ITS 833 – INFORMATION GOVERNANCE Chapter 9 Information Governance and Records Information Management Functions 1 1 CHAPTER GOALS AND OBJECTIVES Understand the business necessity for records management and electronic records management Understand the benefit and challenges to Records Management Identify the steps to inventorying records and creating a Records Retention Schedule Address guidelines for the retention of e-mail records 2 2 Records Management Text gives definitions of records from ISO and ARMA. We can infer from these that records are information that is captured during the course of doing business, such as contracts, business correspondence, HR files, etc., often representing legal obligations for the company. Not all documents are formal business records by legal definition. 3 E-Records Management With the amount of information rapidly increasing due to the large storage capacity and volume of electronic records being generated, effective e-records management (ERM) is critical. Includes both electronic records, as well as the electronic management of non-electronic records (paper, DVDs, tape, audio-visual, etc.) Effective ERM is even more critical in highly regulated businesses. Must control and manage these records throughout the records life cycle – from creation to destruction. Challenges include the rapidly increasing volume of data and changes in IT (different archival media), making it difficult to retrieve and view – necessitating a long-term digital preservation (LTDP) plan. 4 Records Management Drivers Drivers for effective RM include: Increased government oversight and industry regulation. Changes in legal procedures and requirements during civil litigation. IG awareness (developing RM programs within IG practices that address retention periods, for example). Business continuity concerns – recoverability of vital records . 5 Challenges to RM Changing and increasing regulations Maturing IG requirements within the organization Managing multiple retention and disposition schedules Compliance costs/limited staff Changing information delivery platforms Security concerns Dependence on the IT department or provider User assistance and compliance 6 Benefits of ERM Implementing ERM is a significant investment sometimes without a clear ROI. Benefits, however, include: Office space savings Office supplies Search/retrieval times savings, increasing confidence and decision making Improved capabilities for enforcing IG over business documents and records Reduce risk of compliance actions or legal consequences Improved worker productivity Improved records security Improved ability to demonstrate legally defensible RM practices 7 Intangible Benefits Controls the creation and growth of records Assimilates new records management technologies Safeguards vital information Preserves corporate memory Fosters professionalism in running the business 8 1st Step: Inventorying E-Records Inventoryi ...

1. ITS 833 – INFORMATION GOVERNANCE
Chapter 9
Information Governance and Records Information Management
Functions
1
1
CHAPTER GOALS AND OBJECTIVES
Understand the business necessity for records management and
electronic records management
Understand the benefit and challenges to Records Management
Identify the steps to inventorying records and creating a
Records Retention Schedule
Address guidelines for the retention of e-mail records
2
2
Records Management
Text gives definitions of records from ISO and ARMA. We can
infer from these that records are information that is captured
during the course of doing business, such as contracts, business
correspondence, HR files, etc., often representing legal

2. obligations for the company.
Not all documents are formal business records by legal
definition.
3
E-Records Management
With the amount of information rapidly increasing due to the
large storage capacity and volume of electronic records being
generated, effective e-records management (ERM) is critical.
Includes both electronic records, as well as the electronic
management of non-electronic records (paper, DVDs, tape,
audio-visual, etc.)
Effective ERM is even more critical in highly regulated
businesses.
Must control and manage these records throughout the records
life cycle – from creation to destruction.
Challenges include the rapidly increasing volume of data and
changes in IT (different archival media), making it difficult to
retrieve and view – necessitating a long-term digital
preservation (LTDP) plan.
4
Records Management Drivers
Drivers for effective RM include:
Increased government oversight and industry regulation.
Changes in legal procedures and requirements during civil
litigation.

