Managing Finance and Information at Jacobs Engineering - Coursework Example

IM Inputs, Transformation Process And Outputs The inputs of the information manager (IM) team at Jacobs Engineering are focused on effective design and evaluation of information flows through the systems application. The information inputs in the database are recognized and modeled according to the logical data modeling process currently in place with asserts that data values are continuous and present. Data inputs are generally inclusive of patent, engineering, and research information that requires high security maintenance during receipt and throughout the transformation process. Data values are transformed throughout the data engineering process based on the object-oriented ontology. In this manner, the knowledge base is transformed through the systems logical process modeling, which allows for data applications to be interoperable and interchangeable through the enterprise in a secure manner. The transformation process involves strategic security levels. This focuses on the logic linkages of data packets, for example, linking the engineering intellectual capital of suppliers to transform into composite information for product development. The transformation process is incremental to ensure that data maintains integrity and is validated throughout the process, with the goal of removing inconsistencies and promoting the business model. Data outputs are organized based on system uses information already maintained by the company; however, the information requires a different method of storage and access. The data integrity validation system may require additional storage space to allow for the real-time job proofing that is an integral part of the system. The intellectual property received, transformed, and administered to the end user have increased dependence on electronic transmission of order information and therefore demand a greater degree of redundancy regarding the output infrastructure. Justification of Monetary Values Monetary value fluctuates with the type of intellectual property or research data received, the transformation integrity required, and the end customer/supplier. However, in the specific role of the IM department, there is not a direct monetary value attached to information. IM allows the company to globally and locally obtain necessary information using accessible physical devices (hardware) that process particular data (retained in a database) via a certain set of instructions (software). All successful information systems must connect and direct people, processes, data, hardware, and software towards a desired goal. The IM project tools such as work process maps, internal project reviews, focused client expectation and satisfaction surveys, and Jacobs Value Enhancing Practices to both deliver successful, repeatable results, and to create new opportunities for innovation and enhanced value Delivery Throughout The Input-Output Cycle The success of both the IM department and the ontology of the systems systems depend on the integrity of the data that forms the foundation for each system. A database stores a collection of files containing various pieces of information or data that are interrelated in some fashion. It can also not be stated that any one source of data has a greater value than another, or than the transformation of the data, or the output to clientele. However, a lack of validity, integrity or security in any input-transformation-output cycle could cost Jacobs Engineering millions, if not billions, of dollars in lost, stolen, or corrupt data. Therefore, while there cannot be a specific monetary value attached to the data cycle, there is a strong amount of financial risk involved with loss of information in the data cycle. The Budgets table shows the estimated cost of relative data control needs. The IM value is not monetary based, but without the succinct capabilities there would be a significant gap in the functional ability of Jacobs Engineering to work in the global information technology environment. The value of IM is therefore not based on the traditional monetary scale, but is justified by its inherent and irreplaceable value for organizational achievement. The value justification of IM lies in the ability to assemble key life-cycle projects for all team members prior to implementing project designs. This includes information based decisions based on value rather than cost which are used to define the measurements and outcomes of intellectual property. The comprehensive technology established in the data modeling (noted in the above) for the input-output cycle are collaboratively developed within the IM team, and thus the team is able to effectively receive, transform, and implement data and research variables. This includes the use of linkages in the data modeling to define the outputs by matching resources with the needs of the projects and clients, as well as the business. Finally, the IM department is integral to minimizing project risk in financial, intellectual, and administrative dimensions. This is accomplished through evaluation strategies which optimize project objectives compared to project risk (security, loss, theft) regarding the information input-output cycle. Marginal Costing The marginal costing analysis is based on the general format of project budgets noted in the Budgets Table. This shows that the largest financial cost in the IM department is the redundant systems and programming costs. The budget analysis is used to describe the allocation of financial resources throughout the IM department. In this, it can be shown that the notification (input) system to the cycle (transformation and output) cost is equal, there is not a noticeable difference of the cost of information as it enters the database to the cost of information as it exists the database based on the needs within the IM department. The primary section is irreplaceable personnel