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A Good Information Management Strategy

Starts With Vision and Values
FOUNDATIONAL Refreshed: 13 January 2015 | Published: 19 August 2013 ID: G00252013

Analyst(s): Frank Buytendijk, Saul Judah

Value consists of two parts — it needs to be delivered, but also perceived.

Information leaders looking to define a vision to guide their information
management strategies should look at the "value discipline" their
organization subscribes to and the "belief system" they have as
professionals.

FOUNDATIONAL DOCUMENT
This research is reviewed periodically for accuracy. Last reviewed on 13 January 2015.

Key Challenges
■ Not all organizations understand the value of information, often a conscious vision is lacking,
particularly in the business.
■ Even when there is a vision, information is perceived and valued differently by individuals in
organizations even though they operate within the same charter and business objectives.
Different organizations have different aggregate positions on information value.
■ Information leaders that fail to appreciate that information is perceived and valued differently
and attempt to deliver solutions without taking this into account, run the risk of having conflict in
IT programs, negatively affecting their information strategy objectives and timescales for
delivery.

Recommendations
■ Identify the existing differences and attitudes to information in the organization. Establish
common ground with key stakeholders, both in business and IT, on how best to create value.
■ Use this common ground to review the current approaches to information delivery and the
existing barriers and points of conflict.

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■ Address the issues identified by changing, where necessary, the information development and
delivery methodologies, and test the impact of change.
■ Ensure the information strategy takes into account the organization's values and beliefs in the
way the programs are delivered to meet business objectives.

Table of Contents

Introduction............................................................................................................................................ 2
Analysis.................................................................................................................................................. 3
Organizational Belief Systems...........................................................................................................3
Information Management Vision..................................................................................................4
How to Build a Values-Centric Approach to Information Management.............................................. 8
Recommended Reading.........................................................................................................................9

List of Tables

Table 1. Value-Centric Approaches to Information Management............................................................. 5

List of Figures

Figure 1. Seven Building Blocks of Enterprise Information Management................................................. 4

Introduction
Not all information management strategies are the same. Even between companies with the same
business strategy, it may differ greatly. And over time, strategies come and go.

Moreover, individuals within organizations have different perceptions of information. This is based
on their current and previous experience and, in particular, their current role within the organization.
For example, within the same organization a risk manager will have a very different attitude to
information than a marketing campaign manager.

Therefore, creating and executing an information strategy within the organization must take into
account its relationship with information and the values it holds about their information. Information
strategies that take values and attitudes into consideration are more likely to be successful, more
likely to reach their delivery objectives and experience less organizational conflict.

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Analysis
Applying an accepted business framework such as Treacy and Wiersema's value disciplines
provides information leaders with insight into how a business can value information and what to
1
expect from information management.

■ Operational excellence brings value through offering the best price and through a lean and
mean process. Organizations with an operational excellence strategy outsmart their competitors
by having a superior grip on their business processes.
■ Product innovation companies seek value in a different way, by creating the most desired
products by the market, often at a premium price. These products may be technologically the
most advanced, or the most fashionable, or the business model through which they are sold is
particularly innovative.
■ Customer intimacy companies may not have the best, nor the cheapest products or services,
but have a superior knowledge about its customer base, and aims to be there with a well-fitted
offer the moment it is needed.
■ Gartner often adds a fourth perspective, that of risk management. There is value in and of itself
in being able to mitigate risks in business.

Next to defining business value, individual professionals have different perceptions, or beliefs, on
what value information brings too. We use the word "belief" here, because it reflects a fundamental
mindset. While one understands all other approaches bring value too, and can even apply them
when needed in specific indications, its belief is the natural approach people use when crafting a
business case. It is how we are wired as professionals.

Organizational Belief Systems

Three belief systems are common with an organization:

■ Information as a utility. Information should be available to as many people as possible, and it

should ideally cover their information needs as much as possible, whatever those needs may
be, and whatever value it may bring those people.
■ Information as an enabler. Information should be tailored toward a certain business goal, and
requirements are derived from that business goal. In other words, information exists for only for
the purpose of that particular business goal as that determines the value of the information.
■ Information as a driver. Where in the previous two categories the value of information is seen as
unknown until you know how to use it, here information is considered to have value in and of
itself. Having the right insight into the information available to you can lead to worthwhile and
new business goals.

