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CISB444 - Strategic Information Systems Planning

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CISB444 - Strategic Information Systems Planning Chapter 3 : Developing an IS/IT Strategy: Establishing Effective Processes Part 2 ... awareness, and motivation. – PowerPoint PPT presentation

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Title: CISB444 - Strategic Information Systems Planning


1
CISB444 - Strategic Information Systems Planning
  • Chapter 3
  • Developing an IS/IT Strategy
  • Establishing Effective Processes
  • Part 2

2
Chapter 3 Main Topics
  • Establishing an IS/IT Strategy Process
  • An IS/IT Strategy Framework and Approach
  • Deliverables from the IS/IT Strategy Process

Chapter 3 Developing an IS/IT Strategy
Establishing Effective Processes Part 2
3
Establishing an IS/IT Strategy Process
  • A Continuous Process
  • Strategies and plans are refreshed
    regularly/frequently according to
  • External forces
  • Business needs and opportunities
  • Culture of the organisation
  • Benefits delivered by implementation of the
    strategy

4
Establishing an IS/IT Strategy Process
  • A learning process
  • Both IS specialist and business people are more
    aware of business and technology issues.
  • Learning to identify and exploit opportunities
    cooperatively
  • Partnership between the IS function and the rest
    of the organisation reorientates itself to treat
    information, systems, and technology as core
    resources of the business

5
Establishing an IS/IT Strategy Process
  • Initiating the Strategy Cycle
  • It is crucial to spend time planning for planning
  • Before embarking on an IS/IT strategy process,
    organisation need to answer a list of key
    questions - to create the Terms of Reference
    (TOR)
  • There is no one best way to tackle strategy
    formulation and planning for IS/IT - essential to
    assess the situation and the needs carefully, and
    then to deploy the most appropriate people,
    methods, and techniques to suit this context.
  • Each organisation merits a different approach

6
Establishing an IS/IT Strategy Process
  • Establishing Success Criteria
  • Start with defining appropriate relationship
    between the IS function and the business
  • Establish objectives for IS/IT
  • Any objectives set for IS/IT must be similar to
    those for the business e.g. improving customer
    service, enhancing productivity or providing the
    means for product differentiation
  • Establishing criteria for how success will be
    measured

7
Establishing an IS/IT Strategy Process
  • The primary objective of developing an IS
    strategy is to identify a
  • value-added portfolio of applications that will
    have a strategic
  • impact on the organisation and increase its
    performance
  • Key challenges to achieve the above
  • How to relate the IS strategy to organisational
    performance
  • How to define and measure strategic impact
  • Reasons for the above challenges
  • Long lead time before benefits are realised
  • The intangible nature of certain benefits
  • Different purposes for engaging in an IS/IT
    strategy process

8
Establishing an IS/IT Strategy Process
  • Success dimensions (ask if by the strategy
    can..)
  • improve the contribution of IS/IT to the
    performance of the organisation
  • achieve good alignment of IT investment with the
    business strategy
  • gaining competitive advantage through deployment
    of IS/IT
  • identify new and higher payback applications
  • increasing top-management commitment
  • improving communications with users
  • achieve better forecasting of IT resource
    requirements
  • improved allocation of IT resources
  • increased visibility for IS/IT in the
    organisation.

9
An IS/IT Strategy Framework and Approach
  • The process of strategy formulation for effective
    exploitation of IS/IT needs to address several
    dimensions within its overall scope, and, thus a
    combination of approaches and tools are required.
  • Because of the legacy of current information and
    systems infrastructure, this could be a very
    complex and costly operation, and requires
    careful justification

10
The IS/IT Strategic Model - Inputs
  • The internal business environment
  • Current business strategy, objectives, resources,
    processes, and the culture and values of the
    business
  • The external business environment
  • The economic, industrial, and competitive climate
    in which the organisation operates

11
The IS/IT Strategic Model - Inputs
  • The internal IS/IT environment
  • The current IS/IT perspective in the business,
    its maturity, business coverage and contribution,
    skills, resources and the technological
    infrastructure
  • The current application portfolio of existing
    systems and systems under development, or
    budgeted but not yet under way
  • The external IS/IT environment
  • Technology trends and opportunities and the use
    made of IS/IT by others, especially customers,
    competitors and suppliers

12
The IS/IT Strategic Model - Outputs
  • IS/IT Management Strategy
  • The management of IT/IS strategy that apply
    throughout the organisation, ensuring consistent
    policies where needed
  • Business IS strategies
  • How each unit or function will deploy IS/IT in
    achieving its business objectives.
  • Alongside each of them are application portfolios
    to be developed for the business unit and
    business models, describing the information
    architectures of each unit.
  • The portfolios may include how IS/IT will be used
    at some future date to help the units achieve
    their objectives.

