Maximizing The Enterprise Information Assets new

Maximizing The Enterprise Information Assets

by Timothy D. Wells and Christine

Sevilla

ISBN:0849313473

Auerbach Publications © 2003 (324 pages)

Corporate officers, directors, and IT managers will find this

book invaluable in creating a positive, profitable work

environment in which information assets are properly

managed and distributed, encouraging revenue growth and

worker satisfaction.

Table of Contents

Maximizing the Enterprise Information Assets

Preface

Introduction

Part I - Context

Chapter 1 - A Basis for Management

Chapter 2 - Removing Hindrances

Chapter 3 - Lessons From the Web

Chapter 4 - Enterprise Planning

Part II - Organization

Chapter 5 - System Development

Chapter 6 - Organizational Structure

Chapter 7 - Organizational Assessment

Chapter 8 - Ways to Move Knowledge and Ways to Stop It From Moving

Part III - Human Value

Chapter 9 - Human Resource Value

Chapter 10 - Uses for the Online Conference

Chapter 11 - Information Assets and Learning

Chapter 12 - Competencies of Information Managers

Part IV - Appendixes

Appendix A - Initiating the Process

Appendix B - Information Modeling

Appendix C - Computing Information Value

Appendix D - Information Assets Survey Results

Appendix E - The Numinous Dimension

Appendix F - Bibliography

List of Exhibits

List of Sidebars

Maximizing The Enterprise Information Assets

by Timothy D. Wells and Christine

Sevilla

ISBN:0849313473

Auerbach Publications © 2003 (324 pages)

Corporate officers, directors, and IT managers will find this

book invaluable in creating a positive, profitable work

environment in which information assets are properly

managed and distributed, encouraging revenue growth and

worker satisfaction.

Table of Contents

Maximizing the Enterprise Information Assets

Preface

Introduction

Part I - Context

Chapter 1 - A Basis for Management

Chapter 2 - Removing Hindrances

Chapter 3 - Lessons From the Web

Chapter 4 - Enterprise Planning

Part II - Organization

Chapter 5 - System Development

Chapter 6 - Organizational Structure

Chapter 7 - Organizational Assessment

Chapter 8 - Ways to Move Knowledge and Ways to Stop It From Moving

Part III - Human Value

Chapter 9 - Human Resource Value

Chapter 10 - Uses for the Online Conference

Chapter 11 - Information Assets and Learning

Chapter 12 - Competencies of Information Managers

Part IV - Appendixes

Appendix A - Initiating the Process

Appendix B - Information Modeling

Appendix C - Computing Information Value

Appendix D - Information Assets Survey Results

Appendix E - The Numinous Dimension

Appendix F - Bibliography

List of Exhibits

List of Sidebars

Back Cover

The ramifications of this new Information Age are still not well understood. Most businesses are unaware how to turn

their information into a beneficial capital asset. Unfortunately, their focus has been almost exclusively on technology,

while human and managerial factors are left unexplored.

Maximizing the Enterprise Information Assets defines practical, winning techniques for building an environment that

takes advantage of all a company’s information resources. This innovative work defines information assets not only

as patents, trade secrets, and marketing data, but as all information contained within a company.

This groundbreaking book will:

Identify and define information assets

Point out barriers that lessen the value of these assets, and detail ways to increase their value

Explain how information can be strategically distributed

Outline how enterprise structures are supported and defined by their information assets

Describe organizational structures that manage information most effectively

Discuss the relationship between information and strategic planning

Explore strategies used to promote the exchange of valuable information among employees

Corporate officers, directors, and IT managers will find this book invaluable in creating a positive, profitable work

environment in which information assets are properly managed and distributed, encouraging revenue growth and

worker satisfaction.

Maximizing the Enterprise Information Assets

Library of Congress Cataloging-in-Publication Data

Wells, Timothy D.

Maximizing the enterprise information assets / Timothy D. Wells, Christina Sevilla.

p. cm.

Includes bibliographical references and index.

ISBN 0-8493-1347-3 (alk. paper)

1. Knowledge management. 2. Information technology. I. Sevilla, Christine. II. Title.

HD30.2.W4574 2003

658.4'038--dc21 2003043732

This book contains information obtained from authentic and highly regarded sources. Reprinted material is

quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts

have been made to publish reliable data and information, but the author and the publisher cannot assume

responsibility for the validity of all materials or for the consequences of their use.

Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or

mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval

system, without prior permission in writing from the publisher.

The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for creating

new works, or for resale. Specific permission must be obtained in writing from CRC Press LLC for such

copying.

Direct all inquiries to CRC Press LLC, 2000 N.W. Corporate Blvd., Boca Raton, Florida 33431.

Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used

only for identification and explanation, without intent to infringe.

