The Strategic Information Technology Formulation DR. Syopiansyah Jaya Putra, M.Sis

The Strategic Information Technology Formulation Effectively integrate Information Systems (IS) strategy of organization with its business strategy to obtain competitive and strategic advantage. Help executive management making smart IS investment decisions in a business context. Build consensus and commitment among general management, middle management, IS management on the IS strategy and the allocation of resources. Develop an action plan to ensure the successful management and implementation of Information Systems projects.

Topics of Discussion General Concepts and Consideration Assumptions and Constraints Consensus Building IS Strategies IT Strategy Formulation Methodology

General Concepts and Consideration Topics of Discussion General Concepts and Consideration Alignment Uncertainty and Risk Assessment Flexibility and Positioning

General Concepts and Consideration Alignment It addresses the critical dialogue between an enterprise's IT strategy and its business and organization strategies. Business strategy alignment: Should focus on identifying the key business processes most likely to yield significant strategic advantage through the use of IT. The driving force in formulating its IT strategy. It is enabled tactically by the enterprise's business processes. Organization strategy alignment: The IS strategy should also align with an enterprise's organizational structure and culture to ensure its successful implementation.

Uncertainty and Risk Assessment General Concepts and Consideration Uncertainty and Risk Assessment  When formulating an IT strategy, there is always an element of uncertainty or risk  The potential risks associated Technology risk Implementation risk Economic risk Organizational risk Regulatory risk

Flexibility and Positioning General Concepts and Consideration Flexibility and Positioning The Strategy of IT developed should be flexible and this may be achieved through "position" an organization to respond to changes in the business environment and to take advantage of new cost effective technologies Business Context Strongly related to the small range of probable future business scenarios which give the business strategy its flexibility Technology Context Strongly related to technological developments by IS hardware and system software.

Assumptions and Constraints Topics of Discussion Assumptions and Constraints No bearing on strategy due to business acquisitions and mergers A maximum investment ceiling on IT A particular hardware or software Organization policies on computing facilities Recommended ... Considered at the project planning stage Subject to continuing review throughout the assignment May be modified, added, or deleted

Consensus Building IS Strategies Topics of Discussion Consensus Building IS Strategies Consensus on IT strategy should be built at the highest management level. The work to develop an IT strategy should be a joint project, with suitably qualified members of the organization's staff assigned to work on all stages of the process. The approval of the IT strategy should be carried out by a higher committee, probably the most senior executive committee in the organization, either the board of directors or the executive management board. A project steering committee, composed of senior executives, be established for the regular review of progress and appropriate deliverables.

IS Strategy Formulation Methodology Topics of Discussion IS Strategy Formulation Methodology Positioning Analysis Definition Implementation Planning

Positioning Analysis Organization overview and Modelling IS Strategy Formulation Methodology Positioning Organization overview and Modelling Potential Change identification Analysis Organization, Culture, Environment Analysis Process Analysis IT Infrastructure Analysis Information Systems Analysis

Definition Implementation Plan Information Systems Organization IS Strategy Formulation Methodology Definition Information Systems Organization Information Technology Infrastructure Application Systems Implementation Plan Develop a framework Define and prioritize the projects Define the strategic programs Develop the transition strategies

Questions & Answers

Summary It is essential to have Strategic IT Formulation to meet an enterprise's business needs both now and in the future.  To accomplish this successfully means that the enterprise should plan strategically to meet its needs in both the long term (four years and beyond) and the short term (12-18 months).  Produce an IT strategy that helps an enterprise achieve its business goals and objectives by ensuring that information systems and technology are deployed and managed to support the overall business strategy.  It also ensures that investment in IT is matched to the needs and priorities of the business.