Växjö University Informatics/ MSI Program: Master of IS Delivery date 10-1-2008 Course: IW4034 Teacher: Ake Hugoson Final Paper: Strategic Thinking Author: Ahtsham Gul Chughtai

Creating a Good Structure of Information Systems Introduction Information systems deal with the development, use and management of an organization's IT infrastructure. In the post-industrial, information age, the focus of companies has shifted from being product oriented to knowledge oriented, in a sense that market operators today compete on process and innovation rather than product: the emphasis has shifted from the quality and quantity of production, to the production process itself, and the services that accompany the production process. The biggest asset of companies today, is their information, represented in people, experience, know-how, innovations (patents, copyrights, trade secrets), and for a market operator to be able to compete, he/she must have a strong information infrastructure, at the heart of which, lies the information technology infrastructure. Thus, the study of information systems focuses on why and how technology can be put into best use to serve the information flow within an organization Its structure refers to

Repositories, which hold data permanent or temporarily, such as buffers, RAM, hard disks, cache, etc. Interfaces, which exchange information with the non-digital world, such as keyboards, speakers, scanners, printers, etc. Channels, which connect repositories, such as buses, cables, wireless links, etc. A Network is a set of logical or physical channels.

Services, which provide value to users or to other services via messages interchange. Messages, which carries a meaning to users or services.

Table of Contents

Chapter: - 1. Structure Properties 1.1 Simple & Cost-efficient 1.2 Flexibility (changeability, replace ability) 1.3 Short lead time in development 1.4 Step by step implementation and maintenance 1.5 Independence & interaction between systems 1.6 Structure ownership in the enterprise. Chapter: - 2. Business process & Structures 2.1 Structure Impact and reflection 2.2 Business modeling 2.3 Business future 2.4 Responsibility and Interaction 2.5 Business improvement & Independence 2.6 Centralize Vs Decentralize Business 2.7 Business Vs Information Technology Principles 2.8 Business Goal and Structure delineation Chapter: - 3. Structure Trafficking 3.1 Double updating 3.2 Shared data (a common data model) 3.3 Message type Data transfer 3.4 Business based messaging Chapter: - 4. Structure Value 4.1 IT Investments 4.2 Structure Improvements 4.3 Structure Ownership 4.4 Strategic Planning

Chapter: - 1. IS Structure Properties In this chapter we will study about properties of a good structure which can adopt any information system even with extensible and reliable lifetime. All Information systems work in coordinative way to complete some operation of some organization and information system structure have very important role in life of some information system even some few information system very strategically depend on its structure. Structure depend on information system and every information system have different kind of structure and its importance in every information system make its meaning as we can see different types of information system here

1.1

Simple & Cost-efficient

Information structure should be simple for any system to adopt in anyway, like a house plan metaphor that any system should have clear distinction of its out and inner environment. Structure is very essential thing to use and if Structure of some IS system is complex then it will cause many type of problems for its users, further in some business there are many types of people who participate and they don’t understand Technology in its all domains so it is very essential that structure of some system should be very simple and cost efficient even in case of some damage or risk of damage.

1.2

Flexibility (changeability, replace ability)

Structure of some information system is base of some system and if that is not flexible ,change able or replaceable then system can not be improved so flexible structure means it is independent of all its system and can be improved independently should be replaceable . In most information systems we see that we improve them gradually and if information is not enough flexible to let us improve it in parts are iterations and replace its components or parts then its structure is not considered as flexible structure which cause some system to were out very soon because that is not improvable

1.3

Short lead time in oprations

A good system structure is able to support any operation in short lead time and it is only possible if we have clear defined bounds and interfaces of structure , structure can better be explain in terms of messages and responses of service ends. Short lead time is only possible with help of a reliable communication structure on base of which other business services operate and perform business.

1.4

Step by step Control and maintenance

A good structure of some information system is which provide step by step control and maintenance of some system, with a level of security and levelling. A good structure provides a control over certain level of operations through which we can maintain our information system. It is always impossible to improve a complete system and if we have used such structure which is very interdependent then structure cause whole system to fall if one unit of system downs , a structure of information and operations should be managed in such a way that they can be managed and classified in different layers.

1.5

Independence & interaction between systems

Every subsystem is responsible of a complete operation and a complete system is organization of many operations working together if one sub system fail in a system that should not effect other organization and a good structure provide a good way to separate inner and outer organization of some process. In this way we separate inner operations of some subsystem from its outer environment and join it with whole organization through a set of interfaces which provide an independence of some subsystem from its organization and interfaces are also good use to standardise interaction between systems.

1.6

Structure ownership in the enterprise

Ownership is important for to give responsibility of something if some one is responsible of structure then that entity maintain and improve structure and if no body own structure then nobody will motivate enough to change or improve structure , Structures are important and structure involve many subsystems and that’s why is will be wise to give ownership of structure to some entity because then that entity will be responsible to change and manage structure all away. A subsystem change can cause some structure change but structure have too see lot of other things so if structure is own by some entity then only that entity can change structure with a right cause.

