Strategic Management of IS/IT
Organization and Resources
Chapter 8
Zainal A.Hasibuan
Context of This Session
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
Strategic Planning Vs. Strategic Management
•
Fokus pada pembuatan
keputusan tentang
strategi yang op>mal
•
Suatu proses anali>k
•
Fokus kepada variabel‐
variabel bisnis, ekonomi
dan teknologi
•
Fokus kepada hasil dari
penerapan strategi
•
Suatu proses aksi
The Impact of IS/IT Strategy Failure
1.
The systems that are developed and implemented do
not meet overall business needs;
2.
Resources are misused;
3.
Strategy formula>on is essen>ally a retrofiJng
The causes of IS/IT Strategy Failure
1.
Lack of alignment between the business and IS
strategies;
2.
Uncoordinated management of IS demand and IT
supply;
Aspects of IS/IT Management
Managing the
information
and data resource of the
organization to ensure that its business value is fully
exploited and protected
Managing applications as
investments
, development
projects and operational systems from the
establishment of requirements to successful long
-term use in the business
Managing information
technology
: introduction,
development, utilization, replacement
Organizational management of IS/IT: related to
IS/IT Organiza>on Strategies
•
WriQen‐formal: the approach is very structured and
procedural
–
Applied to key opera>onal and support
•
Personal‐formal: the approach is par>ally structured which
relies on individuals reaching agreement within a formally
cons>tuted group process
•
Personal‐informal: no formal planning rela>onship exists
The Roles of IT Division
•
User services: delivery services, systems
development, support center, informa>on center
•
Architecture management: planning, technology
diffusion, data management
•
Technology development: research and development
Impera>ves for the Management of IS/IT
1.
Achieve two‐way alignment between the business and IS/IT
strategy;
2.
Develop effec>ve rela>onships with line management;
3.
Deliver and implement new systems;
4.
Build and manage IT infrastructure;
5.
Re‐skill the IS func>on with new competencies and
knowledge;
6.
Manage vendor partnerships;
Four Components Reflects The Strategic Role For IT
•
The
cost centre
has an opera>onal focus that minimizes risks
with an emphasis on opera>onal efficiency. Cost‐centre
ac>vi>es are good candidates for outsourcing.
•
The
service centre
, although s>ll minimizing risk, aims to
create an IT‐enabled business capability to support current
strategies.
•
The
investment centre
has a long‐term focus and aims to
create new IT‐based business capabili>es. It seeks to
maximize business opportunity from IT resources.
•
The
profit centre
is designed to deliver IT services to the
Five Key Competencies
•
IT leadership, which includes IT envisioning, fusing IT
strategy with business strategy, and managing IS resources.
•
Architecture development, which is concerned with
developing a blueprint for the overall IT technical design.
•
Business enhancement, which includes business process
analysis and design, project management and managing
rela>onships with users.
•
Technology advancement, which is applica>on design and
development.
Loca>on of IS/IT Decision Making
• Content—the decision areas that are being managed. Included here
are decision areas about the whole realm of IS demand and IT supply—areas
• Authority—the individuals or groups that have the power actually
to make decisions in the various areas
• Responsibili6es—the individuals or bodies responsible for day‐to‐
day execu>on in decision areas.
• Coordina6on—essen>ally, the mechanisms and processes for
ensuring coherence across all decision areas.
• Policies—statements of principles or ac>ons defining acceptable
behaviour.
• Control—outlining the approaches to policing decisions, ensuring
Four Dis>nct Contract Types Or Sourcing Strategy
• Contract out strategy—with this strategy the vendor is responsible for delivering the results of IT ac>vity.
• Buy‐in strategy—this strategy sees the organiza>on buying in resources from the external market, ocen to meet a temporary requirement.
• Preferred contractor strategy—with this approach, organiza>ons contract long term with a vendor to reduce risk, with the vendor responsible for the management and delivery of an IT ac>vity or service.
Five Roles Cri>cal to Success
•
Leadership;
•
Visionary;
•
Rela>onship builder;
•
Poli>cian;
Establishing IS/IT CommiQees
•
Ensuring top management involvement in IS planning;
•
Ensuring the fit between IS and business strategy;
•
Improving communica>on with top and middle
management;
The Execu>ve Steering Group
•
This group is as cri>cal to the whole structure as the
keystone to an arch.
•
Its membership should reflect the dominant coali>on,
which implies they are:
– Able to recognize the poten>al of IS/IT in terms of the business strategy;
– Keen to exploit IS/IT as a business weapon;
– Able to influence the management of systems in the area of the business they represent;
1. Strategy: the ability to iden>fy and evaluate the implica>ons of IT‐ based opportuni>es as an integral part of business strategy
formula>on and define the role of IS/IT in the organiza>on.
2. Define the IS contribu6on: the ability to translate the business
strategy into processes, informa>on and systems investments and change plans that match the business priori>es (i.E. The IS strategy).
3. Define the IT capability: the ability to translate the business strategy
into long‐term informa>on architectures, technology infrastructure and resourcing plans that enable the implementa>on of the strategy (i.E. The IT strategy).
4. Exploita6on: the ability to maximize the benefits realized from the
implementa>on of IS/IT investments through effec>ve use of informa>on, applica>ons and it services.
5. Deliver solu6ons: the ability to deploy resources to develop,
implement and operate IS/IT business solu>ons that exploit the capabili>es of the technology.
6. Supply: the ability to create and maintain an appropriate and
Four Solu>ons To The Development Of The
Requisite (Essen>al) Skills
1.
Training new recruits from school or university, which is
expensive. Also, people early in their careers are more likely
to move on within three to five years.
2.
Recrui>ng experienced staff from other organiza>ons, which
can be risky.
3.
Training exis>ng non‐IS people, especially in applica>on skills
in user areas, which may require the development of new job
roles.
4.
