Lecture 22 Integration of Information System Strategy

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Lecture 22 Integration of Information System Strategy

  1. 1. Lecture 22 Integration of Information System Strategy
  2. 2. Lecture objectives <ul><li>To gain an understanding of </li></ul><ul><li>How IS strategy can be integrated into the business strategy </li></ul><ul><li>IS Strategy development </li></ul><ul><li>Tools available for IS strategic planning. </li></ul>
  3. 3. Questions to be answered <ul><li>Where does an IS strategy fit in the wider set of strategies? </li></ul><ul><li>What circumstances demand major reassessment of IS strategic plans? </li></ul><ul><li>Who does the planning? </li></ul><ul><li>What would an IS strategic plan contain? </li></ul>
  4. 4. Where does an IS strategy fit in the wider set of strategies? <ul><li>When a business identifies its goals and objectives this should lead to the development of the business strategy </li></ul><ul><li>This business strategy should then feed down to the functional areas and lead to the development of ‘functional’ strategies including the IS strategy </li></ul><ul><li>These ‘functional’ strategies must support the overall business strategy </li></ul>
  5. 5. Strategy Integration Business Strategy Information Technology Strategy Organizational Infrastructure and Processes Strategy IT Infrastructure and Processes Strategy Business Scope Business Governance Distinctive Competencies Administrative Infrastructure Processes Skills Architectures Processes Skills Technology Scope IT Governance Systemic Competencies
  6. 6. Alignment Perspective: Strategy Execution Business Strategy Organizational Infrastructure IS Infrastructure Driver: Business Strategy Role of Top Management: Strategy Formulator Role of IS Management: Strategy Implementor Performance Criteria: Cost/Service Center
  7. 7. Alignment Perspective: Technology Potential IS Infrastructure Business Strategy IT Strategy Driver: Business Strategy Role of Top Management: Technology Visionary Role of IS Management: Technology Architect Performance Criteria: Technology Leadership
  8. 8. Alignment Perspective: Competitive Potential Business Strategy Organizational Infrastructure IT Strategy Driver: IT Strategy Role of Top Management: Business Visionary Role of IS Management: Catalyst Performance Criteria: Business Leadership
  9. 9. Alignment Perspective: Service Execution IT Strategy Organizational Infrastructure IS Infrastructure Driver: IT Strategy Role of Top Management: Prioritizer Role of IS Management: Executive Leadership Performance Criteria: Customer Satisfaction
  10. 10. What circumstances demand major reassessment of IS strategic plans? <ul><li>IS planning should be a cyclic activity. Short term features of the plan will need frequent updating to reflect technology changes but there are other common circumstances that will require major changes (Robson,97) </li></ul><ul><ul><li>Major corporate changes </li></ul></ul><ul><ul><li>External opportunities and threats </li></ul></ul><ul><ul><li>Evolutionary changes in IS </li></ul></ul>
  11. 11. Who does the planning? <ul><li>There are many approaches an organisation could use </li></ul><ul><li>Robson (1997) identified three main approaches </li></ul><ul><ul><li>Use of planning specialists </li></ul></ul><ul><ul><li>General IS staff </li></ul></ul><ul><ul><li>Coalition teams </li></ul></ul>
  12. 12. What would an IS strategic plan contain? <ul><li>Long term directions (1-5 years) </li></ul><ul><li>A clear statement of IS objectives </li></ul><ul><li>An inventory and assessment of both current organisational capabilities and problems resulting in current practices (where organisation is now) </li></ul><ul><li>An implementation plan </li></ul>
  13. 13. Tools available for IS strategic planning <ul><li>SWOT </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Threats </li></ul></ul><ul><li>The assessment of opportunities and threats is part of a scan of the environment while the strengths and weakness assessment is an audit of the capabilities of the organisation </li></ul><ul><li>Organisations must consider the impact of a possible course of action on customers, suppliers and competitors </li></ul>
  14. 14. Possible responses on basis of SWOT analysis (McLaughlin) Situation IS faces Threat Opportunity Evaluation of IS capability Strength Weakness Project ‘ watch yourself’ Explore ‘ if have time’ Beware ‘ don’t do it’ Attack ‘ go for it’
  15. 15. Sector Analysis Size Pressures Trends IS needs IS markets
  16. 16. Tools (continued) <ul><li>Business opportunities </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Internal position </li></ul><ul><li>Evolutionary model </li></ul><ul><li>Information requirements analysis </li></ul><ul><li>Some elements of these will be covered in later lectures </li></ul>
  17. 17. Summary <ul><li>This lecture aimed to give you an understanding of how organisations can integrate IS strategy into the business strategy and what is included in a strategic plan. Also the tools available for developing an IS strategic plan have been discussed briefly. </li></ul>

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