Zainal A. Hasibuan, PhD
(zhasibua@cs.ui.ac.id)
By: Zainal A. Hasibuan
Faculty of Computer Science
Review Ques4ons
•
What are the success criteria for IS/IT Strategic Plan?
•
Improve performance
•
Gaining compe44ve advantage
•
Align IT investment with business strategy
•
BeIer communica4on
•
Etc.
•
What are the objec4ves of IS/IT Strategy formula4on?
•
Iden4fy current and future informa4on needs
•
Create flexible and adap4ve IS func4ons
•
Determine police and management for informa4on
resources
Review Ques4ons
•
What are the outputs of IS/IT Strategic Plan?
–
IS/IT management strategy
–
Business IS/IT strategy
–
IT strategy
•
What aspects to analyzed in the internal business
environment?
–
The business strategy as the means to achieve business
objec4ves
–
The current business process, ac4vi4es, and the main informa4on
en44es
–
The organiza4onal environment: structure, asset and skills,
competency, culture, etc.
•
What are the components of business model architecture?
Session Objec4ves
•
To understand the development of applica4on
porTolio from a strategic perspec4ve
•
To understand industry value chain to get
maximum benefit from IS/IT investment
•
To iden4fy the business opportuni4es and
threats formulate IS/IT strategy
•
To describe a framework to develop the
business informa4on strategy
•
To understand the integra4on of informa4on,
Session Agenda
•
Applica4on porTolio and strategic perspec4ve
•
Aligning IS/IT Investment Strategy to the Business
•
Dimensions of competence
•
Value chain analysis
•
Value system analysis
Dimensions of Competence
Level of
competence
required to avoid
competitive
Competitive advantage
Value Chain Analysis
•
Defini4on: A collec4on of ac4vi4es that are
performed to design, produce, market, deliver,
and support its product
•
Ac4vi4es can be separated into primary and
secondary
•
Ac4vi4es add value to sa4sfy customer
requirements
•
Ac4vi4es incur costs by consuming resources
•
Adopts a business unit perspec4ve,
Internal Value Chain Analysis
Administration and General management of the business unit as entity Infrastructure
Human resource Recruit, train, develop, and reward people management
Product and techno- Develop the technology of products or services logy development and production processes
Procurement Acquire the necessary inputs to the value adding activities
Internal Value Chain Analysis
Administration and General management, financial management, accounting, infrastructure and legal
Human resource Manpower planning, remunerations, recruitment, and management training
Product and techno- Research and development, product design, and process logy development engineering
Procurement Supplier mgt., subcontracting, outsourcing, specification
External Value Chain Analysis
Materials Capital
Agencies
Distributors Business unit
Suppliers Components Workforce
Competitors Export distributors
Markets Local
distributors
Strategic Op4ons Generator
Strategic target Competitors Customers Suppliers
Strategic thrust
Differentiation: premium pricing through better perceived quality
Cost: aggressive pricing through better performance
Innovation: new product, services, or processes that transform relationship
Growth: expansion in volume and flexibility without more overheads
•
Compe4tor – Can we use IS to:
–
Raise the entry costs of poten4al compe4tors?
–
Differen4ate or create new products or services?
–
Reduce our costs or increase their costs?
–
Control the channels of distribu4on?
–
Iden4fy or establish new market niches?
–
Form joint ventures to enter new market?
•
Customers – Can we use IS to:
–
Reduce their costs or increase their revenues?
–
Increase their switching costs to alterna4ve suppliers?
–
Increase their knowledge of our products or services?
–
Improve our services to them or reduce the costs of exis4ng
services?
–
Discover more about their needs?
•
Suppliers – Can we use IS to:
–
Improving our bargaining power over them?
–
Reduce our buying costs?
–
Reduce their selling costs?
–
Be a beIer customer and obtain a beIer
service?
–
Iden4fy alterna4ve poten4al supplier?
–
Improve the quality of products or services
Resource Life Cycle Analysis
•
Products are resources from customer perspec4ve
•
Four stages of resources management
•
Requirements
–
Establish quan4ty requirements and specify aIributes
•
Acquisi4on
–
Select sources of purchase, order resources, authorize and pay for
resources, acquire resources, and test resources against specifica4on
•
Stewardship
–
Integrate resources with exis4ng inventory, monitor access and use of
resources, upgrade resources if necessary, maintain resources if
necessary
•
Re4rement
–
Transfer or dispose of resources and account for expenditure on
Comparison of Techniques
Technique
External Internal Product or service Executive
linkage
linkage enhancement or information
systems systems innovation
systems
Critical success
Low Moderate Low High
factor analysis
Process effectiveness Low High Low Nil
analysis
Value chain analysis Nil High Low Moderate
Value system analysis High Nil Moderate Low
Strategic options Moderate Moderate High Nil
generator
DETERMINING the BUSINESS
The IS/IT Strategic Planning
Environment
Intended
Strategy:
Business, IS, IT
Unrealized
Strategies:
Business, IS, IT
Intended
Outcomes:
Business, IS, IT
Realized
Strategy:
Business, IS, IT
Imposed
Strategic Planning Model
Strategic
Key Operational
High Potential
Support
Competitive
Analysis
Business
Portfolio
Analysis
Value Chain
Analysis
Resource
Life Cycles
Mission
Objectives
CFSs
Strategic Option
Generator
Process and
Activity
Analysis
Data Flow
Analysis and
Modeling
Organizational
Modeling
A Framework for Crea4ng the
Applica4ons PorTolio
Assessing the Need for
Immediate Investment (1-2 years)
(short/medium term-analytical)
Appraisal of IS/IT
as it Relates to the
Business
Identifying
Potential Future
Investments (1-5years)
Interpret business Objectives and strategy
Determine CSFs for The company and its Competitors etc.
Identify critical Business processes And activities
Determine short-term Focus for investment
Understand the industry Structure and business Position (SWOT) Analysis the external
Value chain and information Flow implications
Analysis the internal
Value chain and organizational relationship
Analysis the business Contribution of existing Systems (SWOT)
> Existing Required
Potential applications portofolio
Consider potential IT/IS
Impact on product/market etc.
Consider the strategic Potential of IS/IT and Its effects on the value chain
