Abstract

The critical importance of information systems (IS) in today’s business enterprise can hardly be overstated. Yet many businesses and even IS professionals lack a complete understanding of what is required to achieve all the benefits of IS—they lack IS literacy. For organizations striving to take full advantage of IS, it is desirable to assess the level of IS literacy of their employees and to compare this with an appropriate standard for those employees’ roles and for the enterprise as a whole. This paper describes a conceptual framework based on other models reported in the literature and designed to help develop such an assessment approach. The intent of the framework is to utilize the IS literacy dimensions to create assessment instruments that can measure the IS literacy of individuals within the various employee groups. The results of such assessments can then be used to determine the organization’s overall level of IS literacy and to make informed personnel decisions in areas such as hiring, training, and outsourcing.

Introduction

Signs of the information revolution dominate the headlines: skyrocketing stock valuations for Internet companies yet to turn a profit, mega-mergers between media ‘content’ conglomerates and cable and telephone ‘pipeline’ giants, the proliferation of ‘dotcoms’ and the explosion in electronic commerce. Without question businesses and organizations of all kinds and sizes will be affected, as will virtually every contributor. Those organizations and individuals caught unprepared, or reluctant or unable to adapt, risk rapid obsolescence. Avoiding that fate requires information systems literacy—a degree of familiarity with and understanding of the technology driving the revolution, especially in terms of its possibilities, limits, and implications. However, while few would argue with this definition, it is too broad to have much practical use in the struggle to realize the full benefits of information systems (IS). The problem of course is that the kind and depth of knowledge that constitutes IS literacy varies significantly over time and according to several other factors such as the nature and status of the enterprise, and an individual’s role in it. What is needed is a conceptual model that can account for this variation, a forward-looking and adaptive scheme for detailing and assessing IS literacy across most industries, groups and positions. This paper represents an initial attempt at such a model.

The paper begins by defining a framework which relates the IS literacy of individuals in an organization to the characteristics and IS needs of the organization. The next section provides more depth and specificity to the framework by identifying key dimensions of IS literacy. Following this is a rationale for using the framework to create assessment instruments that can measure the IS literacy of individuals within the various employee groups. The results of such assessments can then be used to determine the organization’s overall level of IS literacy and to make informed personnel decisions in areas such as hiring, training, and outsourcing. The final section concludes the paper and identifies several areas for further research.

A Framework for Information Systems Literacy

What makes IS valuable to an organization? How can that value be measured? These surprisingly thorny questions have bedeviled researchers since the advent of computerized IS. While practitioners typically attempt to justify the development of a new IS using cost/benefit analysis (with often disputed results), attempts such as Hores (1994) to quantitatively measure the overall value of IS to an organization have met with decidedly limited success. More recent studies such as Seldon, et al. (1999) propose fairly elaborate matrices for measuring IS success according to several categories (e.g., aspect, type, or scope of system), and which—most importantly in our view—attempt to take into account the perspectives of different stakeholders (e.g., individual, group, manager, owner, society) who may validly come to divergent conclusions about the effectiveness of a system.

This renewed emphasis on people and perceptions over systems and numbers may well represent the future of IS value theory, especially in terms of evaluating new projects. Our approach in this paper also focuses on the human component of information systems. It is also forward looking: IS literacy represents a key aspect of an IS development environment that is required for the creation of successful information systems for today’s highly information-intensive businesses (info-business).

Of course, not all organizations have high requirements for IS. Likewise, not all employees have a high level of IS literacy. Figure 1 shows four possible combinations of these parameters.

Figure 1 – Organizational Requirements vs. Individual IS Literacy

One of the precursors to success, therefore, seems to be that an organization understand its position in this grid; that is, that it identify its level of requirements for IS, and assess the IS literacy of its employees. The following framework is intended to help in this area.

A way of looking at IS literacy is to envision a broad spectrum of attitudes and experiences that people associate with information systems. Johnson (1995) has identified several points along this continuum as shown in Table 1.

