Sesi03 - Developing is and IT Strategy

7/28/2019 Sesi03 - Developing is and IT Strategy

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Session ObjecEves

Understand the process of developing IS/ITStrategy

Understand the components of IS/IT StrategicPlanning Model

Understand how to evaluate IS/IT StrategicPlanning


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IS/IT Strategy DefiniEon.

IS strategy defines the organizaEons requirementfor informaEon systems to support the overallstrategy of the business

The IT strategy is outlining the vision of how theorganizaEons demand for informaEon andsystems will be supported by IT

An IS strategy brings together the business aimsof the company, an understanding of theinformaEon needed to support those aims, andthe implementaEon of computer systems toprovide the informaEon.


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IS/IT Strategy is part of IS/IT

Strategic Plan Planning for the effecEve longterm management

and opEmal impact of informaEonin all itsforms (IS, IT, manual and computer systems,organizaEonal aspects of the management IS/ITthroughout the business).

The process of deciding the objecEves fororganizaEonal compuEng and idenEfyingpotenEal computer applicaEons which the

organizaEon should implement (Sethi, 88) It is a plan for the development of systems

towards some future vision of the role of IS inthe organizaEon


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The ObjecEves of Developing IS/IT

Strategy

Alignment of IS/IT with the business Gaining compeEEve advantage Building cost effecEve Developing the appropriate resources

IS/IT strategyformulation

IS/IT planning

IS/IT strategy process


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Tips to Develop IS/IT strategy

IS/IT Strategy Process Should Become anIntegral Part of Business Strategy,

Business Plan, and Its ImplementaEon. The primary objecEve to develop IS

strategy is to idenEfy valueadded

porYolio of applicaEons that will havestrategic impact .


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The voluEon of the IS/IT Strategy Process:

Technology Focus to Strategic Focus

Conform these stages with the evolution of IS/IT roles


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IS/IT Planning Problems

Fail to get top management support Value system does not go throughout

organizaEon Lack of proper person to the job Not having clearcut business strategy Fail to anEcipate new IT development Ignorance of environmenteconomy,

poliEc, etc


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The Model of Strategic IS/IT

Planning Processes Inputs

Internal business environment Current business strategy, objecEves, resources, processes and

culture and values of business

xternal business environment

The economic, industrial and compeEEve climate Internal IS/IT environment

Current IS/IT perspecEve in the business, its maturity, businesscoverage and contribuEon, skills, resources and technologicalinfrastructure

xternal IS/IT environment Technology trends and opportuniEes and the use made of IS/IT by

external bodies


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The Model of Strategic IS/IT

Planning Processes

Outputs IS/IT management strategy

The common elements of the strategy that apply throughoutthe organizaEon, ensuring consistent policies where needed

Business IS/IT strategy How each unit or funcEon will deploy IS/IT in achieving its

business objecEves.

Alongside each of these are applicaEon porYolios to bedeveloped for business unit and business models, describingthe informaEon architecture of each unit.

The porYolios may include how IS/IT will be used at somefuture date, to help the units to achieve their objecEves IT strategy

Policies and strategies for management of technology andspecialist resources


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External Business Environment Internal Business Environment

Internal IS/IT environment

Current Applications Portfolio

External IS/IT Environment

Planning Approaches, Tools and Techniques

Strategic IS/ITPlanning Process

IS/IT Management Strategy Business IS Strategies IT Strategy

Applications Portfolio Model & Matrices


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Types of Deliverables from The IS/IT

Planning Processes

Hard deliverables The current situaEon The vision and raEonale for what is being put into place

informaEon, systems, technology, people, and so on.

The plans for how it is going to be achieved, with themilestones along the route So` deliverables

Relate to human factors: skill, awareness and moEvaEon.


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Initiate

Planning

Process

Understand the

Current Situation

and InterpretBusiness Needs

Define/Update

Information and

SystemsArchitecture

Determine

Business IS

Strategy

Formulate IT

Strategy

Prepare

Migration

Plans and

Business Case

Business

Strategy and

ProposedDevelopment

Programmme

IS/IT Strategy

and Proposed

plans

Business and

Technical

Environment

Previous

IS/IT

Strategy

Other

PlanningActivities

Framework for the IS Planning Process


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Ini$ate Planning Process

The purpose, objecEves, scope and deliverables are confirmedThe approach determined and resourced acquired, such as

automated tools

Business parEcipants idenEfied and team assembled and trainedxpectaEons, such issues and problems addressed, and risk

management proposals put into gear

Process steering and management mechanisms createdHow the work will interface with and feed into business planning

The people to be interviewed, or who are needed to parEcipatein group sessions are idenEfied

Plan for the work, tasks, Eming, roles and responsibiliEes, and

checkpoints defined.


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Understand the Current Situa$on and

Interpret Business Need

Analysis of the business strategy, objecEves, criEcalsuccess factors (CSFs), criEcal problems, and processes, inorder to determine the current situaEon, and its

strengths and weaknesses, and the informaEon needsand thus the focus for investment in systems to meetthese.

valuaEon of the current IS/IT operaEon its systems,informaEon provision, resources, organizaEon, skills and

services, to determine coverage and contribuEon andwhere improvements would be beneficial.

InnovaEve analysis of the external and internal businessenvironment to idenEfy potenEal applicaEons of IS/IT.


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Determine the Business IS

Strategy

The accumulated business IS demand is

turned into recommendations for the

deployment of IS/IT throughout theorganization and at SBU level.


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Define Informa$on and System

Architecture

This step takes the results of the analysisof procedures and informaEon needs in

order to build a proposed business modelfor the business.

It represents the future ideal in process,informaEon and system terms, and is

needed to plot a direcEon whendeveloping migraEon plans.


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Formulated IT Supply Proposals

IS strategy and the IT supply proposals can be fed back intothe business strategy, for consideraEon and consolidaEonto occur, and senior business management to decide onthe likely candidates for the investment programme for

the business.

For IS/IT management, it means that the strategy can befirmed up to give a clearer direcEons for where IS isaiming to go.

Outline plans can the be constructed to give a route map,and milestone for the main iniEaEves.


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Business IS Strategy

It states how the business will deploy IS/IT inachieving its objecEves.

To link IS/IT firmly to the business strategy It states the applicaEons and services

requirements for the SBU

Give an example of Business IS Strategy??


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IT Strategy: Management of Supply

To define how resources and technologies will bemanaged and developed to saEsfy business ISstrategies.

It consists of: ApplicaEon porYolio management OrganizaEon of IS/IT Managing the info resources and provision of info

services

Managing investment, prioriEzaEon and benefits Managing applicaEon development Managing technologyGive an example of IT Strategy??


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IS/IT Management Strategy

Apply throughout the organizaEon, ensuringconsistent policies where needed

It covers:

Scope and raEonale IS/IT organizaEon Investment and prioriEzaEon policies Vendor policies Human impact policies IS accounEng policies

Give an example of IS/IT Management Strategy??


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Success Criteria in Developing IS/IT

Strategy


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valuaEon of IS/IT Strategic Plan:

Success Criteria

Improve performance Gaining compeEEve advantage Align IT investment with business strategy Beer communicaEon Improve management commitment Beer allocaEon of IT resources Beer IT forecasEng requirement

Try to quantify the success criteria for old vs. new system??


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Factors affecEng IS/IT Development

xternal business xternal technology Internal business Internal technology

Give examples on how those factors affect IS/IT Development ??


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Context of IS/IT Strategy


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Objectives of IS/IT Strategy Formulation and Planning


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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

Sesi03 - Developing is and IT Strategy

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