13
The IS/IT Strategic Model - Outputs
  • IT Strategy
  • Policies and strategies for the management of
    technology and specialist resources

14
The IS/IT Strategic Model
The building blocks of the strategy formulation
and planning framework
15
Framework for IS/IT Strategy Formulationand
Planning Process
16
Framework for IS/IT Strategy Formulationand
Planning Process
  • Initiate Strategy Process
  • Purpose, objectives , scope and deliverables are
    confirmed
  • Approach and resources are determined
  • Business participants are identified, teams are
    assembled, trained if necessary
  • Steering and management mechanisms are created
  • Plan for tasks, roles, timing and
    responsibilities and checkpoints are defined
  • Note important aspect of this element is to
    enable the sponsor to develop understanding of
    the business needs that prompted for IS/IT
    strategy

17
Framework for IS/IT Strategy Formulationand
Planning Process
  • Understand the Current Situation and Interpret
    Business Needs
  • Purpose is to develop extensive understanding of
    the business in its environments, to interpret
    its current, planned and future needs.
  • Studying existing documents, interviewing users,
    holding workshops and brainstorming sessions.
  • Tools like high-level information analysis,
    critical success factor and balanced scorecards
    are put to use here (to be discussed further in
    other chapters)

18
Framework for IS/IT Strategy Formulationand
Planning Process
  • Determine the Business IS strategy
  • Turn the accumulated business IS demands into
    recommendation for the deployment of IS/IT at
    business units levels and throughout the
    organization
  • Conceptual IS are consolidated and mapped onto
    an applications portfolio, representing current,
    required and future positions of each business
    unit

19
Framework for IS/IT Strategy Formulationand
Planning Process
  • Define Information and Systems Architecture
  • Takes the results of the analysis of the
    processes and information needs
  • Flow of information, connections between systems
  • Represents future ideal process, information
    and system
  • Necessary to plot a direction in developing
    migration plan.

20
Framework for IS/IT Strategy Formulationand
Planning Process
  • Formulate IT strategies
  • Define the IT supply proposals
  • Specialist resources
  • Platforms tools

21
Deliverables From The IS/IT Strategy Process
  • The outputs from the IS/IT strategy process are a
    mixture of hard and soft deliverables.
  • The hard output are documents defining strategies
    and plans, and frequently include computer-based
    material in the form of dictionaries, matrices,
    and information analysis models
  • Soft outputs relate to human factors such as
    skills, awareness, and motivation.

22
Deliverables From The IS/IT Strategy Process
  • The main purpose of the hard outputs is to
    document
  • The current situation
  • The vision and rationale for what is being put
    into place information, systems, technology,
    people and so on
  • The plans for how it is going to be achieved,
    with the milestones along the implementation
    route.

23
Deliverables From The IS/IT Strategy Process
  • The timescale for the vision and plans has to be
    consistent with the business vision and its
    plans, and similarly will be reviewed in line
    with business strategy and planning reviews.
  • The objective is to ensure that users, management
    and IS professionals all understand the key
    elements of the strategy and thoroughly
    appreciate the strategy they have to carry through

24
Questions ?
  1. Explain why is it challenging to measure the
    impact of the IS/IT strategy in organization.
    What are the questions you may want to ask to be
    able to help you measure the success rate of the
    strategy?
  2. The outputs from the IS/IT strategy process are a
    mixture of hard and soft deliverables. Explain
    both deliverables with the support of examples
  3. Discuss the input elements for the IT/IS
    strategic model.

25
List of questions to determine TOR
  • What are the key business drivers to be
    addressed?
  • How can IT/IS strategy process be effectively
    integrated with business strategy
  • What are the expectations and objectives to be
    met, and what deliverables are required?
  • What other resources are required?
  • How long will the strategy process take and what
    will it cost?
  • How should the process be steered and managed?
  • And many more (text book - Box 3.1 pg 137)

back
26
Homework
  • To check metalab next week for homework on
    Chapter 4
  • Assignment 1 due on 7th Feb, latest by 5 pm.
  • Mid Term confirmed on Wed 9th Feb, 2-4 pm. Venue
    will be advised through online notification.
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