Wednesday, October 16, 2019

The Business Benefit of Information Strategy

A good information strategy guides the company forward by determining the strategic objective of information management, identifying and assessing risks, and adjusting the business speed, to maximize business benefit.

With the overwhelming growth of data, information and its life cycle becomes much more complex. Organizations need to have an Information Management strategy as an integral component of the business strategy. Information Management strategy determines the strategic goals of information management, their risk appetite for achieving them, diagnoses existing issues, identifies and assesses information management effectiveness, and makes sure it brings great business benefits.

Enables better information access and analysis by breaking down silos: Information is permeating everywhere in the organization, thus, the value of information is not isolated. The speed of information directly impacts the speed of the business. A well-crafted Information strategy helps to diagnose the current Information Management issues such as a functional silo, outdated technology, process rigidity, etc. An overly complex process can easily stifle information flow as organizations get locked into huge processes around building extensive business cases. Information management needs to be integrated into business strategy management, allow the company to gain business insight and excel in value returns.

Information flow streamlines business flow, more attention needs to be placed on the conditions that allow information to flow and generate value rather than try to manage or control information. Information Management has to break down silos, keep data flow, and apply an integrated information life cycle management solution to conquer business challenges. Technology enables large data sets to be captured and presented for analysis, but the value hidden in data is only revealed through intelligent reasoning. An intelligent and open information system can incorporate both ends and means; continuously open to new information from the dynamic business environment and is able to circulate information within the system seamlessly, process and refine information systematically, and responds to rapid changes continuously.

Increases Information Technology alignment with the business: There is no limit to the value of information in today’s digital business ecosystem. A well defined Information Management strategy clarifies the business goal behind Information Management and increases information technology alignment with the business. Strategic alignment is important in working towards common business goals. An information strategy needs to be integrated into the strategic goal of the business, helps to build up an analytics-driven culture across the organization, and improves organizational decision maturity. Keep in mind, information is the most invaluable asset of the company besides people. There's a difference between the potential value of information asset, its realized value (when consumed), and its probable value (accounting value). Understanding and measuring these differences is a critical step to close gaps and improve information alignment with the business.

Reduce costs and increase efficiencies, improve risk management effectiveness: Information has the very characteristics of velocity, variety, viability, and most critically, value. Thus, information management is a complex business discipline that includes reducing costs, improving systems, and streamlining processes. Many organizations also spend so much time and energy on collecting data for that "just in case" scenario, without unlocking the full potential of information. A good information strategy is important to help prioritize based on business needs, communicate extensively and set guidelines to improve information management effectiveness. More specifically, information management includes a set of integrated management processes that enable and support the capability of collectors, producers, and users to store, locate, retrieve and transform information, focusing on information adoption and value generation while increasing efficiency and minimizing risks.

Information Management is the key differentiator between digital leaders and laggards, A good information strategy guides the company forward by determining the strategic objective of information management, identifying and assessing risks and adjusting the business speed, to maximize business benefit.


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