Developing an IS/IT Strategy
By: Zainal A. Hasibuan
Session ObjecEves
•
Understand the process of developing IS/IT
Strategy
•
Understand the components of IS/IT Strategic
Planning Model
•
Understand how to evaluate IS/IT Strategic
IS/IT Strategy DefiniEon….
•
IS strategy defines the organizaEon’s requirement
for informaEon systems to support the overall
strategy of the business
•
The IT strategy is outlining the vision of how the
organizaEon’s demand for informaEon and
systems will be supported by IT
•
“An IS strategy brings together the business aims
of the company, an understanding of the
informaEon needed to support those aims, and
the implementaEon of computer systems to
IS/IT Strategy is part of IS/IT
Strategic Plan
•
Planning for the effecEve long‐term management
and opEmal impact of informaEon—in all its
forms (IS, IT, manual and computer systems,
organizaEonal aspects of the management IS/IT
throughout the business).
•
“The process of deciding the objecEves for
organizaEonal compuEng and idenEfying
potenEal computer applicaEons which the
organizaEon should implement” (Sethi, 88)
•
It is a plan for the development of systems
towards some future vision of the role of IS in
The ObjecEves of Developing IS/IT
Strategy
•
Alignment of IS/IT with the business
•
Gaining compeEEve advantage
•
Building cost effecEve
•
Developing the appropriate resources
IS/IT strategy
Tips to Develop IS/IT strategy
•
IS/IT Strategy Process Should Become an
Integral Part of Business Strategy,
Business Plan, and Its ImplementaEon.
•
The primary objecEve to develop IS
strategy is to idenEfy value‐added
The EvoluEon of the IS/IT Strategy Process:
Technology Focus to Strategic Focus
IS/IT Planning Problems
•
Fail to get top management support
•
Value system does not go throughout
organizaEon
•
Lack of proper person to the job
•
Not having clear‐cut business strategy
•
Fail to anEcipate new IT development
•
Ignorance of environment‐economy,
The Model of Strategic IS/IT
Planning Processes
•
Inputs
– Internal business environment
• Current business strategy, objecEves, resources, processes and
culture and values of business
– External business environment
• The economic, industrial and compeEEve climate
– Internal IS/IT environment
• Current IS/IT perspecEve in the business, its maturity, business
coverage and contribuEon, skills, resources and technological infrastructure
– External IS/IT environment
• Technology trends and opportuniEes and the use made of IS/IT by
The Model of Strategic IS/IT
Planning Processes
•
Outputs
– IS/IT management strategy
• The common elements of the strategy that apply throughout
the organizaEon, ensuring consistent policies where needed
– Business IS/IT strategy
• How each unit or funcEon will deploy IS/IT in achieving its
business objecEves.
• Alongside each of these are applicaEon porYolios to be
developed for business unit and business models, describing the informaEon architecture of each unit.
• The porYolios may include how IS/IT will be used at some
future date, to help the units to achieve their objecEves
– IT strategy
• Policies and strategies for management of technology and
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
Types of Deliverables from The IS/IT
Planning Processes
•
Hard deliverables
– The current situaEon
– The vision and raEonale for what is being put into place—
informaEon, systems, technology, people, and so on.
– The plans for how it is going to be achieved, with the
milestones along the route
•
So` deliverables
Initiate Planning
Process
Understand the Current Situation
and Interpret Business Needs
Define/Update Information and
Systems Architecture
Determine Business IS
Strategy
Formulate IT Strategy
Prepare Migration
Plans and Business Case
Business Strategy and
Proposed Development Programmme
IS/IT Strategy and Proposed
plans
Business and Technical Environment
Previous IS/IT Strategy
Other Planning
Activities
Ini$ate Planning Process
• The purpose, objecEves, scope and deliverables are confirmed
The approach determined and resourced acquired, such as automated tools
• Business parEcipants idenEfied and team assembled and trained
ExpectaEons, such issues and problems addressed, and risk management proposals put into gear
• Process steering and management mechanisms created
How the work will interface with and feed into business planning
• The people to be interviewed, or who are needed to parEcipate
in group sessions are idenEfied
Understand the Current Situa$on and
Interpret Business Need
•
Analysis of the business strategy, objecEves, criEcal
success factors (CSFs), criEcal problems, and processes, in
order to determine the current situaEon, and its
strengths and weaknesses, and the informaEon needs
and thus the focus for investment in systems to meet
these.
•
EvaluaEon of the current IS/IT operaEon – its systems,
informaEon provision, resources, organizaEon, skills and
services, to determine coverage and contribuEon and
where improvements would be beneficial.
•
InnovaEve analysis of the external and internal business
Determine the Business IS
Strategy
Define Informa$on and System
Architecture
•
This step takes the results of the analysis
of procedures and informaEon needs in
order to build a proposed business model
for the business.
•
It represents the future “ideal” in process,
Formulated IT Supply Proposals
IS strategy and the IT supply proposals can be fed back into the business strategy, for consideraEon and consolidaEon to occur, and senior business management to decide on the likely candidates for the investment programme for the business.
For IS/IT management, it means that the strategy can be firmed up to give a clearer direcEons for where IS is aiming to go.
Business IS Strategy
•
It states how the business will deploy IS/IT in
achieving its objecEves.
•
To link IS/IT firmly to the business strategy
•
It states the applicaEons and services
requirements for the SBU
IT Strategy: Management of Supply
•
To define how resources and technologies will be
managed and developed to saEsfy business IS
strategies.
•
It consists of:
– ApplicaEon porYolio management – OrganizaEon of IS/IT
– Managing the info resources and provision of info
services
– Managing investment, prioriEzaEon and benefits – Managing applicaEon development
IS/IT Management Strategy
•
Apply throughout the organizaEon, ensuring
consistent policies where needed
•
It covers:
– Scope and raEonale – IS/IT organizaEon
– Investment and prioriEzaEon policies – Vendor policies
– Human impact policies – IS accounEng policies
EvaluaEon of IS/IT Strategic Plan:
Success Criteria
•
Improve performance
•
Gaining compeEEve advantage
•
Align IT investment with business strategy
•
Becer communicaEon
•
Improve management commitment
•
Becer allocaEon of IT resources
•
Becer IT forecasEng requirement
Factors affecEng IS/IT Development
•
External business
•
External technology
•
Internal business
•
Internal technology
Discussion on the end of Chapter 3
What is IS/IT Strategy?
Why Developing IS/IT Strategy?
How IS/IT Strategy fits in Business Strategy?
Who in charge developing IS/IT Strategy?
What are steps to develop IS/IT Strategy?
