Faculty of Engineering and Information Sciences ASSIGNMENT BRIEFING FRONT SHEET

Assignment D1 Developing Information Title Systems/Information Technology (IS/IT) Strategies Date submitted

Module Title Strategic Information Systems Planning

and Management (SISPM Trinidad)

Module 3COM0130 Code

Tutors

Dr. Sandra Folgate Amanda Jefferies

GROUP or INDIVIDUAL Assignment

Individual

(Comments on this assignment by students can be made on the back of the assignment briefing sheet). By completing BOX A below, I certify that the submitted work is entirely mine and that any material derived or quoted from the published or unpublished work of other persons has been duly acknowledged. [ref. UPR AS/C/6.1, section 7 and UPR AS/C/5 (Appendix III)]. Please print your forename and surname in capitals, provide your; - ID number, the study year code (e.g. CS1, ASE1), actual time spent on the assignment and your signature.

BOX A

Student Forename
(in CAPS please)

Student Surname
(in CAPS please)

Student ID Number

Year Code

Actual Time Spent by the Student (hours)

Signature of Student

WAYNE

ROCK

09194865

EICSWb3

24

ASSIGNMENT AIMS:

To enable students demonstrate an understanding of the issues currently affecting IS/IT strategy development.

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MODULE LEARNING OUTCOMES ASSESSED:

The contribution that effective strategic management of information, information system and information technology can make in enabling organizations to operate more flexibly, and more competitively, in the global environment. Evaluate critically current methods and techniques used to develop business and information strategies.

SUBMISSION REQUIREMENTS: You are required to submit via Studynet 1 document only, a word file which contains the assignment submission form at the beginning.

SUBMISSION REQUIREMENTS:

See assignment brief below You are required to submit via Studynet 1 document only, a word file which contains the assignment submission form at the beginning.
MARKS AWARDED FOR:

See assignment brief for Assignment 1

25 This assignment is worth % of Typical (hours) required by the student(s) to complete the

20

the overall in course assessment for this module. assignment.

Date work handed out

12th Oct.2009 2008

Date to be handed in

9th Nov. 2009

Internal moderator approval (signature)

A.Rainer

Target date for the return of the marked Assignment

7th Dec. 2009 Marks Awarded % [Late submission will attract lateness penalty]
Awarded After Lateness Penalty

standard

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A note to the Students: 1. For undergraduate modules, a score of 35% - 39% represents performance at non-honours level. Scores above 40% represent performance at honours level. 2. For postgraduate modules, a score of 50% or above represents a pass mark. 3. Modules may have several components of assessment and may require a pass in all elements. For further details, please consult the relevant Definitive Module Document, Module Guide or Module Leader.

STUDENT COMMENTS ON THE ASSIGNMENT (optional- for your continued academic and personal
development you are encouraged to review your achievement and reflect on your progress in your studies).

What did you do well?

What could you have done better?

What would have enabled you to do it better?

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MARKERS COMMENTS (markers may elect to provide feedback or comments by alternative means on students submissions, e.g. StudyNet, detailed marking plan, etc.)

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Developing Information Systems/Information Technology (IS/IT) Strategies

Introduction
The business environment is in a state of constant growth and evolution, and with this growth came different methods of integrating Information Technology (IT) and organizational needs. Today Information Systems/Information Technology (IS/IT) Strategy is no longer simply an asset to an organization; it has currently become a tactic for continued existence within its market and a crucial determinant of organizational success.

The three main benefits for an organization having an IS/IT strategy.

It stands to reason that there is no logic in implementing an IS/IT strategy if the company does not gain some form of return on the investment made. In terms of a company employing an IS/IT strategy the most commonly cited benefit, and arguably the benefit with the largest impact on the organization, is procuring competitive advantage. Nobosh Quotes (2009) has cited Jack Welch, CEO of General Electronics as saying If you do not have competitive advantage, do not compete. However, it is not enough to simply achieve competitive advantage, which is often viewed as a temporary benefit. Ward and Peppard (2002: 53) argue that while competitive advantage is merely an end result, sustainable competitive advantage is born when a companys compet itors are unable to mimic the course of action used to attain their position and is therefore more desirable. Attaining sustainable competitive advantage signifies that the company outperforms other companies providing the same good(s) or service(s) and therefore holds a significant position in the business environment. This leads to a plethora of benefits, including intensified employee morale and motivation to help maintain the business status, which will in turn generate larger profits. Another benefit to an organization choosing to utilize an IS/IT strategy stems from the goal of alignment of the IS/IT strategy to the business objectives. Businesses will have different objectives at different levels of the organization and each department would utilize Information Technology to different effect based on their objectives. Without an IS/IT Strategy, there is a lack of prioritization and coordination of IS/IT resources which leads to a decrease in efficiency. However, in an organization, communication and coordination are key elements in being successful. An IS/IT strategy brings the organizational objectives in line with the technological endeavours of the company. Synchronization leads to improved allocation of IS/IT resources and will therefore promote competitive advantage. In addition to this, because the business will be unified in all aspects, top level management will be more involved in acquiring information and decision making. Having a first-rate IS/IT strategy can assist an organization in discovering, manipulating and moving to the best possible path for the business. One of the key goals of producing an IS/IT strategy is to establish and build a value added applications portfolio which will bolster the business objectives and information needs. It is the value added portfolio that facilitates the identification of the business optimal path as it contains available strategies from which the business can decide of which to implement. In businesses, information is crucial and constantly changing and an IS/IT strategy offers support which meets with information needs, whether they be current, transitional or future.

