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Residency Assignment – ITS831
Course
ITS831 Information Technology Importance in Strategic
Planning
Deliverable
Your team will conduct a literature review in Information
Technology Strategic Planning.
You can also conduct a literature review on Strategy and how it
is applied to an Information Technology organization.
You are to review the literature on Information Technology
Strategic Planning and discuss problems and gaps that have
been identified in the literature. You will expand on the issue
and how researchers have attempted to examine that issue by
collecting data – you are NOT collecting data, just reporting on
how researchers did their collection.
As you read the literature, it will become apparent that there are
multiple issues, pick one issue that stands out in the literature
and agree on that as a Team to address that.
Format
Cover:
Include the names of those who participated in the project
Table of contents:
Use a Microsoft Enabled Table of Contents feature.
Background:
Describe the issue, discuss the problem, and elaborate on any
previous attempts to examine that issue.
Research Questions:
In your identified problem area that you are discussing, what
were the research questions that were asked?
Methodology:
What approach did the researcher use, qualitative, quantitative,
survey, case study? Describe the population that was chosen.
Data Analysis:
What were some of the findings, for example, if there were any
hypotheses asked, were they supported?
Conclusions:
What was the conclusion of any data collections, e.g., were
research questions answered, were hypotheses supported?
Discussion:
Here you can expand on the research and what the big picture
means, how do the results found in the literature review help
organizations in the Information Technology strategy planning.
What do you see as long-term impacts and what further research
could be done in the field?
References:
Include at least ten scholarly references in APA format.
Sunday
PowerPoint
Presentation
Your presentation will have a slide that addresses each
· Cover
· Topic
· Background of the problem
· Research Questions (if any)
· Methodology
· Data Analysis
· Conclusion
· Discussion
· References
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O rd er N u m b er 9505519
In fo r m a tio n resource s tr a te g y d evelopm ent for t h e h
igh -p erform an ce
o r g a n iz a tio n
Storti, Peter A., Ph.D.
The University of Texas at Arlington, 1994
C o p y r ig h t © 1 9 9 4 b y S t o r t i , P e t e r A . A l l
rig h ts re s e rv e d .
U-M-I
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INFORMATION RESOURCE STRATEGY DEVELOPMENT
FOR THE HIGH
PERFORMANCE ORGANIZATION
T he members of the Committee approve the doctoral
dissertation o f Peter A. Storti
D .H . Liles
Supervising Professor
G .T . Stevens, Jr.
J .W . Priest
J.L. Guynes
K.J. Rogers
Dean of the Graduate School
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reproduction prohibited without permission.
Copyright © by Peter A Storti 1994
All Rights Reserved
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reproduction prohibited without permission.
This work is dedicated to my wife, Tina. Without her love and
support I could not
have stayed the course.
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reproduction prohibited without permission.
INFORMATION RESOURCE STRATEGY DEVELOPMENT
FOR THE HIGH
PERFORMANCE ORGANIZATION
BY
PETER A. STORTI
Presented to the faculty of the Graduate School of
The University of Texas at Arlington in Partial Fulfillment
of the Requirements
for the Degree of
DOCTOR OF PHILOSOPHY
THE UNIVERSITY OF TEXAS AT ARLINGTON
May 1994
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reproduction prohibited without permission.
ACKNOWLEDGEMENTS
This dissertation would not have been completed without the
support and guidance of my
advisor Dr. Don Liles and the other committee members who
gave of their time and themselves.
Additionally, it may never have been started if it were not for
the inspiration provided by many
teachers and professors throughout my education. I would like
to thank them individually and the
teaching profession as a whole.
March 17,1994
v
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ABSTRACT
INFORMATION RESOURCE STRATEGY DEVELOPMENT
FOR THE HIGH
PERFORMANCE ORGANIZATION
Publication N o .__________
Peter A Storti, Ph.D.
The University of Texas at Arlington, 1994
Supervising Professor: D.H. Liles
The high performance organization of the nineties will need to
effectively utilize its infor-
mation resources. Developing the information resource strategy
for each enterprise is a critical
task.
America's executives are extensively involved in their firm's
capital planning cycle and
frequently, must approve even minor expenditures. In contrast,
information is not treated as a
critical resource. Most information is controlled locally, and the
decisions regarding its collection
and use are made at the department or individual level. Very
few executives would consider
telling a salesperson, "You made the sale; you decide what to do
with the money." Yet this is
what is done with the information an enterprise generates.
W e will look at the elements that are critical to the success of
a comprehensive information
resource strategy. Quality Function Deployment (Q FD ) is used
to support development and align
the information resource strategy with the business vision and
organizational structure.
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TABLE OF CONTENTS
Page
A C K N O W LED G EM EN
TS..........................................................................................
........................ v
A B S T R A C T
...............................................................................................
