Information Systems and Strategic Information Systems Planning Information Systems Foundation...

7/27/2019 Information Systems and Strategic Information Systems Planning Information Systems Foundation (IS201)

1/15

Abdisalam IssaSalwe, Lecture Notes, Thames Valley University, 2008.

1

Information Systems and StrategicInformation Systems Planning

Information Systems Foundation (IS201)

Lecture 6Lecture 6Lecture 6Lecture 6

Abdisalam IssaSalwe

Taibah University

Information Systems

Faculty of Computer Science & EngineeringInformation Systems Department

2Abdisalam IssaSalwe, Faculty of Computer Science & Engineering, Taibah University

Topic list

Strategic planning

Vision and Business needs

Earls grid

McFarlans application portfolio

Business Process Reengineering(BPR)


2/15


Strategic planning

Entrepreneurs and businessmanagers are often so preoccupiedwith immediate issues that theylose sight of their ultimateobjectives.

That's why a business review orpreparation of a strategic plan is avirtual necessity.

This may not be a recipe forsuccess, but without it a business ismuch more likely to fail.


Strategic planning (cont)

A sound plan should:

* Serve as a framework for decisions orfor securing support/approval.

* Provide a basis for more detailedplanning.

* Explain the business to others inorder to inform, motivate & involve.

* Assist benchmarking & performancemonitoring.

*Stimulate change and becomebuilding block for next plan.


3/15



A strategic plan should not beconfused with a business plan.

* The former is likely to be a (very)short document whereas a businessplan is usually a much more substantialand detailed document.

* A strategic plan can provide thefoundation and frame work for abusiness plan.



A strategic plan is not the same thing asan operational plan.

The former should be visionary,conceptual and directional in contrast toan operational plan which is likely to beshorter term, tactical, focused,implementable and measurable. * As an example, compare the process of

planning a vacation (where, when, duration,

budget, who goes, how travel are all strategicissues) with the final preparations (tasks,deadlines, funding, weather, packing, transportand so on are all operational matters).


4/15



Basic Approach to StrategicPlanning

* A critical review of past performanceby the owners and management of abusiness and the preparation of a planbeyond normal budgetary horizonsrequire a certain attitude of mind andpredisposition.

* Some essential points which shouldto be observed during the review


The Vision The preparation of a strategic plan is a

multistep process covering vision,mission, objectives, values, strategies,goals and programs.

The first step is to develop a realistic Visionfor the business.

This should be presented as a pen picture of thebusiness in three or more years time in terms of

its likely physical appearance, size, activitiesetc.

Answer the question: "if someone from Marsvisited the business, what would they see (orsense)?"


5/15


McFarlans Application Portfolio

The Application Portfolio Matrix: Theapplication portfolio concept meansbringing together existing, plannedand potential information systemsand assessing their businesscontribution.

Applications need to be planned andmanaged according to their lifetimeand future contribution to the

business.


McFarlans Application Portfolio (cont)

The earliest and most famous applicationportfolio model was developed by Gibson andNolan (1974) during the 1970s.

This model in turn used a hierarchicalapplication portfolio model.

The model structured applications of threemanagement activities:

planning

control

operational.


6/15



In 1984, McFarlan and McKenneys developed amodel that considered the relationship withbusiness success.

The model proposes an analysis of all existingand planned information systems into fourcategories based on current and futurebusiness importance.

The model has two dimensions:

* the strategic meaning of existing informationsystems

* the strategic meaning of planned informationsystems



The model proposes an analysis of all existing,planned and potential applications into fourcategories based on assessment of the currentand future business importance of applications.

Depending on its current or expectedcontribution to the business success, anapplication can be defined as

* high potential,

* strategic,

* key operational or

* support,


7/15





High potential includes applications thatcan be very important to reach futuresuccess. These applications arecharacterised by a rapid prototypingdevelopment with a power to refusefailures before spending a lot ofresources.

Strategic applications are critical for the

activity and of highest potential value.These are applications that the companystrategically trusts on to reach futuresuccess.


