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Methodology: Macro Level. Formulating a Strategy: Earl. Earl’s Approach. Earl suggests that three separate activities are needed, each driven by a different group, if a proper corporate strategy is to be developed.
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Methodology: Macro Level Formulating a Strategy: Earl
Earl’s Approach • Earl suggests that three separate activities are needed, each driven by a different group, if a proper corporate strategy is to be developed. • He calls this his ‘Multiple Methodology’ Earl M J, Management Strategies for Information Technology, Prentice-Hall, 1989
Analytical Evaluative Creative Business plans and goals Current systems IT opportunities Top Down Bottom Up Inside Out Clarify, articulate, find Key Success Factors Where are we now? Survey, audit. Techniques, processes and environment Senior Management Users and specialists Brightsparks, product champions Strategic Plan
Earl’s Multiple Methodology • Top Down: • Identify and agree business objectives • Define Critical Success Factors • Find information systems that support/enable these CSFs
Critical Success Factors • ‘..are for any business, the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation.’ Rockart,1979
Critical Success Factors • ‘They are the few key areas where “things must go right” for the business to flourish.’ Ward and Peppard, 2002
Critical Success Factors • ‘CSFs are areas of activity that should receive constant and careful attention from management. The current state of performance in each (CSF) should continually be measured, and that information made available. • The determination of CSFs should be started only when objectives have already been identified.’ Ward and Peppard, 2002
An Example • In the following slide, the business objectives are stated in the top box. • The CSF are listed below. • Finally, the enabling information systems are listed.
An Example Business Objectives Critical Success Factors I S Needs
Bottom Up Evaluation • What is Done? This activity concerns itself with understanding what systems currently exist • It also grades the systems by value to the company.
Systems Audit Grid Technical Quality (providers) LOW HIGH LOW Business Value (users) HIGH Business Value: Necessary? Easy to use? How often used? Technical Quality:Reliable? Maintainable? Cost-Efficient?
Using the Grid • Place systems in their boxes, using judgement, and factual analysis. • A Low value + Low quality = Get Rid • A High value + Low quality = Upgrade • A Low value + High quality = Do we need it? • A Highvalue + High quality = Ace area
Inside Out • Innovation needs • Vision • To be deliberately cultivated.
Output From IS Strategy • ‘To create a robust information management framework for the long-term management of information and its supporting technologies. • To identify current and future information needs for the organisation that reflect close alignment of business and IS strategies.
Output From IS Strategy • Determine policies for the management, creation, maintenance, control and accessibility of the corporate information resource. • Ensure that the IS function is outward looking and not focused internally on technology issues.’ Earl M, Managing Strategies for Information Technology, 1989
Strategic Use of IT/IS • Michael Porter (Competitive Strategy, Harvard), offers three strategies for dealing with one’s competitive environment:- • Differentiate products • Pile ‘em high, sell ‘em cheap • Find a niche • These emerge from his competitive analysis model.