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IS/IT Strategic Analysis for Future

Condition

Faculty of Industry and Informatics Technology


Telkom Institute of Technology Purwokerto,
December 2018
Review Questions
 What are the success criteria for IS/IT Strategic Plan?
 Improve performance
 Gaining competitive advantage
 Align IT investment with business strategy
 Better communication
 Etc.
 What are the objectives of IS/IT Strategy formulation?
 Identify current and future information needs
 Create flexible and adaptive IS functions
 Determine police and management for information resources
 Etc.
Review Questions
 What are the outputs of IS/IT Strategic Plan?
 IS/IT management strategy
 Business IS/IT strategy
 IT strategy
 What aspects to analyzed in the internal business environment?
 The business strategy as the means to achieve business objectives
 The current business process, activities, and the main information
entities
 The organizational environment: structure, asset and skills,
competency, culture, etc.
 What are the components of business model architecture?
 Business process model
 Business data model
 Process.entity matrix
Session Objectives
 To understand the development of application
portfolio from a strategic perspective.
 To understand ICT industry value chain to get
maximum benefit from IS/IT investment.
 To identify the business opportunities and threats
formulate IS/IT strategy.
 To describe a framework to develop the business
information strategy.
 To understand the integration of information,
system, and technology.
Session Agenda
 ICT Trends
 Application portfolio and strategic perspective
 Aligning IS/IT Investment Strategy to the Business
 Dimensions of competence
 Value chain analysis
 Value system analysis
 Strategic options generator
 Comparison of techniques
ICT Trends (Gartner, 2013)
 1. MOBILE DEVICES BATTLES
 2. MOBILE APPS AND HTML5
 3. PERSONAL CLOUD
 4. THE INTERNET OF THINGS
 5. HYBRID IT AND CLOUD COMPUTING
 6. STRATEGIC BIG DATA
 7. ACTIONABLE ANALYTICS
 8. MAINSTREAM IN-MEMORY COMPUTING (IMC)
 9. INTEGRATED ECOSYSTEMS
 10. ENTERPRISE APP STORES
MOBILE DEVICES BATTLES
MOBILE APPS AND HTML5

Source: Native, HTML5, or Hybrid: Understanding Your Mobile Application Development Options
PERSONAL CLOUD
PERSONAL CLOUD
THE INTERNET OF THINGS
HYBRID IT AND CLOUD COMPUTING
STRATEGIC BIG DATA
Application portfolio and strategic perspective

Can strategic application exist without key-operational running?


IS/IT Investment Strategy and the Business
Value Chain Analysis
 Definition: A collection of activities that are
performed to design, produce, market, deliver,
and support its product
 Activities can be separated into primary and
secondary
 Activities add value to satisfy customer
requirements
 Activities incur costs by consuming resources
 Adopts a business unit perspective,
independent of organizational structures
Internal Value Chain Analysis: Identify
Information Need Along the Chain
Administration and General management of the business unit as entity
Infrastructure

Human resource Recruit, train, develop, and reward people


management

Product and techno- Develop the technology of products or services


logy development and production processes
Margin
Procurement Acquire the necessary inputs to the value adding activities
=
value
Inbound Operation Outbound Sales and Service
added -
logistics logistics marketing
costs
Receive, Transform Distribute Provide Enhance
store, and inputs into products or ways for value of
disseminate products or services to customers products
inputs services customers to purchase or services
products or sold
service
Internal Value Chain Analysis
Administration and General management, financial management, accounting,
infrastructure and legal

Human resource Manpower planning, remunerations, recruitment, and


management training

Product and techno- Research and development, product design, and process
logy development engineering
Margin
Procurement Supplier mgt., subcontracting, outsourcing, specification
=
value
Inbound Operation Outbound Sales and Service
added -
logistics logistics marketing
costs
Quality Manufacture, Products Customer Warranty,
control, packaging, storage, management, maintenance,
materials quality control, order promotion, education,
control, maintenance handling, sales training, and
materials delivery, analysis upgrading
storage invoicing
External Value Chain Analysis: Identify
Information Need Along the Chain
Materials
Capital Local
distributors

