The Information Problems in Organizations: A Research Model for the Value of Information and Information Systems*

Growing recognition of the need for better management information system (MIS) theory and practice centers around problems with identifying the value of information and information systems in organizations. This paper addresses this issue by showing that existing theory in organizational economics and industrial organization directly relates to information problems in organizations (their nature, and their effects in terms of organization structure and performance). The paper categorizes these problems and associated theories into four distinct classes and shows that MIS research and practice can be mapped to information problems of each type. Because the economic theory pertinent to specific information problems includes the nature of the organizational response to information constraints, it also provides insight into the nature of the improvement to be realized if information constraints can be overcome. These improvements can then be interpreted as the value of the associated information systems which suggests using the resultant classification scheme to map between information problems and system value. The paper shows that this methodology provides a more appropriate level of focus than either traditional normative or business value methods, especially because many improvements have structural as well as performance consequences.     

A NOTE ON THE RELATIONSHIPS AMONG FINENESS,GARBLING, AND SUFFICIENCY FOR THE COMPARISON OF INFORMATION SYSTEMS*

Choice among competing information systems is an important problem for both the providers and users of information. When the attributes of the decision makers and decision problems for which information is produced are unknown or heterogeneous, it is difficult to choose among alternative information sources. Three criteria for such comparisons of information systems are available in the theory of information economics. These criteria may be distinguished by the differing restrictions that they impose on the generality of the studies in which they are used. This note explicates the relationships among these criteria and discusses the various limitations that they impose on generality.     

META-DESIGN CONSIDERATIONS IN DEVELOPING MODEL MANAGEMENT SYSTEMS*

This paper examines cognitive considerations in developing model management systems (MMSs). First, two approaches to MMS design are reviewed briefly: one based on database theory and one based on knowledge-representation techniques. Then three major cognitive issues—human limitations, information storage and retrieval, and problem-solving strategies—and their implications for MMS design are discussed. Evidence indicates that automatic modeling, which generates more complicated models by integrating existing models automatically, is a critical function of model management systems. In order to discuss issues pertinent to automatic modeling, a graph-based framework for integrating models is introduced. The framework captures some aspects of the processes by which human beings develop models as route selections on a network of all possible alternatives. Based on this framework, three issues are investigated: (1) What are proper criteria for evaluating a model formulated by an MMS? (2) If more than one criterion is chosen for evaluation, how can evaluations on each of the criteria be combined to get an overall evaluation of the model? (3) When should a model be evaluated? Finally, examples are presented to illustrate various modeling strategies.     

An Empirical Test of the Strategic-Grid Model of Information Systems Planning*

Contingency models of information systems planning predict that no single planning approach will suit all organizations' needs. Little empirical research has been undertaken, however, to evaluate this prediction. Accordingly, we used McFarlan, McKenney, and Pyburn's (1983) strategic-grid model to study the information systems planning problems encountered by 49 governmental agencies. Twenty-seven agencies were required to follow a planning approach best suited to organizations that had a high level of dependence on both their existing and proposed systems. We predicted that agencies not having these characteristics would encounter the most problems with the approach. The remaining 22 agencies could choose their own planning approach. We studied this latter group to determine whether the problems encountered by the first group could be attributed to the mandated approach. Overall, the empirical results obtained were equivocal. Some results indicated that more planning problems were encountered by agencies in which the mandated approach was not appropriate to their position in the strategic grid. Other results were not supportive of this proposition. More work needs to be undertaken, therefore, to evaluate the predictive and explanatory power of contingency models of information systems planning. In addition, our research indicates a need to develop more rigorous theories of information systems planning behaviors, to improve the instruments needed to measure these behaviors, to explore the relationship between information systems planning behaviours and organizational effectiveness, to investigate how organizational learning impacts planning behaviors, and to determine the types of information systems planning problems that diffuse through organizations and those that remain localized.     

