1. Information Systems and Technology in Organization
Chapter 1
Information Systems and Technology in
Organization

2. Agenda The three information era model
Success factors in Strategic information systems (SIS)
The relationship between business, information systems (IS)
The relationship between business, information systems, and information technology (IT) strategies
Application portfolio model
Five IS/IT planning stage

3. The Three Information Era Model
Data processing systems
Operational efficiency
Management information systems
Management effectiveness
Strategic Information Systems (SIS)
Business advantage through change

4. Success Factors in SIS External focus not internal
Adding value not cost reduction
Sharing the benefits
Understanding customers
Business driven innovation, not technology driven
Incremental development
Using information to develop business

5. The Relationship between Business and IS
Business strategic management
IS/IT strategic management
Impact analysis and executive management
Information system management
Information analysis and user management
Project and computer management
System design and user operations

6. The Relationship between business, IS, and IT strategies
Business strategy – where is the business going and why
Business decisions
Objectives and direction
Change
IS strategy – what is required
Business based
Demand orientated
Application focused
IT strategy – how it can be delivered
Activity based
Supplied oriented
Technology focused

7. The Relationship between business, IS, and IT strategies
IS/IT impact and potential > Business strategy > direction for business > IS strategy > needs and priorities > IT strategy > infrastructure and services > IS strategy > supports business > Business strategy

8. Application Portfolio Model by MaFarlan
Strategic
Critical to future business success
High potential
May be important to future business success
Key operational
Critical to current business success
Support
Valuable but not critical to business success

9. Five IS/IT Planning Stages by Eral
Technology led – support
Method driven – key operational
Administrative – support and key operational
Business led – high potential
Organizational - strategic

10. Discussion Questions
How do you classify an e-business in terms of portfolio model?
How do you classify an e-business in terms of IS/IT planning stage?

11. Points to Remember The three information era model
Success factors in Strategic information systems (SIS)
The relationship between business, information systems (IS)
The relationship between business, information systems, and information technology (IT) strategies
Application portfolio model
Five IS/IT planning stage