I I

~--------------------------__;_~~~~
Information Resources Management

"'1'"DQDUCTI0N
JNl~
1'be study of managing information and .its allied components is referred to as
; ~tion resource management ORM). I t ~ a broad perspecti\·e on information, its
.,. _and its unpact on the goals and the m1SS1on of the organisation. Various entities
~ influence, and are influenced by, information, such as people, policies, procedures,
;1tludS, and internal and external business entities, must collaborare for JRM to be
ia.iire. Following are the three perceptions that are shaping the way IRM is viewed by
&?,Oigililisation.
1. Information technology is growing and changing rapidly. Expectations as to what
information systems can do for an organisation have increased considerably in the
last few years.
2. Top management is dissatisfied, increasingly, with the poor returns and
inadequate performance of information systems. As corporate resources become
tighter, there is increased pres.5ure to put existing resources to better use.
3. Information systems are no longer regarded as just an operatio~al tool. Managers
realise that if utilised creatively, IS can provide a strategic advantage that
competitors find hard to overcome.

Personnel -

Collect

Store ProceSS

e-
unicatio
Databases

nents of IRNI
Fig. 14.1 Coil'\Po
217
 Management \nfol'll\ .
• •
ce man agement refers to pohc1es P i\\1()1'\
. ~- r~~ -
21s -aance, infom1ation resogeura\l components of an organisation th=-ttir\ci?\~ -~
In e::,..,"'
~ ~ ures that effectiv . J
• elv 1nana .
·nate information. IRM can
be d efined
. as" ' CCll\ ~t. • ~"'
pn,1.=• d d1ssenn ' . . f • f the_ •~"l
pro::-ess
- ' retrieve, . nising, th inf11. mg oti lI\ orm.ation
. fm g, trairu·n g, andb contra
an di.rec . sy-s~ ?\~ ,
budgeting, orga . Th tenn encompasses . o orma -on and its res t\'\s a,u.
lements. fe nds and rechno logy. , It 1s . a mult'd• . Ourr-..
- ,~. s,,~~1<..'II
1e . _ 1 1sc1p\inan,
~ - ..1
associau,"-'
11 u ,
equipment, . f th . . - 1 app~
r ked to the overa m ission and objectives o e organ1satton and Pet'n\eates "11
personne , Q\ tj
mthe org,
of o-anisation's culture.. . '"-l ~St.,._'
"~
. 14 1 shov,•s some infom,abon-related components that must b
F,gu~ ·These include software, hardware, databases, u,ieco~- e
orgarusation.
ti -""\lr\ica.li ''l ll\G
""""il'" ·
·on intelligent systems, management structures, IS personnel d ()l\s tii,:,"
automa •., . . . ' an. end- ,
An IRM model is presented m Fig. 14.2. It provides the setting for di .
information officer's (GO) responsibility for managing information tedin""~g th,¾
shows the CIO as a member of the executive committee and as the man° ogy. u,,""',
firm's main functional areas - information services. •ger of on,~ ,
14.2. PRINCIPLES OF IRM 1

The organisations successful in using information, information sys!

mation technologies follow well-,,stablished policies and Principles. In en,,'. 'lid
organisations share the following four principles :
°'
particular,~.::
I. The IS department should be managed like any other department f th .
2. • • .
The mam purpose of information systems is to help the organisatio 0 ebus~
..
and objectives. 11 meet1ts ~0
3. !RM is the responsibility of all managers, regardless of their distipline/1,«it
4. The commitment of the top management is the key to realising the lull ~
of information resources.
14.3. IRM OBJECTIVES

Organisations need !RM so that they can be effective in managing toor

information, knowledge, information systems, and information technology. 11,, ,
basically four main objectives of IRM. These are :
1. Utilisation of information resources effectively to achieve the overall go.i~L~
mission of the organisation.
2. .
Monitoring inventory, document and other resources that create, proc ·'
and disseminate information. . ,,
3. Develop a model of the enterprise from an information
, vie:" . m00
· point
improve communications, both within and outside the orgarusation.re,,.iil!
Aims to eliminate redundancy of information and increase the
4. .
information already present within the organisation. because dt'\' 1•

