sesi03 - developing is and it strategy
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Session ObjecEves
Understand the process of developing IS/ITStrategy
Understand the components of IS/IT StrategicPlanning Model
Understand how to evaluate IS/IT StrategicPlanning
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IS/IT Strategy DefiniEon.
IS strategy defines the organizaEons requirementfor informaEon systems to support the overallstrategy of the business
The IT strategy is outlining the vision of how theorganizaEons demand for informaEon andsystems will be supported by IT
An IS strategy brings together the business aimsof the company, an understanding of theinformaEon needed to support those aims, andthe implementaEon of computer systems toprovide the informaEon.
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IS/IT Strategy is part of IS/IT
Strategic Plan Planning for the effecEve longterm management
and opEmal impact of informaEonin all itsforms (IS, IT, manual and computer systems,organizaEonal aspects of the management IS/ITthroughout the business).
The process of deciding the objecEves fororganizaEonal compuEng and idenEfyingpotenEal computer applicaEons which the
organizaEon should implement (Sethi, 88) It is a plan for the development of systems
towards some future vision of the role of IS inthe organizaEon
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The ObjecEves of Developing IS/IT
Strategy
Alignment of IS/IT with the business Gaining compeEEve advantage Building cost effecEve Developing the appropriate resources
IS/IT strategyformulation
IS/IT planning
IS/IT strategy process
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Tips to Develop IS/IT strategy
IS/IT Strategy Process Should Become anIntegral Part of Business Strategy,
Business Plan, and Its ImplementaEon. The primary objecEve to develop IS
strategy is to idenEfy valueadded
porYolio of applicaEons that will havestrategic impact .
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The voluEon of the IS/IT Strategy Process:
Technology Focus to Strategic Focus
Conform these stages with the evolution of IS/IT roles
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IS/IT Planning Problems
Fail to get top management support Value system does not go throughout
organizaEon Lack of proper person to the job Not having clearcut business strategy Fail to anEcipate new IT development Ignorance of environmenteconomy,
poliEc, etc
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The Model of Strategic IS/IT
Planning Processes Inputs
Internal business environment Current business strategy, objecEves, resources, processes and
culture and values of business
xternal business environment
The economic, industrial and compeEEve climate Internal IS/IT environment
Current IS/IT perspecEve in the business, its maturity, businesscoverage and contribuEon, skills, resources and technologicalinfrastructure
xternal IS/IT environment Technology trends and opportuniEes and the use made of IS/IT by
external bodies
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The Model of Strategic IS/IT
Planning Processes
Outputs IS/IT management strategy
The common elements of the strategy that apply throughoutthe organizaEon, ensuring consistent policies where needed
Business IS/IT strategy How each unit or funcEon will deploy IS/IT in achieving its
business objecEves.
Alongside each of these are applicaEon porYolios to bedeveloped for business unit and business models, describingthe informaEon architecture of each unit.
The porYolios may include how IS/IT will be used at somefuture date, to help the units to achieve their objecEves IT strategy
Policies and strategies for management of technology andspecialist resources
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External Business Environment Internal Business Environment
Internal IS/IT environment
Current Applications Portfolio
External IS/IT Environment
Planning Approaches, Tools and Techniques
Strategic IS/ITPlanning Process
IS/IT Management Strategy Business IS Strategies IT Strategy
Applications Portfolio Model & Matrices
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Types of Deliverables from The IS/IT
Planning Processes
Hard deliverables The current situaEon The vision and raEonale for what is being put into place
informaEon, systems, technology, people, and so on.
The plans for how it is going to be achieved, with themilestones along the route So` deliverables
Relate to human factors: skill, awareness and moEvaEon.
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Initiate
Planning
Process
Understand the
Current Situation
and InterpretBusiness Needs
Define/Update
Information and
SystemsArchitecture
Determine
Business IS
Strategy
Formulate IT
Strategy
Prepare
Migration
Plans and
Business Case
Business
Strategy and
ProposedDevelopment
Programmme
IS/IT Strategy
and Proposed
plans
Business and
Technical
Environment
Previous
IS/IT
Strategy
Other
PlanningActivities
Framework for the IS Planning Process
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Ini$ate Planning Process
The purpose, objecEves, scope and deliverables are confirmedThe approach determined and resourced acquired, such as
automated tools
Business parEcipants idenEfied and team assembled and trainedxpectaEons, such issues and problems addressed, and risk
management proposals put into gear
Process steering and management mechanisms createdHow the work will interface with and feed into business planning
The people to be interviewed, or who are needed to parEcipatein group sessions are idenEfied
Plan for the work, tasks, Eming, roles and responsibiliEes, and
checkpoints defined.
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Understand the Current Situa$on and
Interpret Business Need
Analysis of the business strategy, objecEves, criEcalsuccess factors (CSFs), criEcal problems, and processes, inorder to determine the current situaEon, and its
strengths and weaknesses, and the informaEon needsand thus the focus for investment in systems to meetthese.
valuaEon of the current IS/IT operaEon its systems,informaEon provision, resources, organizaEon, skills and
services, to determine coverage and contribuEon andwhere improvements would be beneficial.
InnovaEve analysis of the external and internal businessenvironment to idenEfy potenEal applicaEons of IS/IT.
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Determine the Business IS
Strategy
The accumulated business IS demand is
turned into recommendations for the
deployment of IS/IT throughout theorganization and at SBU level.
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Define Informa$on and System
Architecture
This step takes the results of the analysisof procedures and informaEon needs in
order to build a proposed business modelfor the business.
It represents the future ideal in process,informaEon and system terms, and is
needed to plot a direcEon whendeveloping migraEon plans.
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Formulated IT Supply Proposals
IS strategy and the IT supply proposals can be fed back intothe business strategy, for consideraEon and consolidaEonto occur, and senior business management to decide onthe likely candidates for the investment programme for
the business.
For IS/IT management, it means that the strategy can befirmed up to give a clearer direcEons for where IS isaiming to go.
Outline plans can the be constructed to give a route map,and milestone for the main iniEaEves.
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Business IS Strategy
It states how the business will deploy IS/IT inachieving its objecEves.
To link IS/IT firmly to the business strategy It states the applicaEons and services
requirements for the SBU
Give an example of Business IS Strategy??
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IT Strategy: Management of Supply
To define how resources and technologies will bemanaged and developed to saEsfy business ISstrategies.
It consists of: ApplicaEon porYolio management OrganizaEon of IS/IT Managing the info resources and provision of info
services
Managing investment, prioriEzaEon and benefits Managing applicaEon development Managing technologyGive an example of IT Strategy??
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IS/IT Management Strategy
Apply throughout the organizaEon, ensuringconsistent policies where needed
It covers:
Scope and raEonale IS/IT organizaEon Investment and prioriEzaEon policies Vendor policies Human impact policies IS accounEng policies
Give an example of IS/IT Management Strategy??
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Success Criteria in Developing IS/IT
Strategy
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valuaEon of IS/IT Strategic Plan:
Success Criteria
Improve performance Gaining compeEEve advantage Align IT investment with business strategy Beer communicaEon Improve management commitment Beer allocaEon of IT resources Beer IT forecasEng requirement
Try to quantify the success criteria for old vs. new system??
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Factors affecEng IS/IT Development
xternal business xternal technology Internal business Internal technology
Give examples on how those factors affect IS/IT Development ??
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Context of IS/IT Strategy
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Objectives of IS/IT Strategy Formulation and Planning
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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