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Developing an IS/IT Strategy
Faculty of Industry and Information Technology
Telkom Institute of Technology Purwokerto, October 2018
Session Objectives
Understand the process of developing IS/IT Strategies
Nurture the integration of IS/IT Strategies in IS/IT Strategic Plan
Understand the components of IS/IT Strategic PlanModel
Understand how to evaluate IS/IT Strategic Plan
IS/IT Strategy Definition….
IS strategy defines the organization’s requirement for information systems to support the overall strategies of the business
The IT strategy is outlining the vision of how the organization’s demand for information and systems will be supported by IT
“An IS strategy brings together the business aims of the company, an understanding of the information needed to support those aims, and the implementation of computer systems to provide the information.
• Business decisions
• Objectives and direction
• Change
Business Strategy
• Business based
• Demand orientation
• Application focused
IS Strategy
• Activity Based
• Supply oriented
• Technology focused
IT Strategy
Where is the
business going &
why?
What is required?
How can it be
realized?
External &
Internal
Factors
Direction for
business
Needs &
priorities
Supports
business
Infrastructure
& service
Alignment Business Strategy and IS/IT Strategy
IS/IT Strategy is part of IS/IT Strategic Plan
Planning for the effective long-term management and optimal impact of information—in all its forms (IS, IT, manual and computer systems, organizational aspects of the management IS/IT throughout the business).
“The process of deciding the objectives for organizational computing and identifying potential computer applications which the organization should implement” (Sethi, 88)
It is a plan for the development of systems towards some future vision of the role of IS in the organization
The Objectives of Developing IS/IT Strategy
Alignment of IS/IT with the business
Gaining competitive advantage
Building cost effective
Developing the appropriate resources
IS/IT strategy
formulationIS/IT planning
IS/IT strategy process
Tips to Develop IS/IT strategy
IS/IT Strategy Process Should Become an Integral Part of Business Strategy, Business Plan, and Its Implementation.
The primary objective to develop IS strategy is to identify value-added portfolio of applications that will have strategic impact .
The Evolution of the IS/IT Strategy Process:
Technology Focus to Strategic Focus
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Main task IS/IT
application
mapping
Defining
business
needs
Detailed IS
planning
Strategic/comp
etitive
advantage
Linkage to business
strategy
Key
objective
Management
understanding
Agreeing
priorities
Balancing the
portfolio
Pursuing
opportunities
Integrating IS and
business strategies
Direction
form
IT led Senior
management
initiative
User and IT
together
Executives/seni
or management
and users
Coalition of
users/management
and IT
Main
approach
Bottom-up
development
Top-down
analysis
Balanced top-
down and
bottom-up
Entrepreneurial
(user
innovation)
Multiple method at
same time
Summary
description
Technology led Method
driven
Administrativ
e
Business led Organization led
Conform these stages with the evolution of IS/IT roles
IS/IT Planning Problems
Fail to get top management support
Value system does not go throughout organization
Lack of proper person to the job
Not having clear-cut business strategy
Fail to anticipate new IT development
Ignorance of environment-economy, politic, etc
Research Issues: Faktor apa yang dominan
sebagai penyebab gagalnya IS/IT Planning? Apa
solusinya?
The Model of Strategic IS/IT Planning Processes
Inputs Internal business environment
• Current business strategy, objectives, resources, processes and culture and values of business
External business environment• The economic, industrial and competitive climate
Internal IS/IT environment• Current IS/IT perspective in the business, its maturity, business
coverage and contribution, skills, resources and technological infrastructure
External IS/IT environment• Technology trends and opportunities and the use made of
IS/IT by external bodies
Reminder: Use all related techniques and methods to
gather and analyze data of these input factors
Strategic Management Process
Environmental Analysis
General Environment
Operating Environment
Competitive Positioning
Directions for Development
Company Analysis
Structure
Values/Culture
Skills
Resources
Company
Strategic
History
Current
Strategy
Stakeholder
Analysis
Vision &
Strategy
Chosen
Strategy
Realized
Strategy
Streng
ths
Wea
knes
ses
Opportu
nities
Threat
s
Company
Vision
Reprinted with permission from
The Strategic Management Blueprint
Cambridge, Ma: Blackwell, 1993.Figure 7-2
The Model of Strategic IS/IT Planning Processes
Outputs IS/IT management strategy
• The common elements of the strategy that apply throughout the organization, ensuring consistent policies where needed
Business IS/IT strategy• How each unit or function will deploy IS/IT in achieving its
business objectives. • Alongside each of these are application portfolios to be
developed for business unit and business models, describing the information architecture of each unit.
• The portfolios may include how IS/IT will be used at some future date, to help the units to achieve their objectives
IT strategy• Policies and strategies for management of technology and
specialist resources
Make sure all outputs have to have a basis
External Business Environment Internal Business Environment
Internal IS/IT environment
Current Applications Portfolio
External IS/IT Environment
Planning Approaches, Tools and Techniques
Strategic IS/IT
Planning Process
IS/IT Management Strategy Business IS Strategies IT Strategy
Applications Portfolio Model & Matrices
Types of Deliverables from The IS/IT Planning Processes
Hard deliverables• The current situation (As-is condition, Baseline)• The vision and rationale for what is being put into
place—information, systems, technology, people, and so on (To-be, Future condition).
• The plans for how it is going to be achieved, with the milestones along the route (Roadmap, Programs, KPI).
