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O'Brien MIS, 6th ed.


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  • i.e. Look at UPS site – IT Governance link UPS IT Governance: The Key to Aligning Technology Initiatives with Business Direction
  • Transcript

    • 1. Developing Business/Information Technology Strategies Ch9 Section I
    • 2. Learning Objectives
      • Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage.
      • Discuss the role of planning and business models in the development of e-business strategies, architectures, and applications.
    • 3. Learning Objectives (continued)
      • Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.
      • Identify the importance of business & IT alignment
    • 4. Section I
      • Planning Fundamentals
    • 5. Organizational Planning (continued)
      • Strategic Planning
      • Strategic Visioning
      • Tactical Planning
      • Operational Planning
    • 6. Organizational Planning
      • The Planning Process
      • Evaluating organizational accomplishments Analyzing the business, economic, political, and societal environment
      • Anticipating and evaluating the impact of future developments
    • 7. IT Strategy
      • Set of decisions made by IT and senior management
      • Deployment of technology infrastructures
      • Relationship of technology choices to business choices
      An I/T Strategy is a set of discrete actionable interventions which ensure that the firm I/T capabilities deliver value towards strategic business objectives in a cost efficient manner
    • 8. IT Strategy (ctd)
      • I/T strategy may impact all aspects of the I/T portfolio : applications, communication, infrastructure, processes, governance, organization …
      • Not a one-shot activity : needs to be constantly refined and aligned with business priorities
      • Impact of an I/T strategy must be measurable in terms of business value - revenue/margin growth, cost reduction etc .
    • 9. The IT strategic plan process Understand business issues Align IT strategy to business within business context Determine the implementation strategy Define the budget to implement initiatives / SLAs Define the IT strategic initiatives
      • Input from the Business strategic plan
      • Identify the evolution scenarios that impact the IT strategy
      • Understand the evolution in terms of
        • Business
        • Organization
        • Relations
      • Implement a Project Office to manage all the initiatives in
        • Infrastructure
        • Applications
        • Processes
      • Plan initiatives within the scenarios
      • Identify benefits / costs of the initiatives
        • Costs
        • Resources
        • Timing
      • Select initiative through the Master Plan tool
      • Establish periodic reviews
      • Define Application service level
      • Short-term staffing needs
      • Yearly budget
    • 10. The Scenario Approach to Planning
      • Teams participate in a “microworld”
      • A variety of business scenarios are created
      • Alternative scenarios are created by teams or by business simulation software based on..
        • A variety of developments, trends, and environmental factors
      Align IT strategy to business within business context 2
    • 11. Scenario Planning Grid IMPACT ON FIRM FEASIBILITY High Priority Medium Priority Low Priority HIGH MEDIUM LOW HIGH MEDIUM LOW Strategy A Strategy B Strategy C Strategy D Align IT strategy to business within business context 2
    • 12. Planning for Competitive Advantage
      • Especially important in today’s competitive, complex environment
      • Involves an evaluation of potential benefits and risks
      • May include the competitive forces and competitive strategies models, as well as a value chain model of basic business activities
      • Use a strategic opportunities matrix to evaluate strategic potential
      Align IT strategy to business within business context 2
    • 13. Planning for Competitive Advantage (continued) Align IT strategy to business within business context 2
    • 14. Planning for Competitive Advantage (continued) Strengths Weaknesses Opportunities Threats
      • SWOT Analysis
      • Recommend strategies that ensure best alignment between external and internal environments
      Align IT strategy to business within business context 2 T Strategies O Strategies W Strategies S Strategies
    • 15. Business Models and Planning
      • A conceptual framework that expresses the underlying economic logic and system that prove how a business can deliver value to customers at an appropriate cost and make money.
