SISP Tools Introduction Grouping SISP Tools Selected SISP Tools Conclusion

Introduction Over the years a number of tools have been developed to assist with the IS strategy planning process Some organisations use 1 or 2 models only, others use a number of tools to deal with different aspects of IS planning

SISP Tools (Some Examples) Checklists Business Analysis e.g. Swot, PLEETS Sector Analysis Business Opportunities Opportunity Search Strategic Analysis Internal Position Analysis of the internal position Generic IS Strategies Value Chain Analysis Evolutionary Models E.g. Stages of Growth Model Information Requirements Analysis E.g. CSF Analysis Portfolio Management Approach E.g. Internet Value Matrix External Position Analysis of Competitive Position e.g. Five forces model Generic Strategies Strategic Thrusts Linkage/Future Models Linkage Models E.g Linkage Analysis Planning Future Models E.g. Scenario planning

SISP TOOLS Analysed Further (10) Checklists SWOT Business Opportunities Strategic Analysis Matrix Analysis of the Internal Position Value Chain Analysis Stages of Growth Model CSF Analysis Internet Value Matrix Analysis of Competitive Position Competitive Five Forces Model Generic Business Strategies Linkage/Future Models Linkage Analysis Planning Scenario Planning

CHECKLISTS

Evaluation of IS Capability SWOT Analysis Attack Beware Opportunity Situation IS Faces Threat Explore Play Safe Strength Weakness Evaluation of IS Capability

BUSINESS OPPORTUNITIES

Strategic “IS Portfolio” Analysis(1996) Ward and Griffiths (1996) Star (Invest) Wild cat (Examine) (Market Growth) importance Turnaround Strategic advice Strategic competitive importance of planned IS Dog (Divest) Cash Cow (Milk) Support Factory Strategic competitive importance of current IS (Market Share) BCG Matrix Robson ch 2 page 53, McFarlan & McKenney (1983) IS Strategic Grid

ANALYSIS OF THE INTERNAL POSITION

Firm’s Value Chain Analysis (1985) Firm Value Chain Analysis ...

Stages of Growth Model (Nolan, 1974) Initiation cost reduction Contagion new functions Control “hold” Learning Cost STAGES OF GROWTH (Nolan) Maturity database+ telecomms+ end user computing time

Stages of Growth Model contin.. Expenditure on IT/ IS followed an S-curve over time Organisational learning also followed an S-curve Each stage marks a new approach to managing and using IT/IS Movement between stage often prompted by an organisational crisis in the life of the IT function Stages of Growth Model ….

Critical Success Factors (Rockart,1977) Identify Critical Success Factors Identify Key Decisions related to the CSFs Identify the Information Required to support those decisions

CSF Analysis Successful application requires skilled team Attractive to top management teams Managers not experienced in strategic planning may find it difficult Incorporated into a number of methodologies e.g. Andersen Consulting’s Method/1

Internet Value Matrix( Alexander, 2000) Criticality to Business Newness of Idea New fundamentals Low Operational Excellence High Rational experimentation Breakthrough Strategy

Internet Value Matrix contin.. This is a Portfolio planning technique used by Cisco to ensure it develops a well-rounded Portfolio of IT projects Today, Cisco’s portfolio revolves around the internet

ANALYSIS OF COMPETITIVE POSITION (EXTERNAL)

Porter’s Competitive 5 Forces Model (1985) Porters 5 Forces ... Can IS Build barriers to entry? Can IS Change the balance of power with suppliers? Can IS build in switching costs? Can IS change the basis of competition ? Can IS generate new products or services? Porter’s five forces Robson, ch 5, pg 128

Generic Business Strategies (Porter, 1985) Low Cost Reduce overall costs in production and operations At point of sale Differentiation Add features to the product or service directly Focus/niche Identify and create market niches directly

Strategic Thrusts (Rackoff, 1985) Extends Porters Generic strategies into five: Low Cost Differentiation Innovation Growth Alliance These are targeted at Suppliers Customers Competitors

Strategic Options Generator What is the strategic Target? Supplier Customer Competitor What is the strategic Thrust? Differentiation Low Cost Innovation Growth Alliance What is the Mode? Offensive Defensive What is the Direction? Use Provide

LINKAGE/FUTURE MODELS

Linkage Models (Primozic, 1991) Examines links organisations have with one another Goal – create a strategy utilising electronic channels Step 1: Define power relationships among the various players and stakeholders Step 2: Map out the extended enterprise to include suppliers, buyers and strategic partners Step 3: Plan electronic channels to deliver the information component of products and services

Scenario Planning (Schwartz, 1991) SCENARIOS stories about the way the world might be in the future The goal is not to predict the future Explore forces that may cause different futures to take place Decide on actions if forces materialise Case Example – Scenarios on the Future of IS Management

Scenario Planning contin.. Step 1: Define a decision problem and timeframe to bound the analysis Step 2: Identify major known trends that will affect the decision problem Step 3: Identify just a few driving uncertainties Step 4: Construct the scenarios