Agencies Business unit


Distributors
Markets

Suppliers
Components Competitors Export
Workforce distributors

Value and demand information


Costs and supply information
Strategic Options Generator
Strategic target Competitors Customers Suppliers
Strategic thrust

Differentiation: premium pricing


through better perceived quality

Cost: aggressive pricing through


better performance

Innovation: new product, services, or


processes that transform relationship

Growth: expansion in volume and


flexibility without more overheads

Alliance: agreement or joint ventures


that enhance other strategic thrusts
 Competitor – Can we use IS to:
 Raise the entry costs of potential competitors?
 Differentiate or create new products or services?
 Reduce our costs or increase their costs?
 Control the channels of distribution?
 Identify or establish new market niches?
 Form joint ventures to enter new market?
 Customers – Can we use IS to:
 Reduce their costs or increase their revenues?
 Increase their switching costs to alternative suppliers?
 Increase their knowledge of our products or services?
 Improve our services to them or reduce the costs of existing
services?
 Discover more about their needs?
 Identify new potential customers?
Give example
 Suppliers – Can we use IS to:
 Improving our bargaining power over them?
 Reduce our buying costs?
 Reduce their selling costs?
 Be a better customer and obtain a better service?
 Identify alternative potential supplier?
 Improve the quality of products or services
purchased?
Comparison of Techniques: Use each Techniques
Appropriately
Technique External Internal Product or service Executive
linkage linkage enhancement or information
systems systems innovation systems

Critical success Low Moderate Low High


factor analysis

Process effectiveness Low High Low Nil


analysis

Value chain analysis Nil High Low Moderate

Value system analysis High Nil Moderate Low

Strategic options Moderate Moderate High Nil


generator

Resource life cycle Low Low High Nil


analysis
DETERMINING the BUSINESS
INFORMATION SYSTEMS
STRATEGY
The IS/IT Strategic Planning
Environment
Imposed Opportunistic Emergence Realized
strategy strategy strategy
Strategy:
Business, IS, IT
Intended Actual Implementation
Strategy: Intended
Business, IS, IT Outcomes:
Planned Implementation
Business, IS, IT

Unrealized
Strategies:
Business, IS, IT
Strategic Planning Model
Business
Portfolio Value Chain
Competitive
Analysis Analysis
Analysis
Resource
Mission Strategic Option
Life Cycles
Objectives Generator
CFSs Organizational
Process and Data Flow
Activity Modeling
Analysis and Informal/
Analysis Modeling Opportunistic
Creative thinking

Strategic High Potential

Key Operational Support

Application Portfolio
A Framework for Creating the
Applications Portfolio
Appraisal of IS/IT Identifying
Assessing the Need for
as it Relates to the Potential Future
Immediate Investment (1-2 years)
Business Investments (1-5years)
(short/medium term-analytical)
Understand the industry Consider potential IT/IS
Interpret business Structure and business Impact on product/market etc.
Objectives and Position (SWOT)
strategy Analysis the external Consider the strategic
Value chain and information Potential of IS/IT and
Determine CSFs for
Flow implications Its effects on the value
The company and its
chain
Competitors etc. Analysis the internal
Value chain and organizational
Identify critical relationship Identify options for
Business processes Long term IS/IT
Analysis the business
And activities Investment and select
Contribution of existing
Most beneficial
Systems (SWOT)
Determine short-term
Focus for investment > Existing
Required
Potential applications portofolio
 Critical success factor (CSF) is the term for
an element that is necessary for an organization
or project to achieve its mission. It is a critical
factor or activity required for ensuring the
success of a company or an organization. The
term was initially used in the world of data
analysis, and business analysis. For example, a
CSF for a successful Information Technology
(IT) project is user involvement
Business Objectives: e-Health
Industry (external) Value Chain
Q/A
 What are the approaches to analyze the external
business environment?
 How these external factors affect the IS/IT
strategy?
 How do methodologies to develop SPIS differ
one to other?
Questions to be Answered from Previous
Session: Analysis of Existing Systems
 How well the existing IS/IT support and enhance the
operational performance?
 How well the existing IS/IT support management
control?
 How well the existing IS/IT fits in the ongoing
development of business?
 Points to identify: system deficiency, obsolescence,
ineffective linkages, poor utilization, etc.
  The answers to these questions are used for
benchmarking the current condition