Without IRM objectives and policies, decisions are of poor qbualityuse il\fort\ ,•
makers do not get the right information at the ng . ht time or ·ewecaof infor'.1111111~,~1:;
undervalued in the organisation. Employees may h ave a narrow tvi the use f 1n l ··
O
top management may have little or no comnu.tment to promoanisation-
e Qthei 1
systems and technologies to achieve the· overall goals of the org
 ources Management
' '219 ,'
~ ainformation mismanagement, acquiring technology for technology's sake, ~bsoles-
~1udehos til e relations between
. the IS department and end-users' and projects with cost
,iflce, and missed deadmes. .
~-erruns

The environment of the firm

Environmental influences

The firm's executives

00
Other executives

Internal influences
Firm's strategic plan

Functional areas

Information
services

EJ Human
resources I
Mmm~mg I[ ~,~mg J
--------.Strategic plan for information resourcres_ _ _ _ _-./

Disbursed
computing
resources

Data and information

Users
engaged in Other users
end-USer computing
I

l1_4-~ .2 An IRM Model

p·1g.14

!Ji Cl'ION AL COMPONENTS OF IRM .

sn0111 ecoinp , information resources function are
l\ in F·1 onent activities that make up the overa 11 f llows·
g· 14 ·3• The three general componen ts are as o ·
 Management Inform .
220 . In , traditional information
. system enviro"1nent . S' -
1. °"'' synonymou, with
areProcessmg. . data processing.
. In organisations
.
• a11on
Whe,'e lrlf,
Ill( ...,
resources b de, clu,te,, data processmg continues \o play a s· .. ,.._,
terns have a roa . . f' . l~fic on
sys . o production' systeltts o~t e.
Development of mai·or applications, ongomg1 operations
of the coq,oralepact
rompute,s)"" database ' and
of data cost .conrro over tnaJor system °'P<nditu<e, (n,,·
prncessmg. • "¾,101.,
p,,.._

Data Processing ........,~~::=-=.::..:::..::_::._- ---- Computer Operations

Application Development

Technical Services
Corporate Database
Telecommunications ... ~~;=:::==:__-;;. Data Conununications
Voice Conununications
local Area Networks
Office Automation <~::::::----- ExternaJ. Data Sel'Vi.ces
Word Processing

Intelligent Workstations
Fig. 14.3 Functional Components of IRM
2. Telecomm.unkations..Ttaditi-Uy'.data commw,jcations have been the"'""""
of data p<ocessmg operation,, While vmce communications were as,;igned elsewhe" •
advances in communication technology (aheady discUSsed in an ea,lie, chapter)""
coq,o,ate-wide \el«otnmunications capabilities that integrate voice and dat, ,_
cations. applications.a,e also an integ,a1 component of both dat, p,oc.,.;g,
Data communications
office automation

3. Office automation. The component typically began as the Wo,d p,ocessmg•

unde, the <esponsibility of office •dminisrrato,s. Intelligent wo,kstatio,s (disrus,,I•;
ea,fier chapter) integrate Won! p<ocessing with data processing and freqoeody" '.
access to the CO<porate database. Local a,ea networks and Wide"" commoru "
key components
processing fo, integrating office ·automation functions and prnviding"""
facilities. ·cab011> 1·
10

14.S. ORGANISATiON OF INFORMATION RESOURCES FUNCTION . f nr,~(

There are a number of alternatives in centralisation vs. decentrarisa ti. dfiQ{Ul
indepenM
O I
;
systems function b«anse cenbcalisation or d ecentrnl"' on . , 0 Ii~,- ,
to the functions Within infonnation systems, system . ti can be app1ie
ope,~tions, :paece~,I
st'''
development, and overall planning and control. Also, centrahsatioln g contifluu~
1
••°".
should not be considered absolute alternatives but extreme P
. oints a on
highly cenrralised <esources to highly d«entrnlised.
14.S,l, Fact,,. fo, Centtallsed vs. Decent,, >Se d to p~fe< •,~
r d C Ontrol of Inform ation I hl'r, ~·f
Many °'ganisationa1 units requiring infonna
. tion resources ten . }-lo' i
. decent"lis'""·
resources directly under their control, thus encouragmg \is•~·
a,e uther fact,,. favouring a cenrra1,se<1
.
au th on·ty · . ted to d~•ntr~
Factors for decentralised control. Following
of information resources: . factors attr1bu
r--
~'" ·Jab1hty
Management
,alion A . • of low-cost technology
. k
· .
?21

