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Key issues in the management of information systems: A Hong Kong perspective
I ELSEVIER Information & Management 30 (1996) 301-307
Research
Key issues in the management of information systems: A Hong Kong perspective Trevor T. Moores* Department of Information Systems, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong
Abstract The results of a survey are presented on the perceived importance of 20 IS issues in Hong Kong in 1994 and in the next five years. The survey was based on studies carried out in the USA and Taiwan. The major issues which changed were a decline in the importance of recruiting and maintaining a skilled workforce (IS human resources), accompanied by an increase in the importance of the need for a good communications network (Telecommunications). Comparing the results with those of the USA and Taiwan revealed seven issues common to all the three studies. In particular, the ability to anticipate and adapt to the changing face of IS (IS strategic planning) was a top three issue for the USA, Taiwan and Hong Kong.
Keywords: Information systems (IS) executives; IS Management; Management priorities
1. Introduction
2. The survey
This paper presents the results of a survey that investigated the key information systems (IS) issues facing organisations in Hong Kong. Using similar studies carried out in the USA [7, 3, 4] and Taiwan (ROC) [12], a questionnaire was constructed to rank the relative importance of IS issues now and in the next five years. Since IS is still a developing industry in Hong Kong and has different political, economic, and cultural aspects, the results of the survey are likely to differ from prior studies. By conducting a similar survey and comparing the results, we can identify how Hong Kong differs from other parts of the world.
The study investigated the importance of IS issues in Hong Kong at the time of the survey (1994) and over the next five years (1995-1999); using a set of issues developed by Niederman et al. [9]. In order to clarify the 20 IS issues, each issue is briefly defined in the Appendix A in the same order as they appear in the questionnaire. A space was provided at the end of the questionnaire for respondents to add further issues. No new issues were identified, however, suggesting that the most important issues are already reported in this list. Issues are classified as relating to business relationship (BR), internal effectiveness (1E), technology infrastructure (TI), or technology application (TA). The BR and TI groups of issues pertain to general relationships between the MIS department and the business, and the facilities required to support the use of technology. The IE and TA groups of
*Tel. +852 2788 8529 Fax. +852 2788 8694 E-mail: [email protected]. 0378-7206/96/$09.50 © 1996 Elsevier Science B.V. All rights reserved Pll 0378-7206(96)01064-6
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issues have a narrower focus and relate specifically to how well the MIS department performs certain key functions, and the use of specific types of technology. These groups are meant to provide some explanation on the key concerns of the organisations under study. Participants were asked to rate the critical issues facing Hong Kong IS executives currently (1994) and over the next five years (1995-1999) on a 10-point scale. A score of 10 indicated their top priority issue(s) while 1 indicated the lowest.This method follows the one employed by Niederman et al. after Watson [13] on the grounds that a rating method avoids the problems of having to consider all 20 issues simultaneously in order to rank them, and provides useful interval-level data for further analysis. The issues are ranked according to their mean score, and the standard deviation is calculated as a measure of the spread of opinion. In early 1994, 300 questionnaires were mailed to MIS managers in different organizations, with names and addresses randomly selected from the " Asian Computing Directory 1992" [1]. Usable responses were received from 108 respondents, yielding a response rate of 36%. A profile of survey respondents by industry is provided in Figure 1. In terms of industry representation, the majority of respondents belonged to the commercial sectors of Services (64%) and Manufacturing (28%), with a minority from the Non-Profit sector (8%). The dominance of Services is useful for this study, because Service industries, such as banking, rely heavily on computerized information systems and so should give pertinent information. On the other hand, this dominance means that a comparison by industry would not be appropriate, because there are not
8%
• Services i i • Manufacturing i [[] Non-Profit i
28%
64%
Fig. 1. Respondents by industry.
enough responses from the Manufacturing and NonProfit organisations to make such a comparison meaningful.
3. Current issues After calculating the mean score for each issue in terms of their current importance and their importance over the next five years, the 20 issues were ranked (see Table 1). The group to which the issue belongs is given in parentheses. Statistical tests are not used here to identify significant differences between the issues. After all, the data represents perceptual information and thus only the mean and standard deviation would seem to be appropriate. Focussing on the Top 10 issues, it can be seen that apart from Developing an information architecture (ranked 4th), none of the technology-oriented issues from the TI or TA groups are perceived as being important. On the other hand, while five of the six BR issues are represented in the Top 10, it is the more specific IE issue of assessing the Quality of software development that is ranked as most important.
Table 1 Hong Kong rankings of current IS issues
I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Issue, 1994
Mean St.Dev.