Visit the CRC Press Web site at www.crcpress.com

Copyright © 2003 by CRC Press LLC

Auerbach is an imprint of CRC Press LLC

No claim to original U.S. Government works

International Standard Book Number 0-8493-1347-3

Library of Congress Card Number 2003043732

Printed in the United States of America 1 2 3 4 5 6 7 8 9 0

Printed on acid-free paper

Dedication

Kindest thanks go to Milton and Dvorah Lederman.

To Milton for his thorough editing, and to both for their loving support.

Preface

We began writing this book in the early 1990s, but for one reason or another, the timing was not right. We

gave up on the project as a book, gave some presentations to data management and quality improvement

organizations, and moved on. In 2001, after we had written a series of articles for Auerbach, the editor asked

for any book ideas we might have. We dusted off the old sample chapters and sent them on their way. When

we took a fresh look at those old sample chapters, we realized that while we had some editing to do, our basic

tenets — such as, "it's the people, not the technology!" or our basic tests of information value — are still valid

but not widely appreciated.

The information within an enterprise is a pure reflection of the enterprise. The information most dominant and

the information occupying the greatest attention reflect the enterprise's health and determine its future. For

example:

The distorted and manipulated financial information that surfaced in the Enron and WorldCom scandals of

2001 and 2002 reflects an enterprise that is deceptive and self-serving.

The information tracking the schedules, participants, results, and media and Web distribution of the 2000

Sydney Olympic Games and the 2002 Salt Lake City Olympic Winter Games reflected the noble goals of

these international events. The Winter Games information was integrated and managed by Schlumberger￾Sema (a consortium of 15 technology providers) — a Herculean effort. Sydney Olympic Games'

information was managed by a proprietary organization, IBM's Tivoli® Systems. In both cases, information

about events was posted to the Web as it occurred, was easy to locate, and easy to explore, despite the

massive numbers of events and complex schedules.

The information used by the Nixon White House, 1970 to 1974, reflected a paranoid and destructively

ambitious organization.

The FBI's organizational culture, steeped in a traditional, hierarchical approach to information handling,

failed to allow key information about terrorist activities to get to high-level decision makers prior to

September 11, 2001.

The information within your organization reflects the hard work you and your colleagues are doing to

achieve your goals and provide value to your customers.

Information is a valuable corporate resource, defining an enterprise's effectiveness as well as its assets.

Managers must make use of information as an asset to keep their organizations competitive.

It is clear that the organizations which excel...will be those that recognize information as a major

resource and structure it as efficiently as they do other assets.

—John Diebold, 1979

The idea of information as an asset has been a topic of discussion for years but the focus has been on the two

most visible aspects of the domain at the expense of the most beneficial:

The portion of an enterprise's information thats value can be easily converted into a monetary

equivalent captures a lion's share of interest and attention.

1.

The technologies, exciting and always new, draw more than their share of attention in publications and

corporate planning meetings.

2.

2.

The vast majority of information within an enterprise is not easily traded or appraised, and capitalizing on this

information does not necessarily require the latest technology.

The information we address throughout this book is the nuts-and-bolts information you deal with day-to-day.

This information is in the form of computer files, paper documents, business forms, and notes on your cubicle

wall. Other texts in this field address the seemingly more valuable types of information: intellectual property

and copyrighted material. Copyrighted information is a product owned by an individual or enterprise and

protected by custom and law. Information that corporate officers deem to be a competitive advantage is

guarded and labeled as a trade secret. Ideas forming the core of products and processes are patented and

cosseted to then be bought, sold, or licensed as part of an enterprise's strategic plan. These forms of financial

information assets are extraordinarily valuable. It is understandable that the creation, management, and

protection of these assets are the subject of many texts. It is also mystifying to us that the vast majority of

information within an enterprise gets so little attention — information that helps us do what we do, and do it

better (see Exhibit 1).

Exhibit 1: Information Iceberg

The technology currently exitant in most organizations has far more capability than is actually employed. There

is a tendency to equate improvements in information assets management with improvements in technology

(see Exhibit 2). Our experience over the past 30 years has suggested that technological improvements alone

seldom translate into improved asset utilization. The human and organizational issues are far more critical to

our success than is the choice of technology.

Exhibit 2: Information versus Technology

Information technologies — and the Internet in particular — are enabling factors of corporate reengineering

and new-century productivity increases, but the effect on the nature of work and management is largely

undefined. Organizations are making major investments in network and computer technology to position

themselves for the new business realities without knowing what those new realities are.

The ramifications of information management are still not well understood. The fervor over the information age

causes us to miss the clear picture of what changes are necessary to fully exploit information as a capital

asset. The focus has been on the technology, while the human and managerial dimension is left unexplored.