..........................................vi
LIST O F
ILLUSTRATIONS...................................................................
............................................ ix
LIST O F T A B L E S
...............................................................................................
................................ X
LIST O F A B BR EVIA TIO
NS..........................................................................................
....................xi
1. IN T R O D U C T IO N
...............................................................................................
............................. 1
1.1. Summary of
Problem..................................................................................
..................... 1
1.2. Statement of
Work......................................................................................
..................... 4
1.2.1. Objective of
Research.................................................................................
......4
1.2.2.
Deliverables............................................................................
............................ 5
1.3. Summary of
Results....................................................................................
..................... 6
2. Literature
Review................................................................................... .
........................................ 8
2.1. Quality Function
Deployment.............................................................................
.......... 11
2.2. Changing Manufacturing
Organizations......................................................................
13
2.2.1. Electronic Data M anagem
ent........................................................................ 13
2.2.2.
Teams.....................................................................................
........................... 14
2.2.3.
Structure/Strategy....................................................................
........................17
2.2.4.
Computerization......................................................................
......................... 18
2 .3. Information Importance in an
Enterprise.....................................................................19
2.3.1. Competitive
Advantage...............................................................................
... 20
2.3.2. The Future of
Manufacturing.........................................................................
23
2.3.3. Impact of
technology..............................................................................
......... 24
2.4. Interrelationship of Organization and
Information..................................................... 27
2.4.1. Theoretical
Relationship............................................................................
..... 28
2.4.2. New
Roles......................................................................................
................... 31
2.4.3. Enterprise
Optimization...........................................................................
....... 32
3. Methodology
Development...........................................................................
.............................. 35
3.1. Preliminary
Methodology...........................................................................
.................... 35
3.1.1. Q F D
............................................................................. ..................
.................... 35
3.1.2.
Catalogs..................................................................................
...........................35
3.1.3.
Process......................................................................... ..........
...........................36
3.2. Text
Studies....................................................................................
................................ 36
3.2.1. The Effective Executive by Peter
Drucker................................................... 37
3.2.2. Thriving on Chaos by Tom
Peters..................................................................39
3.3. Interim
Catalogs..................................................................................
............................45
3.3.1. Assessment
Questions................................................................................
... 45
3.3.2. Customer
Requirements..........................................................................
....... 46
3.3.3. Technical
Specifications..........................................................................
....... 48
vii
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3.4. Case
Study......................................................................................
...............................49
3.4.1. Customer/User Team Identification
(A1)..................................................... 50
3.4.2. Customer Requirements Development (A 2
).............................................. 51
3.4.3. Technical Specification Development
(A6)..................................................54
3.4.4. Information Resource Strategy Analysis (A 9
)............................................. 57
3.5.
Retrospect...............................................................................
.......................................60
4.
Conclusions.............................................................................
...................................................62
4.1. Deliverables and
Methodology...........................................................................
......... 62
4.1.1.
Catalogs..................................................................................
..........................62
4.1.2. Questions and
Forms.....................................................................................
.62
4.1.3. Methodology
Checklist.................................................................................
.. 63
4.2.
Execution................................................................................
........................................ 63
4.2.1. Team
Building..................................................................................
................ 63
4.2.2.
Interviews...............................................................................
...........................64
4.2.3.
Analysis..................................................................................
.......................... 64
4.2.4. Strategy
Statement................................................................................
......... 64
4.3. Recommendations for Further
Research................................................................... 66
4.3.1. Methodology
Variations...............................................................................
... 67
4.3.2. Impact
Analysis..................................................................................
..............67
4.3.3. Strategy
Maintenance............................................................................
........ 68
Appendix A
...............................................................................................
......................................... 69
Information Resource Strategy Checklist (D
4).................................................................. 71
Information Assessment Tool (D 1
)......................................................................................73
Customer Requirements Catalog (D
2)................................................................................74
Technical Specifications Catalog (D
3)................................................................................76
Structured Interview Form
(D5)........................................................................................
... 77
Appendix B
...............................................................................................
......................................... 78
The Effective Executive
Study......................................................................................
.......79
QFD
Matrix.....................................................................................
.............................79
Notes......................................................................................
......................................80
Thriving on Chaos
Study......................................................................................
.................97
QFD
Matrix.....................................................................................
.............................97
Notes......................................................................................
......................................98
Case
Study......................................................................................
.....................................111
QFD
Matrix.....................................................................................
...........................111
Notes......................................................................................
....................................112
R E F E R E N C E S
...............................................................................................
................................ 134
Other
Readings.................................................................................