Quality of software development (IE) Use of data resources (BR) IS strategic planning (BR) Developing an information architecture (TI) 1S for competitive advantage (BR) Measuring IS effectiveness/productivity (IE) IS human resources (IE) Organisational learning of IS (BR) Security and control (IE) Aligning IS with the enterprise (BR) Telecommunications (TI) Disaster recovery (IE) IS role and contribution (BR) Applications portfolio (IE) End-user computing (TA) Developing an IT infrastructure (TI) DSS/EIS (TA) Distributed systems (TI) CASE (TA) Multi-vendor integration (TI) Total
7.25 7.14 6.94 6.81 6.75 6.56 6.33 6.25 6.25 6.19 6.14 6.14 6.06 6.03 5.94 5.81 5.67 5.58 5.36 4.97 6.21
1.91 1.86 1.91 2.12 2.36 1.99 2.49 1.71 2.38 2.18 2.25 2.57 1.67 1.76 1.93 2.60 2.35 2.27 2.39 2.27 2.24
T.T. Moores/lnformation & Management30 (1996)301-307 3.1. Quality of software development (Rank 1) While the demand for IS is increasing, the backlog of systems yet-to-be-built remains high. This creates a tension between developing systems that meet a need but have been postponed, and maintaining quality in the development process. Quality often demands time to assess the system, from code inspection to user testing. But how can it be done well? How can we get it right, the first time, while maintaining productivity? Apparently, Hong Kong has reached a stage where investment in IS is considered normal (IS role and contribution was ranked 13th), but it must be provided efficiently and cost-effectively.
3.2. Use of data resources (Rank 2)
303
3.4. Developing an information architecture (Rank 4) An information architecture represents the information categories contained within the organisation and their relationship to business processes. For instance, a manufacturing process may be defined in terms of categories such as " Goods received" ," Units in production" and " Units in stock" . An information architecture is required to guide application development, facilitate the integration and sharing of data and provide the basis for building a coordinated, responsive, and long-lasting set of business applications. However, the breadth of information requirements and the rapid changes within the business environment make it difficult to capture and maintain the architecture.
As organisations become more sophisticated in their use of IT, it becomes possible to collect data throughout the business. Making effective use of this corporate asset is the role of the IS executive who must foster a climate where data is recognised, valued, made accessible, and utilised. This is a particularly important issue in Hong Kong, where tertiary industries such as banking, securities, etc., are dominant. For these industries, IS underpins business by supporting customers records, accounts, the vast number of personal transactions, and the provision of timely information on the exact state of the accounts. With such large volumes of data, however, there is also the problem of how to combine information in order to support decision-making without an information overload.
3.5. IS for competitive advantage (Rank 5)
3.3. IS strategic planning (Rank 3)
Measuring IS impact on the business is crucial in understanding the benefits of IS. However, it is not always possible to untangle the contribution IS has on an organisation from other motivational forces. Although such measures must be defined in order to justify IS expenditure, ways of capturing benefits and costs remain a problem.
With more business dependent on IT as a sustaining force and competitive weapon, IS strategic planning requires close alignment with business plans. As the technology underpinning IS continues to change rapidly, there is a need to improve strategic planning skills to anticipate and adapt to these changes [5]. Such planning must be achieved inspite of the uncertainty of technological change, and additional constraints such as the position of the IS department within the enterprise (ranked 10th).
Competitive advantage results from the recognition of opportunities through creativity and innovation, followed by rapid implementation. Clearly, IS can help in organising the information from which a niche can be identified, but the exploitation of this new opportunity is likely to depend on other factors, such as organisational flexibility and responsiveness, and being able to integrate business activities [10]. Effective integration is further dependent on a number of other issues, such as the effective use of data, improved strategic IS planning and the development of an information architecture.
3.6. Measuring IS effectiveness/productivity (Rank 6)
3. 7. IS human resources (Rank 7) The perceived shortage of well-qualified IS professionals threaten the effective use of IS. Furthermore, it is unclear exactly which skills best
T.T. Moores/Information & Management 30 (1996) 301-307
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define " good IS professionals" , how they may be recruited, and how best they should be trained within the organisation [6]. According to a recent report from Hong Kong, the vacancy rate and turnover rate in the field of electronic data processing are as high as 7.1% and 20.2%, respectively [11].
3.8. Organizational learning of IS (Rank 8) If an organisation is to make maximum use currently available technology, it must be able absorb new tools and adapt to more effective ways doing business [2]. Making appropriate use of new technologies remains an important issue.
of to of IS
3.9. Security and control (Rank 9) It is important to control who has access to organisationl data in order to avoid its unauthorised disclosure, destruction, or alteration. Tight security controls and fault-tolerant information delivery become significant issues for all IS executives.
3.10. Aligning IS with the enterprise (Rank 10) If the organisation has a strongly decentralised structure, then it is necessary to tailor IS according to the local conditions: the IS department, however, must be sensitive and respond to such a need. If the IS is not aligned with the organizational structure [8], the development of systems may not faithfully reflect the way in which the organisation does business.