The knowledge worker is here, but how is the knowledge worker managed? The economy is changing, but

what organizational changes are needed to succeed in the new economy? Assumptions learned in school and

early experience are no longer serving, but what should replace them? Databases, enterprise systems, the

Web, and other technology resources are used as the framework for managing information successfully. But

should we base the management of our information on technology?

I need a model that serves my organization and me day-to-day. I need techniques that assist me in my

strategic planning. I need tools that are effective on tactical and operational levels. I need a philosophy that

motivates and a logic that inspires.

The information age, if it is to become the next revolution in enterprise effectiveness, must address the issue

of information's value. Information is the raw material of all economic sectors. Information is the basis for

corporate reorganization and productivity assessment. The enterprise prospers that can first add value to its

information resource. The enterprise waiting to see how others employ this capital asset cannot hope to

compete.

This text defines workable and practical techniques for managing an enterprise's information asset, and for

creating the human environment where people are motivated to capitalize on the enterprise's information. This

text describes the subtle and profound forces inherent in an information-dominant business environment. The

reader explores the critical decisions that must be made at this crossroads of the modern corporation, not the

least of which is the changing relationship between the enterprise and the individual.

We do not like the phrase "knowledge management" and we use it sparingly in this text. The phrase is jarring.

To the extent that "knowledge management" refers to dealing with that which is inside the thought and mind of

a person, the term is beyond the scope of day-to-day business practices. Managers, by definition, manage

people and the processes through which they interact. One can manage information and treat it (appropriately)

as an asset. We can make it possible for them to share it, we can facilitate more learning, and we can add

value to the enterprise by developing people, but we do not truly manage knowledge.

To increase the value of the enterprise's information requires human intervention. To motivate the human

dimension requires something more than the promise of increased profit and an increased return on

investment. The enterprise must turn itself into a coordinated group of talented individuals, all seeking to

increase the value of its shared assets. Such an organization is filled with contradictions. As a member of the

enterprise, I must seek to increase the value of the information I control. The greater my level of knowledge,

the more confident I become with the current state of the enterprise. At the same time, I must seek to change

the organization of which I am a part, which may increase my uncertainty.

In developing the model, we discovered that the information asset of most enterprises is grossly undervalued.

Addressing the needs of the enterprise was folly without also addressing the needs of the individuals defining

the organization. We realized that the very process that increases information's value must also be rewarding

to the individuals whose work adds meaning to information and thus to the enterprise.

On reading this book, you will begin to:

Identify and define information assets in your enterprise

Identify barriers that lessen information's value

Plan changes to increase information's value

Distribute information more strategically

Manage more creatively the people who create information

Express the dynamic and shifting nature of information's value

Discern the way the enterprise's structure is supported and defined by its information asset

Our goal is to identify ideas, techniques, and practices that not only help the modern enterprise succeed in its

objectives, but also make the human activity we call work rewarding and worthy of our effort.

Timothy D. Wells

Christine Sevilla

Introduction

Our goal is to explore opinions, attitudes, and practices affecting the management of information and

knowledge assets. The results of our surveys continue to be interesting source material. However, these

results leave us in a quandary. To write a book on information assets management that will be useful and

constructive to people in business, we need to frame the material in a way that is accessible — but the

population of readers has an incredibly wide range of expectations. Valuable works have been written about

accurate and useful ways to account for information assets, such as The Balanced Scorecard by Kaplan and

Norton (1996). In this text we focus on how to improve and grow the information asset.

Our orientation:

We write this text as a resource to everyone interested in making information more valuable.

We believe the focus of information assets management must be on information's meaning and use.

Technology takes a secondary role and must be treated as a potential means of improvement.

We believe that the domain of information assets management will be led by the dedicated and largely

spontaneous efforts of individuals within an organization.

We believe that the individuals gathering and using information are the driving force in any organizational

improvement effort. Managers should not attempt to control or direct, but rather to facilitate and nurture.

What you will find in this text:

Managers will find useful techniques for evaluating, encouraging, and monitoring the use of their

organization's information assets.

Front-line operations personnel will find guidance and accessible methods for identifying areas of potential

improvement, and suggestions for how to work toward improved information value.

Supervisors will find effective practices for assessing skills and competencies necessary for information

workers and easy-to-implement methods of encouraging continuous development of staff.

Information technology (IT) staff will find guidelines for supporting company personnel in the effort to

improve information assets.

IT managers will find means of describing and evaluating the potential benefits of information asset

improvement proposals and assessing the effect of improvement efforts.

Corporate officers and directors will find support for defining policies that encourage and reward effective

management of valuable corporate information assets.

You are invited to join the discussion group, exchanging stories and experiences (both successful and

otherwise) of efforts to manage and enhance information assets. The authors' conference site is:

www.luminguild.com/info.

