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Strategic Planning for Information System


Title: Slide 1 Author: toms Last modified by: erwin sutomo Created Date: 2/1/2011 8:53:58 AM Document presentation format: On-screen Show (4:3) Other titles – PowerPoint PPT presentation

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Title: Strategic Planning for Information System

Strategic Planning for Information System
Mata kuliah ini memberikan konsep dasar
perencanaan strategis sistem informasi.
  • Erwin Sutomo
  • S1 Sistem Informasi

What is Strategic Planning Anyhow ?
  • Introduction

Strategic ?
  • Strategy means consciously choosing to be clear
    about your companys direction in relation to
    whats happening in the dynamic environment.
  • With this knowledge, youre in a much better
    position to respond proactively to the changing

The fine points of strategy are as follows (1)
  • Establishes unique value proposition compared to
    your competitors
  • Executed through operations that provide
    different and tailored value to customers
  • Identifies clear tradeoffs and clarifies what not
    to do

The fine points of strategy are as follows (2)
  • Focuses on activities that fit together and
    reinforce each other
  • Drives continual improvement within the
    organization and moves it toward its vision

Strategy is not
  • Best practice improvement
  • Execution
  • Aspirations
  • A vision
  • Learning
  • Agility
  • Flexibility
  • Innovation
  • The Internet (or any technology)
  • Downsizing
  • Restructuring
  • Mergers/Consolidation
  • Alliances/Partnering
  • Outsourcing

What is a strategic plan? (1)
  • Simply put, a strategic plan is the formalized
    roadmap that describes how your company executes
    the chosen strategy.
  • A plan spells out where an organization is going
    over the next year or more and how its going to
    get there.
  • Typically, the plan is organization-wide or
    focused on a major function such as a division or
    a department.

What is a strategic plan? (2)
  • A strategic plan is a management tool that serves
    the purpose of helping an organization do a
    better job, because a plan focuses the energy,
    resources, and time of everyone in the
    organization in the same direction.

Strategic plans and business plans arent the
same concepts
  • A strategic plan
  • Is for established businesses and business owners
    who are serious about growth
  • Helps build your competitive advantage
  • Prioritizes your financial needs
  • Provides focus and direction to move from plan to

Strategic plans and business plans arent the
same concepts
  • A business plan
  • Is for new businesses, projects, or entrepreneurs
    who are serious about starting up a business
  • Helps define the purpose of your business
  • Helps plan human resources and operational needs
  • Is critical if youre seeking funding
  • Assesses business opportunities
  • Provides structure to ideas

What are the big planning pitfalls?
  • Relying on bad information or no information
  • Ignoring what your planning process reveals
  • Being unrealistic about your ability to plan
  • Planning for planning sake
  • Get your house in order first
  • Dont copy and paste

What are the components of a strategic plan?
  • Strategy and culture
  • Internal and external
  • The Balanced Scorecard perspectives
  • Market focus
  • Where are we now? Where are we going? How will we
    get there?

The Elements of a Strategic Plan
An outline of a typical strategic plan (1)
  • Mission statement To define the organizations
    core purpose. Why do we exist?
  • Vision statement To explain where you are
    headed, your future state. To formulate a picture
    of what your organizations future makeup will be
    and where the organization is headed. What will
    our organization look like in 5 to 10 years from

An outline of a typical strategic plan (2)
  • Values statement or guiding principals To
    clarify what you stand for and believe in.
  • SWOT To assess the particular strengths,
    weaknesses, opportunities, and threats that are
    strategically important to your organization.
    (You may or may not choose to include your SWOT
    in your strategic plan but as supporting

An outline of a typical strategic plan (3)
  • Competitive advantage What can your organization
    potentially do better than any other
  • Strategic objectives To connect your mission to
    your vision. Strategic objectives are long-term,
    continuous strategic areas that get you moving
    from your mission to achieving your vision. What
    are the key activities that you need to perform
    in order to achieve your vision?

An outline of a typical strategic plan (4)
  • Strategies To establish a guide that matches
    your organizations strengths with market
    opportunities to position your organization in
    the mind of the customer. Does your strategy
    match your strengths with how you will provide
    value and be perceived by your customers?

An outline of a typical strategic plan (5)
  • Short-term goals/priorities/initiatives To set
    goals that converts the strategic objectives into
    specific performance targets. Effective goals
    clearly state what, when, how, who and are
    specifically measurable. What are the 1- to
    3-year goals you are trying to achieve to get to
    your strategic objectives?

