Presentation on theme: "Slide 1 of 24 3. Introduction to Strategic Information Systems Planning (SISP) Title: Strategic Information Systems Planning –Historical development of."— Presentation transcript:
Slide 1 of Introduction to Strategic Information Systems Planning (SISP) Title: Strategic Information Systems Planning –Historical development of IS –Define SISP and its purpose –Business/IS Strategy linkage –IS Strategy problems –IS,IT and IM –Traditional Vs Sense and Respond Approach
Slide 2 of 24 Strategic Potential of IT Replacing The Legacy Systems of today with ? Linking IT/IS Strategy With Business Strategy IT Architecture Strategic Information Systems Sustainable Competitive Advantage IS/IT Issues
Slide 3 of 24 Strategic Use Of IS/IT CHANGE WHAT THE COMPANY DOES PRODUCTS SERVICES (Manchester buses - wireless) DELIVERY CHANNELS (www) CHANGE HOW THE COMPANY OPERATES ORGANISATION DECISIONS COMMUNICATIONS CHANGE PATTERNS OF INVESTMENT MORE INVESTMENT FOR MARKET LEADERSHIP
Slide 4 of 24 Strategic Potential of IT To gain competitive advantage To improve productivity and performance To enable new ways of managing and organising To develop new businesses To change distribution channels
Slide 5 of 24 IS Historical Development Historically IS planning has been neglected –Systems have been developed to meet individual function or department needs (applications planning) –The companies IS Strategy was simply a dept aggregation... –Traditional IS Planning was on a project by project basis –No coherent corporate or SBU IS/IT plan in place –IS had minimal influence on Business Strategy Failures –incompatible systems, poor functional IT and business integration, financial losses, lost business opportunities (for SIS) –implementation lags, continuous management fire-fighting –customer dissatisfaction If we fail to plan for IS, then we plan to fail with IS !
Slide 6 of 24 IS Strategy Linkage The IS Strategy must be linked to the business strategy. Possible linkages are –The IS strategy may be aligned with the business goals by translating them into IS goals –The IS strategy may impact on the business goals by competitively enhancing them –The IS strategy may require the redesign of business processes in order to achieve the business goals
Slide 7 of 24 IS Portfolio Mandatory Strategic Traditional Infrastructure Renewal R & D Maintenance
Slide 8 of 24 IS Strategy Positioning Business Strategy Divisional Strategy Divisional Strategy Divisional Strategy Production Strategy IS StrategyMarketing Strategy IT StrategyManual Systems StrategyCommunications Strategy Software HardwarePlanning Staffing Data Voice Policies, implementation decisions Robson, ch 4, page 96
Slide 9 of 24 Strategic Information Systems Planning (SISP) Definition –Strategic systems planning deals with planning for the use of IT for strategic purposes. – It attempts to form a view of the future 3 to 5 years out to help determine what should be done now.
Slide 10 of 24 SISP contin… Objectives –To identify strategic applications –To develop an organisational IS architecture –To Identify new applications which provide a greater return on investment –To determine more opportunities for improving information systems provision –To improve resource requirements forecasting –To improve communications with users
Slide 11 of 24 SISP contin.. Some fundamental reasons why IS planning is difficult include: –Business goals and System Plans need to Align –Technologies are rapidly changing –Companies need portfolios rather than projects –Infrastructure development is difficult to fund –Responsibility needs to be joint –Other planning issues
Slide 12 of 24 Traditional Approach Three Levels of Strategy IS STRATEGY Division/Function Demand Oriented Business Focussed IT STRATEGY Activity based Supply oriented Technology focussed IM STRATEGY Organisation Based Relationships Oriented Management Focussed How? What? Architecture Applications Delivery Management Where?
Slide 13 of 24 IS STRATEGY The long term directional plan which determines what to do with IS It is concerned primarily with aligning IS development with business needs and with seeking strategic advantage from IS It is formulated at the level of the SBU or the level of business where specific customer needs, unique competitors and autonomous resources can be delineated In large complex organisations there may be more than one IS strategy.
Slide 14 of 24 IT STRATEGY The technology framework or architecture which drives, shapes and controls the IT infrastructure to support the IS strategy The IT strategy is concerned primarily with technology policies It deals with questions of architecture,vendor policies and technical standards
Slide 15 of 24 IM STRATEGY The management framework( i.e. the policies procedures aims and actions) which guides how the organisation should run IS/IT activities. The IM strategy is concerned with – the role and structure of IT activities in the organisation –management controls for IT, performance measurement and management processes –wherefore-which way?,who does it?,where is it located?
Slide 16 of 24 MANAGING THE IT FUNCTION
Slide 17 of 24 Problems in IS Planning Inadequate Business Plans Agreeing Priorities Lack of Planning Experience Rate of Business/User Change Organisation Structure Discovering Competitive Advantage No Standards for what an IS strategy plan should contain
Slide 18 of 24 Traditional IS Planning Assumptions Traditional stance based on assumptions: –The future can be predicted –Time is available to progress through this 3 part sequence –IS supports and follows the business –Top management knows best, because they have the broadest view of the firm –The company can be viewed as an army: * due to the internet etc, these assumptions no longer hold true
Slide 19 of 24 Sense and Respond Approach What came out of this is a move towards a new approach: –Let strategies unfold rather than plan them e.g. Microsoft –Formulate strategy Closest to the Action E.g. Skandia –Guide strategy making with a strategic envelope E.g. Shell –Be at the table –Test the future –Put the infrastructure in place Case Study - Microsoft
Slide 20 of 24 Where are we today? Where do we want to go? How do we get there? Assessment of current technology & IT organisation Benchmarking competitors and IT trends Business directions IT opportunities IT strategic direction IT architecture IT deployment plan Projects Quick Hits IT organisational alignment plan SISP
Slide 21 of 24 Toolkits for Strategic Planning There is a range of tools and techniques which have been developed to assist in formulating an explicit business strategy Similarly there is a range of tools, techniques and principles to guide management in exploiting IS for strategic advantage.