Posted by The Brigadier on 11/26/06 11:10

WORLD IMPROVEMENT NEWSLETTER (WIN), Nro. 1, 2006, by Markku J.
Saarelainen

Information Technology Applications for Implementing Strategic
Management Systems and Business Strategies


Copyright 2006 Markku J. Saarelainen

WORLD IMPROVEMENT NEWSLETTER (WIN)

Nro. 1, 2006

by

Markku J. Saarelainen

Information Technology Applications for Implementing Strategic
Management Systems and Business Strategies

The evolution of the information society has motivated us to utilize
more and more effective information technology solutions in our
information processing activities. Recent developments within the last
15 years have transformed many developed economies to information based
economies, where the knowledge and information processing capabilities
and tools are keys to the successful implementation of business
strategies and strategic management systems. Due to increasingly faster
information channels and increasingly larger amounts of the
information, companies are motivated to explore effective ways to
filter, screen, process, manipulate, analyze and deliver quality
information to their decision makers, analysts or other stakeholders.

Various information technologies are utilized in almost all aspects of
any business. Basic tools such as fax machines and copiers have been
used longer than others; however these tools are being replaced by
email systems, Internet technologies and other TCP/IP based
applications, videoconferencing (ATM, SONET) and many other
telecommunication, data processing and information management
applications. It is quite unusual if a medium size company does not
currently have some type of an email system. Companies are also relying
increasingly on electronic record keeping, automated test and analyzing
tools and techniques, automated planning and scheduling systems,
electronic information collection, distributed decision making,
telecommuting and many other aspects of electronic commerce. Personal
computers (PC) and local area networks (LAN) and other related
computing applications have affected our working environments and
organizational behaviors for more than 15 years already; however, this
15 years is a short time period in the history of mankind and these new
IT solutions and tools shall provide us ever better work tools, methods
and environments. The following paragraph from the Distributed Quality
Audit Vision addresses some new potential developments in quality
auditing resulting from new networking solutions:

"The future quality system audits are enabled by growing and advanced
global information networks (ATM, SONET and other technologies)
including a variety of different satellite and earth based
communication technologies including wireless communication tools.
Satellites such as Low Earth Orbit satellites (LEOs) enable fast,
reliable and accurate communication anywhere around the globe. The
software applications for processing images, audio, video and data are
being developed to utilize these communication networks. Both the
quality auditor and the auditee develop their internal information
systems to communicate both internally and externally, and to interface
with the global information network.", Distributed Quality Audit
Vision, July 1996, Markku J. Saarelainen

The utilization of the strategic management systems is an essential
element of every business's business strategy. These tools are and
can be utilized and implemented in all aspects of the business: initial
business development, market research, business management, sales and
marketing, finance, strategic planning and business scenario
development and many others. While these technologies provide good and
effective tools for us to work and communicate better and more
reliably, these technologies require many changes from our
organizations and work environments. Some examples of required
organizational changes are addressed below:

"Changes in information processing technologies establish new
requirements for people, who are using these technologies. The
achievement of this vision requires major changes in corporate
cultures. Individuals are required to use sophisticated communication
systems, computers and software applications. This by itself can cause
major resistance to the organizational change. In addition, individuals
have to learn and adopt new ways of processing information and data,
and using distributed database systems to manage, retrieve and obtain
necessary information for performing their work activities. The
information systems maintain also records of various organizational
activities such as all uses of documents and data, work activities
performed by personnel, customer and supplier purchase orders, uses of
facilities and conditions of current storage locations. This may cause
some loss of "perceived employee privacy" that can create
additional barriers to required organizational changes. The
organizations have to use appropriate development techniques to
minimize any resistance and organizational stress (see QSBN October
1995, QSBN April 1994, QSBN May 1994 and QSBN July 1996). ",
Distributed Quality Audit Vision, July, 1995, Markku J. Saarelainen

While new technologies provide us these good tools, they do also
require us to develop additional safeguards to ensure that our work and
other business activities can be continued and completed without any
unnecessary disruptions, data and information losses or any other
problem situations. These safeguards include adequate information
protection methods such as backups, encryption, password control and
management, information security systems (ISS) and many others. In
fact, executive management should develop strategies, detailed plans
and methods to address all information security and protection issues:

"It shall be important for any organizations to implement management
systems and techniques to prevent any harmful impacts from the hostile
IW attacks. These systems may include various strategic and risk
management systems such as the Information Security Systems (ISS),
Business Intelligence Systems (BIS), Quality and Environmental
Management Systems (Q&EMS), specific Internal and External
Communication Systems, Legal Management Systems and many others. In
most of these systems, the assigned Management Representative and/or
Officer is responsible for ensuring that the system is established,
implemented and maintained. Specific procedures and instructions shall
be developed and implemented for specific elements of the systems and
the effectiveness of these systems should be reviewed periodically by
the executive management and if necessary, additional improvements can
be initiated to improve the effectiveness and performance of the
system. The scope of some systems can be broader than others and they
may be integral elements of other strategic management systems. For
example, some elements of the ISS such as tape backups and the
information classification can be a part of the Quality Management
System to prevent the accidental or intended unauthorized deletion,
destruction or modification of the quality data and information. These
systems should be integrated into one strategic management system to
collect, obtain, analyze, disseminate and protect the key information
and intelligence and then to make sound and quality decisions on
various business, market and competitiveness related issues. In
addition, encryption, cryptography and other information protection
applications can be used to prevent any unauthorized monitoring and
eavesdropping and protect the information and intelligence during its
communication and delivery processes from its generators to its
receivers." Information Warfare and Its Impacts on Commercial
Enterprises, December, 1996, Markku J. Saarelainen

New technological developments shall provide us exciting and changing
work environments. Our work environments and business practices have to
be compatible with new developments in our market places and business
environments. We have to know our market place requirements. If our
customer prefers us to communicate using videoconferencing or other
flexible technologies, it is in our best interest to do so to satisfy
our customer's basic needs and requirements. If we find out that the
implementation of some new distributed database management systems
could improve our cost efficiency and provide improved products for our
customers, it is in our best interest to allocate financial resources
to implement these new data management systems. The key is to integrate
the IT evolution in our organization into our business strategies:
global and local business strategies. This evolution should be timed
right to meet our unique local market place and customer requirements,
because the IT solutions that are used effectively in one high-tech
market, may not be suitable at all in another market place, where these
new technologies are not used currently in business activities.

Copyright 2006 Markku J. Saarelainen

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