Resource Management Process - Information Management

Process Objectives

Provide integrated data processing systems which produce relevant information Timely and accurate information processing and reporting Control the cost of collecting, processing and distributing information Use technology as a competitive advantage in the business

Critical Success Factors (CSF’s)

     A.   Systems provide timely and accurate information (2)
     B.   Purchase and maintain systems at lowest possible cost (3)
     C.   Involve users with acquisition, development and maintenance decisions (4)
     D.   Develop integrated systems that provide cross-functionality and commonality among applications (1)

Key Performance Indicators (KPI’s) Linked to CSF’s

• Information processing cycle time; user information survey results; response time for on-line request (A)
• Information technology costs are percentage of total costs; cost of information technology operations vs outsourcing services (B)
• Number of user complaints/requests for change (C)
• Number of different software packages from different vendors; number of custom programmes vs purchased software (D

Inputs

Strategic plan  Information technology strategy Technology opportunities / constraints

Trade and research materials User groups requests and feedbacks Capital and operating budgets

Regulatory requirements Resource requirements

Activities

Outputs

User training Project status reports User systems and reports

Systems implementation plans Disaster recovery plan Information technology procedures and standards

System development methodology Property Vendor contracts

Systems

General ledger and subsystems Management reporting systems

Tax and regulatory systems Payroll and human resources systems

Core business systems All company software All company databases All company hardware

Classes of Transactions

Routine Information technology related costs Capitalisation of information systems costs

Non-Routine Recurring depreciation

Accounting Estimates Depreciable lives Software development costs

Risks Which Threaten Objectives

     A.   The data processing systems do not provide useful information or lack adequate capacity (1,2,3,4)
     B.   Multiple software packages from different vendors prevent effective integration (1)
     C.   Inadequate training of information technology personnel (2,4)
     D.   Proper priorities not given to projects (2)
     E.   Catastrophes prevent the system from operating as intended (2)
     F.   The system lacks reliability, integrity and/or responsiveness (1,2)
     G.   Selection of a system not compatible with the Company’s needs (1,3)

Management Responses Linked to Risks

• Use of a technology steering committee (including users) to monitor utilization and adequacy of system; system development life cycle methodology that includes users (A,C)
• Review software and hardware purchases to ensure they will support integration (B)
• Information technology costs are compared to industry norm (G)
• Cost justification analysis at project level (D)
• Establish a disaster recovery plan; establish back-up and record retention procedures (E)
• Review of system performance statistics (F)
• Proper planning and assessment of the Company’s IT needs (G

Other Symptoms of Poor Performance

Slow response to information requests Users do not feel involved in development process Many manual processes and/or paper reports No chargebacks to departments for use

System is “down” frequently Systems are too old to support integration High level of information management operating costs Re-keying performed

Limited use of PC-based applications Users maintain own databases (not integrated) Personnel are unproductive due to lack of skills

Performance Improvement Observations

Contingency planning Technology benchmarking

Information technology strategy Package solutions / enterprise package solutions

Information security analysis Outsourcing analysis