Information system strategy


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Information system strategy

  1. 1. Information Systems Strategy
  2. 2. Learning Objectives <ul><li>To understand </li></ul><ul><li>The need for an IS strategy </li></ul><ul><li>Types of strategies that exist within an organisation, and how they interact with each other. In particular: </li></ul><ul><ul><li>Business strategy. </li></ul></ul><ul><ul><li>Information systems strategy. </li></ul></ul><ul><ul><li>Information technology strategy </li></ul></ul><ul><li>the process of strategic planning for information systems </li></ul>
  3. 3. Need for an information system strategy <ul><li>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. </li></ul><ul><li>Information needs of users have increased and can be met in many different ways. </li></ul><ul><li>To prevent the proliferation of unique independent information systems developing within an organisation, an overall information system strategy needs to be considered. </li></ul>
  4. 4. IS needs an effective strategic plan <ul><li>Because </li></ul><ul><li>IS consumes a portion of the organisation’s finite resources </li></ul><ul><li>IS must accommodated rapid technological changes </li></ul><ul><li>IS must enable the business to function effectively </li></ul><ul><li>Therefore, IS strategy will ensure that IS will cost effectively deliver strategic systems. </li></ul>
  5. 5. Aims of the IS strategic plan <ul><li>Clearly identify where IS is going within the organisation therefore avoiding the dangers of taking actions that do not contribute to the overall mission </li></ul><ul><li>Provide a formalised set of benchmarks so that progress of the plan can be monitored. </li></ul>
  6. 6. The information system strategy <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>All business strategies must be responsive to the external environment </li></ul>
  7. 7. 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
  8. 8. Elements of a strategic plan <ul><li>A clear statement of IS objectives – where they want the business to be </li></ul><ul><li>An inventory and assessment of both the current organisational capabilities and problems resulting from current practises – where the business is now </li></ul><ul><li>An implementation plan identifying long-term and short-term actions and allocation of resources – how to get to where they want to be </li></ul>
  9. 9. Elements of IS strategy (Ward &Griffiths, 96) <ul><li>Business information strategy . This defines how information and knowledge will be used to support the business objectives </li></ul><ul><li>IS functionality strategy . Defines the requirements of the business from the systems. Defines how the resources will be used and the allocation of responsibility </li></ul><ul><li>IS/IT strategy. This defines the hardware and the software standards and preferred suppliers. </li></ul>
  10. 10. IS/IT strategy <ul><li>Determines the technological infrastructure of the organisation </li></ul><ul><ul><li>This ensures </li></ul></ul><ul><ul><ul><li>Appropriate technologies used </li></ul></ul></ul><ul><ul><ul><li>Standards are set </li></ul></ul></ul><ul><ul><li>In terms of costs, efficiency and supporting business users, customers and others </li></ul></ul><ul><li>Determines how IT is applied within the organisation </li></ul><ul><li>Ensures that IT supports the business strategy </li></ul><ul><li>Ensures that the resources are made available </li></ul>
  11. 11. Organisation environment <ul><li>All organisations operate within an environment </li></ul><ul><ul><li>Micro-environment – immediate includes customers, suppliers and intermediaries </li></ul></ul><ul><ul><li>Macro-environment – wider environment of social, legal, economic, political and technology </li></ul></ul><ul><li>The environment influences the way in which the organisation works </li></ul>
  12. 12. Seven R’s of strategy (Lickert, 97) <ul><li>These are ways in which organisations can compete, using information system strategy to respond to its external environment </li></ul><ul><ul><li>Reach </li></ul></ul><ul><ul><li>Reaction </li></ul></ul><ul><ul><li>Responsiveness </li></ul></ul><ul><ul><li>Refinement </li></ul></ul><ul><ul><li>Reconfiguration </li></ul></ul><ul><ul><li>Redeployment </li></ul></ul><ul><ul><li>Reputation </li></ul></ul>
  13. 13. Strategy process model 1 Strategic analysis 2 Strategic objectives 3 Strategic definition 4 Strategic implementation Monitor, evaluate and respond
  14. 14. Strategy process model features <ul><li>Continual internal and external environment scanning to assess internal strengths and weaknesses and external opportunities and threats </li></ul><ul><li>Clear statement of objectives </li></ul><ul><li>Formulation of different strategic options and then selection </li></ul><ul><li>Implementation and control of the strategy </li></ul>
  15. 15. Elements of information strategic management
  16. 16. Without Planning <ul><li>Financial losses </li></ul><ul><li>Lower staff morale </li></ul><ul><li>Missed opportunities </li></ul><ul><li>Management will be fire-fighting continuously </li></ul><ul><li>Reduced customer satisfaction. </li></ul>
  17. 17. To Summarise <ul><li>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. </li></ul>