OrganizationalPlanningProcessOrganizationalPlanningProcessAnalyzing theirbusiness, economic,political and societalenvironmentsEvaluating what an organization hasaccomplished and the resources theyhave acquired
Strategic PlanningStrategic PlanningDefinition:•Development of an organization’s mission, goals, strategies, andpoliciesOperational PlanningOperational PlanningDefinition:•Planning done on a short-term basis to implement and controlday-to-day operations
*Betting on new IT innovations can mean bettingthe future of the company.*Leading-edge firms are sometimes said to be onthe “bleeding edge”.*Almost any business executive is aware ofdisastrous projects that had to be written off,often after large cost overruns, because thepromised new systems simply did not work.
*SWOT analysis is used to evaluate the impactthat each possible strategic opportunity canhave on a company and its use of informationtechnology*Strengths – core competencies*Weaknesses – substandard business performance*Opportunities – potential for new markets orinnovative breakthroughs*Threats – potential for losses posed bycompetitive forces
Definition:*A conceptual framework that expresses the underlyingeconomic logic and system that prove how a business candeliver value to customers at an appropriate cost and makemoney
*Customer Value – Is the firm offering its customerssomething distinctive or at a lower cost than itscompetitors?*Scope – To which customers is the firm offering thisvalue? What is the range of products/services offeredthat embody this value?*Pricing – How does the firm price the value?*Revenue Source – Where do the dollars come from?Who pays for what value and when? What are the
*Connected Activities – What set of activities does the firmhave to perform to offer this value and when? Howconnected are these activities?*Implementation – What organizational structure, systems,people, and environment does the firm need to carry outthese activities? What is the fit between them?*Capabilities – What are the firm’s capabilities andcapabilities gaps that need to be filled? How does afirm fill these capabilities gaps? Is there somethingdistinctive about these capabilities that allows the firmto offer the value better than other firms and thatmakes them difficult to imitate? What are the sourcesof these capabilities?*Sustainability – What is it about the firm that makes itdifficult for other firms to imitate it? How does thefirm keep making money? How does the firm sustain itscompetitive advantage?
*Strategy Development – developing businessstrategies that support a company’s businessvision*Resource Management – developing strategicplans for managing or out-sourcing a company’sIT resources*Technology Architecture – making strategic ITchoices that reflect an information technologyarchitecture designed to support a company’s e-business and other business/IT initiatives
*A conceptual design that includes:*Technology Platform – networks, computer systems, systemsoftware and integrated enterprise application software*Data Resources – databases*Applications Architecture – business applications*IT Organization – organizational structure of the IS function anddistribution of IS specialists