8/15



The key operational applications are thosethe organisation is dependent on in thepresentday situation to reach success.The key operational applications areimportant for the primary process andincrease their value.

The support includes applications thatsupport the activity but are not instrategically valuable. The supportsystems are not critical for theorganisations future if they are not

wasteful with valuable resources or if themarket share is being changed.




9/15



Organisation:

the organisation of the IS function including the processesfor formulating and implementing IS policies. This doesnot include the broader organisational implicationsassociated with the implementation of new systems.These are addressed in the Organisational issues beyondthe IS function and Networked organisations in a postindustrial world modules;

Data:

the data architecture required to support the requiredapplications;

Technology:

the technology architecture required to deliver the

required applications;


Earl's Audit Grid From an examination of McFarlan & McKenneys

Grid, it should be obvious why a company shouldhave an IT strategy.

If a company is on either the turnaround or strategicquadrants of McFarlans Grid, then obviously acompany should have the appropriate strategy toenable it to plan for future developments.

Even if it is in the factory quadrant, IT systems aremission critical and the company should have a

strategy as to (a) how to maximise the benefits arising from its

deployment of IT, and

(b) how to cope in the event of a systems failure(i.e. have a back-up or recovery plan).


10/15



Earl's Audit Grid (cont)

Earls nine reasons:

* IT involves high costs.

* IT is critical to the success of many organisations.

* IT is now used as part of the commercial strategy inthe battle for competitive advantage.

* IT is required by the economic context (from amacroeconomic point of view).

* IT affects all levels of management.

* IT has meant a revolution in the way information iscreated and presented to management.

* IT involves many stakeholders, not justmanagement, and not just within the organisation.

* The detailed technical issues in IT are important.

* IT requires effective management, as this can makea real difference to successful IT use.


11/15


Business Process Redesign

Business Process Redesign is "the analysis and design of workflows and

processes within and between organisations"(Davenport & Short 1990).

Teng et al. (1994) define BPR as

"the critical analysis and radical redesign ofexisting business processes to achievebreakthrough improvements in performancemeasures."


Business Process Redesign (cont)

Reengineering is the fundamentalrethinking and redesign of businessprocesses to achieve dramaticimprovements in critical,contemporary measures ofperformance, such as cost, quality,service and speed.

(Hammer & Champy,1993)


12/15


Business Process Redesign (cont)

BPR generally approaches theproblem from the point of view ofthe customer and of the process.

Customer views are required to ensure thatthe eventual design actually satisfies them.

Process views are required to try to removethe intray problem, and to focus activitywithin it on the goal of the process not thefunction, so that unneeded or irrelevantactivity is removed.


BPR Versus Process Simplification

Process Reengineering

Radical Transformation

Vision-Led

Change Attitudes & Behaviors

Director-Led

Limited Number of Initiatives

Process Simplification

Incremental Change

Process-Led

Assume Attitudes & Behaviors

Management-Led

Various Simultaneous Projects


13/15


Why Re-engineer?

Customers Demanding

Sophistication

Changing Needs

Competition

Local

Global

Change

Technology

Customer Preferences


Why Organisations Dont Reengineer?

Complacency

Political Resistance

New Developments

Fear of Unknown and Failure


14/15


Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan


Reference

Laudon, K. & Laudon, J. (2006):Management InformationSystems:Managing the Digital Firm, 9th ed.Prentice Hall

Abdisalam IssaSalwe, Lecture Notes,Thames Valley University, 2008.

Dave Chaffey, Paul Bocij, Andrew Greasleyand Simon Hickies (eds) (2003): Business

Information Systems: Technology,Development and Management, PearsonEducation Limited, London.


15/15


Tutorial Question

Getting approval to implement areengineering project is often difficult.

Management is more likely to approveyour request if you present them with a

cohesive justification. A completebusiness case contains all of the facts

that justify the BPR effort.

Discuss

Information Systems and Strategic Information Systems Planning Information Systems Foundation...

Documents

Transcript of Information Systems and Strategic Information Systems Planning Information Systems Foundation...