System Development Project Effectiveness: Problem-Solving Competence as a Moderator Variable*

In spite of end-user programming, for the foreseeable future users and information systems (IS) specialists will build systems together. A better understanding of this partnership (which has a troubled history) will help IS managers and users improve their management skills. This study investigates the relative contributions to project effectiveness of problem-solving competence, the quality of the working relationship, and the quality of the development process. Seventy-five medium-sized projects in 16 organizations were investigated using individual, one hour, structured interviews with the IS project leader and with the primary user. Results suggest that more complex models should be used to study system development. Moreover, problem-solving competence demonstrated a complex effect on project effectiveness.     

Fading Frames: Data Presentation and Framing Effects*

This article describes three experiments that investigate the impact of data presentation on framing, which is the differential evaluation of objectively equivalent information given different frames of reference. The experiments were designed to vary the amount of information and the format of presentation (tables versus graphs) provided to the decision maker to gain an understanding of the mechanism underlying framing. The inferred information model proposed by Johnson and Levin [11] is utilized to explain the results of the three experiments in terms of the redistribution of weights attached by the decision makers to the attributes of the prospective outcomes. The results of the three experiments indicate that framing effects are observed only when the presentation of data facilitates the shifting of weights among the attributes of the available alternatives. The results further indicate that framing is eliminated as more information is displayed. However, presentation of additional information does not eliminate framing when a graphical format is utilized. Finally, no framing effects are observed when uneven amounts of information are used to describe two alternatives in the same decision task.     

THE PREDICTIVE ABILITY CRITERION IN EXPERIMENTAL JUDGMENT RESEARCH IN ACCOUNTING*

Previous experimental judgment research in accounting has been interpreted as supportive of the linear model as an appropriate representation of decision-making behavior in nearly all of the tasks investigated. Moreover, nonlinear models have come to be viewed as adding relatively little predictive power over that provided by the linear model, even in tasks considered to be inherently nonlinear. These conclusions were based largely upon evaluating the predictive ability of the linear model in terms of statistics measuring the proportion of variance accounted for by the model. In the present paper it is argued that, since these statistics are not independent of the experimental design, it is not clear whether the high correlations are indicative of the model's success in representing decision-making processes or instead are more the result of various features of the experimental design. It is suggested that correlational tests be supplemented with qualitative tests of the predictive ability of a model. Implications for accounting are discussed.     

REQUIREMENTS PLANNING FOR CONTROL OF INFORMATION RESOURCES

Producing reports assembled from files, records, and raw data is a major function of the computer in modern organizations. Transaction processing, records management, file organization, and data-base management are aspects of the information production function that have received a good deal of attention. But planning, scheduling, and controlling the production of information products have been neglected. For complex applications involving assembly of reports from multilevel information sources, the requirements planning model is suggested as an effective alternative to present methods. Thus, our suggestion is that the computer be used to plan, schedule, and control computer production of information products. Presently available material requirements planning software may be employed with minor modifications that depend on the given information system characteristics. In this paper an example of requirements planning as applied to production of information in a satellite control system is presented.     

Impact of Information Systems (IS) Steering Committees on IS Planning*

One of the most efficient ways to manage the information systems function is to introduce steering committees. It has been suggested that one of the foremost benefits of a steering committee is that it can improve the information systems planning efforts of an organization. However, there is very little empirical evidence in the literature that deals with how such committees affect planning. This study investigates the impact of steering committees on three phases of information systems planning: strategic planning, systems planning, and implementation of planning. The greatest impact of steering committees appears to be the strategic planning phase, while a lesser effect is observed in the systems planning and implementation of planning phases.     

Decision Processes for Developing Strategic Applications of Information Systems: A Contingency Approach*

Strategic applications of information systems (IS) are considered by IS researchers to be determined by contextual factors such as environmental uncertainty, and influenced by attributes of the processes preceding them, such as planning and top management support. For better management of the process leading to these applications, it is essential to understand the relationship between process attributes and contextual factors. Utilizing a contingency approach, this article takes a step toward such an understanding. Based on successful strategic IS applications from 81 large companies, it examines the relationship between the context of these applications and the decision-making process leading to them. The results indicate that the external environment is related to whether a rational or political decision-making process is used. The IS function seems to influence the use of the decision process implied by IS researchers, one in which the top management champions the strategic application, while the IS managers contribute by conducting in-depth analysis. However, the organization structure was not related to any decision process attribute. The implications of these findings for future research and practice are also discussed.     

