IS & KM (INFO 640)

1. IS & KM (INFO 640) L2: IS Planning GP Dhillon, PhD Associate Professor of IS School of Business, VCU

2. External IS Environment External Business Environment Competitive analysis Value Chain analysis Mission; CSFs Strategic options Data flow model Organization model Internal IS Environment Internal Business Environment A Portfolio of IS Applications Inputs to IS planning

3. H Corporate Opportunity seeking Critical Success Factors Demand Management Local Competitive/Effectiveness focus Complex - organizational planning, ideal, multiple methods based on goal seeking - coalition Competitive focus (Proactive) Federation - Business led Decentralization, Entrepreneurial or Technology driven Strategic (attack) High Potential (Beware) Potential contribution of IS/IT application to achieving future business goals Key Operational (Explore) Support (Safe) Backbone -Integrated (top down) Planning, Centralized control Reactive - Current Effectiveness Focus Traditional - Stage of growth, isolate applications decentralized control Reactive -Technology focus - Efficiency focus Supply Management Opportunity taking Current problem solving Business issue driven IT issue driven L L Degree of dependence of the business on IS/IT application in achieving overall business performance objectives H Expanding the portfolio - a

4. High Potential Strategic Applications which are critical to achieving future business strategy Applications which may be important in achieving future business success Applications upon which the organization currently depends Applications which are valuable but not critical to business success Key Operational Support Expanding the portfolio - b

5. Requirements Driving forces The rapid evaluation of prototypes, with an ability to reject failures, before they waste resources A new business idea or technological opportunity An individual initiative in one part of the business, the idea being owned by someone who champions it To understand the potential of the application in relation to the business strategy and the likely economic s To identify the best way to proceed - what to do next, how that should be done and by whom The objective, which is to demonstrate the value, and then decide whether and how to exploit it for business High potential applicationskey features

6. Requirements Driving forces Rapid development to meet the business objective, and realize the business benefits within the window of opportunity Market requirements and/or competitive pressures, essentially externally driven (perhaps by suppliers or customers) Business objectives, success factors and management vision of how to achieve them A flexible solution which can be adapted further to meet changes in the business environment Links to an associated business initiative or change to sustain the business commitment to IS development Obtaining an advantage and then sustaining it by further developments if possible Strategic applicationskey features

7. Requirements Driving forces High quality solutions and effective data management, to ensure a degree of stability and reduced costs of change over time Improving the performance of existing activities, in terms of speed, accuracy, effectiveness and economies Integrating systems and data to avoid misinformation and duplication of tasks, to minimize the risk of activities being inconsistent or ineffective Balancing costs with benefits and business risks, to identify the best solution to the business problem The evaluation of options available to select the most effective, by means of an objective analysis of the feasible alternatives Avoiding a business disadvantage or preventing a business risk from becoming critical Key operational applicationskey features

8. Driving forces Lowest cost, long term solutions which often lead to package software and even compromising user needs to the solutions available Improved productivity and efficiency of specific (often localized) existing tasks Legal requirements which have to be met to avoid prosecution Avoiding obsolescence by evolution at the pace of the IT industry Objective cost benefit analysis to reduce financial risk, and ensure the costs of development are easily controlled Most cost effective use of IS funds and resources, to find the most business efficient solution Support applicationskey features Requirements

9. St Hp St Hp Ko Su Ko Su St Hp St Hp Ko Su Ko Su Application portfolio in different IS/IT environments H Complex Opportunistic Application portfolio Application portfolio Diffusion (Ability to devolve IS/IT decisions) Application portfolio Application portfolio L Traditional Backbone H L Infusion (impact of IS/IT on a business)

10. High Potential Strategic Why - do we want to do it in strategic terms? Why? - not clear What - does the system need to do for competitive advantage? What? - not certain How? - not yet known How - best to do it? Why - to improve performance? Why - to reduce cost? What - actually has to improve? What - of existing tasks? How - best to do it? How - best to do it? Support Key Operational Key questions in an application portfolio

11. High Potential (Wild cats) Strategic (Stars) Continuous innovation Process R & D Vertical integration Minimal integration High Value added Cost control Defensive innovation Disinvest/rationalize Effective resource utilization Efficiency Sustained quality High quality Support (Dogs) Key Operational (Cash cows) Things to do in an application portfolio

12. Managing the evolution of an application over time High Potential Strategic Lose: individual ownership and freedom Gain: senior management support; IT involvement; project management Re-engineer for long term use Return to standards Re-evaluate benefits and costs Fully integrated with other applications for effectiveness Evaluate lower cost options to meet core needs Support Key Operational

13. Avoiding the disintegration of the portfolio Individual initiatives Business initiatives High Potential Strategic Decisions about which to exploit and when How to resource and manage? How to justify and reap benefits from business changes? How to ensure appropriate linkages etc to avoid enormous rework later? How to evaluate and select/reject? How to convert to strategic? Or restrict further risk? Lack of definition between HP and Support How and when to consolidate Provision of resources How to release resources and ensure existing systems and infrastructure will support the strategic applications? Key Operational Support

14. Implementing IS Plans

15. Organizational structuresbasic choices • Centralized Structure • One line manager directly responsible • Defined corporate wide procedures and controls • Data administration under singular control • Decentralized Structure • Several individuals work independent of each other • Each unit may conduct independent analysis and design • Special purpose d/b and applications at each unity

16. Centralized

17. Decentralized

18. Rationale for choosing particular organizational structures • Central coordination of all requirements will produce better decision making • Technology can create business advantages and risks are worth taking • Market makes the best decision and users are responsible for business results • Information is a corporate good and a key resource for users to employ • Information is a limited resource and its development must be clearly justified

19. Rationale cont/- • Central coordination of all requirements will produce better decision making • Technology can create business advantages and risks are worth taking • Market makes the best decision and users are responsible for business results • Information is a corporate good and a key resource for users to employ • Information is a limited resource and its development must be clearly justified Centrally planned Leading edge Free market Monopoly Scarce resource

20. The ‘rationale’ takes the form of generic information systems implementation strategies

21. Generic strategies and the application portfolio High Potential Strategic Leading edge Free market Centrally planned Free market Scarce resource Monopoly Support Key Operational Centralized Decentralized

22. Individual initiative - competitive Matrix/Team structure Cross functional structure with multi-skill resourcing Functional Structure with task separation Resourcing applications High Potential Strategic Support Key Operational