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Business Re-engineering and IS Strategy Analysis

Explore the alignment of business strategy with IS/IT requirements, examine IS/IT supply, analyze critical success factors, and enhance process effectiveness for organizational success.

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Business Re-engineering and IS Strategy Analysis

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  1. Chapter 4 IS/IT Strategic Analysis: Current Situation

  2. Agenda • Business re-engineering and IS strategy • Understanding the current IS/IT requirements • Understanding IS/IT needs of the business strategy • Examining current IS/IT supply • Analysis techniques • Critical success factors • Process effectiveness • Organizational model

  3. Business Re-engineering and IS Strategy • Re-engineering initiatives spring from business strategy • IS demand supports business strategy • Re-engineering needs IS/IT element • Re-engineering and IS strategy forms potential models of the business

  4. Understanding the Current IS/IT Requirements - I • Business strategy analysis for information needs • External environment, current and future business portfolio, and competitive strategy for IS/IT competitive contribution • Critical success factor identification for finding the information change drivers

  5. Understanding the Current IS/IT Requirements - II • Current process effectiveness evaluation for IS/IT to improve the performance • Internal and external value chain analysis for information flow and IS/IT opportunities • Conceptual architecture of information and processes restructuring to reach IS/IT maximum contribution

  6. Understanding the Current IS/IT Requirements - III • Hardware and software functions for future plan migrating • Current application portfolio evaluation for assessing contribution and potential • IS/IT principles, organization, processes, services, and capabilities evaluation for meeting current and future business needs

  7. Understanding IS/IT Needs of Business Strategy - I • Information, system, and technology for • The achievement of the business objectives • The measurement of the performance towards achieving the business objectives

  8. Understanding IS/IT Needs of Business Strategy - II • Internal business environment • Business strategy • Current business processes, activities, and main information entities • Organizational environment: structure, assets skills, values, style, culture, and relationship • External business environment • Opportunities

  9. Business Strategy - I • Components of business strategy • Mission: an unambiguous statement of what the business does and its long-term purpose • Vision: an easy identify picture of what the business will be in the future, and how it will operate • Goals: the set of major achievements that will accomplish the vision

  10. Business Strategy - II • Components of business strategy • Objectives: the targets (unambiguous and measurable) for accomplish the business vision • Strategies: the methods to meet the business objectives • Critical success factors (CSFs): a few areas have to be right in order for the business to flourish

  11. Business Strategy - III • Components of business strategy • Business drivers: a set of critical forces for the business to change • Business area plans: document the response or information needs to the business strategy

  12. Business Process, Activities and Key Entities - I • Business processes: the sets of interlinked activities to deliver specific outputs to customers • Activities: the elements of processes • To produce, promote and distribute products or services • To develop, support, and administer the infrastructure • To measure the performance against objectives

  13. Business Process, Activities and Key Entities - II • Key entities: important data and information associated with business processes • Models • Process flow models or process dependency charts • Hierarchical activity models or functional decomposition diagrams • Entity relationship models

  14. Business Process, Activities and Key Entities - III • Models • Data flow diagrams (DFDs) • Activity/entity matrices • Class diagram

  15. Examining Current IS/ITSupply - I • Objectives • Categorize in terms of strategic, high potential, key operational, and support • Contribution to business needs • Assessment of effectiveness, robustness, and unrealized potential • Potential improvement • Risks and opportunities • Strength and weakness in terms of CSFs

  16. Examining Current IS/ITSupply - II • Evaluate: • Application portfolio and applications under development: content, coverage, and contribution • Current databases and those under construction • Users’ perception of the value of the portfolio • Current infrastructure and IT supply provisions

  17. Examining Current IS/ITSupply - III • Evaluate • Current infrastructure and IT supply provisions • Current/previous strategy and policies • IS/IT organization and processes • Current assets, resources, and skills • Methods and training provisions

  18. Analysis Techniques - I • Business strategic analysis • CSF analysis • SWOT analysis • Business portfolio and competitive strategic analysis • Value chain analysis • Process effectiveness

  19. Analysis Techniques - II • Business process redesign • Organizational modeling • Business modeling-information analysis techniques • Current portfolio evaluation • Technology assessment and IS/IT infrastructure review

  20. Critical Success Factors - I • Levels • Industry • Corporate • Business unit or function • Manger • Usages in management • IS opportunities to achieve Objectives • Information needed by executives

  21. Critical Success Factors - II • Analysis process for IS requirements • Understand mission and objectives • Determine CSF for each objective • Conduct a SWOT on each CSF • Consolidate across objectives and identify information dependencies • Outline plan of IS requirements

  22. Critical Success Factors - III • Analysis process for executive information system • Understand mission and objectives • Determine CSF for each objective • Develop measures • Guides for the executive information systems

  23. Process Effectiveness • Identify core processes • Assess effectiveness of processes against their drivers • Assess risks of not improving the processes • Investigate urgency of opportunities for improvement • Establish future vision of the business processes

  24. Organizational Model • The formal organizational arrangements • Employees and other tangible assets • Social structure • Technology employed • The external environment • The dominant coalition • The key processes

  25. Points to Remember • Business re-engineering and IS strategy • Understanding the current IS/IT requirements • Understanding IS/IT needs of the business strategy • Examining current IS/IT supply • Analysis techniques • Critical success factors • Process effectiveness • Organizational model

  26. Questions • What are the critical success factors associated with an e-business? • How do you conduct a strategic analysis for an e-business?

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