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MIS 3 MIS 3 Introduction to IS Planning Introduction to IS Planning

D P Goyal

Why IS Planning ?
ISs are not meeting the business needs for which they were originally intended.
Lack of Planning Handled by IT department View this as a technical problem rather than a solution to a business need

ISs must meet the business requirements. IS Plan should be derived from the Business Plan

Creating an IS Plan : Steps


Goals

CRISPLAN
Strategies Information Analysis Not Done Usual Practice Done IS Solutions Implementation Plan

The Strategic Approach to IS Planning

Strategic Analysis
An overview

Strategy (Porter)
A broad based formula for how business is going to compete, what its goals should be, and what policies will be needed to carry out these goals. The essence of formulating competitive strategy is relating a company to its environment.

Types of Strategy
Corporate Strategy
What businesses are we in? Global objectives for growth/stability/Defense

Business Strategy
Deals with Single SBU and contributes to Corporate strategy

Functional Strategy
Harness the activities, skills, resources of an SBU IS strategy is one of them

Strategic Planning Process


Strategic Analysis Mission e.g. To be the Industry Cost Leadershould we be doing? What e.g. Achieve staff productivity gain of 5% Where are we going? e.g. Reduce time lost due to ill health, smoke detectors What routes have we selected? How do we decide our collective decisions to get there? What choices do we have?

Goals Strategic Choice e.g. Maintain a healthy work place e.g. Ban Smoking Strategic Implementation e.g. Put up Signs, smoke detectors and Police the decision

Strategies Policies

Decisions

Actions

Shall we do it?

Exercise : MDI
Goals Strategies
Goal : To be a number one in India Strategy ??

Information Analysis IS Solutions Implementation Plan

Technical Presentations
Start from Jan 18
Plan on two presentations every week Load your presentations in advance Same sequence Class Co-ordinator to ensure

Project (Work in Groups)


Identify an organisation based in Delhi / Gurgaon (SME) Part I : Create an IS Plan for them
Include :
Goals Strategies Info Analysis IS Solutions

Leave out the implementation plan You must interview manager (s) You need to give the e-mail ids and phone numbers of key people interviewed Research the organisation Submission date : Pre mid term (Hard Copy &

Soft Copy)

Project (Work in Groups)


Part II : Implement one of the IS Systems identified (this could be database or spreadsheet based)
Presentation / demo : Pre-End Term Exam

Start now !!!

MIS 4 MIS 4 Intro to IS Intro to IS Planning Planning

D P Goyal

Analytical tools in strategic management


Strategic Analysis Understanding two factors
Environment Resources

Environmental Analysis
SWOT analysis Porters Five forces model of Competitive Structure Life Cycle analysis

SWOT Analysis
Strengths internal strengths on which to capitalize Weaknesses Internal weaknesses that hinder sustainability or growth Opportunities external opportunities on which to capitalize Threats external threats to position or value in the marketplace

Competitive Analysis
Threat of substitute

Bargaining Power of suppliers and Channels

Rivalry Competitive Intensity

Bargaining power of customer or channels

Barriers to entry

Exercise, MDI part II


Competition Analysis Choose an aggressive competitor, who MDI should be most concerned about Think Out of the Box
New ways of doing things Challenge
conventional wisdom existing processes and procedures

Home Assignment
Study the various websites of educational Institutes ( at least three Institutes) and suggest the design of MDI website. You should consider:
Functionality Look and Feel Design Layout Submission Date: Jan 24, 2011

MIS 5 MIS 5 Intro to IS Intro to IS Planning Planning

D P Goyal

Stages of Growth Model

Transition Point

Initiation Control Data Admin Contagion Integration Maturity

Exercise, MDI part II (PGPM)

Change A VC, who wants to start a BSchool and redefine the way B-Schools are run

Resources Analysis
Value Chain analysis Product Portfolio analysis

Value Chain Analysis


Primary Activities:
Inbound Logistics Operations Outbound logistics Sales & Marketing services

Support Activities
Administration Human Resourcesmanagement Technology development Procurement By modelling the activities of an organization, It is possible to distinguish the primary and support activities. Can assess the degree of effectiveness of resource use in this value chain

Can IT deliver Value


To reengineer core Value activities and change basis of competition? Can IT change supplier and buyer relation and power balance? Can IT build or reduce barriers to entry? Can IT affect the switching costs? Can IT add value to existing products or services?

Strategic Importance Analysis


Strategic importance of planned IS

High

Turnaround Support

Strategic Factory
High

Low Low

Strategic importance of current IS

BCG Vs. SIS view


BCG Segment
Star

Strategic Imp. Segment


Strategic

Outline Advice
Invest in

Wildcat

Turn around

Examine

Dog

Support

Divest

Cash Cow

Factory

Milk

Case Study
Amazone.Com