................................... 139
viii
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LIST OF ILLUSTRATIONS
Figure Page
Figure 1. 3-Phase Business Transformation
Model......................................29
Figure 2. Research
Scenario........................................................................... 37
Figure 3. QFD Matrix for The Effective
Executive.........................................41
Figure 4. QFD Matrix for Thriving On
Chaos............................................... 45
Figure 5. Case Study
Methodology................................................................ 50
Figure 6. Information Flow
Summary.............................................................. 54
Figure 7. Case Study
Matrix............................................................................ 57
*
ix
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LIST OF TABLES
Table Page
Table 1.
Deliverables............................................................................
............. 5
Table 2. Information Assessment Questions
(D1)......................................... 46
Table 3. Structured Interview Form (D 5
)........................................................47
Table 4. Customer Requirements Catalog (D
2)...........................................47
Table 4. Customer Requirements Catalog (D2)
continued......................... 48
Table 5. Technical Specifications Catalog (D
3)...........................................49
x
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LIST OF ABBREVIATIONS
CA Competitive Advantage Companies
ED P Electronic Data Processing
ILS Integrated Learning Systems
ISO International Standards Organization
IT Information Technology
NCA Non-Competitve Advantage Companies
O .I.S . Organization Information System
PE D Production Engineering Division (of the U.S. Army
Missile Command)
Q FD Quality Function Deployment
S M W T Self Managed Work Teams
S Q C Statistical Quality Control
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1. INTRODUCTION
1.1. Summary of Problem
The high performance organization of the nineties will need to
effectively utilize its infor-
mation resources. Developing the information resource strategy
for each enterprise is a critical
task.
America's executives are extensively involved in their firm's
capital planning cycle and
frequently, must approve even minor expenditures. In contrast,
information is not treated as a
critical resource. Most information is controlled locally, and the
decisions regarding its collection
and use are made at the department or individual level. Very
few executives would consider
telling a salesperson, "You made the sale; you decide what to do
with the money." Yet this is
what is done with the information an enterprise generates.
The challenge is here. Can we mobilize our information
resources to meet the needs of
our customers? Everyone, from the end user to the next person
in an assembly process, is a
customer. For an information resource strategy, the customers
become everyone in the
organization and anyone who may come in contact with the
product or organization. The CEO's,
managers, engineers, salespeople, marketing personnel,
purchasing agents, vendors, production
workers, end-users, field service technicians, etc. are all
customers, and customers are what is
important to a successful enterprise.
The information resource strategy sets the direction for business
processes and the com-
plex system that is the enterprise. How do we define the
requirements of a system with this
diversity of customers? This is a very difficult problem and
changes the traditional systems
design process. Traditional systems have been designed with a
much smaller customer base in
mind and have had a manageable and finite set of requirements.
If we consider the changing
1
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2
nature of business and the equally variable customer base, we
have a constantly changing set of
requirements throughout the life of the system.
An approach to overcoming this dilemma is to design for
flexibility and continuous growth.
Select the top priority subset of requirements from a portion of
the user community and
implement the initial system with the vision that it will grow
and change as more users are added
and customer requirements change.
Planning for change will lead to challenges in documenting and
justifying a system,
especially as the growth takes place. Which customer
requirements are being met? What are
their priorities? What tradeoffs were made during design? How
do new requirements and
design changes affect existing priorities? Are the customer
requirements still being met? Do the
customers still have the original requirements the system was
designed to satisfy?
These are important questions if the system is going to satisfy
our customers over the long
haul. Quality function deployment (QFD) methodology is a
useful tool for designing and
documenting the information resource strategy under these
changeable conditions. QFD also
enables us to track system development over time by using and
updating the design matrices.
Is it enough to design the information resource strategy using
QFD? The performance of
the enterprise will be strengthened by the focus on customer
requirements but this may not be
enough to keep up with the competition. The information
resource strategy needs to be aligned
with the business vision and organizational structure. The
interrelationship of these three factors
affects the overall enterprise performance and therefore, its
competitive position.
How to develop information resource strategies that meet the
enterprise's requirements is
the specific problem that will be answered. This will include the
use of QFD and a methodology
for aligning the information resource strategy, business vision,
and organizational structure.
Therefore, three key concepts to understand are: business
vision, organizational structure,
and information resource strategy. The business vision is a
defined plan for making an
enterprise successful including goals and critical success
factors. The organizational structure is
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the people and processes that operate the business including the
formal organization charts and
human resource procedures and equally important, the informal
norms and relationships.
The information resources are the primary focus of this work.
They include information,
information technology (IT), and paper systems. The paper
systems we are all familiar with
include memos, manuals, mail, and many other paper based
processes. IT is the corresponding
systems for electronic data. IT encompasses all of the hardware
and software used to collect,
store, and process electronic data.
Information is the most interesting portion of information
resources to define. Gregory
Bateson, noted anthropologist-philosopher, defines information
as any difference that makes a
difference. Information is data that has been presented in such a
way as to alter our expectation
or view. Information is something that can be used by the
customer to act in an effective
manner. The effectiveness of an enterprise is a measure of the
value of its information.
