DevelopinganIS/ITStrategy

By:ZainalA.Hasibuan FacultyofComputerScience UniversityofIndonesia

SessionObjecEves
UnderstandtheprocessofdevelopingIS/IT Strategy UnderstandthecomponentsofIS/ITStrategic PlanningModel UnderstandhowtoevaluateIS/ITStrategic Planning

IS/ITStrategyDeniEon.
ISstrategydenestheorganizaEonsrequirement forinformaEonsystemstosupporttheoverall strategyofthebusiness TheITstrategyisoutliningthevisionofhowthe organizaEonsdemandforinformaEonand systemswillbesupportedbyIT AnISstrategybringstogetherthebusinessaims ofthecompany,anunderstandingofthe informaEonneededtosupportthoseaims,and theimplementaEonofcomputersystemsto providetheinformaEon.

IS/ITStrategyispartofIS/IT StrategicPlan
PlanningfortheeecEvelongtermmanagement andopEmalimpactofinformaEoninallits forms(IS,IT,manualandcomputersystems, organizaEonalaspectsofthemanagementIS/IT throughoutthebusiness). TheprocessofdecidingtheobjecEvesfor organizaEonalcompuEngandidenEfying potenEalcomputerapplicaEonswhichthe organizaEonshouldimplement(Sethi,88) Itisaplanforthedevelopmentofsystems towardssomefuturevisionoftheroleofISin theorganizaEon

TheObjecEvesofDevelopingIS/IT Strategy
AlignmentofIS/ITwiththebusiness GainingcompeEEveadvantage BuildingcosteecEve Developingtheappropriateresources
IS/IT strategy process IS/IT strategy formulation IS/IT planning

TipstoDevelopIS/ITstrategy
IS/ITStrategyProcessShouldBecomean IntegralPartofBusinessStrategy, BusinessPlan,andItsImplementaEon. TheprimaryobjecEvetodevelopIS strategyistoidenEfyvalueadded porYolioofapplicaEonsthatwillhave strategicimpact.

TheEvoluEonoftheIS/ITStrategyProcess: TechnologyFocustoStrategicFocus

Conform these stages with the evolution of IS/IT roles

IS/ITPlanningProblems
Failtogettopmanagementsupport Valuesystemdoesnotgothroughout organizaEon Lackofproperpersontothejob Nothavingclearcutbusinessstrategy FailtoanEcipatenewITdevelopment Ignoranceofenvironmenteconomy, poliEc,etc

TheModelofStrategicIS/IT PlanningProcesses
Inputs
Internalbusinessenvironment
Currentbusinessstrategy,objecEves,resources,processesand cultureandvaluesofbusiness

Externalbusinessenvironment
Theeconomic,industrialandcompeEEveclimate

InternalIS/ITenvironment
CurrentIS/ITperspecEveinthebusiness,itsmaturity,business coverageandcontribuEon,skills,resourcesandtechnological infrastructure

ExternalIS/ITenvironment
TechnologytrendsandopportuniEesandtheusemadeofIS/ITby externalbodies

TheModelofStrategicIS/IT PlanningProcesses
Outputs
IS/ITmanagementstrategy
Thecommonelementsofthestrategythatapplythroughout theorganizaEon,ensuringconsistentpolicieswhereneeded

BusinessIS/ITstrategy
HoweachunitorfuncEonwilldeployIS/ITinachievingits businessobjecEves. AlongsideeachoftheseareapplicaEonporYoliostobe developedforbusinessunitandbusinessmodels,describing theinformaEonarchitectureofeachunit. TheporYoliosmayincludehowIS/ITwillbeusedatsome futuredate,tohelptheunitstoachievetheirobjecEves

ITstrategy
Policiesandstrategiesformanagementoftechnologyand specialistresources

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

TypesofDeliverablesfromTheIS/IT PlanningProcesses
Harddeliverables
ThecurrentsituaEon ThevisionandraEonaleforwhatisbeingputintoplace informaEon,systems,technology,people,andsoon. Theplansforhowitisgoingtobeachieved,withthe milestonesalongtheroute

So`deliverables
Relatetohumanfactors:skill,awarenessandmoEvaEon.

