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Developing an IS/IT Strategy
Session Objectives
Understand the process of developing IS/IT Strategic Planning
Understand the components of IS/IT Strategic Planning
Understand how to evaluate IS/IT Strategic Planning
IS/IT Strategy Definition….
IS strategy defines the organization’s requirement for information systems to support the overall strategy 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.
IS/IT Strategy is part of IS/IT 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 businessGaining competitive advantageBuilding cost effectiveDeveloping the appropriate resources
IS/IT strategy formulation
IS/IT planning
IS/IT strategy process
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 .
Tips to Develop IS/IT strategy
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/ITapplicationmapping
Definingbusinessneeds
Detailed ISplanning
Strategic/competitiveadvantage
Linkage to businessstrategy
Keyobjective
Managementunderstanding
Agreeingpriorities
Balancing theportfolio
Pursuingopportunities
Integrating IS andbusiness strategies
Directionform
IT led Seniormanagementinitiative
User and ITtogether
Executives/senior managementand users
Coalition ofusers/managementand IT
Mainapproach
Bottom-updevelopment
Top-downanalysis
Balanced top-down andbottom-up
Entrepreneurial(userinnovation)
Multiple method atsame time
Summarydescription
Technology led Methoddriven
Administrative
Business led Organization led
Conform these stages with the evolution of IS/IT roles
IS Planning Problems
Fail to get top management supportValue system does not go throughout
organizationLack of proper person to the jobNot having clear-cut business strategyFail to anticipate new IT developmentIgnorance of environment-economy,
politic, etc
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
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
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 Planning Processes
Hard deliverables– The current situation– The vision and rationale for what is being put into
place—information, systems, technology, people, and so on.
– The plans for how it is going to be achieved, with the milestones along the route
Soft deliverables– Relate to human factors: skill, awareness and
motivation.
InitiatePlanningProcess
Understand theCurrent
Situationand Interpret
Business Needs
Define/UpdateInformation and
SystemsArchitecture
DetermineBusiness IS
Strategy
Formulate ITStrategy
PrepareMigrationPlans and
Business Case
BusinessStrategy and
ProposedDevelopmentProgrammme
IS/IT Strategyand Proposed
plans
Business andTechnical
Environment
PreviousIS/IT
Strategy
OtherPlanningActivities
Framework for the IS Planning Process
Initiate Planning Process
The purpose, objectives, scope and deliverables are confirmed
The approach determined and resourced acquired, such as automated tools
Business participants identified and team assembled and trained
Expectations, such issues and problems addressed, and risk management 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 participate in
group sessions are identified
Plan for the work, tasks, timing, roles and responsibilities, and checkpoints defined.
Understand the Current Situation and Interpret Business Need
· Analysis of the business strategy, objectives, critical success factors (CSFs), critical problems, and processes, in order to determine the current situation, and its strengths and weaknesses, and the information needs and thus the focus for investment in systems to meet these.
· Evaluation of the current IS/IT operation – its systems, information provision, resources, organization, skills and services, to determine coverage and contribution and where improvements would be beneficial.
· Innovative analysis of the external and internal business environment 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 of procedures and information needs in order to build a proposed business model for the business.
It represents the future “ideal” in process, information and system terms, and is needed to plot a direction when developing migration plans.
Formulated IT Supply Proposals
IS strategy and the IT supply proposals can be fed back into the business strategy, for consideration and consolidation to occur, and senior business management to decide on the likely candidates for the investment programme for the business.
For IS/IT management, it means that the strategy can be
firmed up to give a clearer directions for where IS is aiming to go.
Outline plans can the be constructed to give a route map,
and milestone for the main initiatives.
Business IS Strategy
It states how the business will deploy IS/IT in achieving its objectives.
To link IS/IT firmly to the business strategy
It states the applications and services requirements for the SBU
Give an example of Business IS Strategy??
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
Give an example of IT Strategy??
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
Give an example of IS/IT Management Strategy??
Success Criteria in Developing IS/IT Strategy
Success Criteria
Improve performanceGaining competitive advantageAlign IT investment with business strategyBetter communicationImprove management commitmentBetter allocation of IT resourcesBetter IT forecasting requirement
Try to quantify the success criteria for old vs. new system??
Factors affecting IS/IT Development
External business External technologyInternal businessInternal technology
Give examples on how those factors affect IS/IT Development ??
Context of IS/IT Strategy
Objectives of IS/IT Strategy Formulation and Planning
Discussion on the end of Chapter 3
What is IS/IT Strategy?Why Developing IS/IT Strategy?How IS/IT Strategy fits in Business Strategy?Who in charge developing IS/IT Strategy?What are steps to develop IS/IT Strategy? How do you evaluate the success of IS/IT strategy