3. IG awareness (developing RM programs within IG practices that
address retention periods, for example).
Business continuity concerns – recoverability of vital records .
5
Challenges to RM
Changing and increasing regulations
Maturing IG requirements within the organization
Managing multiple retention and disposition schedules
Compliance costs/limited staff
Changing information delivery platforms
Security concerns
Dependence on the IT department or provider
User assistance and compliance
6
Benefits of ERM
Implementing ERM is a significant investment sometimes
without a clear ROI.
Benefits, however, include:
Office space savings
Office supplies
Search/retrieval times savings, increasing confidence and
decision making
Improved capabilities for enforcing IG over business documents
and records
Reduce risk of compliance actions or legal consequences
Improved worker productivity

4. Improved records security
Improved ability to demonstrate legally defensible RM practices
7
Intangible Benefits
Controls the creation and growth of records
Assimilates new records management technologies
Safeguards vital information
Preserves corporate memory
Fosters professionalism in running the business
8
1st Step: Inventorying E-Records
Inventorying must be done sooner, rather than later.
Tracking them all down is the challenge (distributed among
systems, including shadow copies)
Information owners may not trust a new RM program – getting
them to cooperate may be difficult
Among the other objectives on page 156, objectives to
inventorying include:
Provide a survey of the existing electronic records situation that
leads to a needs assessment for future actions
Identify and describe the e-records holdings
Identify obsolete electronic records
Determine storage needs for active and inactive records
9

5. Records Inventorying Steps
Define the inventory’s goals
Define the scope of the inventory
Obtain top management support
Decide on the information to be collected
Prepare an inventory form
Decide who will conduct the inventory
Learn where the files are located
Conduct the inventory (surveys, interviews, direct observation)
Verify and analyze the results – tie findings to the goals and the
value of the records (Records appraisal)
10
Records Appraisal
Goal is to determine the value to the organization in order to
determine retention schedule
Records can have:
Historical value
Administrative value
Regulatory or statutory value
Legal value
Fiscal value
“Other”
11
2nd Step: Develop Records Retention Schedule
Retention schedules provide consistency in the retention and
disposition process.

6. Develop an information map (where created, where it resides,
path it takes – who uses it)
Information included in a retention schedule:
Title of the records series (group of related records used and
filed as a unit)
Description of the records series
Responsible office
Disposal decision (destroy, transfer, reconsider at a later date)
Disposal timing
Event that triggers the action
Dates schedule was signed
Legal citations or a link to the citation
12
Records Series Identification and Classification
Case Records
Have a beginning and an end, but are added to over time
Have titles that include names, dates, numbers, or places (i.e.
mortgages, contracts)
Subject Records
Information relating to specific or general topics, arranged
according to content
Records relative to laws/statutes have longer term schedules
(often kept until “superseded or obsolete”)
Records that relate to “routine operations” will have shorter
retention periods
13
General Principles to Retention Scheduling
Must include all records, regardless of media or location

7. Legal and regulatory requirements must be reflected in the
process (i.e. FOIA)
Must be proactive planning process (set up and standardized in
advance)
Periodic reviews when changes occur, or annually/biannually
Continuous updating
Classification and records scheduling are linked
Similar records should have similar retention schedules
Records of historical value must be preserved
Should reflect business needs of users or compliance
requirements
Optimize use and minimize cost by retaining a minimum amount
of time
Keep in a protected repository to maintain integrity
Senior management must approve and sign off on the schedule
Senior management must be able to review the schedule
Document the scheduling process
14
E-Mail Retention
Not all are formal records – only those that relate to a
transaction or business-related event. Records that may come
into dispute in litigation.
It’s a record if…..
The e-mail documents a transaction or the progress toward an
ultimate transaction where anything of value is exchanged
between two or more parties
The e-mail documents or provides support of a business activity
occurring that pertains to internal corporate governance policies
or compliance

8. The e-mail message documents other business activities that
may possibly be disputed in the future
Retention periods from 90 days to as long as seven years
Legal requirements (research yours) drive the retention period
15
The End
[email protected] Geanie Assante 2019
16
16
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
Chapter 8