These different perceptions of value may contradict each other, but they are not "wrong or right,"
merely perspectives based on the belief that information needs to be applied in a way that best
allows their success in their role. Coexistence of multiple beliefs within a single organization is not
only likely but also preferable. The full use of information requires all three belief systems.

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Information Management Vision

An organization's value discipline and the role of information within it is what Gartner calls the
"vision" in information management. And it is vision that we need to understand first, before we
start assessing the right strategy, using Gartner's seven building blocks (see Figure 1).

Figure 1. Seven Building Blocks of Enterprise Information Management

Vision

Strategy

Metrics

Information Governance

Organization and Roles

Information Life Cycle

Enabling Infrastructure
Master Analytic Ops. Social
Content Data Data Data Data …?

Source: Gartner (August 2013)

Table 1 shows 12 different ways to create value in information management, based on different
visions that may come from the value disciplines and belief systems that we've identified.

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Table 1. Value-Centric Approaches to Information Management
Value
Discipline
Utility
Operational 1. Vision: always on, general
excellence purpose
Strategy: cost minimization,
low switching cost, perhaps
high availability
Metrics: TCO
Governance: SLA
Org: part of general
outsourcing, or part of overall
IT responsibility.
Life cycle: compliance-based
Infra: as part of existing
systems
Customer 4. Vision: share information
intimacy Strategy: know the customer
Metrics: upsell
Governance: Legal
boundaries, acceptable use
Org: IMCC as support function
Life cycle: compliance-based
Infra: standard CRM
functionality
New business 7. Vision: customer self-
service model
Strategy: engage with the
customer
Metrics: cost of service
Governance: transactional
Org: service department
Life cycle: compliance-based
Infra: part of Web/mobile apps
Risk 10. Vision: compliance
management Strategy: minimize cost
Metrics: cost of compliance
Governance: part of overall
governance
Org: IT/compliance officer
Life cycle: compliance-based
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Value Perception
Enabler
2. Vision: information exchange
Strategy: optimize cost, time
and quality
Metrics: supply chain
optimization metrics
Governance: dominance
Org: operations
Life cycle: analytics-based
Infra: information-as-a-service
5. Vision: collaborate
Strategy: interact with the
customer
Metrics: share of wallet, Cross-
sell rate
Governance: govern process of
customer self-service
Org: sales/marketing
Life cycle: analytics-based
Infra: social mobile apps
8. Vision: usage dashboards
Strategy: help customer
maximize value
Metrics: loyalty metrics
Governance: customer service
Org: IMCC outward facing
Life cycle: analytics-based
Infra: part of Web/mobile apps
11. Vision: risk mitigation
Strategy: risk management
Metrics: cost of noncompliance
Governance: part of risk
Org: IT/risk
Life cycle: analytics-based
Driver
3. Vision: integrated value
chain
Strategy: agility, market
alignment
Metrics: time to market
Governance: collaborative
Org: IMCC
Life cycle: extended
Infra: integrated information
infrastructure
6. Vision: personal analytics
Strategy: enable the customer
to create value
Metrics: loyalty, share of
network
Governance: trust
Org: IMCC as business unit,
or third party.
Life cycle: extended
Infra: analytic mobile apps
9. Vision: information-based
products
Strategy: information is the
product itself
Metrics: percentage of overall
revenue, margin
Governance: business
governance
Org: information product
management
Life cycle: extended
Infra: Web/mobile dedicated
infrastructure
12. Vision: handle risks others
can't
Strategy: risk leadership
Metrics: market share
Governance: business
governance
Org: sales, marketing, risk, IT
or IMCC handling both risk
and business side
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Value Value Perception

Discipline

Infra: standard GRC Infra: aligned information Life cycle: extended

functionality infrastructure on business and Infra: integrated information
risk infrastructure

