““Establish Current ContextEstablish Current Context””

22

Management IssuesManagement Issues

•• How do we alter our management practices to improve the How do we alter our management practices to improve the

effectiveness of converting information technology investments ieffectiveness of converting information technology investments into nto

business value?business value?

•• What is the relationship between business, IS and IT strategies?What is the relationship between business, IS and IT strategies?

•• How much should we invest in information technology in dollars aHow much should we invest in information technology in dollars and nd

relative to our competitors?relative to our competitors?

•• How do we balance the information technology portfolio for risk How do we balance the information technology portfolio for risk and and

return?return?

•• How do we handle the justification process?How do we handle the justification process?

33

What is an IS/IT Strategy?What is an IS/IT Strategy?

The IS strategy defines the The IS strategy defines the organisationorganisation’’ss requirements or requirements or ““demanddemand”” for information and systems to support the for information and systems to support the

overall strategy of the overall strategy of the business.business. It defines and It defines and prioritisesprioritisesthe investments required to achieve the the investments required to achieve the ‘‘idealideal’’

applications portfolio, the nature of the benefits expected applications portfolio, the nature of the benefits expected and the changes required to deliver the benefits.and the changes required to deliver the benefits.

The IT strategy is how the The IT strategy is how the organisationorganisation’’ss demand for demand for information and systems will be supported by technologyinformation and systems will be supported by technology--

it is concerned with it is concerned with ““IT supplyIT supply””--provision of IT provision of IT capabilities, resources and services.capabilities, resources and services.

44

Creating Business Value through ITCreating Business Value through IT

The objective of information technology The objective of information technology

investments is to provide business value in 2 investments is to provide business value in 2

related ways:related ways:

–– To successfully implement current strategies.To successfully implement current strategies.

–– To use the technology to enable new To use the technology to enable new

strategies.strategies.

55

Creating Business Value through ITCreating Business Value through IT

Research shows that firms consistently achieving Research shows that firms consistently achieving

more business value for their IT investments had more business value for their IT investments had

the following 5 characteristics in Common ;the following 5 characteristics in Common ;

1.1. More top management commitment to IT.More top management commitment to IT.

2.2. Less political turbulenceLess political turbulence

3.3. More satisfied users of systems.More satisfied users of systems.

4.4. More integrated business and IT technology planning.More integrated business and IT technology planning.

5.5. More experience with IT.More experience with IT.

66

Why an IS Planning Methodology?Why an IS Planning Methodology?

•• Reduces risks of failure?Reduces risks of failure?

•• Ensures all IS Plan stake holder are involved Ensures all IS Plan stake holder are involved

appropriately in the processappropriately in the process

•• Reduces dependency on people, more on Reduces dependency on people, more on

processes and objectivesprocesses and objectives

77

A Generic ApproachA Generic Approach

•• Consisting of six (6) phasesConsisting of six (6) phases

•• Each phase is divided into tasksEach phase is divided into tasks

•• Division of Phases:Division of Phases:–– Phase 1: Establish Business ContextPhase 1: Establish Business Context

–– Phase 2: Establish Current IT ContextPhase 2: Establish Current IT Context

–– Phase 3: Determine Application PortfolioPhase 3: Determine Application Portfolio

–– Phase 4: Determine Systems and Network ArchitectPhase 4: Determine Systems and Network Architect

–– Phase 5: Determine IT OrganizationPhase 5: Determine IT Organization

–– Phase 6: Determine Project Phasing and and Financial PlanningPhase 6: Determine Project Phasing and and Financial Planning

88

6 Phases6 Phases

P1: Establish

Business Context

P2: Establish

IT Context

P3: Determine

Application

Portfolio

P4: Determine

Systems and

Network

Architect

P5: Determine

IT Organization

P6: Determine

Financial

Planning

99

Success Factor of MethodologySuccess Factor of Methodology

•• Need a single coordinatorNeed a single coordinator

•• Need to be Need to be ‘‘headedheaded’’ by managementby management

•• Need steering committee coming with majority from Need steering committee coming with majority from

management, headed by President Director or CEO.management, headed by President Director or CEO.

•• Attitude of coordinator must be as Attitude of coordinator must be as ‘‘facilitatorfacilitator’’

•• Resulting plan must be Resulting plan must be ““ownedowned”” by management, by management,

not by IT department (especially where the plan is not by IT department (especially where the plan is

more strategic in nature)more strategic in nature)

1010

Establish Current Context:Establish Current Context:

Phase Objective(s)Phase Objective(s)

•• To determine business critical driversTo determine business critical drivers

•• To determine critical success factors (CSF)To determine critical success factors (CSF)

•• To determine business processes inTo determine business processes in--scopescope

•• To explore industryTo explore industry--specific IT usagespecific IT usage

1111

Sensitivity PointsSensitivity Points

•• Business strategy and plan are not always Business strategy and plan are not always ‘‘openopen’’ for for

general discussion. Must be able to extract the general discussion. Must be able to extract the

components relevant to the IT Plancomponents relevant to the IT Plan

•• Directors are not always easy to discuss IT matters. Directors are not always easy to discuss IT matters.

They often see IT merely as a technical component They often see IT merely as a technical component

and need to be addressed technically.and need to be addressed technically.

•• Business strategy and plans are not always Business strategy and plans are not always ‘‘fixedfixed’’, ,

yet it is not the aim of the IT Planning process to yet it is not the aim of the IT Planning process to

determine the business strategy and business plan.determine the business strategy and business plan.

