This approach is evolutionary, and is relatively
easy and low cost if only a small number of
connections need to be made.
• If numbers of applications, OS, DBMSs or
interfaces are significant, and changes happen
frequently, then it is both costly and high risk.
• Changing , upgrading or adding an application,
or making changes to the application and
network configuration, can produce risk of failure
at any point in the business. 64
Information Sharing Possibilities:
Data Access
• Data access means providing data access
to users across the business regardless of
the location of the users or the source of
the information.
• Its main focus is the provision of an
information library or warehouse,
refreshed with operational data on a
regular basis, from operational systems, to
perform limited integration and analysis
functions.
65
Information Sharing Possibilities:
Integration Using Middleware
• Middleware is software implemented in a
distributed environment that enable applications
to ‘talk’ to one another and exchange
information.
• The middleware controls the synchronization
and transmission of information b/w applications.
• The concept of enterprise architecture
integration (EAI) is often encountered in relation
to application integration.

66
 Cont…
• Preparation for information sharing entails:
– Determining the business needs and benefits
– Defining the technical requirements and the
practicalities of the provision
– Describing the information to be shared and the
community of authorized users
– Defining the interworking requirements across the
applications
– Deciding how to overcome barriers brought about by
differences in management style and local values and
culture within an organization
– Resolving issues of interdepartmental or company
rivalry
67
Activities of IAM

68
 Activities of IAM
• Data (Information) Administration Tasks
– Information planning
– Identifying business information requirements
– Setting information definition standards and
procedures
– Managing the corporate information models
– Coordinating the solving of information-related
problems
– Communicating with the business
– Establishing and implementing process, activity and
information analysis at a higher level than system
level

69
 Activities of IAM
• Data Dictionary Administration Tasks
– Providing an authoritative source of information to
users and IS/IT groups on information
– Evaluating, selecting and implementing data
dictionary management software
– Setting up and coordinating the data dictionary
contents
– Establishing standards and procedures
– Working with information administration and with
development and database administration

70
 Activities of IAM
• Database Administration Tasks
– Undertaking design, development, implementation
and operational tasks
– Setting technical standards, procedures and
guidelines
– Evaluating and selecting database management
software
– Monitoring and controlling
– Protecting the integrity of the environment and
investigating security problems
– Undertaking periodic reorganization and restructuring,
performance monitoring and turning
71
 Activities of IAM
– Performing any necessary housekeeping
tasks
– Working closely with data administration and
data dictionary administration
– Keeping abreast of database technology
– Working with systems development
– Working in package selection teams

72
 Activities of IAM
• Information Access Tasks
– Formulating, implementing and monitoring
policies and procedures
– Promoting benefits of information
management
– Ensuring that high-quality information is
available and accessible
– Providing tools and techniques

73
Developing the Enterprise Model
Architecture Model
Business Model
Business process model Business data model

Process/Entity
matrix

R
C

IS model
Entity life history

IS process model
IS/Entity
App 1 matrix

R
IS data model
App 2
C

App 2
IS functional App 1
model
App 1 App 2

74
 Developing the Enterprise
Model: Purposes
• Providing a coherent picture of the business,
independent of physical structures, as a communications
and planning tool
• Identifying major streamlining opportunities to the
processes, w/o having to consider organizational factors
• Seeking innovative opportunities
• Defining the most suitable applications and information
architecture
• Defining the information entities
• As a benchmarking tool in the evaluation and selection
of large business software packages

75
Policies and Implementation
Issues

76
 Policies and Implementation
Issues
• Extent of the ‘managed’ information
• Organizational responsibility of IAM
• Authority and responsibility for information
• Information security
• Implementation issues

77
Policies and Implementation Issues:
Extent of the ‘Managed’ Information
• Strategic and key operational applications- user
information
• High potential and support- personal information.
• Over time, the personal information may move
into a managed status.
• Sometime managed information becomes
‘unmanaged’ after it is extracted from the
managed environment=> when applications
move from key operational to support segments,
where information may be manipulated in non
standard ways
78
 Cont…
• The challenge is
– clarifying the definition of each information
element,
– ensuring that it fits consistently in the relevant
models and
– recoding the details in the data dictionary
• There is a cost associated with managing
information and this needs to be justified
and then committed to.