Information and adding to its value are the driving forces of an
information resource strategy.
It is clear that to turn our manufacturing competitive position
around, we will have to do
some things different. Developing information strategies that
match our enterprise's vision and
structure is an important step in the 1990's and beyond.
The information resource strategy is an important competitive
element. Sustainable
competitive advantage comes from leveraging the information a
company owns. An inforamtion
system that is consistent with the organization it serves and can
be continuously improved is a
competitive weapon. QFD is a tool that can provide the
structure for analysis of customer
requirements and support documentation changes for continuous
improvement.
An enterprise with the tools to provide customer satisfaction
and achieve continuous
improvement will own a sustainable competitive advantage. It
will be able to respond to new
opportunities where competitors without an aligned information
resource strategy will not.
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1.2. Statement of Work
The challenge we are facing is developing an information
resource strategy that supports
the organizational structure and vision of an enterprise. The
starting point is to identify the
business vision and organizational structure. Through the
methodology that has been
developed, the vision and structure are incorporated into the
information resource strategy. The
structure is included in the strategy development through the
composition of the user teams.
The business vision needs to be kept in mind during the
interview and prioritization process.
Both the vision and the structure need to be reviewed critically
during the process to evaluate
how they can be improved.
The development of customer requirements provides the basis
for the information strategy
design. Quality function deployment is the methodology used to
systematically incorporate the
voice of the customer into the design process. The QFD
software documents the requirements,
their priorities, and the process of deriving the requirements.
The Q F D matrix is a living
document that can be reviewed and updated to keep pace with
the changing enterprise.
The information resource strategy development methodology
was built through an iterative
process. Several different organizational structures and
philosophies were evaluated to
demonstrate how the QFD methodology can be applied to
developing an information resource
strategy. Two text studies and a case study were conducted. The
text studies used a
management textbook as the basis for determining the customer
requirements of the QFD
model. The text served as the enterprise being modeled. The
case study was conducted for the
manufacturing sector of a Fortune 100 company.
1.2.1. Objective of Research
This research has developed and utilized a methodology for
understanding an organiza-
tion's information requirements and designing the strategy to
satisfy those needs. The result is a
methodology for developing an information resource strategy
based on the customer
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5
requirements of the organization. The QFD matrix formalizes
the technical specifications to
make the strategy effective .
Catalogs of requirements and specifications were developed
through the analysis of a
number of organizations. The strategy development
methodology used can be applied by the
reader to their specific enterprise. Both the components of an
information resource strategy and
a means of developing it are made available through the
methodology.
The catalogs of requirements and specifications are the
blueprint for building an informa-
tion resource strategy for an enterprise. By identifying
organization specific customer
requirements and evaluating which technical specifications best
fulfill them, the strategy will be
forged.
1.2.2. Deliverables
The deliverables are:
Table 1. Deliverables
D1 Information Assessment
Tool
A list of questions to determine customer require-
ments.
D2 Customer Requirement
Catalog
A catalog of customer requirements
D3 Technical Specifications
Catalog
A catalog of technical specifications
D4 Information Resource
Strategy Checklist
Checklist for developing a QFD matrix model for
development of an information resource strategy
for an enterprise.
D5 Structured Interview Form Form to collect data from the
customer interviews.
The Information Assessment Tool is a list of questions for
conducting the interviews to
determine customer requirements. The questions are designed to
identify information sources,
flows, and analysis in a job function. The questions should be
reviewed and modified to reflect
an enterprise's vision.
The Customer Requirements Catalog is a list of customer
requirements generated from
the studies. These requirements may serve as a starting point for
an analyst or customer to
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understand what the information resource requirements of their
business may be. The
categories the requirements are grouped into may be a
beginning for consolidating the
requirements of a study.
The Technical Specifications Catalog is a list of the systems
and processes to fulfill the
customer requirements. It serves to emphasize the broad scope
of solutions to be considered
and help identify solutions for gaps in meeting the customer
requirements.
The Information Resource Strategy Checklist is a step by step
map for implementing the
methodology. It is designed as an aid for the analyst or an
overview for someone evaluating the
methodology.
The Structured Interview Form is designed to uniformly collect
information during the
customer interviews. It was developed during the case study to
facilitate the use of multiple
interviewers. The form also aided in the analysis of results by
structuring the customer input in
the same format. The large amount of data was much easier to
assimilate this way. This form
should be evaluated and modified based on organizational
structure and business vision factors.
1.3. Summary o f Results
The reader of this dissertation will gain a different perspective
on the role of information in
a high performance organization. In particular, it will show how
the consistency of organizational
philosophy, structure, and information strategy are
interdependent for achieving business
objectives. By using the example studies and following the
information resource development
methodology one would be able to analyze other organizations.