1212

Required InformationRequired Information

•• Business StrategyBusiness Strategy

•• Business PlanBusiness Plan

•• Business Process DefinitionBusiness Process Definition

•• Organization structure and breakdownOrganization structure and breakdown

•• Information about external partiesInformation about external parties

1313

Data Collection TasksData Collection Tasks

1.1. Obtain Business Strategy and Business PlanObtain Business Strategy and Business Plan

Note : This information may not always be Note : This information may not always be

available available

2.2. Obtain Business Drivers and Critical Success Obtain Business Drivers and Critical Success

Factors, determine ones relevant to the IT Factors, determine ones relevant to the IT

operationsoperations

1414

Data Collection Tasks (cont.)Data Collection Tasks (cont.)

3.3. Obtain organization structure and Obtain organization structure and

geographical spread of the organizationgeographical spread of the organization

4.4. Establish organization Context Diagram.Establish organization Context Diagram.

5.5. Establish company or organizationEstablish company or organization’’s core s core

activities and processes. Use activities and processes. Use PorterPorter’’s Value s Value ChainChain to model the organizationto model the organization’’s processes. s processes.

1515

Organization Context DiagramOrganization Context Diagram

SI_KPU

BPS

Dedagri

Bakorsurtanal

Parpol

DepKeu

Public

DPR

Polri

Pos/Telom/Perhub dll

Vendor

Perkara

Hasil-hasil Pemilu(kursi, suara, caleg, dll)

Sosialisasi(Aturan-aturan, UU, VoterEducation ), klarifikasi

Pergantian antar waktu

Hasil pergantian antar waktu

Koordinasipengamanan

material logistik,surat-surat

Penawaran

Request for

Proposal

Pergantian antar waktu,Perkara, pengurus, caleg

Data wilayah

data kependudukan,badan penyelnggara

Pemilu

Laporan hasil Pemilu

Data kependudukan

Anggaran

Dana

Context DiagramKPU

1616

PorterPorter’’s Value Chains Value Chain

Pendataan Persiapan

Pemilu

Pelaksanaan

PemiluPerhitungan Pelaporan

Keuangan

Pengadaan

Hukum/Legal

Sosialisasi

Infrastruktur Komunikasi Internal/Eksternal

Sistem Informasi Monitoring Perlengkapan

Gambar 2.1 Diagram Activity Chain KPU

1717

Outcome of PhaseOutcome of Phase

•• Business Drivers (Business Plan relevant to Business Drivers (Business Plan relevant to

the IT Plan)the IT Plan)

•• Business Constraints and AssumptionsBusiness Constraints and Assumptions

•• Organization Structure (inOrganization Structure (in--scope)scope)

•• Organization Context DiagramOrganization Context Diagram

•• Analysis of organizationAnalysis of organization’’s core activities and s core activities and

supporting activities (insupporting activities (in--scope)scope)

•• A full business scoping relevant to the IT PlanA full business scoping relevant to the IT Plan

1818

Establish IT Context:Establish IT Context:

Phase ObjectivesPhase Objectives

•• To understand and establish the IT operations To understand and establish the IT operations

inin--place within the organization or company. place within the organization or company.

This includes centralized IT as well as This includes centralized IT as well as

departmental IT facilities.departmental IT facilities.

•• To obtain insight and perceptions about IT To obtain insight and perceptions about IT

needs and wants, at the organization as well needs and wants, at the organization as well

as the department levels.as the department levels.

1919

Required ParticipantsRequired Participants

From the Company:From the Company:

•• Person inPerson in--charge of Applicationcharge of Application

•• Person inPerson in--charge of Infrastructurecharge of Infrastructure

•• Person inPerson in--charge of IT Planningcharge of IT Planning

2020

Sensitivity PointSensitivity Point

•• It is generally difficult to unearth what is It is generally difficult to unearth what is ‘‘alreadyalready’’ inin--

place and differentiate that with what is planned for place and differentiate that with what is planned for

the future.the future.

•• All or if not most department will have some form of All or if not most department will have some form of

IT spending that is not centralized and they will think IT spending that is not centralized and they will think

that this is their area of responsibility.that this is their area of responsibility.

•• Some software available may be Some software available may be ‘‘piratedpirated’’. Need to . Need to

have guidelines to handle this.have guidelines to handle this.

2121

Core Required InformationCore Required Information

•• List of computer hardware and other List of computer hardware and other

equipment in organizationequipment in organization

•• Network diagramNetwork diagram

2222

Data Collection TaskData Collection Task

1.1. Obtain documents list of computerObtain documents list of computer--related related

equipment used in the organizationequipment used in the organization

2.2. Obtain documents containing list of software Obtain documents containing list of software

used in the organization, both Server used in the organization, both Server

software as well as workstation softwaresoftware as well as workstation software

3.3. Confirm list with people inConfirm list with people in--charge for the charge for the

above information.above information.

2323

Data Collection Task (cont.)Data Collection Task (cont.)

4.4. Establish existing IT Organization structure, Establish existing IT Organization structure,

both formal structure as well as informal both formal structure as well as informal

structurestructure

5.5. Establish function/role of existing IT Establish function/role of existing IT

organizationorganization

6.6. Obtain problems related to current IT Obtain problems related to current IT

operationsoperations

2424

Phase OutcomePhase Outcome

•• Existing software usageExisting software usage

•• Existing hardware usageExisting hardware usage

•• Existing network setupExisting network setup

•• IT staff structureIT staff structure

•• IT FunctionIT Function