4. Future issues The ratings of the 20 IS issues in terms of importance over the next five years are given in Table 2, where the mean score for each issue is higher than that of the corresponding current issue. Nine of the Top 10 current issues remain in the future 10, while all the current Top 5 issues are expected to remain important. A positive difference in rank indicates that the issue was rated as being more important (attaining a higher rank) in the near future than today. A negative
Table 2 Hong Kong rankings of near future IS issues
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Issue, 1995-1999
Mean
St. Dev
Change from Table 1
Use of data resources Quality of software development IS for competitive advantage Developing an information architecture IS strategic planning Security and control Telecommunications Organisational learning of IS Aligning IS with the enterprise Measuring IS effectiveness/productivity End-user computing Disaster recovery DSS/EIS Distributed systems Developing an IT infrastructure Multi-vendor integration Applications portfolio IS human resources IS role and contribution CASE
7.89 7.61 7.50 7.44 7.42 7.11 7.08 7.06 6.97 6.86 6.83 6.83 6.81 6.72 6.72 6.56 6.39 6.39 6.36 5.97
1.74 1.96 2.37 1.57 1.95 2.28 2.31 1.75 2.29 1.81 2.23 2.37 2.26 2.09 2.27 2.41 1.55 2.64 1.81 2.60
+1 -1 +2 0 -2 +2 +4 0 +1 -4 +4 0 +4 +4 +2 +4 -3 - 10 -6 - 1
Total
6.93
2.19
T.T. Moores/lnformation & Management 30 (1996) 301-307 difference indicates the opposite. For example, the issue of Use o f the data resources was ranked 2nd as a current issue, but ranked 1st for the future. Thus, the difference is + 1 .
4.1. IS human resources This issue dropped significantly in ranking ( - 1 0 ) between the current and near future. This suggests that it is perceived as almost being solved, possibly due to the increase in the number of graduates from computing courses in Hong Kong's tertiary education sector. For instance, in City University of Hong Kong alone, the number o f intakes for the BA(Hons) Information Systems degree course is expected to increase by over 30% between 1994 and 1997. Thus, it would seem that the recruitment of IS-educated professionals will be easier in the future.
4.2. Telecommunications An effective telecommunications system may be the key to further advances in Management Information Systems (MIS). Communication is often the catalyst for achieving other important targets. The importance for Hong Kong is likely to centre on attempts to develop a business and manufacturing for markets in China. Given the vast distances between provinces in China, a sophisticated telecommunications system will play a critical role in business transactions.
5. Cross-comparison Since the structure of this study parallels a number of other ones, it may be useful to speculate on the presence of a number of c o m m o n IS issues. Issues are compared in Tables 3 and 4. The difference in position between the ranking of an issue in the U S A or Taiwan with respect to Hong Kong is also given; e.g., Developing an information architecture was rated 1st in the U S A and 4th in Hong Kong, so the difference with respect to Hong Kong is + 3 . As can be seen, the Top 10 for all the three are more or less the same with seven issues in common for all the three studies,is as follows:
305
Table 3 Comparison of Top 10 rankings in the USA [with current issues in Hong Kong] IS issue 1 Developingan information architecture 2 Use of data resources 3 Is strategic planning 4 IS human resources 5 Organisational learning of IS 6 Developingan IT infrastructure 7 Aligning IS with the enterprise 8 IS for competitive advantage 9 Quality of software development 10 Telecommunications
USA
HK Dif.
1 2 3 4 5 6 7 8 9 10
4-3 0 0 ~-3 q-3 + 10 ~3 -3 --8 +I
Table 4 Comparison of Top 10 rankings in Taiwan (ROC) [with current issues in Hong Kong] IS issue 1 IS strategic planning 2 IS for competitive advantage 3 Developing an IT infrastructure 4 Security and control 5 Quality of software development 6 Use of data resources 70rganisational learning of IS 8 IS role and contribution 9 IS human resources 10 Developing an information architecture
• • • • • • •
Taiwan HK Dif. 1 2 3 4 5 6 7 8 9 10
-~-2 +3 + 13 ÷4 --4 4 -~-1 --5 --2 -6
Developing an information architecture (TI) Use o f data resources (BR) IS strategic planning (BR) IS human resources (IE) Organisational learning of IS (BR) IS f o r competitive advantage (BR) Quality o f software development (IE)
The similarity between the current issues of these three studies suggest that this list includes the critical issues facing all IS executives. Not surprisingly, the BR issues relating to the organisation learning to use IS and its own data resource to gain a competitive advantage remain the most important issues, as well as the planning required to fulfill this potential. The greatest difference between the three studies is the relative importance given to the issue Security and control by Hong Kong and Taiwan, and the lack of importance given to it by the US.
306
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6. Conclusions This paper has sought to identify the top issues facing IS executives in Hong Kong using a questionnaire based on previous studies. Focusing on the Top 10, it was found that those issues which were seen as important at the time of the survey (1994) also maintained a high priority in the near future (1995-1999) although their specific ranking tended to change. A comparison between similar studies carried out in the US in 1989 and Taiwan in 1992 uncovered seven issues which were common in the Top 10 of all the three studies. Not surprisingly key issues, relating the MIS department to the business, dominated this list, although developing an information architecture, the personnel and the quality of software development were also included. The most significant difference was the high importance of securing and controlling data given by MIS managers in Hong Kong and the low importance given by their colleagues in the US. It is interesting to note that this and similar studies in the West are faced with a possible problem: The
rankings may be suspect since the standard deviation is greater than the difference in means, and such studies have found that issues vary greatly from study to study. Fortunately, this does not appear to be the case in this study. Firstly, a strong similarity between Hong Kong, Taiwan and the USA was discovered as far as the Top 10 issues are concerned (one of the aims of the study). Secondly, our standard deviations are presented in order to add an element of caution to the interpretation of the results and simply illustrate continued disagreement among IS professionals as to what is important. In fact, the standard deviations in this study are less than those found by other studies (such as [4]).
