Part One

Information Systems Strategy

We begin our discussion of key aspects of strategic information management by focusing on information systems (IS) strategy, the inner circle of our conceptualization of the term, reproduced below as Figure I.1, and comprising:

• an information strategy

• an information technology (IT) strategy

• an information management strategy, and

• a change management strategy.

Information systems planning, the process by which IS strategies are formulated and/or emerge, is the subject of Part Two.

Figure I.1 The focus of Part One: information systems strategy in context

In our search for articles that focus on these components of IS strategy, it became clear that some aspects of the topic receive more attention than others; that there are various definitions and conceptualizations of strategy relating to information systems; that there is some confusion between the terms information systems strategy and information systems planning; and that there is little to be found on the context of IS strategy. Also, there are very few current articles focusing on IS strategy.* It would seem that IS strategy is now more important than ever, with flexible information infrastructures being a requirement for any organization hoping to grow efficiently and effectively (Ciborra et al., 2000). In this part of the book, we set out to provide greater clarity as to the IS strategy domain, as well as to highlight key features and the results of recent research into the topic. Our overall orientation is to focus on the topic at a fairly general level rather than to look at the specifics, such as management of IS and the IS development process or the changing role and requisite capabilities/skills of IS managers and IS personnel generally. Useful sources of information covering these topics include Avison and Fitzgerald (1995) and Willcocks et al. (1997). Other important topics not covered in any depth here include infrastructural issues; sourcing IS services, and lessons from implementation failures. Useful references here include Gunton (1989), Ciborra et al. (2000), Ward and Griffiths (1996), Kwon and Zmud (1987), Willcocks and Lacity (1997), Lacity and Willcocks (2000), and Sauer (1993).

We commence, in Chapter 2, with a general overview of the topic by reflecting on the so-called ‘stages of growth’ concept as applied to IS/IT, first articulated by Nolan (Gibson and Nolan, 1974; Nolan, 1979), following Greiner's (1972) broader consideration of evolutionary and revolutionary phases of organizational development. The ‘stages’ model has come in for considerable criticism as a means of predicting future developments, its overly narrow technological focus, the original concept's grounding in the database technology of the mid- to late-1970s, and its lack of empirical support (e.g. Benbasat et al., 1984; King and Kraemer, 1984), but its intuitive appeal to both IS and business executives is remarkably robust.

Galliers and Sutherland's original intention was to extend the earlier Nolan frameworks to counter criticisms of their narrow, and dated, technological orientation, by focusing on a broader set of strategic, organizational and managerial issues, as well as those related to IS per se. Their work was informed by the so-called ‘Seven-S’ concept popularized by McKinsey & Co., with a view to providing a closer ‘fit’ between IS and the business, and by a range of ‘stages’ models that had been developed during the latter half of the 1980s (including, e.g. Earl, 1986 and Hirschheim et al., 1988). Experiences of applying the framework in many organizations since its original development give credence to the earlier claim regarding its robustness, in terms of its general applicability and time independence. Note, however, that the authors would not wish to claim that the framework represents reality; rather, it can be used to considerable effect in raising questions and awareness regarding key IS strategy and IS management issues across a range of stakeholders. The sociologist, Karl Weick, tells a story of a detachment of the Italian army lost in a blizzard in the Alps. After a period of uncertainty and no small amount of fear for their safety, and with no apparent means of knowing which route to take to get back to base camp, an old rumpled map is found at the bottom of someone's rucksack. A route is determined, and the group regain base camp with much relief. It is only under the brighter camplight that they realize the map is of the Pyrenees – not the Alps! Galliers and Sutherland's framework should be interpreted with this story in mind: it does not pretend to represent reality, but provides a means (a map) of obtaining some shared understanding as to what the key issues might be, and what might need to be done to move ahead. Further reading on applications of the framework may be found in Galliers (1991) and Galliers et al. (1994), for example.

Chapter 3, by Smits, van der Poel and Ribbers, is the closest we found to an article representing our view of information strategy, as depicted in Figure I.1. Our intention was to include a chapter which focused attention on the strategic information required to enable the implementation of business strategy, and which would provide strategists with information that would enable the questioning of assumptions on which that strategy was based. This would include information from the business and technological environment, and feedback information concerned with the impact (both intended and unintended) of the strategy once implemented.

Smits and colleagues describe the information strategies of three major insurance companies in the Netherlands. The chapter includes reflections on the various stakeholders involved in the IS process, and on aligning IT to business goals and processes. A major finding, contrary to the above comment regarding necessary feedback information (and in our experience common to most organizations), was that none of the companies studied assess the effects of their information strategies at an organization-wide or business process level, and certainly not over time.

Chapter 4, by Karimi and Konsynski, focus attention on alternative structures associated with different global strategies and consider the need to align the information technology departmental structure with these alternatives in mind. Useful illustrations are given from various, very different, parts of the world including, for example, Finland and Singapore, as well as North America. Key issues associated with, for example, different regulatory environments and transborder data flows are highlighted. A key point that this chapter makes relates to the kind of relationship that should exist between considerations of organizational form and IT infrastructure, highlighted in the innermost circle of our conceptualization of strategic information management in Figure I.1. For further reading on transnational organizations and associated strategic management issues see, for example, Ohmae (1989).