An outline of a typical strategic plan (6)
  • Action items/plans To set specific actions plans
    that lead to implementing your goals. Are your
    action items comprehensive enough to achieve your
  • Scorecard To measure and manage your strategic
    plan. What are the key performance measures you
    can track in order to monitor if you are
    achieving your goals?

An outline of a typical strategic plan (7)
  • Financial assessment To determine if your
    strategic plan makes financial sense. Do the
    estimated revenue projections exceed your
    estimated expenses?

An effective plan and execution require several
elements (1)
  • Purpose-driven A plan based on a mission and a
    real, true competitive advantage is key. Without
    it, what is the point of the plan or the
  • Integrated Each element supports the next. No
    objectives that are disconnected from goals and
    no strategies that sit all alone.

An effective plan and execution require several
elements (2)
  • Systematic Dont think of the plan as one big
    document. Instead, give it life by breaking into
    executable parts.
  • Dynamic Not a static document, but a living

An effective plan and execution require several
elements (3)
  • Holistic All areas of organization are included.
    Dont plan based on departments first because you
    risk limiting your thinking. Plan by thinking
    about the organization as a whole entity and then
    implement on a department by department basis.

An effective plan and execution require several
elements (4)
  • Understandable Everyone gets it. If anyone, from
    the top of the organization to the bottom, does
    not understand the plan or how they fit in, it
    wont work.
  • Realistic You can implement it. Dont over-plan.
    Make sure you have the resources to support the
    goals you decide to focus on.

The Evolving Role of Information Systems and
Technology in Organizations A Strategic
  • Chapter 1

Preface (1)
  • Information technology has become inextricably
    intertwined with business.
  • In industries such as telecommunications, media,
    entertainment and financial services, where the
    product is already or is being increasingly
    digitized, the existence of an organization
    crucially depends on the effective application of
    information technology (IT).

Preface (2)
  • With the emergence of e-commerce, the use of
    technology is becoming just an accepted, indeed
    expected, way of conducting business.
  • Consequently, organizations are increasingly
    looking toward the application of technology not
    only to underpin existing business operations but
    also to create new opportunities that provide
    them with a source of competitive advantage.

Preface (3)
  • To manage information systems and information
    technology (IS/IT) strategically, it is helpful
    to understand how the role of technology-based
    information systems has evolved in organizations.
  • While organizations today want to develop a more
    strategic approach to managing IS/IT, many have
    probably arrived at their current situation as a
    result of various short-term tactical decisions
    regarding IS/IT.

Preface (4)
  • Many organizations would no doubt like to rethink
    their investments, or even begin again with a
    clean sheet, but unfortunately have a legacy
    resulting from a less than strategic approach to
    IS/IT in the past.
  • Learning from experiencethe successes and
    failures of the pastis one of the most important
    aspects of strategic management

Information System - Information Technology (1)
  • IT refers specifically to technology, essentially
    hardware, software and telecommunications
    networks. It is thus both tangible (e.g. with
    servers, PCs, routers and network cables) and
  • ICT is generally used instead of IT to recognize
    the convergence of traditional information
    technology and telecommunications

Information System - Information Technology (2)
  • IS as the means by which people and
    organizations, utilizing technology, gather,
    process, store, use and disseminate information.
    It is thus concerned with the purposeful
    utilization of information technology.
  • Some information systems are totally automated by

Information System - Information Technology (3)
Structure for information systems in an
  • Structure for information systems in an
    organization, based on a stratification of
    management activity into
  • Strategic planning
  • Management control
  • Operational control

Typical planning, control and operational systems
Transition between computer and information
management (1)
Transition between computer and information
management (2)
  • To achieve effective Information (Systems)
    Management, a new top-down approach was required,
    depends on the role of IS in relation to the
    outside world.

Three stage model transition role of IS (1)
  • Delivery
  • IS issues are mainly internalimproving the
    ability to deliver and support the systems and
  • Achieving top management credibility as a
    valuable function is a prime objective. This
    means improving delivery performance, not
    necessarily providing users with what they really

Three stage model transition role of IS (2)
  • Reorientation
  • establishing good relationships with the main
    business functions
  • supporting business demands through the provision
    of a variety of services as computing capability
    spreads through the business.
  • The issues focus is extended outside the DP
    department and a key objective is to provide a
    valued service to all business function

Three stage model transition role of IS (3)
  • Reorganization
  • The high level of awareness created both
    locally in the business area and centrally in
    senior management creates the need for a
    reorganization of responsibilities designed to
    achieve integration of the IS investment with
    business strategy and across business functions.
  • A key objective becomes the best way of
    satisfying each of the differing business needs
    through a coalition of responsibilities for
    managing information and systems.

