Information system strategyPresentation Transcript
Information Systems Strategy
The need for an IS strategy
Types of strategies that exist within an organisation, and how they interact with each other. In particular:
Information systems strategy.
Information technology strategy
the process of strategic planning for information systems
Need for an information system strategy
Due to the multitude of technological developments over the past two decades many areas within an organisation can now take advantage of cheap user-friendly processing power.
Information needs of users have increased and can be met in many different ways.
To prevent the proliferation of unique independent information systems developing within an organisation, an overall information system strategy needs to be considered.
IS needs an effective strategic plan
IS consumes a portion of the organisation’s finite resources
IS must accommodated rapid technological changes
IS must enable the business to function effectively
Therefore, IS strategy will ensure that IS will cost effectively deliver strategic systems.
Aims of the IS strategic plan
Clearly identify where IS is going within the organisation therefore avoiding the dangers of taking actions that do not contribute to the overall mission
Provide a formalised set of benchmarks so that progress of the plan can be monitored.
The information system strategy
The information system strategy is derived from the business strategy which itself is evolved from the strategies of all the sub-systems. Once an information strategy has been decided upon EG. providing a better service or information to the customers about an organisations products, then a tactical plan for setting up the system can be devised. This will include, where it will be located, what hardware and software will be used, what training is required.
Although it is necessary to consider the information sub-system as an integral part of the overall business system, it is also important to consider it in its own right. That is, the information sub-system must be concerned with new techniques and technologies which could benefit the organisation.
All business strategies must be responsive to the external environment
Strategies within an organisation Business Strategy IS Strategy Information Management Strategy Information Technology Strategy Information Strategy Change Management Strategy IS Related Human Resource Strategy Business Strategy
Elements of a strategic plan
A clear statement of IS objectives – where they want the business to be
An inventory and assessment of both the current organisational capabilities and problems resulting from current practises – where the business is now
An implementation plan identifying long-term and short-term actions and allocation of resources – how to get to where they want to be
Elements of IS strategy (Ward &Griffiths, 96)
Business information strategy . This defines how information and knowledge will be used to support the business objectives
IS functionality strategy . Defines the requirements of the business from the systems. Defines how the resources will be used and the allocation of responsibility
IS/IT strategy. This defines the hardware and the software standards and preferred suppliers.
Determines the technological infrastructure of the organisation
Appropriate technologies used
Standards are set
In terms of costs, efficiency and supporting business users, customers and others
Determines how IT is applied within the organisation
Ensures that IT supports the business strategy
Ensures that the resources are made available
All organisations operate within an environment
Micro-environment – immediate includes customers, suppliers and intermediaries
Macro-environment – wider environment of social, legal, economic, political and technology
The environment influences the way in which the organisation works
Seven R’s of strategy (Lickert, 97)
These are ways in which organisations can compete, using information system strategy to respond to its external environment
Strategy process model 1 Strategic analysis 2 Strategic objectives 3 Strategic definition 4 Strategic implementation Monitor, evaluate and respond
Strategy process model features
Continual internal and external environment scanning to assess internal strengths and weaknesses and external opportunities and threats
Clear statement of objectives
Formulation of different strategic options and then selection
Implementation and control of the strategy
Elements of information strategic management
Lower staff morale
Management will be fire-fighting continuously
Reduced customer satisfaction.
Before the tactical planning of information systems is carried out, the overall information system strategy must be agreed upon and communication to all other sub-systems. This strategy will identify areas within the business strategy that would benefit from new or improved information systems. It will map out a plan for the development of these systems based on strategic importance and availability of resources. It will incorporate new developments in technology and future needs. It will also decide between a policy of centrally-controlled development of systems or a strategy of local development to meet local needs.