Abstract

This study analyzes the problems faced by information systems (IS) managers and elucidates that failure of theirIS division to fully meet the needs of their corporate end-users causes these problems. IT evolution has beenreviewed with a view to identify a solution for these issues. Studies have revealed that increased coverage of ISled to co-ordination difficulties among concerned parties and excessive workload for an IS division. On thebasis of this finding, we analyzed the needs for IS architectural renovation and to structure the IS architectureinto one with greater built-inflexibility, such that IS engineers can make prompt functional modifications andend-users can easily acquire proficiency in using the modified functions.In this paper, we address our second question of how IS can be made flexible. We begin by citing the concept of“penalty of change” to define the relationship between the flexibility and utility of IS modifications in Part 1.Then, we discuss the need for IS architectural renovation and its role in reducing the complexity of IS functions,thereby enhancing IS flexibility. Next, we define the relevant “external” and “internal” flexibility factorsunderlying IS flexibility and analyze their interrelationship. Building on this groundwork, we conclude byproposing an appropriate procedure. We implement this procedure to construct a flexibility-orientedmedium-term development plan, comprising the optimal combination of IS architectural renovation and a seriesof IS modification projects.

Highlights

  • Despite or rather because of the remarkably rapid strides that management information systems have made in their coverage from within corporate borders to supply chain management, their development and renovation have often failed to be in satisfactory sync with the dynamic strategic needs of their corporate users.These user organizations strive to realize competitive advantages through sustained management agility and adaptivity to dizzying changes in their business environment

  • As groundwork for the evaluation, we list the causes of system breakdowns, monitor their frequency of occurrence for each type, and estimate the penalty of charge (POC) to be incurred by their future occurrence

  • The utility of risk evasion can be evaluated in terms of predictable reduction in the POC for opportunity loss and system recovery to be incurred from potential future system breakdowns

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Summary

Introduction

Despite or rather because of the remarkably rapid strides that management information systems have made in their coverage from within corporate borders to supply chain management, their development and renovation have often failed to be in satisfactory sync with the dynamic strategic needs of their corporate users.These user organizations strive to realize competitive advantages through sustained management agility and adaptivity to dizzying changes in their business environment. Despite or rather because of the remarkably rapid strides that management information systems have made in their coverage from within corporate borders to supply chain management, their development and renovation have often failed to be in satisfactory sync with the dynamic strategic needs of their corporate users. The expanded coverage of information systems has led to difficult coordination among the people concerned and to an excessive workload that burdens corporate IS divisions with both modification and maintenance of their current systems Often, these IS divisions do not have sufficient technological capability in promptly delivering IS modifications that fit dizzily changing corporate strategic needs, and corporate end users themselves do not have enough technological literacy to effectively utilize the modified service. The need is to structure IS architecture into one that eliminates unwieldy complexity and has greater built-in flexibility, such that IS engineers can more make prompt functional modifications and end users can acquire proficiency in using these modified functions

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