Early Views And Models Up To 1980
  • from the 1960s onwardsthe DP era from the
    1970s onwardsthe MIS era.

The DP And MIS Eras The Lessons Learned (1)
  • There have been essentially three parallel
    threads of evolution that have enabled more
    extensive and better information systems to be
  • Hardwarereducing cost and size, improving
    reliability and connectivity, enabling the system
    to be installed closer to the business problem.

The DP And MIS Eras The Lessons Learned (2)
  • There have been essentially three parallel
    threads of evolution that have enabled more
    extensive and better information systems to be
  • Software, more comprehensive flexible operating
    software improved languages, enabling business
    applications to be developed more quickly, with
    greater accuracy by staff with less experience.
    In addition, there was an increased availability
    of application packages available off the shelf

The DP And MIS Eras The Lessons Learned (3)
  • There have been essentially three parallel
    threads of evolution that have enabled more
    extensive and better information systems to be
  • Methodology, ways of organizing and carrying out
    the multiplicity of tasks, in a more coordinated,
    synchronized and efficient way to enable ever
    more complex systems to be implemented and large
    projects to be managed successfully.

DP lessons (1)
  • Need to understand the process of developing
    complete information systems, not just the
    programs to process data.
  • More thorough requirements and data analysis to
    improve systems linkages and a more engineered
    approach to designing system components.

DP lessons (2)
  • More appropriate justification of investments by
    assessing the economics of efficiency gains and
    converting these to a return on investment.
  • Less creative, more structured approaches to
    programming, testing and documentation to reduce
    the problems of future amendments. More
    discipline was introduced with change control
    procedures and sign-off on specifications and

DP lessons (3)
  • Extended project management that recognized the
    need for coordination of both user and DP
    functions and the particular need to establish
    user management in a decisive role in the systems
    developmentthe user had to live with the

DP lessons (4)
  • The need for planning the interrelated set of
    systems required by the organization. Better
    planning produced overall improvements in systems
    relevance and productivity.

MIS lessons (1)
  • Justification of IS investments is not entirely a
    matter of return on investment/financial
  • Databases require large restructuring projects
    and heavy user involvement in data
    definitiondata integration had been weak based
    on the project by project DP approach.

MIS lessons (2)
  • The IS resource needs to move from a production
    to a service orientation to enable users to
    obtain their own information from the data
    resourcethe information centre concept.
  • Need for organizational policies, not just DP

MIS lessons (3)
  • Personal computers and office systems enable
    better MIS to be developed, provided that users
    and IS specialists both focus on the information
    needs rather than the technology.

The Three-era Model
  • The prime objective of using IS/IT in the eras
  • Data processing, to improve operational
    efficiency by automating information-based
  • Management information systems, to increase
    management effectiveness by satisfying their
    information requirements for decision making.
  • Strategic information systems, to improve
    competitiveness by changing the nature or conduct
    of business.

Trends in the evolution of business IS/IT
Aligning the IS Direction and Priorities to the
Business Direction and Priorities
  • Introduction

IS and Business Direction
  • Over the past few years, companies have felt
    increasing pressure to improve efficiency and
    effectiveness, decrease costs, and enhance
    competitive position.
  • Companies can attain these goals through aligning
    the IS direction with the business direction.
  • Proper alignment can have a considerable impact
    on a companys financial performance

What is alignment? How do you achieve alignment?
  • When all IS activities provide optimal support
    for the business goals, objectives, and
    strategies, then IS and the business are in
  • True alignment implies that the IS strategy and
    the business strategy are developed concurrently
    rather than sequentially so that technology
    enables the business strategy.

Alignment components
Business value and alignment
Business and IS plan alignment
Identify organizations that have not achieved
alignment (1)
  • Canceled projects
  • Redundant projects
  • Projects that do not deliver the intended value
  • Lack of coordination between the business and IS
  • Systems that do not meet the needs of the business
  • Systems that cannot respond quickly to the
    demands of the business
  • Business users unsatisfied with IS services
  • Reactive, constant fire fighting
  • Never enough resources fighting for resources

Identify organizations that have not achieved
alignment (2)
  • Churning of priorities slow progress
  • Uninvolved business management
  • High IS costs with a sense of low value
  • Systems and tools not fully utilized
  • Lack of integration of systems
  • IS decisions made as a result of emotion or

With Planning, Companies Transform IS