Table 1 – Individual Paradigms of IS/IT Value

Strategic Determinant (Highest level)	IS is viewed as a competitive opportunity with the capability to lead and transform the business, to open up new markets and provide new, often information-centered products. An awareness of current and potential information technology capabilities help drive the development of business strategies and IS is inexorably linked to the implementation of the business strategies. Where necessary, alliances with IT companies are established to help develop specific technological capabilities
Strategic Support	IS is seen as strategic, that is as playing a key role in enabling and supporting the strategies of the business. It is viewed as a change agent and as helping to achieve competitive advantage. The IT infrastructure plays an increasingly important role in reaching beyond the organization to collaborators, suppliers, business partners, and even customers.
Tactical Integrator	IS is viewed as a competitive necessity and a critical part of the business. Information is thought of and maintained as an asset. Business processes are information intensive. A strong IT infrastructure reaches the entire organization as application are developed which cross unit boundaries and integrate business processes.
Operational Utility	IS is viewed as essential to the support of the business, however only in a utilitarian way, as a cost rather than asset. It is typified by a reliance on a centralized computing and network infrastructure and a decentralized utilization philosophy. Applications are developed primarily to solve organizational unit problems with little concern for integration, cross unit applications, or larger business problems.
Back Office	IS has a strictly tangential role to that of the business. It is viewed as nonessential support. When such support is needed one simply goes to a vending source and “buys” what is needed. The resulting application stands alone and is not integrated with other systems within the organization.

From this viewpoint IS literacy can be defined both as a level of comfort with the technology and as a clear conception of its role and potential in addressing specific business goals and situations. For info-businesses, whose products and services themselves are information-based, only the top level of literacy will do. While many businesses are beginning to move in this direction, most do not yet require this cutting-edge approach. Most still struggle to realize all the efficiency improvements promised them by previous generations of IS, and are by no means anxious or prepared to embrace wholesale the latest paradigm. Firms in this situation might, in fact, be adequately served by a somewhat ‘lower’ level of IS literacy. Which is only to say that all organizations should aspire to the highest degree of IS literacy relevant to their current and anticipated needs. More important than leading-edge literacy is that an organization be thoroughly literate at a level that matches its situation and systems; that no pockets of resistance on the part of key members or groups, no conflicting paradigms, no knowledge or skill gaps stand in the way of exacting full value from its IS investments.

Of course, for an organization to achieve an appropriate level of IS literacy it must first identify what that level is. One way of approaching this is a contingency method developed by Applegate, et al. (1999), which divides businesses into the following situation categories according to their IS use or needs:

Support – High performance, cutting edge IS is not crucial to survival or strategy; uses IS to support existing manufacturing, accounting, and marketing processes or human-based services, not as the basis for reengineered processes or new services or products (e.g., a typical manufacturing or professional services firm).

Factory – Business primarily uses IS to support operations, especially manufacturing and/or logistics. Heavy dependence on highly reliable, cost-efficient technology (e.g., a typical transport company or investment bank).

Turnaround – Current use of IS leans toward support category, but new IS initiatives are crucial to strategic objectives and future success of the business (e.g., a typical manufacturing firm adjusting to rapid growth, globalization and market fragmentation).

Strategic – IS is absolutely critical for executing current business plan and all future initiatives; IS represents the competitive “backbone” of the business (e.g., a typical high technology firm or Internet company).

Using this scheme, firms that identify themselves as turnaround or strategic would aspire to the highest level of IS literacy, while those who fall comfortably within the factory or even support categories might safely meet their needs with, say, the “tactical integrator” or lower levels.

Dimensions of Information Systems Literacy

Given the above framework, the challenge for an organization is to determine its location within the IS literacy grid. The following additional dimensions are intended to help in this process. The position on the vertical axis involves an analysis of the organizations existing and planned information systems. The factors shown in Table 2 can help in this process.

Table 2 - Attributes of Information Systems

	Support	Factory	Turnaround	Strategic
Scope	Individual/Unit	Unit	Inter-organizational	Intra-organizational
Criticality	Low	Medium	High	Very High
Competitive Impact	None	Necessity	Advantage	Opportunity
Need for IT Infrastructure	Low	Medium	High	Advanced
Change Impact	None	Support	Enable	Cause
Technology State	Old	Current	Leading-edge	Future
Processing Focus	Data	Information	Information	Knowledge

Locating an organization’s position on the horizontal axis of the IS literacy grid can be a bit more challenging since it involves several groups of individuals and their literacy attitudes and competencies. The additional dimensions shown below are intended to help in this area. The intent is to assess the level of each IS literacy area for key individuals in each employee group using the scale from Table 1.

