1University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Methodology: Macro LevelMethodology: Macro Level

Formulating a Strategy: Earl

2University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Earl’s ApproachEarl’s Approach

• Earl suggests that three separate activities are needed, each driven by a different group, if a proper corporate strategy is to be developed.

• He calls this his ‘Multiple Methodology’ Earl M J, Management Strategies for Information Technology, Prentice-Hall, 1989

3University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Business plans and goals

Current systems IT opportunities

Analytical Evaluative Creative

Top Down Bottom Up Inside Out

Strategic Plan

Clarify, articulate, find Key Success Factors

Where are we now? Survey, audit.

Senior Management Users and specialists

Techniques, processes and environment

Brightsparks, product champions

4University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Earl’s Multiple Earl’s Multiple MethodologyMethodology

• Top Down: – Identify and agree business objectives

– Define Critical Success Factors

– Find information systems that support/enable these CSFs

5University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Critical Success Critical Success FactorsFactors

• ‘..are for any business, the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation.’ Rockart,1979

6University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Critical Success Critical Success FactorsFactors

• ‘They are the few key areas where “things must go right” for the business to flourish.’ Ward and Peppard, 2002

7University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Critical Success Critical Success FactorsFactors

• ‘CSFs are areas of activity that should receive constant and careful attention from management. The current state of performance in each (CSF) should continually be measured, and that information made available.

• The determination of CSFs should be started only when objectives have already been identified.’ Ward and Peppard, 2002

8University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

An ExampleAn Example

• In the following slide, the business objectives are stated in the top box.

• The CSF are listed below.

• Finally, the enabling information systems are listed.

9University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Business Objectives

Critical Success Factors

I S Needs

* Rais e earn ings per s hare* Inc reas e m arket s hare* Im prove produc tiv ity* D evelop new bus ines s es* D evelop in ternationally

Create newm arkets

F ind newproduc ts

Autom atefac tor ies

F oc us onprof it

D evelop anim age

w orldw ide

M aintainc orporate

w idec ontro l

Im provequality andc us tom erres pons e

D evelopc us tom er

in telligenc es ys tem s

Ins tall newproduc ts

and patentsdatabas e

Inves tigateF M S

D evelopprof it

analys iss ys tem s

Enhanc ef inanc ialc ontro ls

ExploreCAD links

w ithc us tom ers

D evelop aw orldw ideproduc tsdatabas e

An ExampleAn Example

10University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Bottom Up EvaluationBottom Up Evaluation

• What is Done? This activity concerns itself with understanding what systems currently exist

• It also grades the systems by value to the company.

11University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Systems Audit GridSystems Audit Grid

D ives t Re-as s es s

RenewM aintain &

Enhanc e

Technical Quality (providers)

Business Value (users)

HIGH

LOW

LOW HIGH

Technical Quality: Reliable?

Maintainable?

Cost-Efficient?

Business Value:

Necessary?

Easy to use?

How often used?

12University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Using the GridUsing the Grid• Place systems in their boxes, using

judgement, and factual analysis.

• A Low value + Low quality = Get Rid

• A High value + Low quality = Upgrade

• A Low value + High quality = Do we need it?

• A High value + High quality = Ace area

13University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Inside Out Inside Out

• Innovation needs

–Vision

–To be deliberately cultivated.

14University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Output From IS Output From IS StrategyStrategy

• ‘To create a robust information management framework for the long-term management of information and its supporting technologies.

• To identify current and future information needs for the organisation that reflect close alignment of business and IS strategies.

15University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Output From IS Output From IS StrategyStrategy

• Determine policies for the management, creation, maintenance, control and accessibility of the corporate information resource.

• Ensure that the IS function is outward looking and not focused internally on technology issues.’ Earl M, Managing Strategies for Information Technology, 1989

16University of Sunderland COMM03 Quality and Information Systems Strategies Lecture 2

Strategic Use of IT/ISStrategic Use of IT/IS

• Michael Porter (Competitive Strategy, Harvard), offers three strategies for dealing with one’s competitive environment:-– Differentiate products– Pile ‘em high, sell ‘em cheap– Find a niche

• These emerge from his competitive analysis model.