Soft deliverables• Relate to human factors: skill, awareness and motivation
(Change Management, Capacity Building).
Initiate
Planning
Process
Understand the
Current Situation
and Interpret
Business Needs
Define/Update
Information and
Systems
Architecture
Determine
Business IS
Strategy
Formulate IT
Strategy
Prepare
Migration
Plans and
Business Case
Business
Strategy and
Proposed
Development
Programmme
IS/IT Strategy
and Proposed
plans
Business and
Technical
Environment
Previous
IS/IT
Strategy
Other
Planning
Activities
Framework for the IS Planning Process
Input (As-is) Proses (Gap Analysis)Input
Initiate Planning Process
The purpose, objectives, scope and deliverables are confirmed
The approach determined and resourced acquired, such asautomated tools
Business participants identified and team assembled and trained
Expectations, such issues and problems addressed, and riskmanagement proposals put into gear
Process steering and management mechanisms created
How the work will interface with and feed into business planning
The people to be interviewed, or who are needed to participatein group sessions are identified
Plan for the work, tasks, timing, roles and responsibilities, andcheckpoints defined.
Understand the Current Situation and Interpret Business Need
Analysis of the business strategy, objectives, criticalsuccess factors (CSFs), critical problems, and processes, inorder to determine the current situation, and its strengthsand weaknesses, and the information needs and thus thefocus for investment in systems to meet these.
Evaluation of the current IS/IT operation – its systems,information provision, resources, organization, skills andservices, to determine coverage and contribution andwhere improvements would be beneficial.
Innovative analysis of the external and internal businessenvironment to identify potential applications of IS/IT.
Determine the Business IS
Strategy
The accumulated business IS demand is turned
into recommendations for the deployment of
IS/IT throughout the organization and at SBU
level.
Define Information and System Architecture
This step takes the results of the analysis ofprocedures and information needs in orderto build a proposed business model for thebusiness.
It represents the future“ideal” in process,information and system terms, and isneeded to plot a direction when developingmigration plans.
Administrasi Jabatan Eksternal
Tata Usaha PerbantuanAdministrasi Personalia
InternalPengumpulan dan Pengolahan DataPerencanaan Program dan Anggaran
Penyusunan Program Penyusunan Anggaran
Pembayaran PembukuanPemantauan dan Evaluasi
Program Setkab
Penyusunan Hasil Pemantauan dan Evaluasi
Program Setkab
Pelaporan Pengawasan Internal
PerlengkapanPemeliharaan dan
PerawatanRumah Tangga
Administrasi Perjalanan Dinas
Pengembangan Sistem Informasi dan Otomasi
Pemeliharaan Jaringan
Pendokumentasian Program Kerja dan
Anggaran
Pemantauan Permasalahan Pemerintah
Evaluasi Permasalahan Pemerintah
Analisis Permasalahan Pemerintah
Legalisasi dan PeminjamanPUU
Penyusunan PUU
Pendokumentasian PUU
Pendistribusian PUU
Pemantauan Hasil Persidangan
Penyiapan Persidangan
Pelaksanaan Persidangan
Pendokumentasian Persidangan
Pemantauan Permasalahan Hukum
Evaluasi Permasalahan Hukum
Analisis Permasalahan Hukum
Pendistribusian Undangan/Hasil
Persidangan
1
2
3 5
5
7
9
10
11
12
12
14
16
18 19
15
4
6
11
13
17
20 21
8
Administrasi Kepangkatan dan Pensiun
10
Administrasi Alih Status Anggota TNI / Polri
10
Perumusan Keppres dan Lampiran Keppres Personalia
Contoh: Arsitektur Aplikasi & Proses Bisnis Value Chain di SEKAB
Formulated IT Supply Proposals
• IS strategy and the IT supply proposals can befed back into the business strategy, forconsideration and consolidation to occur, andsenior business management to decide on thelikely candidates for the investmentprogramme for the business.
• For IS/IT management, it means that thestrategy can be firmed up to give a clearerdirections for where IS is aiming to go.
• Outline plans can the be constructed to give a route map, and milestone for the main initiatives.
IT Strategy: Management of Supply
To define how resources and technologies will be managed and developed to satisfy business IS strategies.
It consists of:• Application portfolio management• Organization of IS/IT• Managing the info resources and provision of info
services• Managing investment, prioritization and benefits• Managing application development• Managing technology
IS/IT Management Strategy
Apply throughout the organization, ensuring consistent policies where needed
It covers:• Scope and rationale
• IS/IT organization
• Investment and prioritization policies
• Vendor policies
• Human impact policies
• IS accounting policies
Deputi Seskab Bidang
Administrasi
Kepala Biro Perencanaan &
Keuangan
Kepala Biro Kepegawaian
Kepala Biro Kepangkatan &
Pensiun
Kepala Biro Umum
Kepala Bagian Perlengkapan
Kepala Bagian Pemeliharaan
Kepala Bagian Urusan Dalam
Kepala Bagian Sistem Informasi
Kepala Sub Bagian Aplikasi Jaringan
Kepala Sub Bagian Infrastruktur
Jaringan
Contoh: Struktur Organisasi TI di SEKAB
Evaluation of IS/IT Strategic Plan: Success Criteria
• Improve performance
• Gaining competitive advantage
• Align IT investment with business strategy
• Better communication
• Improve management commitment
• Better allocation of IT resources
• Better IT forecasting requirement
Try to quantify the success criteria for old vs. new system??
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