Comment [M1]: Key point

Comment [M2]: Key point

Comment [M3]: Key point

Comment [M4]: You have provided a description with examples of benefits such as competitive advantage, aligning IT services with the business, building a cost effective infrastructure. (see W&P p47, p119)

(a) 6 out of 6

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Steps and stages typical of developing an IS/IT strategy

Developing an IS/IT strategy is a particularly complex process since it is not likely that every business will require an identical strategy or even that one business will undertake the same strategy twice. Ward and Peppard (2002: 157-161) have outlined several broad steps and stages to undertaking the development of IS/IT strategy which can be adapted and tailored to accommodate the needs of most companies (refer to Appendix B Figure 1). Although any development approach will be unique to the organization that will implement the IS/IT strategy, there are several characteristics that must be present regardless. The chosen approach should not be too detailed, but should be able to be examined broadly to observe the strategy development as a whole. The focus should be on deliverables, both tangible and intangible. There should be clear milestones, flexibility and adaptability. Before development begins, the scope, objectives and deliverables must be ascertained. Additionally, Brian P. Bloomfield et al (2002: 14) states the entire exercise of SISP in other words is dependent on the existence of an explicit and stable business strategy The development steps are presented in the form of a framework, rather than a set of rules to follow, simply because a framework acts as a guideline and is generally more adaptable than a plan. Though referred to as steps, each does not simply transition into the next. Some stages draw from outcomes of one or more stages while others depend heavily on the outcome of one stage in order to initiate. The preparatory step in the planning process is Initiation of the Strategy Process. In this stage the scope, objectives, Terms of Reference and deliverables that were previously identified are now established and the strategy methodology is chosen and cemented. Top managements involvement should also be obtained. Any accompanying resources are then obtained. Following this the team of resource personnel involved in the development process needs to be identified and properly informed and educated so that everyone clearly understands and will be working toward a common objective. Understanding the Current Situation and Interpreting Business Needs is the subsequent step. The objective of this step is to attain a greater understanding of the business environment and to ascertain the potential needs of the business. There are three categories involved, the first one determining the existing business situation. This is done by analyzing the business strategy, objectives, critical success factors (CSF), its strengths and weaknesses, necessary information and determining which systems should be used. A SWOT analysis and Critical Success Factor tool would be used for the ascertaining of the information mentioned. The second category assesses current IS/IT services, capabilities, resources, operational value and information provision in order to establish where change is most needed. The third and final category deals with the identification of IS/IT dependant business-based innovations by conducting an analysis of the internal/external business environments. A PEST (LE) analysis and Situation Analysis would be employed in this category. It is in this stage that many tools and techniques would be utilized because of the surplus of information that needs to be extracted. Following this is Determining the Business IS Strategy in which the business IS demands are reshaped into proposals for the distribution of IS/IT throughout the entire organization. Conceptual

Comment [M5]: Key point

Comment [M6]: Key point

Comment [M7]: Key point

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Information Systems are merged and recorded to an applications portfolio which represents possible position for every Strategic Business Unit that was considered. The Define Information and Systems Architecture step uses the results of the process and information needs analysis and constructs a proposed business model for the organization. This business model is meant to represent the future archetype in terms of processes, information and systems. It is also a necessity if the business needs to develop a migration plan. The work can only initiate when environmental analysis begins and continues up to the completion of the IS business strategy formulation. The next step is Formulating IT Supply Proposals in which deliberation and consolidation of the IS strategy and IT supply protocols takes place by sending it back to the business strategy process where top management use them to make a decision on which investment program is most feasible and valuable for the business. This step continues from the outcome of Determining the Business IS Strategy and it is shown clearly that before the IT strategy can be formulated, the IS strategy needs to be produced. The deliverables from the previous stage are used in the development of migration plans and high level business cases for the accepted developments by merging their IS/IT and business aspects.
Comment [M8]: Key point, more detail

Comment [M9]: Key point

Comment [M10]: You have outlined, and provided some description of: Initiate Strategy Process Understand the current situation and Interpret Business Needs Determine the Business IS Strategy Define Information and Systems Architecture Formulate IT Strategy Prepare migration plans and business case. I would like to have seen more discussion of how the ideal Information and systems architecture is developed (b) 5.5 out of 6

