Strategic planning Vision Business needs Earl’s grid McFarlan’s application portofolio Business Process Reengineering (BPR)

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Information Systems and
Strategy
Lecture 5
Abdisalam Issa-Salwe
Business Information Systems
Finance and Legal Management
Thames Valley University
Abdisalam Issa-Salwe, Thames Valley University
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Topic list
 Strategic planning
 Vision
 Business needs
 Earl’s grid
 McFarlan’s application portofolio
 Business Process Reengineering
(BPR)

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Strategic planning
 Entrepeneurs and business
managers are often so preoccupied
with immediate issues that they
lose sight of their ultimate
objectives.
 That's why a business review or
preparation of a strategic plan is a
virtual necessity.
 This may not be a recipe for
success, but without it a business is
much more likely to fail.
Abdisalam Issa-Salwe, Thames Valley University
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Strategic planning (cont…)
 A sound plan should:
 * Serve as a framework for decisions or
for securing support/approval.
 * Provide a basis for more detailed
planning.
 * Explain the business to others in
order to inform, motivate & involve.
 * Assist benchmarking & performance
monitoring.
 *Stimulate change and become
building block for next plan.

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Strategic planning (cont…)
 A strategic plan should not be
confused with a business plan.
 * The former is likely to be a (very)
short document whereas a business
plan is usually a much more substantial
and detailed document.
 * A strategic plan can provide the
foundation and frame work for a
business plan.
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Strategic planning (cont…)
 A strategic plan is not the same thing as
an operational plan.
 The former should be visionary,
conceptual and directional in contrast to
an operational plan which is likely to be
shorter term, tactical, focused,
implementable and measurable.
 * As an example, compare the process of
planning a vacation (where, when, duration,
budget, who goes, how travel are all strategic
issues) with the final preparations (tasks,
deadlines, funding, weather, packing, transport
and so on are all operational matters).

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Strategic planning (cont…)
 Basic Approach to Strategic
Planning
 * A critical review of past performance
by the owners and management of a
business and the preparation of a plan
beyond normal budgetary horizons
require a certain attitude of mind and
predisposition.
 * Some essential points which should
to be observed during the review and
planning process include the following:
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The Vision:
 The preparation of a strategic plan is a multi-
step process covering vision, mission,
objectives, values, strategies, goals and
programs. These are discussed below.
 The first step is to develop a realistic Vision
for the business.
 This should be presented as a pen picture of
the business in three or more years time in
terms of its likely physical appearance, size,
activities etc.
 Answer the question: "if someone from Mars
visited the business, what would they see (or
sense)?"
 Consider its future products, markets,
customers, processes, location, staffing etc.

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Business Process Redesign
 Business Process Redesign is "the
analysis and design of workflows and
processes within and between
organizations" (Davenport & Short 1990).
Teng et al. (1994) define BPR as "the
critical analysis and radical redesign of
existing business processes to achieve
breakthrough improvements in performance
measures."
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 BPR has been around for quite some time: a
lot has been written about it in both the
practitioner trade press and the academic
research journals.
 However, the controversy still remains if
there is any accurate description of BPR, or if
BPR is just a fad: an appealing label to tag
on to whatever your company is doing to
suggest that your latest and greatest work is
'in vogue.'
 To get some bearing about the question of
what is BPR and what is the role of
information systems and human factors in
that process, you may like to start here.

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Tutorial Question