79
 Policies and Implementation Issues:
Organizational Responsibility for IAM
• Responsibility for coordinating IAM activities in
most instances needs to be centralized, but
certain elements may delegated to one or more
business areas.
• If the corporate body has a significant say in
SBU IS/IT policy, and if any attempt is made to
standardize systems and information
architectures across the company, then central
coordination is probably desirable.

80
 Cont…
• Organizational factors
– Skilled specialists may be needed to set up
and implement IAM and to train the in-house
staff in the skills required.
– Other specialists may be needed to create the
distributed and integrated environment
– Because it may be a continuous process,
sufficient resources must be allocated.
– There is no one organizational structure that
is universally appropriate.
81
Policies and Implementation Issues:
Authority and Responsibility for
Information
• Criteria for determining ownership and the
responsibilities associated with this for
acquiring, storing, maintaining and
disposing must be decided.
• Standards for maintaining quality, privacy,
consistency and integrity, and for providing
the required level of security, must also be
determined, and responsibility assigned
appropriately.

82
Policies and Implementation Issues:
Information Security
• Measures to protect information should be
implemented where they are necessary
and can be shown to be effective.
• Barriers can be designed and built into
hardware and software.
• These can be supplemented by audit and
other security and other security
monitoring procedures.
83
 Information Assets: Common
Areas of Risk and Protection
Level if risk defined by:
Areas of risk
Impact on Context: who, Comments on
Likelihood to
organizational where, when, protection
happen
performance how
Accidental damange/loss Tech. procedures
(e.g. corruption/deletion Back-up
from computer) Education

Deliberate acts of theft, Security procedures

or abuse/misuse Infringement penalities

Contractual terms
Loss of people
Registration

Inaccurate and untimely Validation procedures

information Education

External relations Trading security

(e.g. customer/supplier Contractual terms

IPR protection, sale and Contractual terms

acquisition Registration

Physical security
Destruction of facilities Contingency planning

Education
Legal and accountability 84
Protection of assets
Policies and Implementation Issues:
Implementation Issues
• Bridging the gap b/w ‘top-down’-defined
databases and existing databases, and
the resulting need to ‘manage’ or reconcile
the differences.
• Managing expectations- need to be pulled
together under the business expectations
of improving business performance over a
long period through optimal exploitation of
IS/IT.

85
 Cont…
• Other issues
– Time and cost.
– Changes to business requirements may impact plans
while information planning and implementation is
under way.
– Systems developed while IAM is being implemented
take longer and cost more, due to the inevitable
learning curve and to increased upfront analysis
effort.
– Removal of local autonomy when information is
allocated ‘managed’ status.
– New skills are needed that are sometimes not easily
acquired by existing staff.
86
Managing Knowledge
Resources

87
Managing Knowledge Resources
• Knowledge is information that has been given
meaning.
• Knowledge is information that has been
interpreted by individuals and given a context.
• Knowledge is the result of a dynamic human
process, in which humans justify personal
information produced or sustain beliefs as part
of an aspiration for the truth
• The interpretation of information a person
receives is relative to what he or she already
known.

88
 The Concept of Knowledge
Management
• If knowledge is information combined with
experience, context, interpretation and
reflection, the use of the term KM, suggesting
that knowledge can be managed, is to
misunderstand the nature of knowledge.
• There is a suggestion that only the ‘context’ and
conditions surrounding knowledge can be
managed.
• Some practitioners suggest that knowledge
sharing is a better description, while others
prefer ‘learning’, as a key challenge in
implementing KM is sense-making and
interpretation.
89
 Cont…
• Knowledge belongs to each of the experts
and exists as discrete packages within that
expert domain.
• Formal attempts are made to retain the
knowledge that is diffused within the
working team of how to integrate the
contributions of several experts in order to
make a success.

90
 The DIKAR Model
(Data, Information, Knowledge, Action, Results)

• The DIKAR is a model that helps locate

packages knowledge and diffuse knowledge
within a business-related context.
IS
view

DATA INFORMATION KNOWLEDGE ACTIONS RESULTS

Business
view

91
 Cont…
• The knowledge of each expert can be
thought of as a knowledge package. Some
of it even being capable of being codified.
• The knowledge of acting together so as to
create a new capability will be more
diffuse and will reside within the team and
will be much harder to document let alone
codify

92
 Cont…
• Linkages represent the activities by which the
value is increased, typically including
procedures, systems, processes, organizational
structures, administration, skills.
• left-to-right (the data end) =>defined procedures
and the extensive application of technology for
data processing and the provision of information
to the business=> understanding how business
id actually done