GRC = governance, risk management and compliance; IMCC = Information Management Competence Center; TCO = total cost of
ownership

Source: Gartner (August 2013)

An explanation of each of the 12 principles in Figure 1 follows:

1. When in operational excellence, information is a utility, it leads to a vision of where information

is "always on," and it is there for general purpose. There is no predefined business requirement;
it is up to the users how to use it. The strategy will be to minimize cost while ensuring
availability, and to minimize switching cost. If there is another place to get information more
cheaply, it should be possible to switch. Progress is monitored by measuring total cost of
ownership of information. The main governance instrument is a service-level agreement.
Preferably the information supply is being outsourced, most likely like all other systems.
Information supply is a byproduct of other systems, and information is kept only as long as
legally required.
2. If information is an enabler in operational excellence, information management will likely center
around cost, time and quality optimization. It is fine to invest, but there needs to be a
measurable return in the business, for instance, in the supply chain. Governance is often based
on dominance in the value chain (think of a large retailer or automotive manufacturer controlling
the value chain). An Information Management Competence Center (IMCC) is erected to ensure
the strategy is implemented and executed. Systems exchange information. Information is kept
as long as it is needed for analytical purposes like trends.

Example: A components manufacturer produces some high-end components for the

automotive industry. The company only has a few products, and only a few very large
customers. Information is critical, as part of overall value chain integration, and is managed
through the corporate systems of the manufacturer's customers that it taps into. However, there
is no IMCC, as the initiatives are driven by the manufacturer's customers. A few people are
available to provide ad hoc information as needed.
3. Operational excellence can also benefit from information as a driver. The vision is to create a
completely integrated information value chain, with a dedicated and integrated information
infrastructure throughout the value chain. The strategic idea is to be agile, and to be able to
align to changing market circumstances immediately. Information is the primary means that
connects all parts of the value chain. The governance is in the hands of the dominant party in
the value chain, or even a joint venture third party. There is no particular end to the information
life cycle; it gets extended as much as possible.
4. Customer intimacy can be supported by information as a utility, when the vision is to simply
collect as much information through your existing communication channels as you can within

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legal boundaries — to know the customer so you can cross-sell, deep-sell and upsell. As all
parts of the business need this information, the IMCC plays a pivotal role with the CRM system
in the middle. The life cycle is compliance based.

Example: A financial services institution sells banking products and insurance to consumers.
The company is structured around product business units. The company has invested in master
data management, a single instance CRM system and some early big data initiatives to get a
360 degree view of the customer. The IMCC has a strong ambassador role, continually looking
for opportunities to educate the various business units on how to share information and how to
use shared information.
5. When in customer intimacy, information is an enabler, the vision is to have a continuous
dialogue with the market, interacting with customers. By creating loyal customers, the purpose
is to improve the share of wallet, and the cross- and upsell rate. One way of tightening
relationships and creating more interaction is to invest in self-service. Sales and marketing
drives the governance of the information. Social media and mobile apps are key components in
the information infrastructure, and the use of data is very analytically focused for the business.
6. In customer intimacy, information can also be a driver. The information the enterprise shares has
a direct benefit for the life or work of their customers, such as in the form of personal analytics
(instead of business analytics for the benefit of the enterprise). The value proposition is to
enable customers to create their own value, and the result is measured in terms of loyalty and
the extent to which friends of customers (the customer's network) are included in sales.
Governance between enterprise and customer is based on trust, and perhaps even supported
by a separate entity to ensure trust.
7. New business models can be fueled by information as a utility, if customer service becomes
self-service. Customer engagement is combined with lowering the cost of service. The
governance is in the hands of the customer service department; the life cycle is compliance-
based and the information infrastructure is Web-based.
8. Information can also be an enabler in new business models. A new business model can be
sharing information and changing product sales into subscription services based on information
flow on, for instance, maintenance. The governance is in the hands of customer service, but
information needs to be organized by both business and IT. The life cycle is analytics-based; all
technology is Web-based.
9. When information is a driver for new business, information is seen as a product in and of itself
and can be sold to consumers. The measure of success is the percentage of revenue that
information products represent in the overall revenue mix. The organization and governance is
fully integrated in the business, like with any other product category. In essence, data is never
discarded and is available through a dedicated information infrastructure.

