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Lecture Highlights

This lecture highlights the structures, components, types, and definition of IT strategy and its relationship with business strategy. It explores the influences of human-computer interfaces, business goals, and IT strategy on business value. The lecture also covers the planning process and components of an IT strategy, enterprise architecture, and top EA methodologies.

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Lecture Highlights

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  1. Lecture Highlights  What – Structures & Components   What – Types What - Definition IT Strategy Why – Reasons Who – industries & organisations

  2. Business & IT Strategies’ Relationships Disconnect  Influences  Influences Human Computer Interfaces People Bus Goals Bus value ITStrategy Business Strategy Business Applications DataRepositories Process Information

  3. What is IT Strategy? The Plan The Planning Process • Contents address matters of • Current IT Environment • Future IT Environment • Change Management & Projects • Implementation Governance & Control Frameworks • Contents Format – varies org to org • Example: https://mn.gov/oet/images/Master_Plan_2012.pdf Varies org to org

  4. Overview of an IT Strategy Planning Practice Model Now Future Future Business Operation Model/s Business applications, technology & projects Technology Change Requirements Business Strategies Enterprise Architecture Change IT Portfolio, Program & Project Planning Execute IT Portfolios, Programs & Projects Portfolio, Program & Project Management Systems

  5. Enterprise Architecture 4 top EA Methodologies Zachman Framework The Open Group Architecture Framework (TOGAF) Federal Enterprise Architecture (FEA) Customised Hybrids of the Above Video – 5.51 m https://www.youtube.com/watch?v=l8w8QSo3OaU

  6. Enterprise Architecture • EA specifies how business and IT are: • Aligned in perspectives of: • Processes • Supply Chain Functional Application sets • Information resources • ICT infrastructure as information delivery & customer reach channels • 2. Packaged as services

  7. IT Strategy Planning Components System Dev Plans IS Portfolio of Projects Plan Tech Mgt Plan Technology (Infra) Plan • Coordination & Service Mgt Plan IT mgt & control plan

  8. IT Strategy Taxonomies (Classification of IT Strategies) Taxonomy 1: Lucas and Turner (1982) • Independent • Policy supporting • Fully Integrated Academe Taxonomy 4: Sabherwal + Chan (2001) • IT for Efficiency • IT for Agility (Market responsive) • Both

  9. Components of IT Strategy Planning Specs Market Intelligence Systems Operations Systems Decision Support Systems Org Control Systems Inter Organisation Interfaces

  10. IT Strategies’ Descriptors 1) IT Management Structure CENTRALISED MIXED DECENTRALISED Ops support systems Eg ERP System Inter-Organisation Systems Eg e-procurement Enterprise Market & Performance Tracking systems 2) Types of IS Strategic Decision Support Systems

  11. 1) IT Management Structure CENTRALISED MIXED DECENTRALISED Ops support Sys Market IS Strategic DDS Inter-Org Sys IT for Efficiency IT for Agility IT for Comprehensiveness Centralised IT & more operational focused Decentralised IT & more locally & strategically proactive Common & local control becos of combined strategic & operational reasons

  12. Types of Business Strategies Market Changing Strategies based on enterprise innovation & agility Eg ICT firms’ strategies Specialised Strategies based on enterprise strengths Eg Cost leadership Product differentiation Mix bag to Minimise Risks Prefers centralised structures, to have high efficient & sustainable specialisation and considers outsourcing. Usually Med to Large Org Always track market movements to seize any new opportunities; offer core products & growing new ones; strategic outsourcing partnership deals. Usually Large Org Prefers decentralisation structures to allow for local creativity and agility, however run the risk of inefficiency; prefers inhouse dev. Usually Small Org.

  13. More Insights (Source: http://www.unc.edu/~nielsen/soci410/nm2/nm2.htm)

  14. Prospector Underpinning Problems Solving Culture Defender Analyser Source: http://www.emeraldinsight.com/books.htm?chapterid=1759472&show=html

  15. Business Behaviours in Strategy Orientation Business Strategy Classification DEFENDER ANALYSER PROSPECTOR Defending market share Risk Adverse Risk Taker/ Market Change Market Proactive Market Player

  16. Lecture’s Concepts Research Findings Theories Grounded Explanations Generalised Descriptions Grounded Methods/Techniques BUT Real World is changing faster than the academe theories development & proofing

  17. The Challenges in the Real World Technology Change is Faster than Business Change Learning curves New skills shortage Slower take-ups Expensive take-ups Mass market take-ups as next new technology cycle begins Advance digital capabilities & infrastructures Untapped Business Value & Market Potentials

  18. Class Discussion 5+ years ago – the vision for tomorrow’s technology https://www.youtube.com/watch?v=bwj2s_5e12U 2013 Vision Update https://www.youtube.com/watch?v=ho00x7ZvDLw https://www.youtube.com/watch?v=6VfpVYYQzHs Is IT driving Business , or Business driving IT?

  19. Case 1 Group work Identify the type of business strategy pursued by the case company? Identify the type of IT strategy pursued by the case company? Hint: Which Lecture Slides to Use? How to apply in context of case study?

  20. Case 2 Group work In terms of Lucas and Turner (1982) taxonomy, how would you classify the IT strategy of ModMeters company? Discuss. Identify some of the salient characteristics of IT function discussed in the case report. In terms of three dimensions of IT strategy discussed in Week 3 lecture of FIT9006 unit, discuss the characteristics of IT strategy of ModMeters company Hint: Which Lecture Slides to Use? How to apply in context of case study?

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