/ AvaJ<l1
0
of development wor
00
aac over operations
/ contro1
/ user . tional behaviour
/
orgarusa gi·cal value o f unuse d informahon.
Psycho1o
' Jnforma tion is often collected
. and ·communicated to persuade.
: Information use is a symbol of commitment to rational choice.
f ctors for centralised control. Following factors attributed to centralised control of
i "on resources:
\lllJ\au •
·_ Staff professionalism
_ Corporate database control
_ Technical competence and research
_ Comparative cost advantag~.

~l Other Organisational Forms for Information Systems

The organisational forms (functional, product, ·and matrix) are also applicable to the
p ation of information resources. Each of these forms may be implemented in a
m !ralised environment; modified forms may be approp,riate in a decentralised environ-
~!, depending on the size of each organisatiqna,l set\ip. Nonetheless, there can be
1110
us combinations of centralisation or decentralisation.
~.l. Distributed System Operations
5 st
~ Yem operations, there are three element~ t?at may be centralised or decentralised.
are : hardware location,
•,iijcontrol · processing control,
· and location oif data.
. For hardware
. location
j,,1
&uydecentr 'a number
li d of alternatives
. exists. These
· are presented m approxunate order from
·
a se to highly centralised:
I. Distrib . .
uted computer hardware with no central control over configurations and no
, c~l!Un.unications.
" Dtstr·b1 .
lions uted computer hardware with central con~ol over eqmpment configura-
3. Distr~butect . · ti" tw k f ·
4 between hard computer hardware with cornmuruca· ons· ne . or or communicating
· Distrib Ware at different locations.
larg . Uted
5, D· e Jobs. computer hardware for local. •processing and a central computer for
tstribut d k
6 centr 1 e
a corn computer hardware with cornmunic.a tions
t networ controlled by a
· C:en\...,.1, Puter that allocates J·obs to l9cal compu ers.
7 •r"llSed · · f · /
· C:entr . computer hardware with remote job entry stations or input output.
8, e)(i>,,. _alisect computer h ar d ware w1"th remote terminal access to specify jobs to be
C: -.. uted.
1
A-~~ •
iloi~'8efloth.e r hti_ect computer h ard ware. WI"th remote terminal access . .
only
/dfor mput/output.
. .
0
_ •r~l;
1•~1.. ! Q.. ,., Portant -a
••« a spect o f system opera ti" ons' for centralisation · · ecentra
f 11sation
• is
~ "" I~ 1 ccess to d . . t a number of alternatives or achieving
1
·•11-t a sf0 ata. Agam there eXIS s . d
<llised to rage
c and control.
. 'These are a1so presented in approxunate or er -from
entralised:
 Management lnforn, . . . ,
~t11:i11
. files, and there is no interchat\ ~Y~t~,
222 1 . tributed computer has ,ts own g• \ .•r' .'
. Each dis
ntrol- uter has •. ts own files, but there are oroa,,_
"~""aij ·
co . tributed com~ ·ty checks, etc. l:ll\,\·; I
Each dis · g mtegn b th d t ,,,
2. 51andards .onted
Each distnbu
nanun '
computer h as •.ts own files, ut e a a can be ace ess.o b) ~'
3. computers- I controlled network of distributed files and datab I
There is a central Y local computer; and data records are tra,.filses. A~
4. database is assigned
d dto a
uters as nee e . .
. -:'"' •rr.o ,,,
ii, ~
\
1
· a centra database with subfiles downloaded to l0ca1 co""p
15
comp
• "' ui.,
s. use;
There
file changes
and transaction data are sent to the central con,Put sfor Ir..
er for%,
of the database. I,
6_ A central computer has all files and databases.
ultimate decentralisation is for each user to have a tnicr0compui
The individual users require data developed
However, f by transaction Processing."',,_"',...,,.
1o
m:;y be downloaded from the computer used or transaction proCessing.
14.5.4. Distributed System Development

