IS/IT Strategy DefiniVon…. • IS strategy defines the organizaVon's requirement
for informaVon systems to support the overall strategy of the business.
Developing an IS/IT Strategy By: Zainal A. Hasibuan Faculty of Computer Science University of Indonesia
Session ObjecEves • Understand the process of developing IS/IT Strategy • Understand the components of IS/IT Strategic Planning Model • Understand how to evaluate IS/IT Strategic Planning
IS/IT Strategy DefiniEon…. • IS strategy defines the organizaEon’s requirement for informaEon systems to support the overall strategy of the business • The IT strategy is outlining the vision of how the organizaEon’s demand for informaEon and systems will be supported by IT • “An IS strategy brings together the business aims of the company, an understanding of the informaEon needed to support those aims, and the implementaEon of computer systems to provide the informaEon.
IS/IT Strategy is part of IS/IT Strategic Plan • Planning for the effecEve long‐term management and opEmal impact of informaEon—in all its forms (IS, IT, manual and computer systems, organizaEonal aspects of the management IS/IT throughout the business). • “The process of deciding the objecEves for organizaEonal compuEng and idenEfying potenEal 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 in the organizaEon
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 strategy process IS/IT strategy formulation
IS/IT planning
Tips to Develop IS/IT strategy • IS/IT Strategy Process Should Become an Integral Part of Business Strategy, Business Plan, and Its ImplementaEon. • The primary objecEve to develop IS strategy is to idenEfy value‐added porYolio of applicaEons that will have strategic impact .
The EvoluEon of the IS/IT Strategy Process: Technology Focus to Strategic Focus
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 organizaEon • Lack of proper person to the job • Not having clear‐cut business strategy • Fail to anEcipate new IT development • Ignorance of environment‐economy, poliEc, etc
The Model of Strategic IS/IT Planning Processes • Inputs – Internal business environment • Current business strategy, objecEves, resources, processes and culture and values of business
– External business environment • The economic, industrial and compeEEve climate
– Internal IS/IT environment • Current IS/IT perspecEve in the business, its maturity, business coverage and contribuEon, skills, resources and technological infrastructure
– External IS/IT environment • Technology trends and opportuniEes and the use made of IS/IT by external bodies
The Model of Strategic IS/IT Planning Processes • Outputs – IS/IT management strategy • The common elements of the strategy that apply throughout the 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 be developed for business unit and business models, describing the informaEon architecture of each unit. • The porYolios may include how IS/IT will be used at some future date, to help the units to achieve their objecEves
– IT strategy • Policies and strategies for management of technology and specialist resources
Internal Business Environment
External Business Environment
Internal IS/IT environment Current Applications Portfolio Strategic IS/IT Planning Process
External IS/IT Environment
Planning Approaches, Tools and Techniques
IS/IT Management Strategy
Business IS Strategies
Applications Portfolio
IT Strategy
Model & Matrices
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 the milestones along the route
• So` deliverables – Relate to human factors: skill, awareness and moEvaEon.
Framework for the IS Planning Process Business and Technical Environment
Previous IS/IT Strategy
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
Other Planning Activities
Ini$ate Planning Process • The purpose, objecEves, scope and deliverables are confirmed The approach determined and resourced acquired, such as automated tools • Business parEcipants idenEfied and team assembled and trained ExpectaEons, such issues and problems addressed, and risk management proposals put into gear • Process steering and management mechanisms created How the work will interface with and feed into business planning • The people to be interviewed, or who are needed to parEcipate in group sessions are idenEfied Plan for the work, tasks, Eming, roles and responsibiliEes, and checkpoints defined.
Understand the Current Situa$on and Interpret Business Need • Analysis of the business strategy, objecEves, criEcal
success factors (CSFs), criEcal problems, and processes, in order to determine the current situaEon, and its strengths and weaknesses, and the informaEon needs and thus the focus for investment in systems to meet these. • EvaluaEon of the current IS/IT operaEon – its systems, informaEon provision, resources, organizaEon, skills and services, to determine coverage and contribuEon and where improvements would be beneficial. • InnovaEve analysis of the external and internal business environment to idenEfy potenEal applicaEons 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 Informa$on and System Architecture • This step takes the results of the analysis of procedures and informaEon needs in order to build a proposed business model for the business. • It represents the future “ideal” in process, informaEon and system terms, and is needed to plot a direcEon when developing migraEon plans.
Formulated IT Supply Proposals IS strategy and the IT supply proposals can be fed back into the business strategy, for consideraEon and consolidaEon to occur, and senior business management to decide on the likely candidates for the investment programme for the business. For IS/IT management, it means that the strategy can be firmed up to give a clearer direcEons for where IS is aiming to go. Outline plans can the be constructed to give a route map, and milestone for the main iniEaEves.
Business IS Strategy • It states how the business will deploy IS/IT in achieving 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??
IT Strategy: Management of Supply • To define how resources and technologies will be managed and developed to saEsfy business IS strategies. • 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 technology Give an example of IT Strategy??
IS/IT Management Strategy • Apply throughout the organizaEon, ensuring consistent 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??
Success Criteria in Developing IS/IT Strategy
EvaluaEon of IS/IT Strategic Plan: Success Criteria • • • • • • •
Improve performance Gaining compeEEve advantage Align IT investment with business strategy Becer communicaEon Improve management commitment Becer allocaEon of IT resources Becer IT forecasEng requirement Try to quantify the success criteria for old vs. new system??
Factors affecEng IS/IT Development • • • •
External business External technology Internal business Internal technology
Give examples on how those factors affect IS/IT Development ??
Context of IS/IT Strategy
Objectives of IS/IT Strategy Formulation and Planning
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