9. The Business of IT
2
The Horner/Alcoa Story
High-performing tech worker—almost dismissed as CIO
What were the issues?
What did they expect from him?
What did he deliver at first?
What change did he make to become more valuable to Alcoa?
© 2016 John Wiley & Sons, Inc.
3
They expected him to give them useful information and also
pinpoint where cost savings were likely
He delivered technical jargon and downplayed the importance of
good cost figures, even though he provided technically solid IT
services
He provided higher weight on “people, time, and money” and
began using business language rather than tech language.
3
The Alcoa lesson: Business Demands
IT offerings need to be aligned with business demands

10. IT complexities should be translated to business needs
© 2016 John Wiley & Sons, Inc.
4
Merlyn’s Business-IT Maturity Model
© 2016 John Wiley & Sons, Inc.
5
What a Manager Can Expect From
the IT Organization
A manager typically can expect some level of support in 14 core
activities (Figure 8.2) – levels in parentheses
Developing and maintaining IS (1)
Managing supplier relationships (1)
Managing data, information, and knowledge (1, 2)
Managing Internet and network services (1, 2)
Managing human resources (1)
Operating the data center (1)
Providing general support (1)
© 2016 John Wiley & Sons, Inc.
6

11. Managers must learn what to expect from the IT organization so
they can plan and implement business strategy accordingly.
6
What a Manager Can Expect From
the IT Organization (Cont.)
Planning for business discontinuities (1)
Innovating current processes (2)
Establishing architecture platforms and standards. (2)
Promoting enterprise security (2)
Anticipating new technologies (3)
Participating in setting and implementing strategic goals (3)
Integrating social IT (3)
© 2016 John Wiley & Sons, Inc.
7
Managers must learn what to expect from the IT organization so
they can plan and implement business strategy accordingly.
7
What The IT Organization Does Not Do
Does not perform core business functions such as:
Selling
Manufacturing
Accounting.
Does not set business strategy.

12. General managers must not delegate critical technology
decisions.
© 2016 John Wiley & Sons, Inc.
8
8
Chief Information Officer (CIO)
The Senior-Most IT Executive
Responsible for technology vision
Leads design, development, implementation, and management of
IT initiatives
Is a business technology strategist or strategic business leader
Uses technology as the core tool in
creating competitive advantage
aligning business and IT strategies
© 2016 John Wiley & Sons, Inc.
9
The CIO is an executive who manages IT resources to
implement enterprise strategy.
9
CIO’s Focus

13. CIO’s focus has shifted:
From efficiency to effectiveness in a constantly
changing/competitive marketplace
Formerly: reported to the CFO. Now: reports to the CEO.
Shift over time towards helping executive team formulate
business strategy
© 2016 John Wiley & Sons, Inc.
10
CTO, CPO, and Other Roles
CIO Can’t have all skills—can’t know everything!
Other roles are important:
CTO: Chief Technology Officer (tracks technologies)
CKO: Chief Knowledge Officer
CDO: Chief Data Officer
CAO: Chief Analytics Officer
CTO: Chief Telecommunications Officer
CNO: Chief Network Officer
CRO: Chief Resource Officer
CISO: Chief Information Security Officer
CPO: Chief Privacy Officer
CMO: Chief Mobility Officer
CSMO: Chief Social Media Officer
© 2016 John Wiley & Sons, Inc.
11

14. 11
So Who Should Make the Decisions?
Ross & Weill say
The CEO should not make those decisions alone
C-level executives should not even make those decisions
Input is needed from both IT and the business units alike
Steering (or Executive) Committee solution
© 2016 John Wiley & Sons, Inc.
12
Building a Business Case - Components
Executive Summary
Overview and Introduction
Assumptions and Rationale
Project Summary
Financial Discussion and Analysis
Benefits and Business Impacts
Schedule and Milestones
Risk and Contingency Analysis
Conclusion and Recommendation
Appendices
© 2016 John Wiley & Sons, Inc.
13

