Developing an IS/IT Strategy

Session Objectives Understand the process of developing IS/IT Strategic Planning Understand the components of IS/IT Strategic Planning Understand how to evaluate IS/IT Strategic Planning

IS/IT Strategy Definition…. IS strategy defines the organization’s requirement for information systems to support the overall strategy of the business The IT strategy is outlining the vision of how the organization’s demand for information and systems will be supported by IT “An IS strategy brings together the business aims of the company, an understanding of the information needed to support those aims, and the implementation of computer systems to provide the information.

IS/IT Strategy is part of IS/IT Plan Planning for the effective long-term management and optimal impact of information—in all its forms (IS, IT, manual and computer systems, organizational aspects of the management IS/IT throughout the business). “The process of deciding the objectives for organizational computing and identifying potential computer applications which the organization should implement” (Sethi, 88) It is a plan for the development of systems towards some future vision of the role of IS in the organization

The Objectives of Developing IS/IT Strategy Alignment of IS/IT with the business Gaining competitive advantage Building cost effective 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 Implementation. The primary objective to develop IS strategy is to identify value-added portfolio of applications that will have strategic impact .

The Evolution of the IS/IT Strategy Process: Technology Focus to Strategic Focus 1.Technology led: carried out mainly by IT specialists to establish technology foundations, architectures and resources that should satisfy the expected application needs of users. 2.Method drive: the use of techniques to identify IS needs by analyzing business process and engineering philosophy based on top-down analysis of information needs and relationship. 3.Administrative: the main objective is to establish IT capital and expense budgets and resource plans to achieve approved IS applications, usually based in a prioritized wish list from users. 4.Business led: business plans, usually at a functional level, are analyzed to identify where IS/IT is most critical in meeting short-to-medium term needs. 5.Organizational led: the development of key themes for IS/IT investment derived from a business consensus view of how IS/IT can help meet overall business objectives, agreed by senior management team. Conform these stages with the evolution of IS/IT roles

IS Planning Problems Fail to get top management support Value system does not go throughout organization Lack of proper person to the job Not having clear-cut business strategy Fail to anticipate new IT development Ignorance of environment-economy, politic, etc

The Model of Strategic IS/IT Planning Processes Inputs Internal business environment Current business strategy, objectives, resources, processes and culture and values of business External business environment The economic, industrial and competitive climate Internal IS/IT environment Current IS/IT perspective in the business, its maturity, business coverage and contribution, skills, resources and technological infrastructure External IS/IT environment Technology trends and opportunities 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 organization, ensuring consistent policies where needed Business IS/IT strategy How each unit or function will deploy IS/IT in achieving its business objectives. Alongside each of these are application portfolios to be developed for business unit and business models, describing the information architecture of each unit. The portfolios may include how IS/IT will be used at some future date, to help the units to achieve their objectives IT strategy Policies and strategies for management of technology and specialist resources

External Business Environment Internal 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 IT Strategy Applications Portfolio Model & Matrices

Types of Deliverables from The IS Planning Processes Hard deliverables The current situation The vision and rationale for what is being put into place—information, systems, technology, people, and so on. The plans for how it is going to be achieved, with the milestones along the route Soft deliverables Relate to human factors: skill, awareness and motivation.

Framework for the IS Planning Process Initiate Planning Process Understand the Current Situation and Interpret Business Needs Define/Update Information and Systems Architecture Determine Business IS Strategy Formulate IT Prepare Migration Plans and Business Case Business Strategy and Proposed Development Programmme IS/IT Strategy and Proposed plans Business and Technical Environment Previous IS/IT Other Activities Initiate Planning Process   This is the set-up stage of the process, in which: ·         the purpose, objectives, scope and deliverables are confirmed ·         the approach determined and resourced acquired, such as automated tools ·         business participants identified and team assembled and trained ·         expectations, 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 participate in group sessions are identified ·         plan for the work, tasks, timing, roles and responsibilities, and checkpoints defined.

Initiate Planning Process The purpose, objectives, scope and deliverables are confirmed The approach determined and resourced acquired, such as automated tools Business participants identified and team assembled and trained Expectations, 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 participate in group sessions are identified Plan for the work, tasks, timing, roles and responsibilities, and checkpoints defined.

Understand the Current Situation and Interpret Business Need · Analysis of the business strategy, objectives, critical success factors (CSFs), critical problems, and processes, in order to determine the current situation, and its strengths and weaknesses, and the information needs and thus the focus for investment in systems to meet these. · Evaluation of the current IS/IT operation – its systems, information provision, resources, organization, skills and services, to determine coverage and contribution and where improvements would be beneficial. ·  Innovative analysis of the external and internal business environment to identify potential applications of IS/IT. Its purpose is to develop an extensive understanding of the business in its environment, and to interpret its current, planned and future potential needs. These fall into three categories:

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 Information and System Architecture This step takes the results of the analysis of procedures and information needs in order to build a proposed business model for the business. It represents the future “ideal” in process, information and system terms, and is needed to plot a direction when developing migration plans.

Formulated IT Supply Proposals IS strategy and the IT supply proposals can be fed back into the business strategy, for consideration and consolidation 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 directions for where IS is aiming to go. Outline plans can the be constructed to give a route map, and milestone for the main initiatives. The remaining task are to define the elements of the IT supply Proposals.

Business IS Strategy It states how the business will deploy IS/IT in achieving its objectives. To link IS/IT firmly to the business strategy It states the applications 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 satisfy business IS strategies. It consists of: Application portfolio management Organization of IS/IT Managing the info resources and provision of info services Managing investment, prioritization and benefits Managing application development Managing technology Give an example of IT Strategy??

IS/IT Management Strategy Apply throughout the organization, ensuring consistent policies where needed It covers: Scope and rationale IS/IT organization Investment and prioritization policies Vendor policies Human impact policies IS accounting policies Give an example of IS/IT Management Strategy??

Success Criteria in Developing IS/IT Strategy

Success Criteria Improve performance Gaining competitive advantage Align IT investment with business strategy Better communication Improve management commitment Better allocation of IT resources Better IT forecasting requirement Try to quantify the success criteria for old vs. new system??

Factors affecting 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