      • Specifies how the business will organize and operate
      • Focuses attention on how all the essential components fit into a complete system
      Align IT strategy to business within business context 2
    • 16. e-Business Planning
      • 3 major components
      • Strategy development
      • Resource management
      • Technology architecture
      Determine the implementation strategy 3
    • 17. e-Business Planning (continued)
      • IT architecture major components
        • Technology platform
        • Data resources
        • Applications architecture
        • IT organization
      Determine the implementation strategy 3
    • 18. Examples of IT Planning Process Results
    • 19. IT Strategic Initiatives Year 0 Today Long-term
      • Different applications
      • Lack of integration
      • Missing communication
      • Mix of owned and in-service applications
      • Islands of country I/T organizations
      • Common e-mail system
      • Company reporting system
      • Network separation and upgrade
      • Parent companies applications cloning
      • Applications migration
      • Video-conferencing and mobile communication
      • New HR system
      • New finance system
      • Single engineering releasing system
      • Virtual office for managers
      • Logistic harmonization
      • Document/Project management
      • Common applications
      • Applications reference models
      • Unique infrastructure
      • Common I/T policies and standards
      • Personal productivity
      • Mobile interconnectivity
      • Ubiquitous service availability
      TIME Tomorrow ILLUSTRATIVE Define the IT strategic initiatives 4
    • 20. IT Strategy Implementation
      • Execute the strategy
      • Commitment and engagement of senior business management
        • Must occur prior to implementation planning
      • Strategic Alignment Maturity
        • Ability to adapt in harmonious fashion
      • Adoption of Measurement Criteria
        • Measure effects in several different dimensions
      Define the budget to implement initiatives / SLAs 5
    • 21. Periodic Review
      • Define budget / time / resources for projects selected
        • Ensure initial assumptions are correct
        • Ensure implementation of plans are on schedule
      • Measurements are captured and reported
      Define the budget to implement initiatives / SLAs 5
    • 22. Section II
      • Implementation Challenges
    • 23. Implementation
      • A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.
    • 24. Implementing IT
      • Requires managing the effects of major changes in key organizational dimensions such as
        • business processes
        • organizational structure
        • Managerial roles
        • Employee work assignments
        • Stakeholder relationships
    • 25. Dismissal Migration to New platforms Align to b usiness: Function evolution Maintain/ Improve LOW HIGH HIGH • Application A • ... • Application B • ... • Application C • ... • Application D • ... Company Strategy Business Requirements IT Implications Current portfolio evaluation Alignment to Business Technological Alignment Gap identification NEW APPLICATIONS DEVELOPMENT APPLICATION PORTFOLIO ANALYSIS • ... Comparing application portfolio with business requirements ILLUSTRATIVE Requires Change 1 2 3 4 5 5 4 3 2 1
    • 26. Change Management
      • People are a major focus of organizational change management
        • Developing innovative ways to measure, motivate, and reward performance
        • Designing programs to recruit and train employees in the core competencies
      • Also involves analyzing and defining all changes facing the organization
    • 27. End User Resistance and Involvement
      • Change can generate fear and resistance to change
      • Keys to countering end user resistance
        • Proper education and training
        • End user involvement in organizational changes
    • 28. Ensuring Strategic Alignment Jerry N. Luftman model
    • 29. Information Systems for Competitive Advantage
      • The Technology/Strategy Fit
        • An IS implementation should create a significant organizational change consistent with the business strategy
          • IT needs to be aligned to the business goals
    • 30. Strategic Alignment Model
      • Business Strategy
        • Business Scope
        • Distinctive Competencies
        • Business Governance
      • Organization Infrastructure & Processes
        • Administrative Structure
        • Processes
        • Skills
      • IT Strategy
        • Technology Scope
        • Systemic Competencies
        • IT Governance
      • IT Infrastructure & Processes
        • Architecture
        • Processes
        • Skills
    • 31. Alignment Maturity
      • Process which evaluates the IT/business alignment status of a specific organization
        • It has a defined number of levels and representations (5 levels)
        • It is based on a defined set of criteria (six key criteria)
    • 32. Strategic Alignment Maturity Levels
      • Initial/Ad Hoc Process
        • Business and IT not aligned
      • Committed Process
        • Organization commits to becoming aligned
      • Established Focused Process
        • Established and Focused on business objectives
      • Improved/Managed Process
        • Reinforcing concept of IT as “Value Center”
      • Optimized Process
        • Integrated/Co-adaptive business and IT strategic planning
    • 33. Strategic Alignment Maturity Criteria
      • Communications
      • Competency/value measurements
      • Governance
      • Partnerships
      • Scope and Architecture
      • Skills
    • 34. Strategic Alignment Template
    • 35.  
    • 36. Discussion Questions
      • Planning is a useless endeavor , because developments in e-business and e-commerce, and in the political, economic, and social environments are moving too quickly nowadays. Do you agree with this statement?
      • “ Planning and budgeting processes are notorious for their rigidity and irrelevance to management action.” How can planning be made relevant to the challenges facing an e-business enterprise?
    • 37. Discussion Questions (continued)
      • What planning methods would you use to develop e-business and e-commerce strategies and applications for your own business?
      • What are several e-business and e-commerce strategies and applications that should be developed and implemented by many companies today?
    • 38. Discussion Questions (continued)
      • How can a company use change management to minimize the resistance and maximize the acceptance of changes in business and technology?
      • “ Many companies plan really well, yet few translate strategy into action.” Do you think this is true?
    • 39. Discussion Questions (continued)
      • What major business changes beyond e-business and e-commerce do you think most companies should be planning for the next ten years?