In Chapter 5, we turn to the topic of managing change – a key feature in any IS strategy, as in any other strategy process (see, for example, Whittington, 1993). While strategy formulation (or formation) is one thing, implementation is quite another matter, suggest Markus and Benjamin! The authors focus on the role of IS professionals in the change process, their motivation being to ‘stimulate IS specialists’ efforts to become more effective – and more credible – agents of organizational change’. They describe – and critique – what they believe to be a commonly-held view of this role on the part of IS professionals, namely one which is embedded in technological determinism: a belief in ‘the ability of technology (versus people) to cause change’.* Referring to the organizational design† literature, they propose two alternative models that might be more appropriate, and more successful, in the light of the rapidly changing nature and impact of modern IT: the ‘facilitator’ model and the ‘advocate’ model. As a result they propose new skills and career paths for IS personnel and IT managers, a revised research agenda for IS academics, and reform of IS educational curricula‡ to take account of the ‘softer’ skills necessary for the changed conditions pertaining in the late 1990s and into the twenty-first-century.

Chapter 5 brings Part One of the book, dealing with IS strategy, to a close. We trust that our treatment of this aspect of strategic information management has demonstrated just what a diverse and important topic this is – i.e. that it is much more broadly based than commonly assumed, often with the focus being little more than on information technology issues. Part Two then focuses on information systems planning, the means by which this more broadly based strategy may be developed.

References

Avison, D. and Fitzgerald, G. (1995) Information Systems Development: Methodologies, Techniques and Tools, 2nd edn, McGraw-Hill, London.

Benbasat, I., Dexter, A., Drury, D. and Goldstein, R. (1984) A critique of the stage hypothesis: theory and empirical evidence. Communications of the ACM, 27(5), May, 476–485.

Buckingham, R. A., Hirschheim, R. A., Land, F. F. and Tully, C. J. (eds) Information Systems Education: Recommendations and Implementation, Cambridge University Press on behalf of the British Computer Society, Cambridge.

Ciborra, C.U. and Associates (2000) From Control to Drift: The Dynamics of Corporate Information Infrastructures, Oxford University Press, Oxford.

Cummings, T. G. and Huse E. F. (1989) Organization Development and Change, 4th edn, West Publishing, St Paul, MN.

Currie, W. I. and Galliers, R. D. (eds) (1999) Rethinking Management Information Systems, Oxford University Press, Oxford.

Davenport, T. (1996) Why reengineering failed. The fact that forgot people. Fast Company, Premier Issue, 70–74.

Earl, M. J. (1986) Information systems strategy formulation. In (1987), Critical Issues in Information Systems Research (eds R. J. Boland and R. A. Hirschheim, Wiley, Chichester. 157–178.

Earl, M. J. (1999) Strategy-making in the Information Age. In W. I. Currie and R. D. Galliers (eds), op. cit., 161–174.

Galliers, R. D. (1991) Strategic information systems planning: myths, realities and guidelines for successful implementation, European Journal of Information Systems, 1(1), 55–64.

Galliers, R. D., Pattison, E. M. and Reponen, T. (1994) Strategic information systems planning workshops: lessons from three cases. International Journal of Information Management, 14, 51–66.

Gibson, R. and Nolan, D. (1974) Managing the four stages of EDP growth. Harvard Business Review, 52(1), January–February.

Greiner, L. E. (1972) Evolution and revolution as organizations grow. Harvard Business Review, 50(4), July–August.

Gunton, T. (1989) Infrastructure: Building a Framework for Corporate Information Handling, Prentice Hall, New York.

Hirschheim, R. A., Earl, M. J., Feeny, D. and Lockett, M. (1988) An exploration into the management of the information systems function: key issues and an evolutionary model. Proceedings: Information Technology Management for Productivity and Strategic Advantage, IFIP TC8 Open Conference, Singapore, March.

Kanter, R. M., Stein, B. A. and Jick, T. D. (1992) The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It, Free Press, New York.

King, J. and Kraemer, K. (1984) Evolution and organizational information systems: an assessment of Nolan's stage model. Communications of the ACM, 27(5), May.

Kwon, T. H. and Zmud, R. W. (1987) Unifying the fragmented models of information systems implementation. In R. J. Boland and R. A. Hirschheim (eds), (1987), op cit., 227–251.

Lacity, M. C. and Willcocks, L. P. (2000) Global IT Outsourcing, Wiley, Chichester.

Nolan, R. (1979) Managing the crises in data processing. Harvard Business Review, 57(2), March–April.

Ohmae, K. (1989) The global logic of strategic alliances, Harvard Business Review, 70(2), March–April, 143–154.

Rogers, E. M. (1995) Diffusion of Innovations, 4th edn, Free Press, New York.

Sauer, C. (1993) Why Information Systems Fail: A Case Study Approach, Alfred Waller, Henley-on-Thames.

Schwarz, R. M. (1994) The Skilled Facilitator: Practical Wisdom for Developing Effective Groups, Jossey-Bass, San Francisco, CA.

Ward, J., Griffiths, P. (1997) Strategic Planning for Information Systems, 2nd edn, Wiley, Chichester.

Whittington, R. (1993) What is Strategy? – And Does It Matter? Routledge, London.

Willcocks, L. P., Feeny, D. and Islei, G. (1997) Managing IT as a Strategic Resource, McGraw-Hill, London.

Willcocks, L. P. and Lacity, M. C. (1997) Strategic Sourcing of Information Systems: Perspectives and Practices, Wiley, Chichester.

* But see Earl (1999).

* A point taken up by Davenport (1996) in his critique of applications of the BPR concept (see also Chapter 14).

† See, for example, Cummings and Huse (1989), Schwarz (1994), Kanter et al. (1992) and Rogers (1995).

‡ Earlier calls for a more broadly based approach to IS education can be found in Buckingham et al. (1987).