Acknowledgements The author gratefully thanks Lai Chun Wai, a graduate of the Department of Information Systems, who collected the data upon which this paper is based, and to the referees whose useful comments made this a better paper.
Appendix A Brief definition of the 20 IS issues IS Issue 1 Developing an information architecture 2 IS strategic planning
Description
Defining the organisation in terms of categories of information and their relationship to business processes. The strategic planning skills required to anticipate and adapt to changes in Information Technology (IT). 3 Use of data resources Viewing data as a corporate asset and utilising it effectively. 4 IS human resources Specifying, recruiting and developing an IS work force capable of implementing the required IS strategy. 5 IS for competitive advantage Using IS to support the identification and exploitation of new market niches. 6 Aligning IS with the enterprise Positioning the IS department - geographically and organisationally - so that it fits the centralised or decentralised nature of the enterprise as a whole. 7 0 r g a n i s a t i o n a l learning of IS Introducing flexibility into the organisation so that it can 8 IS role and contribution Making clear the benefits and limitations of IS. 9 Telecommunications Planning and implementing a telecommunication system in order to link individuals together. 10 Quality of software Controlling the software development process so that the development quality of delivered systems can be assured.
Class TI BR BR 1E BR BR
BR BR TI IE
T.T. Moores/lnformation & Management 30 (1996) 301-307
11 Multi-vendor integration
12 Applications portfolio 13 Measuring IS effectiveness/ productivity 14 Security and control 15 End-user computing 16 Distributed systems 17 CASE 18 Developing an IT infrastructure 19 DSS/EIS 20 Disaster recovery
Moving towards open systems to allow for the integration of systems developed by different vendors. Maintaining and replacing existing systems. Defining the productivity of the IS department and valuing it's impact on the organisation. Protecting data from disclosure, alteration or destruction without authorisation. Developing systems which directly support individual, group or departmental needs rather than enterprise-wide systems. Connecting enterprise-wide IS using a network. Automating the IS development process using Computer Assisted Software Engineering (CASE) technology. Building an integrated technology platform which maintains a responsive outlook to new technology. Facilitating and managing the development of Decision Support and Executive Information Systems. Establishing effective disaster recovery capabilities with recovery plans which are tested at regular intervals.
307
TI 1E IE IE TA TI TA TI TA IE
BR - Business Relationship (relating the organisation to its business) IE - Internal Effectiveness (making effective use of current technology) TI - Technology Infrastructure (providing the required support) TA - Technology Application (expanding the use o f technology)
References [1] Asian Computing Directory 1992, Computer Publications, Hong Kong. [2] Bouldi, B.M., Agents of change, Yourdon Press, New York, NY., 1989. [3] Brancheau, J.C., Schuster, L. and March, S.T., "Building and implementing an information architecture", Data Base 20(2), 1989, 9-17. [4] Brancheau, J.C. and Wetherbe, J.C., "Key issues in information systems management", MIS Quarterly 11(1), 1987, 23-45. [5] Certo, S.C. and Peter, J.P., Strategic Management, Random House, New York, NY., 1988. [6] Couger, D., "Key human resource issues in the 1990s: Views of IS executives versus human resource executives", Information and Management 14(4), 1989, 161-174. [7] Dickson, G.W., Leitheiser, R.L., Wetherbe, J.C. and Nechis, M., "Key information systems issues for the 1980's", MIS Quarterly 8(3), 1984, 135-159. [8] Dixon, P.J. and John, D.A., "Technology Issues Facing Corporate Management in the 1990s", MIS Quarterly 13(3), 1989, 247-255. [9] Niederman, F., Brancheau, J.C. and Wetherbe, J.C., "Information systems management issues for the 1990s", MIS Quarterly 15(4), 1991, 475-496. [10] Stalk, G., Jr. "Time: the next source of competitive advantage", Harvard Business Review 66(4), 1988, 41-51.
[11] 1989 Manpower survey report on the electronic data processing industry, The committee on electronic data processing training of the vocational training council. Hong Kong, 1989. [12] Wang, P., "Information systems management issues in the Republic of China for the 1990s", Information and Management 26, 1994, 341-352. [13] Watson, R.T., "Key issues in information systems management: An Australian perspective - 1988", Australian Computer Journal 21(3), 1989, 118-129.
Dr. Trevor Moores has been an Assistant Professor in the Department of Information Systems at City University of Hong Kong since 1993. He was previously a Research Officer at the University of Aston in Birmingham, UK, where he received a Ph.D for researching the application of software metrics in the development of conventional and knowledge-based systems. His other research interests include project management tools and techniques, requirements engineering and organisational modelling. He is a member of the Operational Research Society, IEEE and AIS.
