ISP IRM Midterms Part 1
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Transcript of ISP IRM Midterms Part 1
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Information Systems Planning
Planning Developing a view of the
future that guides decision making today
Strategy Stating the direction you want
to go and how you intend to get there
The result of strategy making is a plan
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Three Types of Planning
Strategic (3-5 years)
Vision . A rch itectu re, bu siness goals
Tactical (1-2 years) Resourc e al locat ion , pro ject select ion
Operational (6 months 1 year)
Project management, meeting t ime,budget targets
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Why is Planning so Difficult?
Business goals and systems plans need
to align
Technologies are rapidly changing
Companies need portfolios rather than
projects
Infrastructure development is difficult to
fund
Responsibility needs to be Joint
Other planning issues
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Traditional Strategy Making vs.Sense-and-Respond Approach
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Traditional Strategy Making
Steps:
1. Business executives created a strategic
business plan that described where the
business wanted to go.2. From that plan, IS executives created an IS
strategic plan to describe how IT would
support that business plan
3. An IT implementation plan was created to
describe exactly how the IS strategic plan
would be implemented
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Traditional Strategy Making
Business
strategy
Systems
strategy
IT strategy
Step 1: Where is the
business going and
why?
Step 2: What is
required
Step 3: How can it bedelivered
IT Impact
Supports business Direction for IS
Infrastructure and servicesNeeds and priorities
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Traditional Strategy Making
Assumptions:
1. The future can be predicted.
2. Time is available to progress through this
three-part sequence.
3. IS supports and follows business.
4. Top management knows best, because
they have the broadest view of the firm.
5. The company can be viewed as an army
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Traditional Strategy Making
Reality today:
1. The future canNOT be predicted.
2. Time is NOT available to for the
sequence.
3. IS does NOT just support the business
anymore
4. Top management may NOT know best
5. The organization is NOT like an Army
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Sense-and-Respond Approach
Let strategies unfold rather than plan
them.
Sensing a new opportunity or possibility
and quickly responding by testing it via an
experiment.
Traditional strategy making is risky because
if top management predictions are wrong, itcould be disastrous
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Case: Microsoft
Bill Gates announced that theyll
focus on the Internet, security and
web-services.Sense-and-respond approach in
creating their Internet strategy.
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Case: Microsoft
Microsoft moved into variety of
technologies: Internet Explorer, web browser
Slate, web-only magazine
Xbox Live, Xbox and the multiplayer broadband gaming
service
.NET platform, web services
Bing.com, search engine
Zune, portable media player
MSNBC, television station
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Case: Microsoft
Microsoft has been sensing and
responding to the moves in several
industries.The strategies have not always come
from the top management.
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Sense-and-Respond Approach
Time
Time
Old-era strategy: One big
choice; long commitment
New-era strategy: Many
small choices, short
commitments
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Case: Skandia Futures Center
3G teams: 25+, 35+, 45+, cross functional, chosen
by peers or nominated by company
Mandate was to focus on questions,rather than answers
Five initial teams developed strategic
questions on five subjects: Insuranceindustry in Europe, technology, world
economics, demographics, leadership
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Case: Skandia Futures Center
3G teams: arrived at a number of interesting
contexts for the questions such as the
evolution of financial world and IT These contexts were presented to 150
Skandia senior managers, through
scenarios of these five futureenvironments, not through documents
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Case: Skandia Futures Center
Knowledge caf: Created by one of the 3G teams and a
few executives
150 senior execs gathered for 1 houraround stand-up tables at different
Skandia sites.
Each table had a coffee and a laptoploaded with groupware software which
were interconnected to form a virtual
community
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Case: Skandia Futures Center
Knowledge caf: Execs exchanged ideas
Was videotaped and sent to larger
community (along with the questions andvideo of the play)
Showed the power of collective
intelligence accelerated innovation
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Case: Skandia Futures Center
Nurturing the Project Portfolio
Center = garden
Some projects are growing and some are not
Created groups (50+, 40+, 30+, 20+)
Different groups have different relationship with
IT
Learned that 35 to 45 year-olds have the lowest
risk propensityInnovative behavior occurs amongst young
people and seniors
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Sense-and-Respond Approach
Guide Strategy Making with a Strategic
Envelope
Rather than devise strategies, they define its
context by setting parameters for theexperiments (the strategic envelope) and then
continually manage that context
May perform management work by defining
territories
i.e. similar to what Microsoft did!
Hold strategic conversations
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Sense-and-Respond Approach
Be at the table
Realities:
IS executives have not always been involved in
business strategizing
IS function needs to be strategy oriented, not tactical
and operational
To become strategy-oriented, CIO must :
1. Make their departments credible2. Outsource most operational work to release
remaining staff to help business partners
strategize
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Sense-and-Respond Approach
Test the future
To get a running start, IS department need to test
potential futures before the business is ready for them
Mechanisms for tests
provide funding for experiments
work with research organizations
Have an emerging technology group
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Sense-and-Respond Approach
Put the infrastructure in Place
Most critical IT decision infrastructure decisions
Recommended that IT experiments include those that
test painful infrastructure issues
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Comparison
Traditional strategy making: one big
choice, long commitment
Sense-and-respond approach: many
small choices, short commitments