Overview

The book follows the map shown in Exhibit 3.

Exhibit 3: Book Map

The collection of essays comprising this text is divided into three main parts:

Context: strategic planning and systems development (including chapters defining important concepts,

and drawing analogies from recent Web experience)

1.

2. Organization: The role of information technology, organizational structure, and assessment

3. Human value: human resource development

Part I: Context

The objectives of Part I are to create conscious recognition of the importance of information as the subject of

business activity (see Exhibit 4). Chapter 1 is an essay containing opinions and observations about the role

information plays in many aspects of business. This chapter makes explicit what has been understood, but

quiescent.

Exhibit 4: Part I: Context

Specific objectives and examples are presented in Chapter 2.

The most visible materialization of the information age has been the Internet. It has become a model and a

metaphor understood and experienced by everyone. Chapter 3 describes how the Web illustrates many of the

important issues of information assets management.

Chapter 4 defines the interplay between information assets and strategic planning. Here we argue that

planning becomes more constructive and achievable when planners focus on the enterprise's information

assets (i.e., make information the subject of the debate). The planning process is changed when we use our

information as a model or simulation of our enterprise, and as the source and focus of our planning activity.

We can define alternate paths and assess the value of each by projecting the effect each alternative has on

the value of our information assets.

Part II: Organization

Strategic plans direct the resources we allocate to the system development effort (see Exhibit 5). Strategic

plans provide a framework for assessing our organization and identifying potential improvements. In most

organizations, the systems development group is a critical player in realizing such plans. Chapter 5 explores

the role of the systems development group in a constructive relationship with other business divisions, each

with its own understanding of information needs and requiring the support of the technology experts.

Exhibit 5: Part II: Organization

Chapter 6 describes organizational structures that provide optimal opportunity for effective information

management. We explore how the structure of the organization itself affects our ability to capitalize on

information assets. We discuss how the focus on information encourages a structure where people with

different expertise are organized into teams focusing on particular objects of information — rather than

organizing people of similar skills into processoriented departments.

Organizations with an effective planning process and constructive relationships between business and

technology experts are more successful at evaluating the enterprise and identifying areas of potential

improvement. In Chapter 7 we recommend hands-on techniques effective for organizational assessment.

Distributing information throughout the organization simply takes some effort to make things happen. In

Chapter 8 we describe methods and techniques that motivate people to move knowledge and share ideas

throughout the organization.

Part III: Human Value

The talent and creativity of the people of an enterprise enhance information assets (see Exhibit 6). In Chapter

9 we discuss strategies we have seen effectively employed to encourage the creation and exchange of

knowledge and information. We discuss how an individual's value to the enterprise is determined by his or her

contribution to the shared information resource, and we describe knowledge portfolios and training contracts.

Exhibit 6: Part III: Human Value

Planning in the information age requires wide participation. Facilitating and coordinating the ongoing planning

process is enhanced by the use of enhanced techniques for group participation, electronic conferences, and

evaluation tools. In Chapter 10 we define techniques we have found useful in expanding the planning process

to allow wider participation, faster consensus, and demonstrable results.

The business enterprise is an environment that either encourages growth and learning or hinders it. Managers

who create an environment where people learn, develop, and grow improve these chances of organizational

success. This is the subject of Chapter 11. In Chapter 12 we list important competencies needed to manage

information assets. Selecting, developing, and retaining staff with these key competencies is vital to

information-intensive business.

Appendices

The book concludes with a set of appendices containing supplemental material (see Exhibit 7). We are often

asked about how to get started on significant organizational change efforts. Colleagues and clients want to

know what to do first and how to avoid political traps. Appendix A contains our thoughts and advice on how to

begin applying this book's techniques and methods.

Exhibit 7: Appendices

Appendix B is a summary of a more formal method of information modeling. Most of the illustrations in the text

are based on information modeling methods used in software application development. We include this

material for those readers interested in applying more structure to their efforts to understand and document

information in their departments.

Appendix C presents our ideas on computing the value of information. We seldom find it useful to invest a

great deal of effort into quantifying information assets. However, understanding how the relative value of

information can be computed is useful in planning and assessment activities.

Conclusion

Throughout the text we make reference to an informal survey conducted in early 2002. It provided results that

are both heartening and disappointing. We believe we can conclude that the will to improve the information

asset is strong. We include an appendix (Appendix E) with the data collection instrument and raw data from

our survey.

We end the appendix of this text with an essay on the esthetic and emotional side of information assets. We

have observed how information affects a person's job satisfaction. We have seen cases where trust and

interdependence are enhanced by information. We include this appendix to share our thoughts on an

extremely important (but arguably less business-like) aspect of information assets management.