Development of an information
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Residency Assignment – ITS831CourseITS831 Information Technolo.docx

  • 1. Residency Assignment – ITS831 Course ITS831 Information Technology Importance in Strategic Planning Deliverable Your team will conduct a literature review in Information Technology Strategic Planning. You can also conduct a literature review on Strategy and how it is applied to an Information Technology organization. You are to review the literature on Information Technology Strategic Planning and discuss problems and gaps that have been identified in the literature. You will expand on the issue and how researchers have attempted to examine that issue by collecting data – you are NOT collecting data, just reporting on how researchers did their collection. As you read the literature, it will become apparent that there are multiple issues, pick one issue that stands out in the literature and agree on that as a Team to address that. Format Cover: Include the names of those who participated in the project Table of contents: Use a Microsoft Enabled Table of Contents feature. Background: Describe the issue, discuss the problem, and elaborate on any previous attempts to examine that issue. Research Questions:
  • 2. In your identified problem area that you are discussing, what were the research questions that were asked? Methodology: What approach did the researcher use, qualitative, quantitative, survey, case study? Describe the population that was chosen. Data Analysis: What were some of the findings, for example, if there were any hypotheses asked, were they supported? Conclusions: What was the conclusion of any data collections, e.g., were research questions answered, were hypotheses supported? Discussion: Here you can expand on the research and what the big picture means, how do the results found in the literature review help organizations in the Information Technology strategy planning. What do you see as long-term impacts and what further research could be done in the field? References: Include at least ten scholarly references in APA format. Sunday PowerPoint Presentation Your presentation will have a slide that addresses each · Cover · Topic · Background of the problem · Research Questions (if any) · Methodology · Data Analysis
  • 3. · Conclusion · Discussion · References INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner
  • 4. and continuing from left to right in equal sections with small overlaps. Each original is also photographed in one exposure and is included in reduced form at the back of the book. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. University Microfilms International A Bell & Howell Information C om pany 30 0 North Z e e b R oad. Ann Arbor. M l 48 1 0 6 -1 3 4 6 USA 3 1 3 /7 6 1 -4 7 0 0 8 0 0 /5 2 1 -0 6 0 0 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. O rd er N u m b er 9505519 In fo r m a tio n resource s tr a te g y d evelopm ent for t h e h
  • 5. igh -p erform an ce o r g a n iz a tio n Storti, Peter A., Ph.D. The University of Texas at Arlington, 1994 C o p y r ig h t © 1 9 9 4 b y S t o r t i , P e t e r A . A l l rig h ts re s e rv e d . U-M-I 300 N. Zeeb Rd. Ann Arbor, MI 48106 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. INFORMATION RESOURCE STRATEGY DEVELOPMENT FOR THE HIGH PERFORMANCE ORGANIZATION T he members of the Committee approve the doctoral dissertation o f Peter A. Storti
  • 6. D .H . Liles Supervising Professor G .T . Stevens, Jr. J .W . Priest J.L. Guynes K.J. Rogers Dean of the Graduate School Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Copyright © by Peter A Storti 1994 All Rights Reserved Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. This work is dedicated to my wife, Tina. Without her love and support I could not have stayed the course. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
  • 7. INFORMATION RESOURCE STRATEGY DEVELOPMENT FOR THE HIGH PERFORMANCE ORGANIZATION BY PETER A. STORTI Presented to the faculty of the Graduate School of The University of Texas at Arlington in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY THE UNIVERSITY OF TEXAS AT ARLINGTON May 1994 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGEMENTS This dissertation would not have been completed without the support and guidance of my advisor Dr. Don Liles and the other committee members who gave of their time and themselves.