93
 Cont…
• RAID direction, a number of questions are
posed:
– Given desired results what actions are
needed?
– Given a set of actions what do we need to
know to perform the actions?
– What information and data are required in
order that we are in a knowledgeable position
to design and affect action
94
 Cont…
• Capabilities that distinguish company from
existing or potential competitors will arise only if
the management is competent in ways of
integrating resources in new added-value ways.
• When designing processes that include the
sharing and transfer of knowledge either
explicitly or implicitly, the configuration of roles in
the process should guide the strategy for
information provision.

95
 Types of Knowledge &
Associated KM Issues
Knowledge as body of Knowledge as know- Knowledge as know-how:
information how: The Individual The Team
Nature of · Explicit · Tacit · Tacit
Knowledge · Codifiable · Personal · Fluid
· IS/IT can play a part · Diffuse · Dependent on team
· Packaged dynamics
· Diffuse

KM issues · Finding it · Establishing suitable · Formal mgt. of essentially

· Validation processes for free-form activity
· Value assessment extraction · Establishing suitable
· Obtaining it at · Tight ownership frameworks and processes
reasonable cost · Reluctant to impart · Members’ own perception
· Integration with own · Motivation and reward of their role
system · Experiential, thus hard · Mutual trust- need 100%
· Making available to to encode buy-in
the right population in · Trust · Formal learning
the right form · Finding suitable way of mechanisms
· Sensible uses of passing on learning · Dissemination
technology · Limited role for · Creating and using
· Ensuring subsequent technology knowledge repositories
beneficial use · Technology has a
96
background role
 Common KM Issues
• Knowledge about knowledge (knowing it
exists and where: its context and hence its
importance)
• Understanding the relevant business
context
• Ownership and buy-in to KM processes
• Updating and reuse of knowledge
• Demonstrating causal link b/w KM activity
and business benefit
97
 The Role of IT in KM:
2 Views of KM
• Engineering perspective
– Views KM as a technology process
– Knowledge can be codified and stored -
explicit knowledge
• Social process perspective
– Tacit knowledge
– It transfer b/w people=> costly and uncertain
– Technology can only support the context of
knowledge work

98
 Mapping Knowledge
Perspectives on DIKAR Model

Data Information Knowledge Action Results

· Codified and stored knowledge · Knowledge in people’s heads

· Managing ‘pieces of intelectual · Managing people and communities
capital’ (knowledge objects) · Flows of knowledge
· Reusing existing explicit · Creating new knowledge
knowledge components
Tacit knowledge
Tacit knowledge
Knowledge management as a
Knowledge management as a
social process
technology process

99
Content and Interaction in KM
Tacit/
Rich
Virtual working Brainstorming
using session of R&D
desktop project members
videoconferencing

Sales force
using Presenting a
networked business plan
PDAs

Explicit/
Lean

Mode of interaction

Reliance on
Reliance on people
100
technology
 Knowledge has to be Managed
• Leadership by example from the top
• Reward structures need to be visibly
• Need to have a senior executive overview
or policy on what KM is and what it means
for the business and how it is linked to
business drivers and plans

101
 Obstacles for Effective KM
People Management Structure Knowledge

· Inertia to change · The fear of giving · Inflexible · Extracting

· Too busy- no time up power company knowledge
to learn · The difficulties structures · Categorizing
· No discipline to of passing on · Fragmented knowledge
act power organizations · Rewarding
· Lack of · Challenging · Functional silos knowledge
motivation traditional · Failure to invest · Understanding
· Constant staff company style in past systems knowledge mgt.
turnover · Imposed · Sharing between
· Transferring constraints key knowledge
knowledge to new · Lack of groups
people understanding · Making knowledge
· Teaching older about formal widely available
employees new approaches
ideas 102
 The Information Portfolio
New STRATEGIC HIGH POTENTIAL
information
Enable business thrusts Support business
with fast and flexible ventures and bring
response, rooted in information into
information architecture managed environment
when appropriate

(central planning) (leading edge/

free market)

Balance need for Provide information and

integration across linkage when necessary.
business processes Minimize effort on
against risk of non- integration
integration
(scare resource/
(monopoly)
free market)
Current
information KEY OPERATIONAL SUPPORT

Integration Independence 103