Linking Information to Business Strategies and Decision-Making

Linking Information to Business Strategies and Decision-Making

S.C. Lenny Koh (University of Sheffield, UK) and Stuart Maguire (University of Sheffield, UK)
DOI: 10.4018/978-1-60566-424-8.ch002
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Abstract

The ultimate reason why organizations develop information systems is so that their employees can make good decisions. If firms did not make decisions there would be no pressing need to implement systems. We must always make sure that we do not lose sight of this fact. An organization should make it their business to document what decisions are made in the course of their business. It will be very important to prioritise these decisions. Which decisions are crucial to the organization? Do we need up-to-the-minute information before we can make a decision on that issue? What level of accuracy do we need before deciding on that point? i.e. quality assurance.
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Tracing business benefits back to ICT systems can be difficult. But when it comes to professional sports events such as the America’s Cup, the systems used by sailing teams for navigation and diagnostics can make the difference between first place and the long walk home (Interview with Eric Ernst, ICT Manager for America’s Cup Team Victory Challenge, August, 2007).

In essence, the collection of data and information is driven by the necessity of getting an insight from its analysis. The results of analysis are useful in making informed decisions for the purpose of delivering superior products and services, satisfying and locking-in existing customers, and attraction potential ones (Maguire and Suluo, 2007).

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Qualities Of Good Information

  • Accuracy

  • Completeness

  • Relevance

  • Clarity

  • Timeliness

  • Reliability

  • Communicated appropriately

  • Correct Volume

  • Acceptable Cost

Better Information leads to better decision-making. Inaccurate Information leads to ineffective decision-making. The organization’s database or data warehouse must be accurate at all times. The firm must put sufficient resources into this area to ensure the integrity of its data. Making the wrong decisions can be dangerous for the organization and can lead to serious financial losses.A number of criteria put forward by Henry Mintzberg (1974) over thirty years ago are still relevant today:

  • In an ideal management information system (MIS), the rate of information bombarding the manager would be carefully controlled.

  • Concentration on intelligent filtering of information is a key responsibility of the MIS.

  • Careful determination of channels is necessary in MIS design.

  • Stored information must be conveniently available to the manager.

  • The information specialist must be sensitive to the manager's personal and organizational needs.

Decisions are made at different levels within the organization, i.e. Strategic Planning, Management Control & Operational Control. Herbert Simon was right to focus on the different decision-making modes that confront organizations:
  • Strategic Decision Making: Involves establishing objectives for the organization, & outlining long-term plans to meet those objectives;

  • Tactical Decision Making: Concerned with implementing decisions made at strategic level, e.g. allocating resources needed to meet organizational objectives and

  • Operational Decision Making: Involve executing specific tasks to ensure they are carried out efficiently and effectively.

Over the last 40 years, different types of information systems have been developed to try and support the decision-making that takes place at the different levels within the organization:

  • Transaction Processing Systems

  • Management Information Systems

  • Decision Support Systems

  • Executive Information Systems

  • Expert Systems

  • Strategic Information systems

    Figure 1.