Framework for the IS Planning Process

Business and Technical Environment

Initiate Planning Process

Understand the Current Situation and Interpret Business Needs

Other Planning
Activities

Define/Update Information and Systems Architecture

Determine Business IS Strategy

Previous IS/IT Strategy

Formulate IT Strategy

Prepare Migration Plans and Business Case

Business Strategy and Proposed Development Programmme

IS/IT Strategy and Proposed plans

Ini$atePlanningProcess
Thepurpose,objecEves,scopeanddeliverablesareconrmed The approach determined and resourced acquired, such as automatedtools BusinessparEcipantsidenEedandteamassembledandtrained ExpectaEons, such issues and problems addressed, and risk managementproposalsputintogear Processsteeringandmanagementmechanismscreated Howtheworkwillinterfacewithandfeedintobusinessplanning Thepeopletobeinterviewed,orwhoareneededtoparEcipate ingroupsessionsareidenEed Plan for the work, tasks, Eming, roles and responsibiliEes, and checkpointsdened.

UnderstandtheCurrentSitua$onand InterpretBusinessNeed
Analysis of the business strategy, objecEves, criEcal

successfactors(CSFs),criEcalproblems,andprocesses,in order to determine the current situaEon, and its strengths and weaknesses, and the informaEon needs and thus the focus for investment in systems to meet these. EvaluaEon of the current IS/IT operaEon its systems, informaEon provision, resources, organizaEon, skills and services, to determine coverage and contribuEon and whereimprovementswouldbebenecial. InnovaEveanalysisoftheexternalandinternalbusiness environmenttoidenEfypotenEalapplicaEonsofIS/IT.

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.

DeneInforma$onandSystem Architecture
Thissteptakestheresultsof theanalysis of procedures and informaEon needs in order to build a proposed business model forthebusiness. Itrepresentsthefutureidealinprocess, informaEon and system terms, and is needed to plot a direcEon when developingmigraEonplans.

FormulatedITSupplyProposals
ISstrategyandtheITsupplyproposalscanbefedbackinto thebusinessstrategy,forconsideraEonandconsolidaEon tooccur,andseniorbusinessmanagementtodecideon thelikelycandidatesforthe investmentprogrammefor thebusiness. For IS/IT management, it means that the strategy can be rmed up to give a clearer direcEons for where IS is aimingtogo. Outlineplanscanthebeconstructedtogivearoutemap, andmilestoneforthemaininiEaEves.

BusinessISStrategy
ItstateshowthebusinesswilldeployIS/ITin achievingitsobjecEves. TolinkIS/ITrmlytothebusinessstrategy ItstatestheapplicaEonsandservices requirementsfortheSBU

Give an example of Business IS Strategy??

ITStrategy:ManagementofSupply
Todenehowresourcesandtechnologieswillbe managedanddevelopedtosaEsfybusinessIS strategies. Itconsistsof:
ApplicaEonporYoliomanagement OrganizaEonofIS/IT Managingtheinforesourcesandprovisionofinfo services Managinginvestment,prioriEzaEonandbenets ManagingapplicaEondevelopment Managingtechnology Give an example of IT Strategy??

IS/ITManagementStrategy
ApplythroughouttheorganizaEon,ensuring consistentpolicieswhereneeded Itcovers:
ScopeandraEonale IS/ITorganizaEon InvestmentandprioriEzaEonpolicies Vendorpolicies Humanimpactpolicies ISaccounEngpolicies Give an example of IS/IT Management Strategy??

SuccessCriteriainDevelopingIS/IT Strategy

EvaluaEonofIS/ITStrategicPlan: SuccessCriteria
Improveperformance GainingcompeEEveadvantage AlignITinvestmentwithbusinessstrategy BecercommunicaEon Improvemanagementcommitment BecerallocaEonofITresources BecerITforecasEngrequirement
Try to quantify the success criteria for old vs. new system??

FactorsaecEngIS/ITDevelopment
Externalbusiness Externaltechnology Internalbusiness Internaltechnology

Give examples on how those factors affect IS/IT Development ??

Context of IS/IT Strategy

Objectives of IS/IT Strategy Formulation and Planning

DiscussionontheendofChapter3
WhatisIS/ITStrategy? WhyDevelopingIS/ITStrategy? HowIS/ITStrategytsinBusinessStrategy? WhoinchargedevelopingIS/ITStrategy? WhatarestepstodevelopIS/ITStrategy? HowdoyouevaluatethesuccessofIS/ITstrategy