15. © 2016 John Wiley & Sons, Inc.
14
Sample of benefits in a business case
for adding chat function linked from Facebook page
Busy chat operators; busy Facebook page;
Customers seem happier
Sales improved by $250k; costs
decreased by $50k after change
Facebook page likes; number of chats;
Customer satisfaction scores moved from
3.3 to 4.1 (out of 5)
Converted 150 calls per day to chats;
reaching 200 more customers per day
© 2016 John Wiley & Sons, Inc.
15

16. IT Portfolio Management
IT investments should be managed as any other investment.
Evaluate and approve IT investments as they relate to other
potential investments of all kinds
Goals:
Pick the right mix of investments
Invest in the most valuable IT initiatives
© 2016 John Wiley & Sons, Inc.
16
16
Asset Classes
Weill and Aral say that there are four asset classes of IT
investments:
Transactional systems – systems that streamline or cut costs on
business operations.
Informational systems – any system that provides information
used to control, manage, communicate, analyze or collaborate.
Strategic systems – any system used to gain competitive
advantage in the marketplace.
Infrastructure systems – the base foundation or shared IT
services used for multiple applications.
© 2016 John Wiley & Sons, Inc.
17

17. 17
Average company’s IT portfolio profile
(See Discussion Question 4)
46%
25%
18%
11%
© 2016 John Wiley & Sons, Inc.
18
18
Comparative IT portfolios for different business strategies
(See discussion question 4)
19

18. Valuing IT Investments
Soft benefits, such as the ability to make future decisions, make
it difficult to measure the payback of IT investment
IT is expensive, thus under close scrutiny.
IT is complex; calculating the costs is an art, not a science.
Payback period for infrastructure is much longer than other
types of capital investments.
With necessary systems (due to laws, etc.), the payback period
cannot be calculated
Many valuation methods are available…
© 2016 John Wiley & Sons, Inc.
20
20
Valuation Method Description Return on Investment (ROI)
ROI= Net Present Value (NPV) Discount the costs and benefits
for each year of the system’s lifetime using present value factor
Economic Value Added (EVA) EVA = net operating profit after
taxes
(capital x cost of capital)Payback Analysis Time that will lapse
before accrued benefits overtake accrued and continuing costs
Internal Rate of Return (IRR) Return of the IT investment
compared to the corporate policy on rate of return Weighted
Scoring Methods Costs and revenues/savings are weighted
based on their strategic importance, accuracy/confidence, other
opportunities
Financial Valuation Methods
© 2016 John Wiley & Sons, Inc.

19. 21
21
IT Investment Monitoring
Old saying: “If you can’t measure it, you can’t manage it”
Management needs to achieve organizational benefits from IT
investments
Must agree upon a set of metrics for monitoring IT investments.
Often financial in nature (ROI, NPV, etc.).
© 2016 John Wiley & Sons, Inc.
22
22
The Balanced Scorecard
Focuses attention on the organization’s value drivers (which
include financial performance).
Assesses the full impact of corporate strategies on customers
and workforce, as well as financial performance.
Allows managers to look at a business from four related
perspectives:
© 2016 John Wiley & Sons, Inc.

20. 23
23
How do our customers see us?
At what must we excel?
Can we continue to improve and create value?
How do we look to shareholders?
The Four Balanced Scorecard perspectives
© 2016 John Wiley & Sons, Inc.
24
24
The IT Balanced Scorecard
Using it within the MIS department helps senior IS managers
Understand their organization’s performance
Measure it in a way that supports its business strategy
Linked to the corporate scorecard
By ensuring that the measures used by IT are those that support
the corporate goals.
© 2016 John Wiley & Sons, Inc.