Research
Key issues in the management of information systems: A Hong Kong perspective Trevor T. Moores* Department of Information Systems, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong
Abstract The results of a survey are presented on the perceived importance of 20 IS issues in Hong Kong in 1994 and in the next five years. The survey was based on studies carried out in the USA and Taiwan. The major issues which changed were a decline in the importance of recruiting and maintaining a skilled workforce (IS human resources), accompanied by an increase in the importance of the need for a good communications network (Telecommunications). Comparing the results with those of the USA and Taiwan revealed seven issues common to all the three studies. In particular, the ability to anticipate and adapt to the changing face of IS (IS strategic planning) was a top three issue for the USA, Taiwan and Hong Kong.
Keywords: Information systems (IS) executives; IS Management; Management priorities
1. Introduction
2. The survey
This paper presents the results of a survey that investigated the key information systems (IS) issues facing organisations in Hong Kong. Using similar studies carried out in the USA [7, 3, 4] and Taiwan (ROC) [12], a questionnaire was constructed to rank the relative importance of IS issues now and in the next five years. Since IS is still a developing industry in Hong Kong and has different political, economic, and cultural aspects, the results of the survey are likely to differ from prior studies. By conducting a similar survey and comparing the results, we can identify how Hong Kong differs from other parts of the world.
The study investigated the importance of IS issues in Hong Kong at the time of the survey (1994) and over the next five years (1995-1999); using a set of issues developed by Niederman et al. [9]. In order to clarify the 20 IS issues, each issue is briefly defined in the Appendix A in the same order as they appear in the questionnaire. A space was provided at the end of the questionnaire for respondents to add further issues. No new issues were identified, however, suggesting that the most important issues are already reported in this list. Issues are classified as relating to business relationship (BR), internal effectiveness (1E), technology infrastructure (TI), or technology application (TA). The BR and TI groups of issues pertain to general relationships between the MIS department and the business, and the facilities required to support the use of technology. The IE and TA groups of
*Tel. +852 2788 8529 Fax. +852 2788 8694 E-mail: [email protected]. 0378-7206/96/$09.50 © 1996 Elsevier Science B.V. All rights reserved Pll 0378-7206(96)01064-6
T.T. Moores/lnformation & Management 30 (1996) 301-307
302
issues have a narrower focus and relate specifically to how well the MIS department performs certain key functions, and the use of specific types of technology. These groups are meant to provide some explanation on the key concerns of the organisations under study. Participants were asked to rate the critical issues facing Hong Kong IS executives currently (1994) and over the next five years (1995-1999) on a 10-point scale. A score of 10 indicated their top priority issue(s) while 1 indicated the lowest.This method follows the one employed by Niederman et al. after Watson [13] on the grounds that a rating method avoids the problems of having to consider all 20 issues simultaneously in order to rank them, and provides useful interval-level data for further analysis. The issues are ranked according to their mean score, and the standard deviation is calculated as a measure of the spread of opinion. In early 1994, 300 questionnaires were mailed to MIS managers in different organizations, with names and addresses randomly selected from the " Asian Computing Directory 1992" [1]. Usable responses were received from 108 respondents, yielding a response rate of 36%. A profile of survey respondents by industry is provided in Figure 1. In terms of industry representation, the majority of respondents belonged to the commercial sectors of Services (64%) and Manufacturing (28%), with a minority from the Non-Profit sector (8%). The dominance of Services is useful for this study, because Service industries, such as banking, rely heavily on computerized information systems and so should give pertinent information. On the other hand, this dominance means that a comparison by industry would not be appropriate, because there are not
8%
• Services i i • Manufacturing i [[] Non-Profit i
28%
64%
Fig. 1. Respondents by industry.
enough responses from the Manufacturing and NonProfit organisations to make such a comparison meaningful.
3. Current issues After calculating the mean score for each issue in terms of their current importance and their importance over the next five years, the 20 issues were ranked (see Table 1). The group to which the issue belongs is given in parentheses. Statistical tests are not used here to identify significant differences between the issues. After all, the data represents perceptual information and thus only the mean and standard deviation would seem to be appropriate. Focussing on the Top 10 issues, it can be seen that apart from Developing an information architecture (ranked 4th), none of the technology-oriented issues from the TI or TA groups are perceived as being important. On the other hand, while five of the six BR issues are represented in the Top 10, it is the more specific IE issue of assessing the Quality of software development that is ranked as most important.
Table 1 Hong Kong rankings of current IS issues
I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Issue, 1994
Mean St.Dev.
