Strategic case for information & IT

1. Strategic case for information & IT Acknowledgements to Euan Wilson (Staffordshire University)

2. Strategic case for IS/IT • ‘strategic’ - 2 components: • strategy • long term issues • ‘programmes’ of activity • creating future company ‘vision’/direction • tactics • short term issues • ‘projects’/’opportunities’ • meeting business immediate needs

3. Strategic case for IS/IT • ‘information’ - 2 elements: • information systems(IS) • applications • information technology(IT) • infrastructure • where both are concerned ‘IS/IT’ will be used

4. IS/IT management issues strategy tactics information systems - demand - ‘business pull’ information technology - supply - ‘technology push’ developing/ modifying IT infrastructure to support immediate IS implementations & IT developments =applications

5. Why IS/IT assumed strategic role? • high expenditure • critical success factor (CSF) • strategic business weapon • economic climate favours use • affects all business functions • ‘information revolution’ • involves multiple stakeholders • matters at highest level • management of IS/IT makes a difference

6. IS/IT strategic role strategic IS/IT applications using IS/IT to support (era 3) strategic business strategy MIS/decision support tactical improving ability to systems exploit business (era 2) opportunities DP/TP systems operational making operations (era 1) more efficient

7. High expenditure activity • 5%-20% of revenue • dependent on spend effectiveness not size • low level IS/IT investment = low benefit • sector leaders often high IS/IT spenders • IS/IT expenditure is growth area • effective IS/IT spend linked to effective strategy

8. Critical success factor • IS/IT at business operations core • IS/IT excellence written into mission statements of many major companies • increasing dependence on IS/IT • increasing impact on how businesses do business • perceived area of competition • IS/IT increasingly linked to business strategy

9. Strategic business weapon • gain competitive advantage • ‘1st mover’ benefits • often temporary • product/service/delivery channel • improve productivity & performance • internal systems focus • setting up inter-organisational systems (IOS)

10. Strategic business weapon • enable new processes & structures • business process re-engineering (BPR) • e-business virtual organisation • create new business opportunities • value added information processing • product/service innovation • IS/IT offers both strategic opportunities & threats

11. Economic climate • increased competition for smaller markets • IT seen as enabling technology • speed & ‘time compression’ important • IS/IT is needed to cause change & to respond to it

12. Business functions • business users demand IS applications • public demand IT facilities • IS/IT use across all management levels • IT links different parts of business • IS/IT becoming more varied & flexible • IS/IT rate of change accelerating • rate of IS/IT change exceeds ability to predict outcomes

13. Information revolution • insatiable demand for information • companies ‘negative development’ • new application demand > supply • increased rate of legacy system replacement • new IT uses constantly developed • information – ‘ultimate commodity’

14. Information revolution • ‘new world’ focus changes information needs • customisation • demassification • ‘data mining’ • information needs change faster than IT can

15. Stakeholders end users government vendors -needs -regulations -developments -standards -policies -standards Clients consumers & suppliers IS/IT -expectation -linkages -behaviour Competitors IT Stakeholders employees -new products -conditions -new markets -job satisfaction

16. IT matters at highest level • wrong decisions can damage • can inhibit & enable • can influence major policy decisions • security is vital • infrastructure is vital • IRM decisions have serious implications • IT is too important for technologists only to decide!!

17. IS/IT management • identifying ‘high payoff’ applications • top management support • raising IS/IT awareness • regular IS/IT investment important • information (IS/IT) strategy • linking IS/IT strategy with business strategy • IS/IT is another business resource to be managed

18. IT evolution & strategic impact era 3 transformation strategic transformate era 2 effectiveness tactical informate era 1 efficiency operational automate

19. IS/IT key drivers • knowledge productivity & service workers • gaining productivity • lower cost • high performance

20. IS/IT key drivers • quality • information based product/service quality increasing • high consistency & predictability • employee motivation • supplier involvement • performance measurement

21. IS/IT key drivers • responsiveness • reduced dependency • time • space • IS/IT key to achieve high responsiveness • globalisation • enterprise level coordination & collaboration • virtual organisation

22. IS/IT key drivers • outsourcing • value adding capacity • business process focus • improved IS/IT investment management • social/environmental responsibilities • social awareness • organisational autonomy • business empowerment