  • 8. Additionally, it may never have been started if it were not for the inspiration provided by many teachers and professors throughout my education. I would like to thank them individually and the teaching profession as a whole. March 17,1994 v Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ABSTRACT INFORMATION RESOURCE STRATEGY DEVELOPMENT FOR THE HIGH PERFORMANCE ORGANIZATION Publication N o .__________ Peter A Storti, Ph.D. The University of Texas at Arlington, 1994 Supervising Professor: D.H. Liles The high performance organization of the nineties will need to effectively utilize its infor-
  • 9. mation resources. Developing the information resource strategy for each enterprise is a critical task. America's executives are extensively involved in their firm's capital planning cycle and frequently, must approve even minor expenditures. In contrast, information is not treated as a critical resource. Most information is controlled locally, and the decisions regarding its collection and use are made at the department or individual level. Very few executives would consider telling a salesperson, "You made the sale; you decide what to do with the money." Yet this is what is done with the information an enterprise generates. W e will look at the elements that are critical to the success of a comprehensive information resource strategy. Quality Function Deployment (Q FD ) is used to support development and align the information resource strategy with the business vision and organizational structure. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
  • 10. TABLE OF CONTENTS Page A C K N O W LED G EM EN TS.......................................................................................... ........................ v A B S T R A C T ............................................................................................... ..........................................vi LIST O F ILLUSTRATIONS................................................................... ............................................ ix LIST O F T A B L E S ............................................................................................... ................................ X LIST O F A B BR EVIA TIO NS.......................................................................................... ....................xi 1. IN T R O D U C T IO N ............................................................................................... ............................. 1 1.1. Summary of Problem.................................................................................. ..................... 1 1.2. Statement of Work...................................................................................... ..................... 4 1.2.1. Objective of
  • 11. Research................................................................................. ......4 1.2.2. Deliverables............................................................................ ............................ 5 1.3. Summary of Results.................................................................................... ..................... 6 2. Literature Review................................................................................... . ........................................ 8 2.1. Quality Function Deployment............................................................................. .......... 11 2.2. Changing Manufacturing Organizations...................................................................... 13 2.2.1. Electronic Data M anagem ent........................................................................ 13 2.2.2. Teams..................................................................................... ........................... 14 2.2.3. Structure/Strategy.................................................................... ........................17 2.2.4. Computerization...................................................................... ......................... 18 2 .3. Information Importance in an Enterprise.....................................................................19 2.3.1. Competitive
  • 12. Advantage............................................................................... ... 20 2.3.2. The Future of Manufacturing......................................................................... 23 2.3.3. Impact of technology.............................................................................. ......... 24 2.4. Interrelationship of Organization and Information..................................................... 27 2.4.1. Theoretical Relationship............................................................................ ..... 28 2.4.2. New Roles...................................................................................... ................... 31 2.4.3. Enterprise Optimization........................................................................... ....... 32 3. Methodology Development........................................................................... .............................. 35 3.1. Preliminary Methodology........................................................................... .................... 35 3.1.1. Q F D ............................................................................. .................. .................... 35 3.1.2. Catalogs.................................................................................. ...........................35 3.1.3. Process......................................................................... ..........
  • 13. ...........................36 3.2. Text Studies.................................................................................... ................................ 36 3.2.1. The Effective Executive by Peter Drucker................................................... 37 3.2.2. Thriving on Chaos by Tom Peters..................................................................39 3.3. Interim Catalogs.................................................................................. ............................45 3.3.1. Assessment Questions................................................................................ ... 45 3.3.2. Customer Requirements.......................................................................... ....... 46 3.3.3. Technical Specifications.......................................................................... ....... 48 vii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 3.4. Case Study...................................................................................... ...............................49 3.4.1. Customer/User Team Identification (A1)..................................................... 50 3.4.2. Customer Requirements Development (A 2
  • 14. ).............................................. 51 3.4.3. Technical Specification Development (A6)..................................................54 3.4.4. Information Resource Strategy Analysis (A 9 )............................................. 57 3.5. Retrospect............................................................................... .......................................60 4. Conclusions............................................................................. ...................................................62 4.1. Deliverables and Methodology........................................................................... ......... 62 4.1.1. Catalogs.................................................................................. ..........................62 4.1.2. Questions and Forms..................................................................................... .62 4.1.3. Methodology Checklist................................................................................. .. 63 4.2. Execution................................................................................ ........................................ 63 4.2.1. Team Building.................................................................................. ................ 63 4.2.2. Interviews............................................................................... ...........................64
  • 15. 4.2.3. Analysis.................................................................................. .......................... 64 4.2.4. Strategy Statement................................................................................ ......... 64 4.3. Recommendations for Further Research................................................................... 66 4.3.1. Methodology Variations............................................................................... ... 67 4.3.2. Impact Analysis.................................................................................. ..............67 4.3.3. Strategy Maintenance............................................................................ ........ 68 Appendix A ............................................................................................... ......................................... 69 Information Resource Strategy Checklist (D 4).................................................................. 71 Information Assessment Tool (D 1 )......................................................................................73 Customer Requirements Catalog (D 2)................................................................................74 Technical Specifications Catalog (D 3)................................................................................76 Structured Interview Form
  • 16. (D5)........................................................................................ ... 77 Appendix B ............................................................................................... ......................................... 78 The Effective Executive Study...................................................................................... .......79 QFD Matrix..................................................................................... .............................79 Notes...................................................................................... ......................................80 Thriving on Chaos Study...................................................................................... .................97 QFD Matrix..................................................................................... .............................97 Notes...................................................................................... ......................................98 Case Study...................................................................................... .....................................111 QFD Matrix..................................................................................... ...........................111 Notes...................................................................................... ....................................112 R E F E R E N C E S ...............................................................................................