Quality of software development (IE) Use of data resources (BR) IS strategic planning (BR) Developing an information architecture (TI) 1S for competitive advantage (BR) Measuring IS effectiveness/productivity (IE) IS human resources (IE) Organisational learning of IS (BR) Security and control (IE) Aligning IS with the enterprise (BR) Telecommunications (TI) Disaster recovery (IE) IS role and contribution (BR) Applications portfolio (IE) End-user computing (TA) Developing an IT infrastructure (TI) DSS/EIS (TA) Distributed systems (TI) CASE (TA) Multi-vendor integration (TI) Total
7.25 7.14 6.94 6.81 6.75 6.56 6.33 6.25 6.25 6.19 6.14 6.14 6.06 6.03 5.94 5.81 5.67 5.58 5.36 4.97 6.21
1.91 1.86 1.91 2.12 2.36 1.99 2.49 1.71 2.38 2.18 2.25 2.57 1.67 1.76 1.93 2.60 2.35 2.27 2.39 2.27 2.24
T.T. Moores/lnformation & Management30 (1996)301-307 3.1. Quality of software development (Rank 1) While the demand for IS is increasing, the backlog of systems yet-to-be-built remains high. This creates a tension between developing systems that meet a need but have been postponed, and maintaining quality in the development process. Quality often demands time to assess the system, from code inspection to user testing. But how can it be done well? How can we get it right, the first time, while maintaining productivity? Apparently, Hong Kong has reached a stage where investment in IS is considered normal (IS role and contribution was ranked 13th), but it must be provided efficiently and cost-effectively.
3.2. Use of data resources (Rank 2)
303
3.4. Developing an information architecture (Rank 4) An information architecture represents the information categories contained within the organisation and their relationship to business processes. For instance, a manufacturing process may be defined in terms of categories such as " Goods received" ," Units in production" and " Units in stock" . An information architecture is required to guide application development, facilitate the integration and sharing of data and provide the basis for building a coordinated, responsive, and long-lasting set of business applications. However, the breadth of information requirements and the rapid changes within the business environment make it difficult to capture and maintain the architecture.
As organisations become more sophisticated in their use of IT, it becomes possible to collect data throughout the business. Making effective use of this corporate asset is the role of the IS executive who must foster a climate where data is recognised, valued, made accessible, and utilised. This is a particularly important issue in Hong Kong, where tertiary industries such as banking, securities, etc., are dominant. For these industries, IS underpins business by supporting customers records, accounts, the vast number of personal transactions, and the provision of timely information on the exact state of the accounts. With such large volumes of data, however, there is also the problem of how to combine information in order to support decision-making without an information overload.
3.5. IS for competitive advantage (Rank 5)
3.3. IS strategic planning (Rank 3)
Measuring IS impact on the business is crucial in understanding the benefits of IS. However, it is not always possible to untangle the contribution IS has on an organisation from other motivational forces. Although such measures must be defined in order to justify IS expenditure, ways of capturing benefits and costs remain a problem.
With more business dependent on IT as a sustaining force and competitive weapon, IS strategic planning requires close alignment with business plans. As the technology underpinning IS continues to change rapidly, there is a need to improve strategic planning skills to anticipate and adapt to these changes [5]. Such planning must be achieved inspite of the uncertainty of technological change, and additional constraints such as the position of the IS department within the enterprise (ranked 10th).
Competitive advantage results from the recognition of opportunities through creativity and innovation, followed by rapid implementation. Clearly, IS can help in organising the information from which a niche can be identified, but the exploitation of this new opportunity is likely to depend on other factors, such as organisational flexibility and responsiveness, and being able to integrate business activities [10]. Effective integration is further dependent on a number of other issues, such as the effective use of data, improved strategic IS planning and the development of an information architecture.
3.6. Measuring IS effectiveness/productivity (Rank 6)
3. 7. IS human resources (Rank 7) The perceived shortage of well-qualified IS professionals threaten the effective use of IS. Furthermore, it is unclear exactly which skills best
T.T. Moores/Information & Management 30 (1996) 301-307
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define " good IS professionals" , how they may be recruited, and how best they should be trained within the organisation [6]. According to a recent report from Hong Kong, the vacancy rate and turnover rate in the field of electronic data processing are as high as 7.1% and 20.2%, respectively [11].
3.8. Organizational learning of IS (Rank 8) If an organisation is to make maximum use currently available technology, it must be able absorb new tools and adapt to more effective ways doing business [2]. Making appropriate use of new technologies remains an important issue.
of to of IS
3.9. Security and control (Rank 9) It is important to control who has access to organisationl data in order to avoid its unauthorised disclosure, destruction, or alteration. Tight security controls and fault-tolerant information delivery become significant issues for all IS executives.
3.10. Aligning IS with the enterprise (Rank 10) If the organisation has a strongly decentralised structure, then it is necessary to tailor IS according to the local conditions: the IS department, however, must be sensitive and respond to such a need. If the IS is not aligned with the organizational structure [8], the development of systems may not faithfully reflect the way in which the organisation does business.
