8.1 Information management systems
Every organisation has an approach to managing information. In this topic area we will develop a model for understanding information within the framework of an organisation, the basis for a formal information management system (IMS), and the relationship of IMS to knowledge management.
Figure 1 Dimensions to an organisation
Figure 2 Dimensions to an organisation’s information system
Figure 3 Dimensions to an organisation’s knowledge assets
As the above three figures depict, common elements form the organisation and its knowledge and information systems. What constitutes an organisation also translates into the nature and structure of its information and knowledge systems.
The concept of an Information System (IS) as a managerial issue arises from the need to ensure that information technology (IT) and infrastructure deliver the needs of an organisation within its operational context. Without descending into analysis of the many authors on this topic this element of our study is introducing the concept of information systems as the systematic effort to manage the introduction, employment and adaptation of information technology (including hardware such as computers and software) and infrastructure (such as communication links, networks, facilities and such like), within a given operational environment (such as social or community factors) to attain the current and future purpose of an organisation and its constituent components.
While this unit of study will follow this definitional basis, it does not suggest we are attempting to build a technical analysis. The ability to usefully deploy information technology requires capabilities that are both technical and non-technical. People may posses the technical skills to run advanced technology and networks, but they also require competence in management and other areas to ensure that the organisation’s outcomes are attained. This unit of study will focus less on the hardware, software, protocols, platform and applications that constitute an information system, and focus instead on how IT systems and their management to attain the organisation’s purpose and plans.
Ensuing sections will also form the basis for understanding how information must contribute to the expansion of knowledge assets. Knowledge assets are knowledge that an organisation owns or needs to own in order to enable its operations to generate profits, add value, meet performance targets and sustain a viable strategic purpose.
The aim of this element of our study is to provide a broad foundation for a frontline manager to understand the fundamental structure and source of information and its translation into knowledge. Then we can move on in the ensuing elements to identify how to build the architecture, strategies and plans that enable information to be harnessed by an individual, work group and/or the organisation.
A Management Information System (MIS) is an integrated information system that connects different levels of management and assists decision making. An MIS has traditionally been defined as:
… a system to convert data from internal and external sources into information and then to communicate that information, in an appropriate form, to managers at all levels and all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible (Lucey, 1989: 13).
Management Information Systems (MIS) support a range of management functions including finance, sales, marketing and production. The central function of an MIS is to convert information into contextual and actionable data.
Design considerations for MIS systems should be linked strongly to the ongoing Knowledge Audit process but will involve:
- Users – what levels of management will use the system (e.g the board, department heads, supervisors)?
- Functions – what management functions will be performed (eg marketing, administration, finance)?
- Requirements – technical, financial, research information
- Frequency – how often is the information needed (eg hourly, daily, weekly, monthly)?
- Size of the organisation – ten people to thousands
- Geographic dispersion – local, national, global
- Organisation structure – is the organisation centralised, decentralised or networked?
- Technological change – can the system be upgraded or will it need to be replaced?
- Budget – what is the cost/benefit of the systems available?
Reading 1
Griffith , V. (Fourth Quarter, 1997) ‘Making information technology strategic’, Technology , Issue 9, pp. 80-86. Sourced June 2000, at http://www.strategy-business.com/press/article/13243?pg=0 (NB: you may need to register to access this article).
Activity 1
OK, so this is an old article. Think of a company you are familiar with. Now consider what messages Griffith presented in 1997 that are still being ignored?
Should all businesses leverage off information technology to best achieve their business strategy? Why?
List the ways to integrate IT with business strategy.
Activity 2
- Confirm what type of MIS your organisation or learning provider uses.
- Who has access to it and how does this relate to the organisational structure?
- What effect does this have on decision making within the organisation?
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