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

Business Environment

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?

IT Issues yang paling dominan adalah masalah IS/IT Planning

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

Contoh: Arsitektur Jaringan SEKAB

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

Success Criteria in Developing IS/IT Strategy

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??

What is IS/IT Strategy?Why Develop IS/IT Strategy?

How IS/IT Strategy fits in Business Strategy?Who in charge developing IS/IT Strategy?

What are the steps to develop IS/IT Strategy? How do you evaluate the success of IS/IT strategy

Discussions