System development is achieved by centralisation-decentralisation of its , h .

through the orgarusationa
. . pp ca~
11o_ca.tion of.systems ana1ysts and prograIIuners or othercor.
mechanisms. In general, systems analysts/programmers Within the org::in;"ati
design .applications and interact with operating personnel mu~ better than 'JI'<
analysts from outside. In such a case, managers tend to be more responsive lo inlnrn.,
-- .,
processing. lhe advantages are reduction in communication difficulties between I'!'
phases. Having a user as a member of the project team is commonly suggested""
to increase user input and user responsibility for the final product.

Another common mechanism for maintaining a centralised development group~

improving responsiireness to user needs is the role of a user liaison. A P'"" ,t
position typically reports to a centralised function having responsibility to the lllllf
·1o, which he/she is responsible. The ieverse is also possible. The user liais"1 :
important task is translation and communication of user requests into data P"'1;
Specifications and of ditta processing 'jargon' into terms understillldable to u,,
1
14,6. APPLICATION OF SCARCE INF6RMATION SYSTEM RESOURCES ,
An unportant
. d . of scarce resources. In Parti~
.tnanagement task is the allocation ofdl'•,:
are more emands for information resources than can be prov, e . pr¢'
'd d incaseoI .:
systems. This Will often be a part of the information system plaruun!
allocation often takes place outside of formal planning.

14.6,1. Centralised vs. Decentralised Resource Allocation . tl ,w•',1

. The centralised
. approach to resource allocation 1s . inf ...,,atio 0 ;rr:
. to assign
Th aoor body. The tentraJ person can for example, be the • e
chi f Ou.-,I<' •Uil',ir
person 11 0
11 ·
e has a brO,\d information resources
' view and may there are
be able to 01 111a
improve overall organisational inf<ll'lllation resources. However,
r ~0sourc
es Management
. . •.
110cations and coalitions of mana . .
.

/. 5iich a c o. The centralised approach ?ers W~thin the organisation may not be
1
. 223

l-~.A bYthe tion systems. Usets·are not is consistent wi'th a service · / prof'it centre
JP-1r I•dofllla . permitted to tu
tage of this approach is that it f . .
• •
. rn to outside services. e
Th
10
,1.i adva~ ment of information syst acib~ate_s integration and an overall
. f 0[ de"e op all MIS master plan em_applications; it also facilitates close
l an over .
·.Jtice to . e approach is to provide users with th .
. f' a\tefllatIV back.system that mak . e basis for making such decisions.
lJ1 a charge , es users responsibl f th . inf .
'. ieliuifes rder to serve decentralised 1 . e or . eir own ormation
. F costs• lrl of ll wing characteristi . p an.rung and control, a chargeback system
. ,: the o o . cs . .
J have dability- Users should be able t0 .
1
understan · associate costs with specific activities.
pe
'eontrollability-Charges should under the conrol of the user.
' Aceountab'lity-
1
·
Costs and utilisation of inf
·
• · .
ormation system costs should be a factor
·
' . user employee performance evaluation. · '
. .
r,r,/·11,,,mefit incidence
, l)J' '""" .
- • The user receiving. the bi'll for services
· sh.ould also receive
· the
l,e!lefits of those services. · .·
However, different goals ?f cha~geback system may be in conflict and cannot be met
,~same method.~ k~~pmg with the ~rofit centre strategy, all decisions regarding
~ development•pnonties are decentralised to users, and they have responsibility for
t ~ jUS!ifying their decision to management. . ·
l One disadvantage of the profit centre approach is the difficulty ,of accommodating it
'. 11 corporate database or corporate telecommunications. requirements. In fact, the
: r;elopmentof.non-integrated divisional databases should be expecte9-. In,addition, it is
t iult to reconcile user-controlled decisions to an information system master plan.
, mllr, users must_b~ considerably sophisticated about information systems in order to
Blllllinetheir own information system Tleeds and evaluate ·competitive alternatives for
, !!!m\gthem.
' U.MANAGEMENT OF INFORMATION SYSTEMS PERSONNEL .
)

