Information system strategy
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Information system strategy

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Information system strategy Information system strategy Presentation Transcript

  • Information Systems Strategy
  • Learning Objectives
    • To understand
    • The need for an IS strategy
    • Types of strategies that exist within an organisation, and how they interact with each other. In particular:
      • Business strategy.
      • 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
    • Because
    • 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.
  • IS/IT strategy
    • Determines the technological infrastructure of the organisation
      • This ensures
        • 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
  • Organisation environment
    • 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
      • Reach
      • Reaction
      • Responsiveness
      • Refinement
      • Reconfiguration
      • Redeployment
      • Reputation
  • 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
  • Without Planning
    • Financial losses
    • Lower staff morale
    • Missed opportunities
    • Management will be fire-fighting continuously
    • Reduced customer satisfaction.
  • To Summarise
    • 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.