  • 17. ................................ 134 Other Readings................................................................................. ................................... 139 viii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. LIST OF ILLUSTRATIONS Figure Page Figure 1. 3-Phase Business Transformation Model......................................29 Figure 2. Research Scenario........................................................................... 37 Figure 3. QFD Matrix for The Effective Executive.........................................41 Figure 4. QFD Matrix for Thriving On Chaos............................................... 45 Figure 5. Case Study Methodology................................................................ 50 Figure 6. Information Flow Summary.............................................................. 54 Figure 7. Case Study
  • 18. Matrix............................................................................ 57 * ix Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission. LIST OF TABLES Table Page Table 1. Deliverables............................................................................ ............. 5 Table 2. Information Assessment Questions (D1)......................................... 46 Table 3. Structured Interview Form (D 5 )........................................................47 Table 4. Customer Requirements Catalog (D 2)...........................................47 Table 4. Customer Requirements Catalog (D2) continued......................... 48 Table 5. Technical Specifications Catalog (D 3)...........................................49 x
  • 19. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. LIST OF ABBREVIATIONS CA Competitive Advantage Companies ED P Electronic Data Processing ILS Integrated Learning Systems ISO International Standards Organization IT Information Technology NCA Non-Competitve Advantage Companies O .I.S . Organization Information System PE D Production Engineering Division (of the U.S. Army Missile Command) Q FD Quality Function Deployment S M W T Self Managed Work Teams S Q C Statistical Quality Control Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1. INTRODUCTION
  • 20. 1.1. Summary of Problem The high performance organization of the nineties will need to effectively utilize its infor- mation resources. Developing the information resource strategy for each enterprise is a critical task. America's executives are extensively involved in their firm's capital planning cycle and frequently, must approve even minor expenditures. In contrast, information is not treated as a critical resource. Most information is controlled locally, and the decisions regarding its collection and use are made at the department or individual level. Very few executives would consider telling a salesperson, "You made the sale; you decide what to do with the money." Yet this is what is done with the information an enterprise generates. The challenge is here. Can we mobilize our information resources to meet the needs of our customers? Everyone, from the end user to the next person in an assembly process, is a customer. For an information resource strategy, the customers become everyone in the
  • 21. organization and anyone who may come in contact with the product or organization. The CEO's, managers, engineers, salespeople, marketing personnel, purchasing agents, vendors, production workers, end-users, field service technicians, etc. are all customers, and customers are what is important to a successful enterprise. The information resource strategy sets the direction for business processes and the com- plex system that is the enterprise. How do we define the requirements of a system with this diversity of customers? This is a very difficult problem and changes the traditional systems design process. Traditional systems have been designed with a much smaller customer base in mind and have had a manageable and finite set of requirements. If we consider the changing 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 2
  • 22. nature of business and the equally variable customer base, we have a constantly changing set of requirements throughout the life of the system. An approach to overcoming this dilemma is to design for flexibility and continuous growth. Select the top priority subset of requirements from a portion of the user community and implement the initial system with the vision that it will grow and change as more users are added and customer requirements change. Planning for change will lead to challenges in documenting and justifying a system, especially as the growth takes place. Which customer requirements are being met? What are their priorities? What tradeoffs were made during design? How do new requirements and design changes affect existing priorities? Are the customer requirements still being met? Do the customers still have the original requirements the system was designed to satisfy? These are important questions if the system is going to satisfy our customers over the long haul. Quality function deployment (QFD) methodology is a useful tool for designing and
  • 23. documenting the information resource strategy under these changeable conditions. QFD also enables us to track system development over time by using and updating the design matrices. Is it enough to design the information resource strategy using QFD? The performance of the enterprise will be strengthened by the focus on customer requirements but this may not be enough to keep up with the competition. The information resource strategy needs to be aligned with the business vision and organizational structure. The interrelationship of these three factors affects the overall enterprise performance and therefore, its competitive position. How to develop information resource strategies that meet the enterprise's requirements is the specific problem that will be answered. This will include the use of QFD and a methodology for aligning the information resource strategy, business vision, and organizational structure. Therefore, three key concepts to understand are: business vision, organizational structure, and information resource strategy. The business vision is a defined plan for making an
  • 24. enterprise successful including goals and critical success factors. The organizational structure is Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. the people and processes that operate the business including the formal organization charts and human resource procedures and equally important, the informal norms and relationships. The information resources are the primary focus of this work. They include information, information technology (IT), and paper systems. The paper systems we are all familiar with include memos, manuals, mail, and many other paper based processes. IT is the corresponding systems for electronic data. IT encompasses all of the hardware and software used to collect, store, and process electronic data. Information is the most interesting portion of information resources to define. Gregory Bateson, noted anthropologist-philosopher, defines information as any difference that makes a difference. Information is data that has been presented in such a
  • 25. way as to alter our expectation or view. Information is something that can be used by the customer to act in an effective manner. The effectiveness of an enterprise is a measure of the value of its information. Information and adding to its value are the driving forces of an information resource strategy. It is clear that to turn our manufacturing competitive position around, we will have to do some things different. Developing information strategies that match our enterprise's vision and structure is an important step in the 1990's and beyond. The information resource strategy is an important competitive element. Sustainable competitive advantage comes from leveraging the information a company owns. An inforamtion system that is consistent with the organization it serves and can be continuously improved is a competitive weapon. QFD is a tool that can provide the structure for analysis of customer requirements and support documentation changes for continuous improvement. An enterprise with the tools to provide customer satisfaction and achieve continuous
  • 26. improvement will own a sustainable competitive advantage. It will be able to respond to new opportunities where competitors without an aligned information resource strategy will not. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1.2. Statement of Work The challenge we are facing is developing an information resource strategy that supports the organizational structure and vision of an enterprise. The starting point is to identify the business vision and organizational structure. Through the methodology that has been developed, the vision and structure are incorporated into the information resource strategy. The structure is included in the strategy development through the composition of the user teams. The business vision needs to be kept in mind during the interview and prioritization process. Both the vision and the structure need to be reviewed critically during the process to evaluate how they can be improved.