Discretionary Use of Computers: An Empirically Derived Explanatory Model*

This study identifies variables that explain variations in computer use. Factor analysis of data gathered from 422 business administration faculty reveal eight themes among the independent variables. Seven of these factors significantly discriminate among non, minimal, and high users. These results suggest an empirical model for future studies and provide policy insights for decision makers seeking to stimulate computer usage. Additionally, the study shows that there is much commonality between the previously separate organizational innovation and information systems implementation streams. It also demonstrates that motivation theory may be a valid framework within which to study computer use.     

A generic accounting model to support operations management decisions

Information systems are generally unable to generate information about the financial consequences of operations management decisions. This is because the procedures for determining the relevant accounting information for decision support are not formalised in ways that can be implemented in information systems. This paper describes a formalised procedure, which is based on the following theoretical propositions: (i) cost behaviour is described on the basis of a company's contracts for purchasing and selling resources, and (ii) hierarchical relationships between decisions are recognised, because some decisions have to be made earlier than others. Earlier decisions determine the feasible alternatives for later decisions (e.g. through constraints in available production capacity or components), and the plans that supported the earlier decisions serve as instructions for later decisions. The procedure can be implemented in information systems to provide accounting information in case later decisions deviate from these instruc tions (within the limits of the real-world constraints) because new information becomes available.     

Construct Measurement in Information Systems Research: An Illustration in Strategic Systems

This study seeks to highlight construct measurement issues in information systems (IS) research. It describes the normative process of construct measurement and identifies the difficult problems involved in measurement and some ways in which these difficulties may be overcome. An illustrative construct-operationalization study in the area of strategic systems outlines how the normative guidelines may be applied to IS. Some specific recommendations for IS include developing a preliminary model of the construct even if there is little previous measurement research, devoting greater attention to predictive validity because a lack of theories in IS precludes the examination of nomological validity, verifying the assumptions underlying the computation of an overall index, and examining the measurement properties of the index.     

A Framework for Examining the Interface between Operations and Information Systems: Implications for Research in the New Millennium*

Even though much research has been published in operations and information systems, both functional areas find their roots in other disciplines. While operations management evolved from operations research in the 1960s, the field of information systems is of more recent vintage and traces its original roots to computer science. Both disciplines now naturally have come closer together as information and process-technology-based changes force manufacturing firms to become more efficient and customer focused. Market and technology-driven e-commerce initiatives that are likely to dominate business strategies in the future cannot be successfully achieved without a successful integration of operations and information systems. In this paper, we present a unifying framework that can be used to better understand the management of the functional interface between operations and information systems. We also categorize and highlight the contributions of the articles that appear in this special research focus issue. Finally, research directions that emerge from our understanding of this interface are outlined in an effort to stimulate further thinking and research that can advance our knowledge of this interface area.     

Planning Implications of the Information Systems Strategic Grid: An Empirical Investigation

In recent years, information systems (IS) planning has come to represent a key IS management tool to practitioners and researchers. Concurrently, there has been increasing recognition by organizations that their IS can be viewed as a strategic resource. This research is an attempt to explore the relationship between these two aspects of IS. It analyzes, in an empirical setting, the contingent nature of some IS planning-related variables in the context of the strategic relevance of an organization's IS. The basis for the empirical test is the IS strategic grid framework developed by Cash, McFarlan, McKenney, and Vitale [6]. A questionnaire survey method is employed to elicit information on the strategic orientation of IS and IS planning issues within respondent organizations. The difference in emphasis on various planning aspects in organizations with different IS environments is analyzed. Results of the analysis indicate that there is empirical support for the strategic grid framework and that there are differences in planning aspects among organizations, depending on their location in the grid. The implications of these findings for IS and IS planning are then discussed.     