Factors in Managing Change

"It is change, continuing change, inevitable change that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be." Isaac Asimov In developing an IS/IT strategy there is unavoidable change, because development in and of itself is change. Of course, with change, brings many unforeseeable negative reactions and outcomes, such as stress, avoidance, resistance and chaos to name a few. This is especially so if the change will affect the day to day operations of an organization. In a business, if these negative reactions were not mitigated, organizations would fail on a daily basis and productivity would cease to exist. Change and more importantly, the change process must be controlled. Strategies and approaches used to control the change process have come to be known as change management. Change management has a number of important factors, which include, resources, degree of involvement of the persons involved, change agents, resistance to change, the need for change, the process or time for change to take place and a number of others. Arguably, one of the most influential factors is that of the Change Agent. Cameron and Green (2009: 158) state that a change agent is the facilitator of the change and that he or she aligns various external and internal forces in the business. The change agent usually functions as the motivator, director, educator, advisor and facilitator of change. Being a Change agent does not mean that the person is necessarily in a position of authority, although they can be. While the change agent may or may not a person in authority they must be a person with significant influence over the other persons involved in the change. Charisma, sociability, kindness and responsibility are just some of the many traits that a Change Agent should possess. Sometimes, the external participants tend to abandon the Change Agent to the internal participants. When this occurs the change agent can overwork and make the system unproductive and the change shortterm.

Comment [M11]: Key point

Comment [M12]: Good reference

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If an organization neglects to take the presence of a Change Agent into consideration, this could result in a largely negative impact on the business especially during a time of change. A local government agency, which facilitates the rehabilitation of inmates through training and retraining, recently implemented an Information Technology program. The program was designed to tutor inmates in using Microsoft Office 2003, but recently, Microsoft released Microsoft Office 2007. The examining board quickly imposed that the curriculum be switched to teaching Office 2007 and the entire agency was soon on board. However, with the absence of a change agent, the tutors were not motivated or enthusiastic about the change. The majority resisted the change and the program was relegated to teaching Office 2003 for another year. The purpose of that story was simply to illustrate the need for the Change Agent. If the tutors had a fellow tutor to motivate, educate and provide relief to that fact that this was a major change, the tutors may have been more accepting to the change. Without a change agent, resistance to change is higher as there is no one to initiate and motivate change. There can be wholesale rejection of ideas and projects which leads to less productivity, frustrated employees and in the worse case the failure of a business. Another important factor of Change Management was mentioned in the previous paragraph, Resistance to Change. Johnson (1998) states in his book Who Moved My Cheese? a change imposed is a change opposed. This generally means that employees usually resist change if it is forced change. Resistance to change can lead to many negative side effects for companies, like under production, reactivity rather that pro-active attitudes and unwillingness to change. Companies have stayed stagnant for years because of employee resistance to change. Because change is a cause factor of stress, due to human beings growing comfortable where they are, when employees are put into an environment of change, they try to retain their comfort zone and resist the change hoping that it will go away. Businesses need to take this into consideration and try to transition employees through change rather than force them.

Comment [M13]: Classic example

Comment [M14]: Key point Comment [M15]: Good reference

Comment [M16]: You have described some key factors in the management of change such as the need to plan effectively, addressing the organizations change culture , investment in a long term vision, effective communication and leadership. You could have described in more detail some of the negative effects of not addressing these key factors. (c) 7 out of 8 Comment [M17]: Your answer would benefit from a conclusion Comment [M18]: Use of English (d) 4.5 out of 5 Comment [M19]: Overall you have presented an excellent discussion of the benefits, steps and stages and management of change for an IS/IT strategy study. I liked to see your full discussion of your key points with good examples to support your points and demonstrate your understanding of the topic. Well Done. (a)6(b)5.5(c)7(d)4.5 Total 23 out of 25

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APPENDIX A Bibliography
Bloomfield, B.P. (2000). Information Technology and Organizations : Strategies, Networks, and Integration. London: Oxford. Burnes, B (2004). Managing Change A Strategic Approach to Organizational Dynamics. 4th ed. Harlow: Pearson.Cameron, E & Green, M (2009). Making Sense of Change Management. 2nd ed. London: Kogan Page. Johnson, S (1998). Who Moved My Cheese?. USA: Putnam Adult. Nobosh Quotes. (2009). General Electronic Quotes. Available: http://quotes.nobosh.com/generalelectric-quotes/quotations/. Last accessed 09 Nov 2009. Ward, J & Peppard, J (2002). Strategic Planning for Information Systems. 3rd ed. Chichester: John Wiley & Sons, Ltd.

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APPENDIX B

Figure 1 Framework for IS/IT strategy formulation and planning process taken from Strategic Planning for Information Systems by Ward and Peppard

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