and systems, which are static and do not evolve quickly-that is not to say that the technology does not evolve, but rather that the investments in technology is relatively high as is the hardware, and at Jacobs these are traditionally five year investments. The total programming costs shows the relative cost distributed through the data transformation system that includes security devices in programming, and the distribution of data to the outputs through linkages of information to client. Project implementation shows the standard investment made in implementing a data IM project, for example, the allocation of intellectual engineering property to the output supplier/construction client. The marginal cost graph shows the relative cost of the IM department per project as it is distributed through the project's lifecycle. This shows that there are lower costs, but the total cost increases sharply when the hardware and security programming is considered. Jacobs Engineering Contributing (Marginal) Costs March Marginal Costs Project Input Auditor 30,015 Project Implementation 10,000 Security Implementation and Analysis 26,000 Project coordinator 80,388 Programmer II 117,763 Programmer III 148,665 Generalist 193,350 Distribution Linkages and Analysis 211,680 Total Costs 237,680 Total Programming Costs 570,181 Hardware: Redundant Systems 1,000,000 Using the Marginal Costing chart above, further analysis of the cost associated with the IM department reveals that the percentages of total investment per project (removing the static and redundant hardware) is in the project coordination and management by high end programmers. The ability to receive, transform, and deliver invested intellectual property and analytical data is vastly important, with investments in knowledge capital consuming the largest percentages of marginal costs. Security implementation and analysis follows project coordination and programming with 14% of the investment. Implementation and auditing of data and information based projects consumes the least amount of resources, which is likely because the initial strategy for each project is to analyze, control, and maintain security, integrity and validity through strong risk management strategies. Effect of IM on Activities The IM department manager has an impact on each of the activities in the marginal costing, especially relative to the project coordination, security, and implementation. This requires an ability to distinguish inputs based on their capability to be modeled within the data systems. Secondly, the transformation of data, particularly in the engineering departments, must have a succinct direction and focus towards the final output of information. The IM team has the strongest role in transforming and controlling data for its final output to clients, developers, and suppliers. The strongest impact of the Information Manager, however, lies in the allocation of intellectual properties for the benefit of maintaining information for the benefit of the business in a continuously changing environment. This requires organizations constant reassessment of IM, data, input-output cycle goals and capabilities, as well as costing analysis of future technologies. Nature of Financial Information Available The nature of financial information available in the IM department is based on the data-value, thus it changes per project basis and is not consistent. Furthermore, each input has a specific value that may or may not change during the transformation to the outputs. That is, received information and intellectual property in some cases has stronger value as an output in most cases, yet in others it may have no change, and on occasion there is financial loss. The nature of financial data also alters in a time-oriented context. This means that what financial information is available regarding a project cost may decrease or increase in value along a specific long or short timeframe. Generally this is based on the time-sensitivity of the information, in some cases specific data has a stronger value over a long term, especially regarding engineering patents and sales of patents. On the other hand, the stronger value may be in the short-term transformation, particularly when the data is relatively dependent on time rather than value. Control of information and investment outcomes are different between domestic and international investments in intellectual property, and the result of long-term or short-term asset allocation is that the investment capital has strong inflows that reduce the external assets held by stakeholders and investors. The attraction to outside investors is the liquidity of the market value, and there is often some control of the ability to dispose of assets into the local markets. In the lack of stable insurance markets, liquidity becomes the best means of hedging against uncertainty. Intellectual property and research strategies are regarded as high-risk emerging market assets with high returns, which signifies the importance of maintaining risk management as noted earlier. These financial investments through the information lifecycle carry a benefit for global portfolio investors because the risk of their overall portfolio is reduced by the low covariance between regional markets; but this does not mean that investors will stop switching between markets in attempt to maximise short-term profits. The accumulation balance reflects this relationship, where marginal accounting can identify the cost vs. savings of the activities in the IM department as well as investment across the various product cycle sectors (information, manufacturing, distribution). So when the short-term liabilities rise and capital account items are available, then variables adjust and the key is to evaluate the effect of short-term capital inflows with the determination of variable adjustments, and to understand how this impacts the business profits and stakeholder trust. Read More