An Investigation of Equity as a Determinant of User Information Satisfaction

This paper reviews equity theory and proposes that perceived inequity in the allocation of management information systems (MIS) resources is likely to influence overall user information satisfaction (UIS). Therefore, in addition to currently identified factors such as quality of information products (QIP), user's knowledge and involvement level (KIL), and EDP staff and services (ESS), equity is also likely to be a relevant factor in determining overall UIS. The paper reports on a cross-sectional survey to obtain data for testing the relevance of equity related issues in the MIS context. Responses from 226 users showed a strong correlation (.67, p > .001) between equity and overall UIS. Further, the addition of equity to the previously identified factors that influence overall UIS (i.e., QIP, KIL, and ESS) significantly increased the explained variance (from .48 to .56). The results support the relevance of equity related issues in determining user attitudes. It is recommended that MIS researchers and professionals take into account the likely influence of equity perceptions on user attitudes and behavior, and strive to develop and implement equitable resource allocation mechanisms. Implications of the findings for future research in the areas of MIS, UIS construct, systems implementation, and management of MIS are also discussed.     

ORGANIZATIONAL CONTEXT,USER INVOLVEMENT,AND THE USEFULNESS OF INFORMATION SYSTEMS*

This study investigates organizational factors related to user involvement in information system development and perceived system usefulness. Using a sample of 118 usermanagers in 34 companies, the results show that user involvement in design and implementation is related positively to users' perceptions of system usefulness. However, organizational factors were not found to be related significantly to user involvement, as had been originally hypothesized. Rather, organizational factors either had a direct relationship with perceived usefulness or moderated the relationship between involvement and usefulness. Two factors reflecting an MIS department's maturity (size and age) were found to reduce users' perceptions of system usefulness. Also, users at higher levels and those making more structured decisions found their systems more useful, although the user's level was found to moderate perceptions of system usefulness during the design stage. Three other organizational factors (level of MIS manager, MIS department scope, and decentralization of authority) also were found to have moderating effects.     

The Design of a Knowledge-Based Decision Support System to Support the Information Analyst in Determining Requirements

Decision support system (DSS) researchers and designers continue to look for unstructured organizational tasks where there is a critical need for intelligent computer-based support. One such decision task is information requirements determination. Requirements determination is recognized as the most crucial phase of the systems development life cycle. Unfortunately, most methodologies and CASE tools focus only on how to specify the requirements once they are determined. There is very little computer support for the process of determining requirements. This paper discusses the conceptual design and development of a knowledge-based DSS to support information analysts in the critical decision task of determining requirements for the design of effective information systems. The expert modeling support system has the expertise to assist the analyst in studying the organization as a whole and in modeling the system under study in the context of the overall organization's goals and needs. The focus of the paper is on the problems associated with building the knowledge base component of the intelligent decision support system. A prototype implementation of the system is described.     

DESIGNING INSPECTION STRATEGIES FOR UNCERTAIN ENVIRONMENTS

This paper considers the problems of designing inspection strategies for production systems terms in the presence of environmental uncertainty. The framework for determining information priorities to support inspection system planning is presented in the contaxt of a generic production system that encompasses the characteristics of many real-world serial production systems. The impact on the design decision of five key variables is considered: quality of producton processes, quality of inspection procedures, penalty cost for undetected defective units, relative cost of improving process vs. inspection, and shape of the cost functions for process and inspection enhancement. The framework for analysis involves varying factors over two or three orders of magnitude to determine optimal inspection strategies across a wide range of environments These results are used to compare design decisions made in the presence of environmental uncertainty using expected-opportunity-cost and minimization-of-maximum-opportunity-cost approaches. Design strategies are identified for situations ranging from complete lack of knowledge about the environment through increasing levels of information. Information-gathering priorities are established, and the impact on the design decision of this additional information is assayed.     

The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation. Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success).