Business Transformation

Overview
strategic grid
opportunity
frameworks

index matrix
IS strategy
transformation
IT strategy
graph
 strategic grid
 identify current IT systems role in
organisation
 plan future developments to IT systems

 opportunity frameworks
 identify ways to use IT/IS in support of
business strategy/opportunity
 index matrix
 identify & plan medium-scale business
benefits from IS/IT
 transformation graph
 plan major-scale IT/business process re-
engineering (BPR)
Transformation benefits
 MIT 90’s identified 5 transformation
levels
 localised exploitation
 internal integration
 business process redesign
 business network redesign
 business scope redefinition
Localised exploitation(1)
 basic level
 ‘islands of automation’
 lacking integrated infrastructure
 efficiency benefits
 Localised exploitation
administration administration administration

stage1 stage2 stage3 stage4 stage5 stage6

input operations output

administration administration administration

stage1 stage2 stage3 stage4 stage5 stage6

input operations output

 Enablers & inhibitors
enablers
inhibitors
inhibitors
technological technological
•favourable cost
•obsolescence
/performance trends
•vendor push – system level 1 •cost performance
reduction
solutions

organisational organisational
•lack strategic vision
•localised impact
•unwillingness to
•ease of assessing
recognise strategic role
efficiency benefits
of IT/IS
•minimal disturbance
Internal integration(2)
 IT platform in entire business process
integration
 data sharing/communication
 common applications
 integration of task/process/function
 integration of both technology &
organisation
 Internal integration
administration administration administration

stage1 stage2 stage4 stage5

input operations output

administration administration administration

IT platform for internal integration
stage1 stage2 stage3 stage4 stage5 stage6

input operations output

 Enablers & inhibitors
enablers inhibitors
inhibitors
technological technological
•increase connectivity • uncertainty
capabilities
level 2 •integration cost
•favourable cost/
performance trends organisational
•vendor push – system •lack strategic
solutions integration vision

organisational •organisational inertia

•strategic integration •centralisation /

vision via IT platform decentralisation conflict
Business process redesign(3)
 fundamental rethink of conducting
business effectively
 limited/controlled business
transformations
 Business process redesign
administration administration administration
IT platform for internal integration
stage1 stage2 stage3 stage4 stage5 stage6
input operations output

administration
IT platform for redesign
stageA stageB stageC stageD

input operations output

 Enablers & inhibitors
enablers inhibitors
inhibitors
technological technological
•favourable cost / • uncertainty
performance trends
level 3 •redesign cost
organisational
organisational
•awareness of IT power
•lack strategic redesign
•willingness to change to vision
exploit IT
•organisational inertia
marketplace •cost of organisation
•competitive pressures transformation
Business network redesign(4)
 use of IT by stakeholders
 new ‘value webs’/alliances
 traditional/formal organisation
‘virtual’/’networked’ organisation
 two basic considerations
 business governance strategies
 IT governance strategies
 Strategic options
tightly collaborative business
coupled advantage network
redesign
business
govern-
ance
electronic competitive
infrastructure advantage
loosely
coupled

common role IT governance unique role

 Enablers & inhibitors
enablers inhibitors
inhibitors
•ability to specify/ •lack of standards
create standards
for integration •lack of vision /
level 4 understanding
•value added
services •lack of integration
identification commitment

•mutual benefits •possible market

recognition position erosion
Business scope redefinition(5)
 new business ventures
 new markets
 new ways of doing business
 Business domain enlargement

products traditional
business scope products additional IT
generated
business

markets

technology technology markets

traditional operating
technology new IT infrastructure
/ IS applications
 Shifting the business domain

products
products
traditional
business
scope
markets
markets

technology traditional technology

increased role
operating for IT
technology operations
 Transformation graph
high
5

degree 4
of revolution
3
transfor
mation
2
evolution
low 1

low range of potential benefits high