Information efficiency, information design and information system of an organization

Abstract

Yuri A. Zelenkov - Adviser to the Chief Designer, NPO Saturn Address: 163, Lenin Ave., Rybinsk, Yaroslavl Region, 152903, Russian FederationE-mail: yuri.zelenkov@gmail.com This article proposes a methodology for analyzing an organization management system and selecting the most relevant strategy to enhance its information efficiency. Information efficiency is determined through the amount of information that is required to ensure the coordination and motivation processes. We discuss four organizational design strategies aimed at improving information efficiency. Two of them are associated with a reduction of the amount of information required for management: creation of buffers (stocks of raw materials, work in progress and surplus resources) and system decomposition into independent operating units. Two other strategies are aimed at increasing the organization capabilities to process information, i.e. develop information systems and create a context facilitating information exchange. It is shown that the strategy of creating buffers leads to inefficiency, but it spontaneously occurs under conditions of the lack of information. The implementation of other strategies requires the organization’s efforts. The policy of measuring the information efficiency of the organization is discussed, and since at present it is hardly possible to develop a single method, it is recommended that one use benchmarking. Estimates of the information volumes which are being handled by high-technology machine-building enterprises in Russia and abroad are provided. It is demonstrated that due to underdevelopment of the technological infrastructure domestic enterprises are forced to process overly great amounts of data, which leads to information overload and, as a consequence, creation of buffers at all production stages. The result is an overall inefficiency of the enterprise as compared to similar foreign enterprises, and this gap cannot be overcome only by creation of enterprise information systems. In this regard, we present an example of production system decomposition which enables one to reduce the amounts of management information.

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