Complete Chapter List

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Table of Contents
Foreword
Elias G. Carayannis
Acknowledgment
Chapter 1
S.C. Lenny Koh, Stuart Maguire
The issues that are currently affecting all managers are similar to those facing managers of ICT. The following is a list, though not exhaustive, of... Sample PDF
Review of Current ICT Developments
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Chapter 2
S.C. Lenny Koh, Stuart Maguire
The ultimate reason why organizations develop information systems is so that their employees can make good decisions. If firms did not make... Sample PDF
Linking Information to Business Strategies and Decision-Making
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Chapter 3
S.C. Lenny Koh, Stuart Maguire
The introduction of new IS can often have a significant effect on the business practices within an organization. It is important that a lack of... Sample PDF
Developing and Implementing an ICT Strategy
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Chapter 4
S.C. Lenny Koh, Stuart Maguire
It is important for today’s dynamic organizations to develop a strong and sustainable links with outside organizations and agencies. It may be... Sample PDF
Strategic Alliance Through the Use of ICT
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Chapter 5
S.C. Lenny Koh, Stuart Maguire
Information Systems (IS) has borrowed many techniques from other disciplines. However, many of these have been borrowed from areas where the outcome... Sample PDF
Planning and Managing ICT Change
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Chapter 6
S.C. Lenny Koh, Stuart Maguire
The reason for going ahead with a new information system (IS) development can come from many sources. A new business requirement may force an... Sample PDF
Identifying Opportunities for Using ICT
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Chapter 7
S.C. Lenny Koh, Stuart Maguire
The development of information systems (IS) has for many years been regarded as the domain of the technical expert. In what appears to be a growing... Sample PDF
Introduction to Current Techniques for Effective ICT Development
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Chapter 8
S.C. Lenny Koh, Stuart Maguire
Nearly all information systems developments follow a structured approach. This is true of all projects. This chapter takes a critical look at both... Sample PDF
System Development and Project Management
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Chapter 9
S.C. Lenny Koh, Stuart Maguire
If organizations were good at ICT planning there would not be as many information systems failures. There is a definite need for improved... Sample PDF
Critical Success Factors for ICT Development
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Chapter 10
S.C. Lenny Koh, Stuart Maguire
For many organizations, the implementation of a new information system (IS) may be the biggest capital expenditure they undertake. If substantial... Sample PDF
Impediments to the Successful Implementation of ICT
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Chapter 11
Learning From Failures  (pages 176-206)
S.C. Lenny Koh, Stuart Maguire
Strategic.failures can be defined as failures of achieving the expected benefits from the organizational, size and industrial sectors or countries’... Sample PDF
Learning From Failures
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Chapter 12
S.C. Lenny Koh, Stuart Maguire
The Internet Cultural Era (ICE) has driven many Small and Medium sized Enterprises (SMEs) in the UK and Ghana to adopt ICT technology. This... Sample PDF
Drivers and Barriers for ICT Development
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Chapter 13
S.C. Lenny Koh, Stuart Maguire
Although Boeing and Rolls-Royce are operating in the same aerospace industry sector and use ERP, but the ways that they implemented their systems... Sample PDF
Current Developments and Diffusions in ICT: ERP, SCM, CRM
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Chapter 14
S.C. Lenny Koh, Stuart Maguire
Globalisation, modernisation and streamlining paradigms have driven many enterprises to use various e-Technologies in order to improve the... Sample PDF
E-Technology: E-Business, Intranet, Extranet, Internet
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Chapter 15
Knowledge Management  (pages 285-296)
S.C. Lenny Koh, Stuart Maguire
Knowledge.Management can be defined as the critical issues of organisational adaptation, survival and competence against discontinuous environmental... Sample PDF
Knowledge Management
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Chapter 16
S.C. Lenny Koh, Stuart Maguire
In information terms, security can be defined as the processes of ensuring that private information remains private and uncompromised in an... Sample PDF
Security and Risk Management
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Chapter 17
S.C. Lenny Koh, Stuart Maguire
Commercial airlines face an extremely challenging operating and competitive environment. To remain in business they must comply with ever-changing... Sample PDF
Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines
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Chapter 18
S.C. Lenny Koh, Stuart Maguire
This case describes how banking in India has changed after developments in information technology in the last decade. The new private and foreign... Sample PDF
Competing in the Age of Information Technology in a Developing Economy: Experiences of an Indian Bank
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Chapter 19
S.C. Lenny Koh, Stuart Maguire
The Telecommunications Act of 1996 opened competition in the telecommunications market in the U.S. and forced the incumbent telecommunications... Sample PDF
Developing a Telecommunication Operation Support Systems (OSS): The Impact of a Change in Network Technology
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Chapter 20
S.C. Lenny Koh, Stuart Maguire
Nazar Group of Companies has been a leading producer and distributor of cookies, crackers, cakes, chocolate, and other products in Turkey for more... Sample PDF
Nazar Foods Company: Business Process Redesign Under Supply Chain Management Context
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Chapter 21
S.C. Lenny Koh, Stuart Maguire
The TeleDoc project of Jivan Institute has combined mobile commerce and the ancient concepts of Ayurveda for treatment of rural residents of India... Sample PDF
The Expansion Plan of TeleDoc: What and How Much of the Technology Employed is to Change?
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Chapter 22
S.C. Lenny Koh, Stuart Maguire
E-government is becoming a reality rather than a theoretical ambition; however, achieving the e-government anticipated benefits is still illusive... Sample PDF
Process-Aware E-Government Services Management: Reconciling Citizen Business, and Technology Dynamics
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About the Authors