4. Future issues The ratings of the 20 IS issues in terms of importance over the next five years are given in Table 2, where the mean score for each issue is higher than that of the corresponding current issue. Nine of the Top 10 current issues remain in the future 10, while all the current Top 5 issues are expected to remain important. A positive difference in rank indicates that the issue was rated as being more important (attaining a higher rank) in the near future than today. A negative
Table 2 Hong Kong rankings of near future IS issues
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Issue, 1995-1999
Mean
St. Dev
Change from Table 1
Use of data resources Quality of software development IS for competitive advantage Developing an information architecture IS strategic planning Security and control Telecommunications Organisational learning of IS Aligning IS with the enterprise Measuring IS effectiveness/productivity End-user computing Disaster recovery DSS/EIS Distributed systems Developing an IT infrastructure Multi-vendor integration Applications portfolio IS human resources IS role and contribution CASE
7.89 7.61 7.50 7.44 7.42 7.11 7.08 7.06 6.97 6.86 6.83 6.83 6.81 6.72 6.72 6.56 6.39 6.39 6.36 5.97
1.74 1.96 2.37 1.57 1.95 2.28 2.31 1.75 2.29 1.81 2.23 2.37 2.26 2.09 2.27 2.41 1.55 2.64 1.81 2.60
+1 -1 +2 0 -2 +2 +4 0 +1 -4 +4 0 +4 +4 +2 +4 -3 - 10 -6 - 1
Total
6.93
2.19
T.T. Moores/lnformation & Management 30 (1996) 301-307 difference indicates the opposite. For example, the issue of Use o f the data resources was ranked 2nd as a current issue, but ranked 1st for the future. Thus, the difference is + 1 .
4.1. IS human resources This issue dropped significantly in ranking ( - 1 0 ) between the current and near future. This suggests that it is perceived as almost being solved, possibly due to the increase in the number of graduates from computing courses in Hong Kong's tertiary education sector. For instance, in City University of Hong Kong alone, the number o f intakes for the BA(Hons) Information Systems degree course is expected to increase by over 30% between 1994 and 1997. Thus, it would seem that the recruitment of IS-educated professionals will be easier in the future.
4.2. Telecommunications An effective telecommunications system may be the key to further advances in Management Information Systems (MIS). Communication is often the catalyst for achieving other important targets. The importance for Hong Kong is likely to centre on attempts to develop a business and manufacturing for markets in China. Given the vast distances between provinces in China, a sophisticated telecommunications system will play a critical role in business transactions.
5. Cross-comparison Since the structure of this study parallels a number of other ones, it may be useful to speculate on the presence of a number of c o m m o n IS issues. Issues are compared in Tables 3 and 4. The difference in position between the ranking of an issue in the U S A or Taiwan with respect to Hong Kong is also given; e.g., Developing an information architecture was rated 1st in the U S A and 4th in Hong Kong, so the difference with respect to Hong Kong is + 3 . As can be seen, the Top 10 for all the three are more or less the same with seven issues in common for all the three studies,is as follows:
305
Table 3 Comparison of Top 10 rankings in the USA [with current issues in Hong Kong] IS issue 1 Developingan information architecture 2 Use of data resources 3 Is strategic planning 4 IS human resources 5 Organisational learning of IS 6 Developingan IT infrastructure 7 Aligning IS with the enterprise 8 IS for competitive advantage 9 Quality of software development 10 Telecommunications
USA
HK Dif.
1 2 3 4 5 6 7 8 9 10
4-3 0 0 ~-3 q-3 + 10 ~3 -3 --8 +I
Table 4 Comparison of Top 10 rankings in Taiwan (ROC) [with current issues in Hong Kong] IS issue 1 IS strategic planning 2 IS for competitive advantage 3 Developing an IT infrastructure 4 Security and control 5 Quality of software development 6 Use of data resources 70rganisational learning of IS 8 IS role and contribution 9 IS human resources 10 Developing an information architecture
• • • • • • •
Taiwan HK Dif. 1 2 3 4 5 6 7 8 9 10
-~-2 +3 + 13 ÷4 --4 4 -~-1 --5 --2 -6
Developing an information architecture (TI) Use o f data resources (BR) IS strategic planning (BR) IS human resources (IE) Organisational learning of IS (BR) IS f o r competitive advantage (BR) Quality o f software development (IE)
The similarity between the current issues of these three studies suggest that this list includes the critical issues facing all IS executives. Not surprisingly, the BR issues relating to the organisation learning to use IS and its own data resource to gain a competitive advantage remain the most important issues, as well as the planning required to fulfill this potential. The greatest difference between the three studies is the relative importance given to the issue Security and control by Hong Kong and Taiwan, and the lack of importance given to it by the US.
306
T.T. Moores/lnformation & Management 30 (1996) 301-307
6. Conclusions This paper has sought to identify the top issues facing IS executives in Hong Kong using a questionnaire based on previous studies. Focusing on the Top 10, it was found that those issues which were seen as important at the time of the survey (1994) also maintained a high priority in the near future (1995-1999) although their specific ranking tended to change. A comparison between similar studies carried out in the US in 1989 and Taiwan in 1992 uncovered seven issues which were common in the Top 10 of all the three studies. Not surprisingly key issues, relating the MIS department to the business, dominated this list, although developing an information architecture, the personnel and the quality of software development were also included. The most significant difference was the high importance of securing and controlling data given by MIS managers in Hong Kong and the low importance given by their colleagues in the US. It is interesting to note that this and similar studies in the West are faced with a possible problem: The
rankings may be suspect since the standard deviation is greater than the difference in means, and such studies have found that issues vary greatly from study to study. Fortunately, this does not appear to be the case in this study. Firstly, a strong similarity between Hong Kong, Taiwan and the USA was discovered as far as the Top 10 issues are concerned (one of the aims of the study). Secondly, our standard deviations are presented in order to add an element of caution to the interpretation of the results and simply illustrate continued disagreement among IS professionals as to what is important. In fact, the standard deviations in this study are less than those found by other studies (such as [4]).
