CHAPTER 7 INFORMATION GOVERNANCE Business Considerations for a Successful IG Program ITS 833 Dr. Mia Simmons Chapter Overview ■ This chapter will cover pages 97 in your book. ■ This chapter begins the deep dive into the IG reference model we spoke about in Chapter 6. ■ We will also look at the business issues that arise with business costs and real value costs for IG programs. 2 Changing Information Environment ■ Unstructured Information – Growing too fast for people to manage – more structure than others containing some identifiable metadata (e.g., e-mail messages all have a header, subject line, time/date stamp, and message body. – Alias: semistructured information – creates enormous complexity and risk for business managers to consider while making it difficult for organizations to generate real value 3 Changing Information Environment ■ Unstructured Information – challenges involved: – Horizontal versus vertical - Unstructured information is much more horizontal, making it difficult to develop and apply business rules. – Formality - The tools and applications used to create unstructured information often engender informality and the sharing of opinions that can be problematic in litigation, investigations, and audits—as has been repeatedly demonstrated in front-page stories over the past decade – Management location - application of management rules more difficult than the application of the same rules in structured systems, where there is a close marriage between the application and the database – “Ownership” issues - this non-ownership mind-set can make the imposition of management rules for unstructured information more challenging than for structured data. – Classification - business purpose of unstructured information is difficult to infer from the application that created or stores the information 4 Calculating Information Costs ■ Rising information storage costs cannot be dismissed – storage is treated as a resource that has no cost to the organization outside of the initial capital outlay and basic operational costs – IT departments do not see (or pay for) the full cost of e- discovery and litigation – lost benefit of information that is disorganized, created and then forgotten, cast aside and left to rot. 5 Big Data Opportunities and Challenges ■ Smart leaders across industries will see using big data for what it is: a management revolution ■ All data is good and more data is better ■ We must balance the benefits and costs of managing big data in order to be successful within the organization. 6 Full Cost Accounting for Information ■ Full Cost Accounting (FCA) – TCO and ROI play a major roll in FCA – seeks to create a complete picture of costs that includes past, g future, direct, and indirect costs rather than direct cash outlays alone – Triple Bottom Line Concept – Applying FCA will increase cost transparency and drive bet ...

1. CHAPTER 7
INFORMATION GOVERNANCE
Business Considerations for a Successful IG
Program
ITS 833
Dr. Mia Simmons
Chapter Overview
■ This chapter will cover pages 97 in
your book.
■ This chapter begins the deep dive
into the IG reference model we spoke
about in Chapter 6.
■ We will also look at the business
issues that arise with business costs
and real value costs for IG programs.
2

2. Changing Information Environment
■ Unstructured Information
– Growing too fast for people to manage
– more structure than others containing some identifiable
metadata
(e.g., e-mail messages all have a header, subject line, time/date
stamp, and message body.
– Alias: semistructured information
– creates enormous complexity and risk for business managers
to
consider while making it difficult for organizations to generate
real value
3
Changing Information Environment
■ Unstructured Information – challenges involved:
– Horizontal versus vertical - Unstructured information is much
more
horizontal, making it difficult to develop and apply business
rules.

3. – Formality - The tools and applications used to create
unstructured
information often engender informality and the sharing of
opinions
that can be problematic in litigation, investigations, and
audits—as
has been repeatedly demonstrated in front-page stories over the
past
decade
– Management location - application of management rules more
difficult than the application of the same rules in structured
systems,
where there is a close marriage between the application and the
database
– “Ownership” issues - this non-ownership mind-set can make
the
imposition of management rules for unstructured information
more
challenging than for structured data.
– Classification - business purpose of unstructured information
is
difficult to infer from the application that created or stores the
information
4
Calculating Information Costs
■ Rising information storage costs cannot be dismissed
– storage is treated as a resource that has no cost to the

4. organization outside of the initial capital outlay and
basic operational costs
– IT departments do not see (or pay for) the full cost of e-
discovery and litigation
– lost benefit of information that is disorganized, created
and then forgotten, cast aside and left to rot.
5
Big Data Opportunities and
Challenges
■ Smart leaders across industries will see using big data for
what it is: a
management revolution
■ All data is good and more data is better
■ We must balance the benefits and costs of managing big data
in order to
be successful within the organization.
6

5. Full Cost Accounting for Information
■ Full Cost Accounting (FCA)
– TCO and ROI play a major roll in FCA
– seeks to create a complete picture of costs that
includes past, g future, direct, and indirect costs
rather than direct cash outlays alone
– Triple Bottom Line Concept
– Applying FCA will increase cost transparency and
drive better management decisions
7
Full Cost Accounting for Information
■ FCA Total Cost of ownership – Cost to consider:
– General and administrative costs, such as cost of IT
operations and personnel, facilities, and technical
support.
– Productivity gains or losses related to the information. s
– Legal and e-discovery costs associated with the
information and information systems.
– Indirect costs, such as the accounting, billing, clerical
support, contract management, insurance, payroll,
purchasing, and so on.

