Chapter 4: IS/IT Strategic Analysis: Current Situation
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Transcript of Chapter 4: IS/IT Strategic Analysis: Current Situation
Chapter 4
IS/IT Strategic Analysis:
Current Situation
Agenda
• Business re-engineering and IS strategy• Understanding the current IS/IT requirements• Understanding IS/IT needs of the business strategy• Examining current IS/IT supply• Analysis techniques
– Critical success factors
– Process effectiveness
– Organizational model
Business Re-engineering and IS Strategy
• Re-engineering initiatives spring from business strategy
• IS demand supports business strategy
• Re-engineering needs IS/IT element
• Re-engineering and IS strategy forms potential models of the business
Understanding the Current IS/IT Requirements - I
• Business strategy analysis for information needs
• External environment, current and future business portfolio, and competitive strategy for IS/IT competitive contribution
• Critical success factor identification for finding the information change drivers
Understanding the Current IS/IT Requirements - II
• Current process effectiveness evaluation for IS/IT to improve the performance
• Internal and external value chain analysis for information flow and IS/IT opportunities
• Conceptual architecture of information and processes restructuring to reach IS/IT maximum contribution
Understanding the Current IS/IT Requirements - III
• Hardware and software functions for future plan migrating
• Current application portfolio evaluation for assessing contribution and potential
• IS/IT principles, organization, processes, services, and capabilities evaluation for meeting current and future business needs
Understanding IS/IT Needs of Business Strategy - I
• Information, system, and technology for– The achievement of the business objectives– The measurement of the performance towards
achieving the business objectives
Understanding IS/IT Needs of Business Strategy - II
• Internal business environment– Business strategy– Current business processes, activities, and main
information entities– Organizational environment: structure, assets
skills, values, style, culture, and relationship
• External business environment– Opportunities
Business Strategy - I
• Components of business strategy– Mission: an unambiguous statement of what the
business does and its long-term purpose– Vision: an easy identify picture of what the
business will be in the future, and how it will operate
– Goals: the set of major achievements that will accomplish the vision
Business Strategy - II
• Components of business strategy– Objectives: the targets (unambiguous and
measurable) for accomplish the business vision– Strategies: the methods to meet the business
objectives– Critical success factors (CSFs): a few areas
have to be right in order for the business to flourish
Business Strategy - III
• Components of business strategy– Business drivers: a set of critical forces for the
business to change– Business area plans: document the response or
information needs to the business strategy
Business Process, Activities and Key Entities - I
• Business processes: the sets of interlinked activities to deliver specific outputs to customers
• Activities: the elements of processes– To produce, promote and distribute products or
services– To develop, support, and administer the
infrastructure– To measure the performance against objectives
Business Process, Activities and Key Entities - II
• Key entities: important data and information associated with business processes
• Models– Process flow models or process dependency charts
– Hierarchical activity models or functional decomposition diagrams
– Entity relationship models
Business Process, Activities and Key Entities - III
• Models– Data flow diagrams (DFDs)– Activity/entity matrices– Class diagram
Examining Current IS/ITSupply - I
• Objectives– Categorize in terms of strategic, high potential, key
operational, and support
– Contribution to business needs
– Assessment of effectiveness, robustness, and unrealized potential
– Potential improvement
– Risks and opportunities
– Strength and weakness in terms of CSFs
Examining Current IS/ITSupply - II
• Evaluate:– Application portfolio and applications under
development: content, coverage, and contribution
– Current databases and those under construction– Users’ perception of the value of the portfolio– Current infrastructure and IT supply provisions
Examining Current IS/ITSupply - III
• Evaluate– Current infrastructure and IT supply
provisions• Current/previous strategy and policies
• IS/IT organization and processes
• Current assets, resources, and skills
• Methods and training provisions
Analysis Techniques - I
• Business strategic analysis
• CSF analysis
• SWOT analysis
• Business portfolio and competitive strategic analysis
• Value chain analysis
• Process effectiveness
Analysis Techniques - II
• Business process redesign
• Organizational modeling
• Business modeling-information analysis techniques
• Current portfolio evaluation
• Technology assessment and IS/IT infrastructure review
Critical Success Factors - I
• Levels– Industry – Corporate– Business unit or function– Manger
• Usages in management– IS opportunities to achieve Objectives– Information needed by executives
Critical Success Factors - II
• Analysis process for IS requirements– Understand mission and objectives– Determine CSF for each objective– Conduct a SWOT on each CSF– Consolidate across objectives and identify
information dependencies– Outline plan of IS requirements
Critical Success Factors - III
• Analysis process for executive information system– Understand mission and objectives– Determine CSF for each objective– Develop measures– Guides for the executive information systems
Process Effectiveness
• Identify core processes• Assess effectiveness of processes against
their drivers• Assess risks of not improving the processes• Investigate urgency of opportunities for
improvement• Establish future vision of the business
processes
Organizational Model
• The formal organizational arrangements
• Employees and other tangible assets
• Social structure
• Technology employed
• The external environment
• The dominant coalition
• The key processes
Points to Remember
• Business re-engineering and IS strategy• Understanding the current IS/IT requirements• Understanding IS/IT needs of the business strategy• Examining current IS/IT supply• Analysis techniques
– Critical success factors
– Process effectiveness
– Organizational model
Questions
• What are the critical success factors associated with an e-business?
• How do you conduct a strategic analysis for an e-business?