Acknowledgements The author gratefully thanks Lai Chun Wai, a graduate of the Department of Information Systems, who collected the data upon which this paper is based, and to the referees whose useful comments made this a better paper.
Appendix A Brief definition of the 20 IS issues IS Issue 1 Developing an information architecture 2 IS strategic planning
Description
Defining the organisation in terms of categories of information and their relationship to business processes. The strategic planning skills required to anticipate and adapt to changes in Information Technology (IT). 3 Use of data resources Viewing data as a corporate asset and utilising it effectively. 4 IS human resources Specifying, recruiting and developing an IS work force capable of implementing the required IS strategy. 5 IS for competitive advantage Using IS to support the identification and exploitation of new market niches. 6 Aligning IS with the enterprise Positioning the IS department - geographically and organisationally - so that it fits the centralised or decentralised nature of the enterprise as a whole. 7 0 r g a n i s a t i o n a l learning of IS Introducing flexibility into the organisation so that it can 8 IS role and contribution Making clear the benefits and limitations of IS. 9 Telecommunications Planning and implementing a telecommunication system in order to link individuals together. 10 Quality of software Controlling the software development process so that the development quality of delivered systems can be assured.
Class TI BR BR 1E BR BR
BR BR TI IE
T.T. Moores/lnformation & Management 30 (1996) 301-307
11 Multi-vendor integration
12 Applications portfolio 13 Measuring IS effectiveness/ productivity 14 Security and control 15 End-user computing 16 Distributed systems 17 CASE 18 Developing an IT infrastructure 19 DSS/EIS 20 Disaster recovery
Moving towards open systems to allow for the integration of systems developed by different vendors. Maintaining and replacing existing systems. Defining the productivity of the IS department and valuing it's impact on the organisation. Protecting data from disclosure, alteration or destruction without authorisation. Developing systems which directly support individual, group or departmental needs rather than enterprise-wide systems. Connecting enterprise-wide IS using a network. Automating the IS development process using Computer Assisted Software Engineering (CASE) technology. Building an integrated technology platform which maintains a responsive outlook to new technology. Facilitating and managing the development of Decision Support and Executive Information Systems. Establishing effective disaster recovery capabilities with recovery plans which are tested at regular intervals.
307
TI 1E IE IE TA TI TA TI TA IE
BR - Business Relationship (relating the organisation to its business) IE - Internal Effectiveness (making effective use of current technology) TI - Technology Infrastructure (providing the required support) TA - Technology Application (expanding the use o f technology)
References [1] Asian Computing Directory 1992, Computer Publications, Hong Kong. [2] Bouldi, B.M., Agents of change, Yourdon Press, New York, NY., 1989. [3] Brancheau, J.C., Schuster, L. and March, S.T., "Building and implementing an information architecture", Data Base 20(2), 1989, 9-17. [4] Brancheau, J.C. and Wetherbe, J.C., "Key issues in information systems management", MIS Quarterly 11(1), 1987, 23-45. [5] Certo, S.C. and Peter, J.P., Strategic Management, Random House, New York, NY., 1988. [6] Couger, D., "Key human resource issues in the 1990s: Views of IS executives versus human resource executives", Information and Management 14(4), 1989, 161-174. [7] Dickson, G.W., Leitheiser, R.L., Wetherbe, J.C. and Nechis, M., "Key information systems issues for the 1980's", MIS Quarterly 8(3), 1984, 135-159. [8] Dixon, P.J. and John, D.A., "Technology Issues Facing Corporate Management in the 1990s", MIS Quarterly 13(3), 1989, 247-255. [9] Niederman, F., Brancheau, J.C. and Wetherbe, J.C., "Information systems management issues for the 1990s", MIS Quarterly 15(4), 1991, 475-496. [10] Stalk, G., Jr. "Time: the next source of competitive advantage", Harvard Business Review 66(4), 1988, 41-51.
[11] 1989 Manpower survey report on the electronic data processing industry, The committee on electronic data processing training of the vocational training council. Hong Kong, 1989. [12] Wang, P., "Information systems management issues in the Republic of China for the 1990s", Information and Management 26, 1994, 341-352. [13] Watson, R.T., "Key issues in information systems management: An Australian perspective - 1988", Australian Computer Journal 21(3), 1989, 118-129.
Dr. Trevor Moores has been an Assistant Professor in the Department of Information Systems at City University of Hong Kong since 1993. He was previously a Research Officer at the University of Aston in Birmingham, UK, where he received a Ph.D for researching the application of software metrics in the development of conventional and knowledge-based systems. His other research interests include project management tools and techniques, requirements engineering and organisational modelling. He is a member of the Operational Research Society, IEEE and AIS.