Chapter: - 2. Business process & Structures The structure of information systems is and should be non ending, but the structure must develop over time in order to reflect the changing business structure. For a long time business organizations are trying to make better information and this process of information engineering involve technology and information structure so what ever we do with data/information in organization it has some impact in and out of organization and we make our structures in such a way that they can adopted in different models of business because in different times business change tactics to make a strategy for long time which is nature of every business.

2.1 Structure Impact What ever structure some organization fallow it make its delineation and structure makes some business from other same kind of business but with different structures. After having a structure of some organization that makes an impact on business and that impact makes some business popular or also can damage some business. Business impact involve so many things to consider and it also have tangible and intangible assets of business so changing impact of some business is matter of value for both in and out organization, if this impact is in terms of better services and performance then it is fine otherwise same structure can be very damaging for business process.

2.2 Business modeling Systems delineation should be based on responsibilities in the enterprise and responsibilities are pillars which make a model of some business, responsibilities means services inside of some organization and these can be arranged in different structures. A business model, showing the business structure, is needed for suitable systems delineation because if responsibilities are not clearly defined then we will have confusion in making some business model and so the impact of some business will always be confuse.

2.3 Business future The Structure of Information Systems should reflect the future business structure because information is core of formation of some business and we have all data in business in our information system to make important decisions and so we information system structure is very much involve in business future structure. Strategic structuring should consider specified business drivers and business scenarios because good predictable business scenarios give a new outlet and strategic benefit in any business. Structure is matter of strategy and business future is based on strategic structuring.

2.4 Responsibility and Interaction Every organization has many systems and every system is composition of many subsystems which interact with other subsystems every subsystem is responsible of a set of tasks and for to accomplish that task they interact with other systems so every subsystem is independent of its internal operations and its internal structures which make it even better suitable for better structure of some business. Cycle of responsibilities can be changes independent of outer structure of business and further they give us a good outlet to change and improve hard and soft structure of some business.

2.5 Business improvement & Independence Business changes with different things and Information system need to adopt these changes very rapidly, to make your structure of applications reflect your business we need a independence of internal systems from external systems with a defined set of interfaces. The business model shows Areas of Responsibility, (for instance main Business Process) and their interaction if responsibilities are very well defined then there can be improvement in that but if responsibilities are not very good structured then improvement in business process are not easy and effective to make. So an independent system is important for improvements but its improvement also involve interdependence on other systems and there are always a trade-off in these values of business and if one subsystem is improved that not makes any real value if whole process is not improved so parallel communication of organization is more complex to structure.

2.6 Centralize Vs Decentralize Business natures Business involve many type of data and information to process its production and sales and other such natures are more decentralize nature but knowledge management ,accounts and decision making involve data of centralize nature but both have their constrains There are many concerns about these both types of data like security, improvability, accessibility, coast, and delineation of some system. And these concerns make these things more strategic in any structure. Many organizations try to make a central database for every thing which provides a very good security but a big failure for improving some system, both have a set of constraints over accessibility of data sharing and a different structure of communication which further separates strategic importance of some business. Main idea is that information system should reflect business nature and should be flexible enough to adopt new tactics of some business and if business is being more central or decentralize then technology cant make any difference but we will have to use technology structure in our own fashion.

2.7 Business Vs Information Technology Principles Though there are proposals from IT side to run a business because Information technology is made on certain business principles but most of such principles are not complete enough to provide a strategic sight of business. All time we should make our Information system to look like business because it is a strategic factor to manipulate a business, Information system uses a set of technologies to form a business but this system should be in line with business for future uses of system. Business processes are defined by business professionals keeping some particular business strategy in mind where as technology is something generic and can be adopted for any use, although technology support few solutions more then other but technology does not matter, in the end real matter is strategy and its implementation with a compatible structure of business nature which can give a strategic benefit.

2.8 Business Goal and Structure delineation Business is something which can be understood by its organizations and if some organization is fail to understand its own business that means their information system or business is not well structured and delineation is very for some business in terms of structure . If we have Technology with some information system that never means that we have a successful business but a business should be in line with its strategic benefits with a precise degree of delineation to make a strategic advantage. A well structure business always has a defined and understandable degree of delineation which make responsibilities clear to its organization with respect of a tactic in background if there is no tactic or

strategy then business don’t have a goal and is confuse toward its goals so a delineation of soft and hard structure is very strategic thing.

