Managing the risks of using informal systems – Canadian Investor

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Managing the risks of using informal systems – Canadian Investor
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Managing the risks of using informal systems CanadiansInvest

Informal systems cover gaps in the application portfolio of most organizations’ formal systems

A subset of examples of informal systems includes tracking work status, forecasting cash requirements, tracking product returns, illuminating data inconsistencies between two systems, calculating bonuses, analyzing survey results, scheduling equipment, and analyzing inventory positions.Ability to start extremely small and allow the system to evolve organically.Incredible malleability.Avoid rigour of the systems development process.

This one end-user limitation risks the system becoming overwhelmed as the data volume grows and the value of the informal system increases.Informal systems are restricted to the maximum number of rows the underlying filesystem can manage. The associated restarts and sometimes reboots of the workstation will undermine the organization’s confidence in the output of the informal system.Informal systems tend to be the creation of one bright, energetic business person.

The risk of poor data integrity is the increasing number of system crashes and reports whose content will become increasingly unreliable.Informal systems primarily operate in batch mode. Data entry is usually real-time, but outputs such as queries, charts, and reports are batch operations. Even worse, no one can perform another batch operation or data entry while the initial batch operation runs.

Be grateful for how the informal system has increased your organization’s understanding of the detailed requirements of the application domain that the informal system managed.

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