IT Strategy

What - Definition

Why – Reasons

What – Structures & Components

What – Types

Who – industries & organisations

Lecture Highlights

Business & IT Strategies’ Relationships

Disconnect

Influences

Influences

Business Strategy

People

Process Information

ITStrategy

Human Computer Interfaces

BusinessApplications

DataRepositories

Bus GoalsBus value

What is IT Strategy?

The Plan The Planning Process

Contents address matters of• Current IT Environment• Future IT Environment• Change Management & Projects• Implementation Governance & Control

Frameworks

Contents Format – varies org to org

Example: https://mn.gov/oet/images/Master_Plan_2012.pdf

Varies org to org

Overview of an IT Strategy Planning Practice Model

Business Strategies

Future Business Operation Model/s

Business applications, technology &

projects

Technology Change

Requirements

Now Future

Enterprise Architecture Change

IT Portfolio, Program & Project Planning

Execute IT Portfolios, Programs & Projects

Portfolio, Program & Project Management Systems

Enterprise Architecture

4 top EA Methodologies

Zachman FrameworkThe Open Group Architecture Framework (TOGAF)

Federal Enterprise Architecture (FEA)Customised Hybrids of the Above

Video – 5.51 m https://www.youtube.com/watch?v=l8w8QSo3OaU

Enterprise Architecture

EA specifies how business and IT are:

1. Aligned in perspectives of:• Processes• Supply Chain Functional Application sets• Information resources• ICT infrastructure as information delivery & customer reach channels

2. Packaged as services

Coordination & Service Mgt Plan

IS Portfolio of Projects Plan

Technology (Infra) Plan

IT Strategy Planning ComponentsSystem Dev Plans

Tech Mgt Plan

IT mgt & control plan

IT Strategy Taxonomies (Classification of IT Strategies)

Taxonomy 4: Sabherwal + Chan (2001)

Taxonomy 1: Lucas and Turner (1982)

• Independent• Policy supporting• Fully Integrated

• IT for Efficiency• IT for Agility (Market responsive)• Both

Academe

Components of IT Strategy

Operations Systems

Market Intelligence

Systems

Decision Support Systems

Inter OrganisationInterfaces

Org Control Systems

PlanningSpecs

IT Strategies’ Descriptors

Ops support systemsEg ERP System

Strategic Decision Support

Systems

Enterprise Market & Performance Tracking systems

Inter-Organisation SystemsEg e-procurement

1) IT Management Structure

CENTRALISED DECENTRALISEDMIXED

2) Types of IS

H L ML H HH H HH L H

Ops support Sys

Market IS

Strategic DDS

Inter-Org Sys

IT forEfficiency

IT forAgility

IT forComprehensiveness

1) IT Management Structure

CENTRALISED DECENTRALISEDMIXED

Centralised IT & more operational

focused

Decentralised IT & more locally & strategically

proactive

Common & local control becos of combined

strategic & operational reasons

Types of Business Strategies

Specialised Strategies based on enterprise strengths

Eg Cost leadershipProduct differentiation

Prefers centralised structures, to have high efficient & sustainable

specialisation and considers outsourcing.

Usually Med to Large Org

Market Changing Strategies based on enterprise innovation & agilityEg ICT firms’ strategies

Prefers decentralisation structures to allow for

local creativity and agility, however run the

risk of inefficiency; prefers inhouse dev.Usually Small Org.

Mix bagto Minimise Risks

Always track market movements to seize any new

opportunities; offer core products & growing new

ones; strategic outsourcing partnership deals.Usually Large Org

More Insights

(Source: http://www.unc.edu/~nielsen/soci410/nm2/nm2.htm)

Prospector

AnalyserDefender

UnderpinningProblems

Solving Culture

Source: http://www.emeraldinsight.com/books.htm?chapterid=1759472&show=html

Business Behaviours in Strategy Orientation

H M L

H M L

L M H

L M H

Defending market share

Business Strategy Classification

DEFENDER PROSPECTORANALYSER

Risk Adverse

Risk Taker/ Market Change Market

Proactive Market Player

Lecture’s Concepts

Theories

Research Findings

Grounded ExplanationsGeneralised Descriptions

Grounded Methods/Techniques

BUT Real World is changing faster than the academe theories development & proofing

The Challenges in the Real World

Technology Change is Faster than Business Change

Advance digital capabilities & infrastructures

Untapped Business Value & Market Potentials

Learning curvesNew skills shortage

Slower take-upsExpensive take-ups

Mass market take-upsas next new technology cycle begins

Class Discussion

5+ years ago – the vision for tomorrow’s technologyhttps://www.youtube.com/watch?v=bwj2s_5e12U

2013 Vision Update

https://www.youtube.com/watch?v=ho00x7ZvDLw

https://www.youtube.com/watch?v=6VfpVYYQzHs

Is IT driving Business , orBusiness driving IT?

Case 1

Group work1. Identify the type of business strategy

pursued by the case company?

2. Identify the type of IT strategy pursued by the case company?

Hint: Which Lecture Slides to Use?How to apply in context of case study?

Case 2

Group work1. In terms of Lucas and Turner (1982)

taxonomy, how would you classify the IT strategy of ModMeters company? Discuss.

2. Identify some of the salient characteristics of IT function discussed in the case report.

3. In terms of three dimensions of IT strategy discussed in Week 3 lecture of FIT9006 unit, discuss the characteristics of IT strategy of ModMeters company

Hint: Which Lecture Slides to Use?How to apply in context of case study?