Chapter: - 3. Structure Trafficking A successful business structure always should have a balance traffic of messages in organization and out of organization, every part of system have interface with other parts of organization to operate on some business operations and traffic inside some system is very particular to some relevant operation but traffic out of some subsystem is more about transaction or service of business. Information systems have an infrastructure of communication which also has strategic importance in business; communication is core of some business and its structure in horizontal or parallel is very important

3.1 Double updating In this type of structure information subsystem has its own private data store where they update and put their data and they maintain their own records in their responsibility domains mostly traffic his type of traffic is in an internal structure because this is manual part or complex types of traffic which involve some unmanaged entities and can only be transmitted through documents. Mostly Tele-data or reports are in forms of documents which are first documented and then stored in main business records; this type of traffic is unmanaged but also part of knowledge management and is complex to minimise totally.

This type of traffic structured also used because information structuring is not possible and that can first structure on document and then installed on information system, further instead of making every single bit and peace of information in electronic message which can be expansive and time taking because of available technology structure documents are easy way to minimize traffic on bases of knowledge of business.

3.2 Shared data (a common data model) In this type of structure two or few databases are shared in more then one subsystems of organization so that there could be less anomalies in data because of double updating, in this case one system share its data with other systems for read/write and it is also possible that they have a common data base which is not residing in any of them but separate.

This kind of system structure cause a partial dependency and data which is shared in more then one systems and is less improvable and so system structure also have same constraints. Security of data is also an issue in this type of structure because more then one systems share same data and different operation on same data can cause serious operational problems with undefined responsibility dependencies. 3.3 Message type Data transfer We use electronic messages for information exchange in these situations When information sources are on distance and time is important for information exchange When information can be structured in electronic way and is understand able for other systems in organization When we need to store each and every information and knowledge base of business is mature enough to clearly identify meaning of every knowledge peace or electronic message.

This type of communication structure is only possible in a calculated and very well structured information system with these properties Information system should have defined responsibility level and clear interface structures established in systems where these data transfer messages are about to travel. Organization system has its own data store and free to improve and change its internal data structure but message is part of structure which is mutually decided and changed by all systems which make standers of some electronic message Business systems which is independent in internal operations and have a good reliable communication structure.

3.4 Business based messaging Interaction between business processes and areas of operations is the basis for messaging between information systems which originate some information to exchange or transmit to other systems in business domain. A business model with showing interaction between processes is needed because only with help of this business model we can break communication structure of some business which is base of other information system operations. Responsibility for a business process should involve not only responsibility for information support to that process but also responsibility for interaction with surrounding systems, within the business, customers and suppliers . If electronic messaging is applied for systems interaction, each message should be defined and described without dependencies to data stored in any information system domain but electronic messages are mutually standardise by all participating systems. For each information message, origination of sending and receiving system must agree to the message definition and Meta definition of message and must use same knowledge base for its codification. In a message based structure every system typically interacts with 3-5 other systems and handles up to 10 - 15 different message types. If more, the structure is probably not process oriented and should be reconsidered

Chapter: - 4. Structure Value Business structure has strategic impotence and Structuring is a question of strategic planning but not a part of a system development project.

4.1 IT Investments Value of Information Technology investments are not in terms of money but benefits and value of investments which we get in our business, IT spending should be a part of business development which calls for a business oriented approach All results will occur in the enterprise, there is no value in information or in information systems The three phases where IT economics should be considered In Strategic Planning At Project Initiation, Decision to Invest During the Development Process

In good structures of system we can have good idea that how much we currently have spend on IT and the vale results of some IT investment in its systems and operations and how should we invest in future business plans .

4.2 Structure Improvements Structure improvement is in many companies and organisation carried out through a number of projects most of projects face these problems System structures are not coordinated Project are not aligned with business development Improved Information Technology will not solve these problems but it need improvements in technology structure and a clear consensus on business process without worrying about technology feasibilities. For structure improvements there is a need for improved coordination between business development and IT development because both form a structure and new feasibilities to manage complex structures in manage fashion.

4.3 Structure Ownership Structure ownership has always been undecided in origination and IT management makes this issue more technical then an issue of business, a good business is where IT does not matter and all feasibilities are formed according strategy but not because of available technology. A good structure is always easy for business people to understand and own for its improvements, delineation of structure in terms of technology makes its ownership easy and make its value more strategic.

4.4 Strategic Planning vs. Strategy

Innovation

It is important to differentiate between strategic planning and strategy innovation. Most corporations indeed have defined processes only for carrying out the former, basically studying historical data and making predictions for the future. This method has one big flaw, however, because it relies on the assumption that the future will follow alike the past.

References Langefors, B. (1983) Integrated versus Decentralized Information Resource Management. Research repo. Department of Computer Science, Chalmers University of Technology & University of Gothenburg 1984. Langefors, B. (1984). System development using Prototyping with Dataflex, Research report, Department of Computer Science, 84:03, Chalmers University of Technology & University of Gothenburg 1984. Langefors, B. (1995) Essays on Infology. Lund: Studentlitteratur.