1 .Based on the growth rate in data processing and inf6rmation systems jobs, one of the
~!
difficult responsibilities of information srstems ~anagers has been _to attract and
~ competent employees. While some 'bf the work o;f -~ystems _professi_ona~s may ~e
~ gto users, recruiting and retention !Jf technicall~ trained ei:nployees is ~till a ma!or
1¾agement task Fo· .• •. t of information systems ·per.sonnel, different Job
~itio . r ma}lagemen , _ . . .. . • • • •

e ns, ~ange of skills, training, aptitude reqwred, motivati~n of information systems

1

~ el, career path planning, and job design must be considered. . · .

11

~· MANAGEMENT o.FEND-USE~ ·coMPUTING ·; . .

, The trend t . t a significant shift to decentralisation of
•Jorina · o end-user computing represen s · b hi hl .
J 1.. · tion syst . ·. ., · ·J ation of end-user computing can e g Y
~ tralised ems resources. The orgarus 'bilities can . be allocate~ to fit the
)· '!¾isation or _somewhat , centr~sed. Respo:~ :. ~f ~llocation~ of responsibility and
it ~&iotih, ( al ~hilosophy. Following are examp . h t centralised): .
1I 'J ran1nn fr li
1, T\.. o .....g. om,.l:)ighly decentra s
ed to somew a · · ·
-" ' · rdination or control.
"\.'Centralised . .
. end-user compu g
tin' with no centr~1 coo
.
. .
 •• •- .. -~"'" '"'Ill lnforrna_tion . "1111

ting with centralised responsibility ~,

224 tralised end-user collmpution, and enforcement of standards ~!Ot Cl\· .
2
·
[)eCell
anni:Jlg, rnajor
resource a. lists
oca may also be centr~.
.... 1:~--1 •
-.. liClt\~ .
pl . O f technical speaa .
trainillg , _r. rrrtation centre that provides analysts Wh
Operation of an uuo O go to
3
· n,e ·th them. '¾, I
work wi _ f ntralised infom1ation centre to Which users
. 0 ration o ace coll\e
4. The ~ . and assistance.
for trauung · f -~
. . of a centralised information centre or end-USers in .
The operation ... l COn)Un
5. lised computer and centralised databases. Access to th fa cti0ii 'tN ,
a centra
m,orma
. r. tion centre and the data b ases o f the central cornputeer Ciliti. es Of"-~ui ,
centralised standards and procedures. 15 su~ect t ,

Three organisational issues important in the context of end-user

isational policy and procedures for acquisition and use of microcomputer computing~
organ
pporl · .
and the organisatzon . .
of the znformahon centre. s, end-User '
SU , 1 •

14.9. A PROACTIVE CIO STRATEGY

In most firms, the CIO can exert much influence over his/her futu b ·
.
strategy that IS followed. The CIO can face the challenges head-on and re a5et:1
. on ~
. ,
information support by following a strategy that consists of the follou .... g provide qll~,L
.. u,thee1ements
I. Emphasize quality management of infonnation resources by identifying uali : . '
of both external and internal information users. The external usersqexis~-~ :
environment of the firm in the form of the firm's customers, suppliers, stockho]:
etc. The internal users consist of both management and non-management persm .
within the firm. 1

2. Achieve strong user ties by ensuring that IS objectives are compatible with lml'< J
users, and applications of strategic value to the firm receive the highest qub
support, and emphasizing joint application development.
3. Strengthen executive ties by becoming expert in the business of the firm and prorit!
information support for the firn1's executives. · ,. ,
4. Assemble an IS management team that has the teclmical and managena· l co1nf,1h1"~'
11
'·

necessary to integrate information resources m . user areas so that t1e\1·

smooth functioning network. . . top~; 1
11

5. Assemble competent IS staff in leading-edge technologies and metlwdollo~e~ i

user support superior to that which can be obtame • d anywhere e 5 •c10 -.~~11,.
6. Build an information services information system th a t enables t1,e l riv
. distribute<
management to manage information . resources in a dynamic,
ment.