Systems Theory and Information Resources Management: Integrating Key Concepts

Since the introduction of the computer as a business tool some forty years ago, its role in the firm has become increasingly complex. In the middle of this evolving complexity is the person who has the greatest responsibility for computer use in the firm—the chief information officer, or CIO. The 1980s saw an ascension in the CIO’s status within the firm, reaching a position of parity with vice presidents of other functional areas. The 1990s, however, are seeing indications that the CIO’s responsibility is eroding. Firms are beginning to pursue strategies that disburse more and more of their information resources throughout the organizational units, and give information processing responsibilities to outsourcers. If firms are to engage in strategic planning for their information resources and engage in information resources management, there must be a clear understanding of the forces that influence computer use and the role of the CIO in managing these forces. As a means of achieving such an understanding, the author explores the possible application of systems theory. The result is a normative structure that makes it possible to evaluate the extent to which a firm practices information resources management, and to project future trends in the role of such component elements as the CIO and the information systems unit