Determining the Business Information System Strategy
Transcript of Determining the Business Information System Strategy
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Prof. Rushen Chahal
Determining the BusinessInformation System Strategy
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Agenda
Strategic planning factorsStrategic planning approach
An framework to use the models andtechniquesPortfolio management in a multi-business
unit Organization
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Strategic Planning Model
External long term: external businessenvironmentExternal short term: external IS/ITenvironmentInternal long term: internal businessenvironment
Internal short term: internal IS/ITenvironment + current application portfolio
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External Long Term
External Business EnvironmentState of the industry in terms of profitability, growth, and structure
Capability of IS/IT to change products,markets, and interrelationships of theindustry
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External Short Term
External IS/IT EnvironmentActual competitor usage of IS/IT andothers for competitive edge
IS/IT opportunities to change thecompetitive factors and influences onindustry (existing value chain, newentrants, or products and services)
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Internal Long Term
Internal Business EnvironmentNew IS/IT effectively support or enhancethe business strategy
IS/IT enable business to adopt aappropriate strategy to suit the futurebusiness environment
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Internal Short Term
Internal IS/IT EnvironmentThe degree of existing IS supporting thebusiness strategy and sustaining the
business advantagesThe appropriateness of IS/IT managementto the business strategy and thedevelopment of IS/IT industry
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Strategic Planning Approach - I
Input External and internal business environment
External and internal IS/IT environment Current application portfolio Business portfolio analysis, competitive
analysis, resource life cycles, value chainanalysis, strategic option generator,organizational modeling
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Strategic Planning Approach - II
Input Mission, objectives, CSFs, process and
activities analysis, data flow analysis andmodeling
Informal/opportunistic creative thinking
Output Strategies to achieve application portfolio The future application portfolio
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An Framework to Use the
Models and TechniquesObjective Identify the required applications and their
priorities and resources to achieve thebusiness goals and strategies
Three components The existing application The required application The potential application
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The Existing Application
Appraisal of IS/IT for the business Understand the industry structure and
business position in terms of SWOT Analysis the external value chain and
information flow implications Analysis the internal value chain and
organizational relationships Assess the business of existing system in
terms of SEOT
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The Required Application
Assessing the need for immediateinvestment: short/medium term, 1-2 years,analytical Interpret business objectives and strategy Determine CSFs for the corporate and its
competitors, etc.
Identify critical business process and activities Determine short-term focus for investment
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The Potential Applications
Identifying potential future investment:longterm, 1-5 years, creative
Consider potential IS/IT impact onproduct/market, etc. Consider the strategic potential of IS/IT and its
effects on the value chain
Identify options for long-term IS/IT investmentand select most beneficial
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Portfolio Management in a
Multi-Business UnitOrganizationCoordination and coherent among
corporate and business units
For each business unit High potential (communicate): share ideas
and results of evaluations and prototypes Strategic (capitalize): evaluate how
advantages gained in one SBU can beobtained in others
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Portfolio Management in a
Multi-Business UnitOrganizationFor each business unit
Key operational (control): transfer experiencein use of applications and technology acrossunits, and reduce duplication of IS/IT effort
Support (constrain): achieve economies bysharing non-critical systems and
standardizing on technologies and resourcesused
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Points to Remember
Strategic planning factorsStrategic planning approach
An framework to use the models andtechniquesPortfolio management in a multi-business
unit Organization
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Q uestion
How do you plan or justify an e-businessas a required strategic informationsystem?