Academic journal article Review of Business & Finance Studies

Analytics-Based Management of Information Systems

Academic journal article Review of Business & Finance Studies

Analytics-Based Management of Information Systems

Article excerpt


Information technologies penetrate virtually every division in contemporary organizations. Organizations deploy a spectrum of information technologies with aim of alleviating operating efficiency. Knowledge workers increasingly depend on deployed information systems to accomplish their tasks. Well-deployed and managed information systems have a potential to increase effectiveness and efficiency in organizations; whereas poorly deployed and managed systems may have significant negative impact. Strategic deployment and management of information systems play the key roles in attaining beneficial impacts for organizations. Conventionally, information technology managers have relied primarily on tacit knowledge. Such knowledge and experiences have been accumulated over a number of years. However, information technologies progress at a rapid pace and early adopters gain considerable strategic advantages. Information technology managers cannot afford spending years accumulating tacit knowledge. Viable solution to this problem is to adopt an analytics-based management. We explore pertinent aspects of analytics-based management of information systems in organizations.

JEL: M15; M21; O32; O33; O22; O43; L15; L21; L25; L86

KEYWORDS: Information Technology Management, Analytics-Based Management, Information Systems, Actionable Knowledge, Tacit Knowledge, Explicit Knowledge.


Organizations deploy a variety of information technologies ranging from communication infrastructures, through computing hardware, to software systems. Different technologies have different lifecycles (Lehmann et al., 2010). Generally, internal communication infrastructures have the longest lifetimes, followed by computing hardware, and software systems with the shortest lifetimes.

Progress in information technology development has been exhibiting shortening lifetime with each successive technology generation (Devarajan, 1996). New generations of technologies are being developed and marketed at an increasing pace. Organizations are under pressure to innovate and deploy novel technologies faster. Older technologies often need to be replaced before the end of their originally projected lifetime. Early adopters of new technologies are able to gain strategic advantages over late adopters (Droge et al., 2010). Organizations cannot afford to ignore information technology progress. Late adoptions of progressive information technologies result in various losses for organizations. They are generally reflected in operating inefficiencies, lower productivity and loss of strategic advantages.

Information technologies provide operational support without which many contemporary organizations would be unable to function. They are among the core assets of many knowledge-intensive organizations (Alvesson, 2004). Knowledge workers increasingly rely on information systems and services (Davenport, 2005). They often incorporate essential business processes that have been transferred from their former forms into digital ones. Transformation of business processes into digital forms facilitates improved working efficiency, productivity, automation of tasks, as well as accessibility of information, documents and resources. Proper management of information technologies is crucial (Turban and Volonino, 2011). Inappropriate management of information systems may have numerous adverse effects.

Conventionally, management of information systems relied on valuable experience accumulated by managers over a number of years (Hunter, 2007). Years of management experience have led to accrued tacit knowledge. When progress in information technology development was slow, this experience-based management style was adequate. Experience and tacit knowledge gained by managers were sufficient to achieve a suitable level of management efficiency and extract a satisfactory value from deployed information technologies. After sufficient value had been extracted and novel technologies have become available, new information technologies have replaced older ones. …

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