21. 25
25
IT Dashboards
Snapshot of metrics at a given point in time (often “right now”)
Offer “at a glance” idea of how things are going
Often colors depict conditions:
Areas with problems (red)
Areas in good shape (green)
In-between or average (yellow)
© 2016 John Wiley & Sons, Inc.
26
Sample Black & White Dashboard
© 2016 John Wiley & Sons, Inc.
27
ITDashboard.gov

22. © 2016 John Wiley & Sons, Inc.
28
Note: this might be too slow to do live in class
28
Architecture for Dashboards
© 2016 John Wiley & Sons, Inc.
29
Funding the IT department
How are costs of design, development, delivery and
maintenance of IT systems recovered (or simply covered)?
Chargeback
Allocation
Corporate budget
The first two are done for management reasons
The latter covers costs using corporate coffers
© 2016 John Wiley & Sons, Inc.
30

23. 30
Funding Method Description Why do it? Why not do it?
Chargeback Charges are calculated based on actual usage
Fairest method for recovering costs since it is based on actual
usage Must collect details on usage; often expensive and
difficult Allocation Expenditures are divided by non-usage basis
(revenues, headcount, etc.)Less bookkeeping for IT Users can
question rates & basis of allocation
Free riders Corporate Budget Corporate allocates funds to IT in
annual budget - to general P&LNo billing to the businesses.
No rates to compute.
Encourages use of new technologies.Have to compete with all
other budgeted items for funds.
Potential for overspending.
Comparison of IT funding methods
© 2016 John Wiley & Sons, Inc.
31
31
How to Determine Cost
Basic method: add up costs of hardware, software, network, and
people involved in IS.
Real cost is not always easy to determine
Remains a mystery for many firms

24. © 2016 John Wiley & Sons, Inc.
32
32
Total Cost of Ownership (TCO)
Has become the industry standard.
Looks beyond initial capital investments to include costs often
forgotten. For example:
technical support
administration
training
Estimates total annual costs per user for each potential
infrastructure choice.
Provide the best foundation for comparing to other IT and non-
IT investments.
© 2016 John Wiley & Sons, Inc.
33
33
TCO Component Breakdown
Shared components (servers and printers):
TCO divided among all users who access each

25. When only certain groups of users possess certain components,
segment the hardware analysis by platform.
Soft costs, such as technical support, administration, and
training are important to include
© 2016 John Wiley & Sons, Inc.
34
34
Soft Cost AreasExample Components of CostSourceTechnical
supportHardware phone supportCall centerIn-person hardware
troubleshootingIT operationsHardware hot swapsIT
operationsPhysical hardware repairIT operationsTotal cost of
technical supportAdministrationHardware setupSystem
administratorHardware upgrades/modificationsSystem
administratorNew hardware evaluationIT operationsTotal cost
of administrationTrainingNew employee trainingIT
operationsOngoing administrator trainingHardware vendorTotal
cost of trainingTotal soft costs for hardware
Figure 8.13 Soft cost considerations
© 2016 John Wiley & Sons, Inc.
35
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition

26. Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
Transactional
13%
Infrastructure
54%
Informational
20%
Strategic
13%
Transactional
13%
Infrastructure
54%
Informational
20%
Strategic
13%

27. Chapter Eight (8): Information Governance and Legal
Functions: According to the authors, Smallwood, Kahn, and
Murphy, IG is perhaps one of the functional areas that impact
legal functions most. Failure to meet them could be literally put
an organization out of business or land executives in prison.
Privacy, security, records management, information
technology (IT), and business management functions are very
important. However, the most significant aspect of all of these
functions relates to legality and regulatory compliance from a
critical perspective.
Q1: When we take a close look at the author’s point of view,
under the Federal Rules of Civil Procedures (FRCP)
amendments dating back to 1938 there has been governance and
the discovery of evidence in lawsuits and other civil cases.
Please name and briefly discuss the three (3)
reasons why corporations must proactively manage the e-
discovery process?
In this lecture, we discussed several different models and
archetypes. Look at your company (you don't have to provide its
name) and report on the following:
1. Identify the Organizational Structure and provide examples
supporting it (centralized, decentralized, federalized).
2. Identify the IT Governance archtetype and provide an
example.
3. Has this model been effective? Would you recommend a
different approach?