6. – Up-front costs, such as the acquisition of the system,
integration and configuration, and training. This should
include the depreciation of capital outlays.
– Future costs, such as maintenance, migration, and
decommissioning of information systems. Future outlays
should be amortized.
8
Calculating the Cost of Owning Unstructured
Information
■ to inspire creative thinking about how to calculate the cost of
owning
unstructured information and help organizations minimize the
risk—and
maximize the value
■ Must establish facts about unstructured information need to
include:
– Go find your unstructured information – enterprise wide,
including s
e-mail systems, shared network drives, legacy content
management
systems, and archives.
– Enable fast and intuitive access to basic metrics , such as size,

7. date
of last access, and file type.
– Provide sophisticated analysis of the nature of the content
itself to
drive classification and information life cycle decisions.
– Deliver visibility into the environment through dashboards
that are
easy to for s non specialists to configure and use.
9
Sources of Cost
■ Examples of elements that typically increase cost (“Cost
Drivers,” on the
left side) & elements that typically reduce costs (“Cost
Reducers,” on the
right side)
10
The Path to Information Value
Seventy percent of managers and executives say data are
“extremely
important” for creating competitive advantage. “The key, of

8. course, is knowing
which data matter, who within a company needs them, and
finding ways to get
that data into users’ hands.”
— The Economist Intelligence Unit, “Levelling the Playing
Field: How
Companies Use Data to Create Advantage” (January 2011)
■ Navy Yard are considering these as rebirth:
1. Clean. Survey the site to determine what had value and what
did
not. Dispose of toxic waste and rotting buildings and modernize
the
infrastructure.
2. Build and maintain. Implement a plan to continuously
improve,
upgrade, and maintain the facility.
3. Monetize. Lease the space.
11
The Path to Information Value
12

9. New Information Model
■ Information Calorie
– Tips for organizations:
■ Educate executives and employees about the cost of
information
mismanagement s through anecdotes, case studies, and facts.
■ Show employees their information footprint by regularly
exposing them
to the t amount of data storage they are using in e-mail, shared
drives,
content management systems, and other environments they work
with.
■ Design systems to minimize information calories.
13
New Information Model
■ Information Cap-and-Trade
– Tips for organizations:
■ Baseline the desired amount of information per system,
department,

10. and/or type t of user.
■ Create information volume targets or quotas, and allocate
them by
business unit, system, or user.
■ Calculate the fully loaded cost of a unit of information and
adopt it as a
baseline metric for the “trade” part of the system.
■ Create an internal accounting system for tracking and trading
information units, s or credits within the organization.
■ Get creative in what the credits can purchase.
14
Future State: What Will the IG-Enabled
Organization Look Like?
■ IG is infused into operations throughout the enterprise and
coordinated
on an organization-wide level—it will look significantly
different from most
organizations today
■ Valuable information from projects, product development,
marketing

11. programs, and strategic initiatives will be retained in corporate
memory,
reducing the impact of turnover and providing distilled
information and
knowledge to contribute to a knowledge management (KM)
program
■ Standardized data governance program in place means
cleaning up
corrupted or duplicated data and providing users with clean,
accurate
data as a basis for line-of-business software applications and for
decision support analytics in business intelligence (BI)
applications
■ Standardizing the use of business terms will facilitate
improved
communications between IT and other business units
15
Chapter Summary
■ The business case for IG programs has historically been
difficult to
justify.
■ IG professionals must be ready with new models that

12. calculate the
risks of storing too much of the wrong information and the
benefits
of clean, reliable, accessible information
■ Key steps in driving information value are: (1) clean; (2)
build and
maintain; and (3) monetize.
■ The information calorie approach and information cap-and-
trade are
two new models for assisting in IG.
■ Legal risk is reduced through improved IG, and legal costs are
reduced.
■ Leveraging newer technologies like predictive coding can
improve the
efficiency of legal teams.
■ Identifying sensitive information in your databases and
implementing
database security best practices help reduce organizational risk
and
the cost of compliance
16
Information Governance
Chapter 7
Complete Week 6 Objectives