High level steps to be followed while implementing IT
Organizations can start with analyzing their business objective followed by IS
strategy in terms of various information systems that they require. In the final step actual IT solutions based on requirements can be deployed.
Approach at organization level:
We can apply IT applications to industries by following a stepwise approach identifying the gaps in processes and filling those gaps with IT. We are trying to build a framework, which can be applied to manufacturing as well as services industry.
1. Identify the business you are in.
This part will explain what is the value offering by the organization. The value offering can be a product or a service, which will address specific customers, needs in the market. Market forces will play a significant role in deciding whether the organization should go for cost-leadership or differentiation. In the subsequent steps we will try to analyze how effective implementation of IT can help any organization achieve these goals.
2. List down all the processes performed by the organization.
Various activities performed by organization can be listed down and classified into primary and support activities. Primary activities will be the ones, which directly affect business, and support activities will be those activities, which will help primary activities. For an industry like cement, primary activities will be low cost transport and efficient logistics and support activities will be procurement management, financial accounting etc. For an industry like e-commerce, primary activities will be warehouse Business Strategy Analyze current business objectives and direction of the organization IS Strategy Based on the business direction, analyze what is required in terms of Information Systems IT Strategy This is 'how' part of the strategy. i.e. to look at the technologies that are required for the implementation of IS strategy laid down for achieving the business objectives management; logistics and support activities will be customer profiling, data analytics. Existing frameworks can be used to categorize processes.
McFarlans Grid
Value Chain Analysis
3. Identify critical success factors (CSFs).
CSFs are performance factors based on critical business processes as discussed in point 2. For examples discussed in point 2, CSFs for cement industry will be cost of transportation, cost of warehouse storage and for e-commerce will be delivery time, date etc. Factory Strategic Support Turn around Potential Strategic Impact C u r r e n t
O p e r a t i o n a l
D e p e n d e n c e
Any affect on performance of any of the CSFs will directly have an impact on business. If companies can improve their performance on CSFs, it will help them in both short term as well as long term. IT applications such as automation tools, ERP, CRM etc can be deployed as per the requirement.
4. Implementation of solutions.
After deciding on what applications the organization is going to implement, it has to work on deployment. The deployment process can be divided into following 3 broad categories. Each of these activities will be headed by different group of people, which require clear delegation of tasks.