Managing The Applica.on
Por2olio
Chapter 7
Magister of Informa.on Technology
External Business Environment
Internal Business Environment
Internal IS/IT environment Current Applications Portfolio
External IS/IT Environment
Planning Approaches, Tools and Techniques Strategic IS/IT
Planning Process
IS/IT Management Strategy Business IS Strategies IT Strategy
Applications Portfolio Model & Matrices
Session Objec.ves
•
Able to discuss deliverables of PSIS
•
Understand how to manage applica.ons
por2olio
Session Agenda
•
Managing the applica.on por2olio (chapter 7)
•
Strategic Management of IS/IT (chapter 8)
Defini&on…..Applica&on Por2olio
• Applica.on por2olio is a means of bringing together
exis.ng, planned, and poten.al informa.on systems and assessing their business contribu.on
• Applica.on por2olio depicted by using Mc Farlan Grid
(2x2 Matrix)
• The main purpose in classifying applica.on is to ensure
that they are managed successfully and expected contribu.on is delivered
• Applica.on por2olio will evolve over .me, and has to be
Other Matrices for IS/IT Management
•
Sullivan matrix (consider IS/IT management from
infusion and diffusion of IS/IT in an organiza.on
•
The informa.on technology assessment and
adop.on (ITAA) matrix (adop.ng IS/IT as a
compe..ve weapon)
•
Ives and Learmonth matrix (value adding poten.al of
IS/IT)
Matrices for Decision Making
•
Sullivan matrix: infusion and diffusion of IS/IT
–
Infusion is the degree to which IS/IT has
penetrated a company in terms of importance,
impact, or significance (demand driven)
–
Diffusion is the degree to which IS/IT has been
•
Matrix by Munro and Huff: The IT Assessment and
Adop.on (ITAA)
– How organiza.on have adopted IS/IT as a compe..ve
weapon
– Driven by technology (technology advantage) or issues
(business opportuni.es)
•
Matrix by Ives and Learmonth and Galliers
•
Matrix by Hartman and Sifonis
–
X and Y axes: business cri.cality vs. prac.ce
innova.on
–
LL: new fundamental (support)
–
HL: Opera.onal excellence
Advantages of Matrix Analysis
•
Reduce “infinite” alterna.ves
•
Demonstrate rela.onship
SWOT analysis of exis.ng por2olio
EXPLOIT STRENGTHS:
• high future poten.al, currently underexploited;
• can be extended, enhanced to be of more value;
• could be more valuable if integrated more effec.vely or used more
extensively;
• cri.cal to the business, but data quality is poor;
• needs to be developed to meet current and future business needs;
• must be enhanced to meet changed business requirements for future;
• system required, but needs to be reimplemented to absorb less resources or
overcome technology obsolescence;
• system will be less important in future—needs to be simplified/reduced to
real needs;
OVERCOME WEAKNESSES
• Merely classifying current and future applica.ons into a 2
×2 matrix is of no great value, unless it causes each
applica.on and the overall por2olio to be managed more effec.vely
• Each organiza.on will have slightly different
interpreta.ons of the terms used for each segment
• If agreement cannot be reached, it ofen means that the
‘system’ needs
• to be considered at a lower level, in terms of the main
func.ons it
Classifying the applica.ons in the
por2olio
Ques.ons
If the development* succeeds, will it:
• (a) Result in a clear compe..ve advantage for the business? Yes/No
• (b) Enable the achievement of specific business objec.ves and/or cri.cal success
factors? Yes/No
• (c) Overcome known business disadvantages in rela.on to compe.tors? Yes/No
• (d) Avoid foreseeable business risks becoming major problems in the near future? Yes/ No
• (e) Improve the produc.vity of the business and, hence, reduce long‐term costs? Yes/
No
• (f) Enable the organiza.on to meet statutory requirements? Yes/No
• (g) Provide benefits not yet known, but may result in (a) or (b) above? Yes/No
The Three Key Par&es Involved In Enabling
Successful Implementa&on
• Execu.ve management;
• Line management: func.onal or process managers and users
of the systems;
• IS/IT specialists: whether or not they are internal to the