  • 27. The development of customer requirements provides the basis for the information strategy design. Quality function deployment is the methodology used to systematically incorporate the voice of the customer into the design process. The QFD software documents the requirements, their priorities, and the process of deriving the requirements. The Q F D matrix is a living document that can be reviewed and updated to keep pace with the changing enterprise. The information resource strategy development methodology was built through an iterative process. Several different organizational structures and philosophies were evaluated to demonstrate how the QFD methodology can be applied to developing an information resource strategy. Two text studies and a case study were conducted. The text studies used a management textbook as the basis for determining the customer requirements of the QFD model. The text served as the enterprise being modeled. The case study was conducted for the manufacturing sector of a Fortune 100 company.
  • 28. 1.2.1. Objective of Research This research has developed and utilized a methodology for understanding an organiza- tion's information requirements and designing the strategy to satisfy those needs. The result is a methodology for developing an information resource strategy based on the customer Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 5 requirements of the organization. The QFD matrix formalizes the technical specifications to make the strategy effective . Catalogs of requirements and specifications were developed through the analysis of a number of organizations. The strategy development methodology used can be applied by the reader to their specific enterprise. Both the components of an information resource strategy and a means of developing it are made available through the methodology. The catalogs of requirements and specifications are the
  • 29. blueprint for building an informa- tion resource strategy for an enterprise. By identifying organization specific customer requirements and evaluating which technical specifications best fulfill them, the strategy will be forged. 1.2.2. Deliverables The deliverables are: Table 1. Deliverables D1 Information Assessment Tool A list of questions to determine customer require- ments. D2 Customer Requirement Catalog A catalog of customer requirements D3 Technical Specifications Catalog A catalog of technical specifications D4 Information Resource Strategy Checklist Checklist for developing a QFD matrix model for development of an information resource strategy
  • 30. for an enterprise. D5 Structured Interview Form Form to collect data from the customer interviews. The Information Assessment Tool is a list of questions for conducting the interviews to determine customer requirements. The questions are designed to identify information sources, flows, and analysis in a job function. The questions should be reviewed and modified to reflect an enterprise's vision. The Customer Requirements Catalog is a list of customer requirements generated from the studies. These requirements may serve as a starting point for an analyst or customer to Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. understand what the information resource requirements of their business may be. The categories the requirements are grouped into may be a beginning for consolidating the requirements of a study. The Technical Specifications Catalog is a list of the systems
  • 31. and processes to fulfill the customer requirements. It serves to emphasize the broad scope of solutions to be considered and help identify solutions for gaps in meeting the customer requirements. The Information Resource Strategy Checklist is a step by step map for implementing the methodology. It is designed as an aid for the analyst or an overview for someone evaluating the methodology. The Structured Interview Form is designed to uniformly collect information during the customer interviews. It was developed during the case study to facilitate the use of multiple interviewers. The form also aided in the analysis of results by structuring the customer input in the same format. The large amount of data was much easier to assimilate this way. This form should be evaluated and modified based on organizational structure and business vision factors. 1.3. Summary o f Results The reader of this dissertation will gain a different perspective on the role of information in
  • 32. a high performance organization. In particular, it will show how the consistency of organizational philosophy, structure, and information strategy are interdependent for achieving business objectives. By using the example studies and following the information resource development methodology one would be able to analyze other organizations. Development of an information … � � ������� � ��� ��� � � � ����������������������������������� �� � � � � �� !� !������"�
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