Example: A telecom company feels that big data is not only something to use for themselves, it
can be exploited as a service to business-to-business customers. Its IMCC has evolved beyond
internal support, and is now teaming up with the company's consulting arm, acquiring external
projects, based on telecom data. Once these projects become products, the IMCC needs to
develop into a product management organization. Initiatives contribute direct to the top line. As

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a consequence, the information systems need not only be Web-scalable but also have high
availability.
10. In business cases revolving around risk management, where information is a utility, the value of
information is purely aimed at compliance. Metrics will focus on the strategy of minimizing the
cost of compliance. Information doesn't play a particularly important part in risk management; it
is seen as an IT problem and a function of governance, risk management and compliance
software. Governance is part of overall business governance.
11. Information can also be an enabler in risk management. Better information actively helps in risk
mitigation and selecting business opportunities based on an accurate comparison of risk
relative to project investment and returns. The result can be measured in terms of the cost of
noncompliance. The risk department is in charge of risk information governance, but the
information systems are aligned with other business systems; they don't operate as a silo.
12. Information can also drive better risk management, even something called risk leadership. If by
a superior information position you can handle risks and others can't then new business
opportunities open up. The result is measured in terms of higher win rates and higher market
share. Information about risk is completely integrated in business governance structures and
permeated throughout all business areas.

Example: A financial leasing company needs to comply to Basel regulations that specify
financial buffers, based on the risk profile of the financial portfolio. The company has a team of
advisors to help corporate client improve their risk profile. This is good for the customer's
business, and it allows the financial leasing company to offer better risk-adjusted rates. The
company uses "risk leadership" as a strategy to get competitive advantage out of compliance.

There is one more situation not discussed: "Do nothing." In some business environments, there
simply is no perceived value of information. This can have two reasons — either it has never been a
topic of discussion, so business professionals are unaware of the importance of information
management, or it can be a conscious choice. Cost minimization is not the biggest issue, and the
business simply isn't interested. As a result, information available will be fragmented, and total cost
of ownership will increase due to deferred maintenance. There is no determined life cycle strategy,
leading to potential compliance issues. This situation is generally undesirable. Information should at
least be a business hygiene factor.

How to Build a Values-Centric Approach to Information Management

There is no such thing as a single best information management strategy. Each discipline has value,
as long as it is authentic to the organization. And each perception of the value of information is
equally good as well. Information as a driver isn't necessarily better than information as a utility.

What is important is that we are clear on what creates value, and the role we believe information
should play. Once this is understood and shared, we can create the strategy that works for your
organization.

■ Through sharing our perceptions, we can see how other people have other expectations,
leading to understanding the need for other strategies too.

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■ Through understanding our own perceptions, we can identify which skills we are missing and
need to invest in to get to where we want or where we need to be.
■ Through understanding all perceptions, ours and others, we can perform a gap/fit analysis on
our existing information management practices. If the systems and governance are built based
on utility principles, but the vision about information is for it to be a driver, then the systems will
fall short. Conversely, if a complete new IMCC is to be established while the business sees
information as a utility, then we have a case of overinvestment.

Recommended Reading
Some documents may not be available as part of your current Gartner subscription.

"Gartner's Enterprise Information Management Framework Evolves to Meet Today's Business

Demands"

"Toolkit: The Information Management Strategy Workbook"

"The Seven Building Blocks of MDM: A Framework for Success"

"The Gartner Business Value Model: A Framework for Measuring Business Performance"

Evidence
1Treacy, M. and Wiersema, F., "The Discipline of Market Leaders: Choose Your Customers, Narrow
Your Focus, Dominate Your Market," Addison-Wesley, 1995.

More on This Topic

This is part of two in-depth collections of research. See the collections:

■ Twelve Important Information Management Research Notes You May Have Missed in 2014
■ Chief Data Officers' Handbook

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