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Chapter 6

Chapter 6. Determining the Business Information System Strategy. Agenda. Strategic planning factors Strategic planning approach An framework to use the models and techniques Portfolio management in a multi-business unit Organization. Strategic Planning Model.

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Chapter 6

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  1. Chapter 6 Determining the Business Information System Strategy

  2. Agenda • Strategic planning factors • Strategic planning approach • An framework to use the models and techniques • Portfolio management in a multi-business unit Organization

  3. Strategic Planning Model • External long term: external business environment • External short term: external IS/IT environment • Internal long term: internal business environment • Internal short term: internal IS/IT environment + current application portfolio

  4. External Long TermExternal Business Environment • State of the industry in terms of profitability, growth, and structure • Capability of IS/IT to change products, markets, and interrelationships of the industry

  5. External Short TermExternal IS/IT Environment • Actual competitor usage of IS/IT and others for competitive edge • IS/IT opportunities to change the competitive factors and influences on industry (existing value chain, new entrants, or products and services)

  6. Internal Long TermInternal Business Environment • New IS/IT effectively support or enhance the business strategy • IS/IT enable business to adopt a appropriate strategy to suit the future business environment

  7. Internal Short TermInternal IS/IT Environment • The degree of existing IS supporting the business strategy and sustaining the business advantages • The appropriateness of IS/IT management to the business strategy and the development of IS/IT industry

  8. Strategic Planning Approach - I • Input • External and internal business environment • External and internal IS/IT environment • Current application portfolio • Business portfolio analysis, competitive analysis, resource life cycles, value chain analysis, strategic option generator, organizational modeling

  9. Strategic Planning Approach - II • Input • Mission, objectives, CSFs, process and activities analysis, data flow analysis and modeling • Informal/opportunistic creative thinking • Output • Strategies to achieve application portfolio • The future application portfolio

  10. An Framework to Use the Models and Techniques • Objective • Identify the required applications and their priorities and resources to achieve the business goals and strategies • Three components • The existing application • The required application • The potential application

  11. The Existing Application • Appraisal of IS/IT for the business • Understand the industry structure and business position in terms of SWOT • Analysis the external value chain and information flow implications • Analysis the internal value chain and organizational relationships • Assess the business of existing system in terms of SEOT

  12. The Required Application • Assessing the need for immediate investment: short/medium term, 1-2 years, analytical • Interpret business objectives and strategy • Determine CSFs for the corporate and its competitors, etc. • Identify critical business process and activities • Determine short-term focus for investment

  13. The Potential Applications • Identifying potential future investment:long term, 1-5 years, creative • Consider potential IS/IT impact on product/market, etc. • Consider the strategic potential of IS/IT and its effects on the value chain • Identify options for long-term IS/IT investment and select most beneficial

  14. Portfolio Management in a Multi-Business Unit Organization • Coordination and coherent among corporate and business units • For each business unit • High potential (communicate): share ideas and results of evaluations and prototypes • Strategic (capitalize): evaluate how advantages gained in one SBU can be obtained in others

  15. Portfolio Management in a Multi-Business Unit Organization • For each business unit • Key operational (control): transfer experience in use of applications and technology across units, and reduce duplication of IS/IT effort • Support (constrain): achieve economies by sharing non-critical systems and standardizing on technologies and resources used

  16. Points to Remember • Strategic planning factors • Strategic planning approach • An framework to use the models and techniques • Portfolio management in a multi-business unit Organization

  17. Question • How do you plan or justify an e-business as a required strategic information system?

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