Table 3:

IS literacy Area / Employee Group	Top Management	IS Management	User Management	User Professional	IS Professional
Attitude toward IS in general
Perspective on how IS is applied in the organization
Understanding of the process required to achieve high success/value in IS
Understanding and anticipation of technology direction
Awareness of how technology is being applied by others
Knowledge of the management and organizational structures needed for an info-business
Knowledge and experience in change management
Understanding of the technical aspects of maintaining, safeguarding and evolving existing IS

Assessment and Attainment of Information Systems Literacy

The purpose of the framework presented in the previous sections is to utilize the IS literacy dimensions to create assessment instruments that can measure the IS literacy of individuals within the various employee groups. This may involve interviews of key employees by a consultant or the development of survey instruments for the various employee groups. Data is collected at the individual level as shown in Table 4 and then summarized by employee group (Table 3) and finally for the organization as a whole. The results of such assessments can then be used to determine the organization’s position on the IS literacy grid and to make informed hiring, training, and outsourcing decisions. For those organizations finding themselves with a literacy mismatch, numerous options are available for narrowing the gap. Figueroa (1999) has surveyed a broad array of education and training sources, from higher education to IS boot camps to corporate universities. Baatz (1995) points out the special needs of top management in this area.

Table 4:

Employee Name ________________________________ Employee Group _______________________________ Assessor ______________________________________	Back Office	Operational Utility	Tactical Integrator	Strategic Support	Strategic Determinant
Attitude toward IS in general
Perspective on how IS is applied in the organization
Understanding of the process required to achieve high success/value in IS
Understanding and anticipation of technology direction
Awareness of how technology is being applied by others
Knowledge of the management and organizational structures needed for an info-business
Knowledge and experience in change management
Understanding of the technical aspects of maintaining, safeguarding and evolving existing IS

In addressing issues of IS literacy assessment and attainment for different groups in an organization, however, it is important not to over-emphasize role distinctions. For instance, an emerging aspect of information systems literacy is the gradual blurring of the lines and distinctions that have historically divided end-users and IS professionals. Technology changes and advances and the growing supremacy of information-based business increasingly demand not only higher IS literacy across all groups, but continually redefine roles and tasks throughout organizations. So, while the role-specific distinctions made in the framework presented here are still valid in most current corporate environments, it would be wise to view these different dimensions and components of literacy as rather more fluid and cross-applicable than might be implied by the strict lines of a grid.

Conclusion

An oft-overlooked truth is that the most important component in any information system is people. This principle underlies the concept of information systems literacy, and points to its profound importance in an information age. As the info-revolution accelerates, this literacy becomes even more critical. Businesses hoping to ride the wave rather than be swept away must ensure that they and their employees have the knowledge, competencies, and attitudes required to succeed in an intensely competitive, rapidly changing, information-based global economy. Success hinges on wringing every bit of value from the technology driving the revolution.

These imperatives call for an effective means of defining, assessing, and achieving IS literacy that can be applied to most industries, organizations, professions, and positions. This paper represents a modest initial effort in that direction by presenting a conceptual model aimed at identifying an organization’s level of IS requirements and determining if the IS literacy level of its employees matches these needs. Future research efforts are required in validating the model and in gaining experience with its implementation.

Works Cited

Applegate, L. et al. (1999). Corporate Information Systems Management, Irwin/McGraw –Hill.

Baatz, E. B. (1995). Higher Learning, CIO Magazine, March 15.

Baker, J. (1989). Discovering the Future: The Business of Paradigms, ILI Press.

Figueroa, Robert (1999). Information Technology Learning and Literacy in the Information Age, Enterprise Strategy Course, Florida Gulf Coast University.

Hores, J. & Royle, D. (1994). Measuring the Value of Information Technology, John Wiley & Sons.

Johnson, David (1995). Information Literacy and the Value of Information Technology Investments, Midwest Business Administration Association Conference, March.

Seddon, P. et al. (1999). Dimensions of Information Systems Success, Communications of the Association for Information Systems, Volume 2 Article 20, November.