1 / 20

IS/IT Strategic Analysis: Determining the Future Potential

IS/IT Strategic Analysis: Determining the Future Potential. Presented by: Benny Sia. Table of Contents. Objectives Analytical tools Value Chain Analysis Internal and external analysis Conclusions References. Objectives. Understand the current situation The use of analytical tools

avalon
Download Presentation

IS/IT Strategic Analysis: Determining the Future Potential

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IS/IT Strategic Analysis: Determining the Future Potential Presented by: Benny Sia version 1.0

  2. Table of Contents • Objectives • Analytical tools • Value Chain Analysis • Internal and external analysis • Conclusions • References version 1.0

  3. Objectives • Understand the current situation • The use of analytical tools • Linkage of each systems • To what extent these systems enable separate activities to perform harmoniously. • Strategic thinking version 1.0

  4. Analytical tools • Application portfolio • Porter’s 5 Forces • Value Chain models • SWOT • One problem – which to use and when? • Neuman1 recognizes that they’re a means of helping the thinking process, not a recipe for identified of strategic systems. version 1.0

  5. Application Portfolio • Each tools will be considered as part of the process for developing IS/IT strategies. • However, high potential possibilities need for further investigation. • Provide current situation which would help in the IS/IT integration. version 1.0

  6. version 1.0

  7. Competency analysis • To gain competitive advantage. • Example, bank develop excellent mortgage product for younger people, good relationships with other banks, but why the sales are so poor? Reasons – slowness and unreliable application process using older system. The process could not deliver the ‘service promise’ inherent with product and customer. • Identify how priority IS investment are essential to competitive disadvantage. version 1.0

  8. version 1.0

  9. Value Chain Analysis • Value chain of the business unit is only one part of a larger set of value-adding activities in an industry. • The actions of other parties – customers, suppliers and competitors – will have a significant impact on what the firm does and how it does it. • People’s output can be your input. • External an Internal value chain version 1.0

  10. External Value Chain • Maximize its value-added and minimize its costs on how well the demand and supply information are matched at all stages. • Poor information means resources are wasted will increase cost without increase revenue. • Non-profit industries such as government, health care and charities always matching of supply and demand to achieve break-even. version 1.0

  11. version 1.0

  12. External value chain • Strategic thinking • What information is available? • Who are they? • How they can be influenced? • Key of information flow can be examined to see how the process be improved in terms of accuracy, speed, cost or timeliness • Many information exchanges cannot easily be improved without willing cooperation of trading partners. version 1.0

  13. version 1.0

  14. External value chain • Example on reduction of intercompany cost due to better information exchange. • Thomas Holiday case • Introduce Top system • Enable travel agents to book holiday via their system • Immediate reduced double-handling cost and speed up the process • Save time and money for both parties version 1.0

  15. Internal value chain • Assessing and improving how company operates • What the company does rather how it does it – look at the activities it performs to contribute to the value-adding process • 2 types of business activities – primary and support activities version 1.0

  16. version 1.0

  17. The use of value chain analysis • Information flow throughout the industry, when and where the information is available, who has it and how to turn that into advantage. Example, fashion goods – ‘demand’ information is critical factor. • Information exchange with customers and suppliers throughout the chain to improve the performance. Example, EDI version 1.0

  18. How effectively the information flows through the primary processes • Within each activity to optimize performance • Linking activities together to avoid unnecessary cost and missed opportunities • Enable support activities to contribute to the value-adding version 1.0

  19. Conclusion • Value chain analysis should extent their context ( industry value chain) in order to achieve maximum leverage IS/IT investment. • Future planning IS/IT should identify the business opportunities and threats presented by developing use of IS/IT in the industry. version 1.0

  20. References • Neumann, S., (1994), Strategic Information Systems, Macmillan, London. • Porter, M.E, (1985), Competitive Advantage: Creating and sustaining Superior Performance, Free Press, New York. • Strategy: value chain analysis, (2003), [ Online], Available: http://www.tutor2u.net/business/strategy/value_chain_analysis.htm [17 August 2004]. • Ward, J. & Peppard, J., (2002), Strategic Planning for Information Systems, 3rd Edition, p. 237 – 275, Wiley & Son, UK. version 1.0

More Related