20 January 2005
There are four simple questions every CEO and CIO should be asking about their information management, yet most don’t. As a result, many Australian businesses are gravely at risk because they may not be fully aware of the information and data issues that compromise the sustainability of their business, according to independent information consultants iFocus Pty Ltd.
Managing vast quantities of information has become critical for large businesses. If their information systems are a mess, then it is not possible for the organisation to run smoothly or service their customers properly, and whether they realize it or not, they are losing money.
Janet Brimson, Head of Knowledge and Learning at iFocus, says that the collection, creation and transformation of information is the backbone of all business activity. Without a detailed awareness of what you are collecting and creating you are unlikely to be able to answer the questions that matter and promote sustainability, business agility and growth.
Enterprise information architecture (EIA) plans for the management of all of an organisation’s information. “Enterprise information architecture projects require a commitment in time and money, but the effects of bad EIA can be potentially crippling in terms of lost hours and profits.
However, Ms Brimson warns that IT has become a major ‘stumbling block’ in the process, as communication between the business and IT has effectively broken down. In many IT departments, staff have fallen into the habit of selling applications on behalf of vendors rather than listening to the needs of the business and the users and finding them a solution that truly aligns to their goals. They can no longer discuss business issues objectively and cloud discussions with jargon and ‘vendor speak’. She cites this as a significant reason why people at the top of big business do not ask the hard questions.
Janet Brimson recommends CEOs and CIOs ask 4 crucial questions:
1. Do we know where our information is?
2. Are we putting our users first?
3. Is our IT spending balanced?
4. Can we see the big picture?
1. Do we know where our information is?
Businesses suffering from multiple divisions, running multiple applications that have developed silo communication structures will answer a resounding no to this question. “Most companies in this situation have no idea where their information is”, she said.
Misplaced information is a problem that can cost millions every year, through time wasted searching for information which often leads to needless re-creation and replication of information.
For instance, it has been estimated than an enterprise with 1,000 knowledge workers loses a minimum of $6 million a year in time spent searching for and not finding the information needed for knowledge workers to pursue their jobs. (IDC)
There are many technological practices that waste money that are not often recognised, according to Ms Brimson. “Some of the lesser known causes are a lack of shared data, no information governance, no metadata, no enterprise data dictionaries or recordkeeping systems”, she said.
2. Are we putting our users first?
When building solid enterprise wide foundations, an organisation must first start with the end user of their systems, whether they are clients, customers or internal business users. Failing to consider the user is a crucial mistake that has a domino effect on the entire business, Mr Brimson claims.
Many businesses have built their IT systems by first implementing their applications and supporting physical infrastructure, while paying scant regard to the suitability of those products to support the end user of their system.
“They find out later that their systems are not right for their organisation, that they are too complex or not targeted enough”, Ms Brimson said.
Businesses need to conduct thorough research on how the user wants to interact with them, according to Ms Brimson. “The current logic needs to be turned on its head, so the starting point is the internal and external customer , with the right infrastructure and applications modeled to support those users' needs”, she said.
The system must have the flexibility to be able to align to the internal processes of an organisation: “This affects the future running of an entire organisation. It’s vital that the business is not trying to fit around a system that does not meet their needs.”
3. Is our IT spending balanced?
When misunderstanding the user, an organisation risks purchasing inappropriate IT infrastructure and applications, which is where they will spend the most money, according to Ms Brimson. “Organisations need to understand and balance their IT spending”, she said.
Enterprise information architecture should be built on sound foundations, and iFocus recommends that organisation’s look to invest at least 10-15% of their total IT budget in the information space.
Traditionally, organisations have spent big on infrastructure and applications with very low spending on strategy and information, yet these two areas are what engage the end user, according to iFocus. “They spend a lot of money on the development of the application , but little on the quality control, management and further use of the information that is entered into the application. They often do not know how people want to interact with the information and what interface will be right for them to support their business process. System logic and human logic are often worlds apart and cause frustration, workarounds and compromise the integrity of the information being captured.”
“At the moment IT departments are generally making the decisions on enterprise systems and information spending, and often they are making the decisions alone, without a big picture view of the company”, she said. “This leads to an unbalanced enterprise spend.”
4. Can we see the big picture?
Good information management relies on the businesses being able to see the big picture of their organisation. When decision makers do not have visibility of the organization as an enterprise, it can lead to business plans and technology that are not aligned, according to Ms Brimson.
“Companies with a shared, holistic view of their business invariably have information management structures that support the business, rather than those that undermine it”, she said.
Getting control of the enterprise picture is essential for an organisation that is considering an overhaul of their EIA. “To be done properly it involves a five year plan with ongoing lower level maintenance”, Ms Brimson said.
iFocus is an information management and eBusiness consultancy that was founded in 2000. The company has been recently ranked 14th in BRW’s Fast 100 list of companies, placing it as the fastest growing company in Australia’s IT professional services sector.
iFocus is an eBusiness and information management consultancy that was founded in 2000. The company has been recently ranked 14th in BRW’s Fast 100 list of companies, placing it as the fastest growing company in Australia’s IT professional services sector.
For further information please contact:
Janet Brimson
Head, iFocus Knowledge
iFocus Pty Ltd
Phone: 07 3226 5542
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