Chapter Two The Evolving Information Systems Strategy

1. Chapter TwoThe Evolving Information Systems Strategy Presented by Ankit Sethiya

2. Agenda: • Goal • Nolan’s four-stage model • Nolan’s six-stage growth model • The Earl model • The Bhabuta model • The Hirschheim et al. model • The Seven ‘S’ s • Revised stages of growth model

3. Goals • Recognize various “ stages of growth” models concept. • Recent research on growth phases and electronic commerce has shown the usefulness of these models in describing the company position in terms of electronic commerce development and of its possible development in the future. • Study on maturity models help companies /IT / top-management choose adequate strategies for moving into new, more advanced phases.

4. Nolan’s four-stage model • Nolan is considered to be the first researcher to provide a structured outline to explain the computing evolution within organizations. • Model has been used as basis in over 200 consultancy studies in USA. • Organizations IS department go through predictable stages of growth. • Used to identify the organization IS maturity.

5. Concept • The Nolan’s model consisted of 4 phases: • Initiation • Contagion • Control • Maturity • Nolan’s four-stage model analyzes the organization learning and the amount spent on data processing (DP) as a proportion of sales revenue, DP expenditure would follow a ‘S’ curve.

6. Nolan’s four-stage model Figure 2.1 Four stages of DP growth (amended from Gibson and Nolan, 1974; Earl, 1989, p.28)

7. Nolan’s six-stage growth model • Later, due to the emergence of new applications such as database systems, the initial model was altered to include new two phases :Integration and Data Administration. • Nolan’s six-stage of growth model: • Initiation • Contagion • Control • Integration • Data administration • Maturity

8. Concept • Information systems management focuses on technology in first three stages. • After transformation point of completion of stage three, the model focuses on managing the organization’s data resources, utilizing database technology and methods.

9. Nolan’s six-stage growth model Figure 2.2 Nolan’s six-stage growth model (amended from Nolan, 1979)

10. Comparison between these two model:

11. The Earl model • Earl’s model concentrates on stages through which organizations pass in planning their information systems. • Earl illustrates six stages for planning information system. • Within every stage, It needs to specify a primary task, objective , driving force, mythological emphasis , context of planning and focus of planning effort.

12. Concept • The primary task for IS intends to meet demands from user at the first stage, then , shift to business support, strategic advantage and later to Business-IT strategy linkage. • The focus of planning effort changes from isolated IS department in early stage, through organizational focus , to competitive , environmental focus. • IS department involves in IS planning at the first stage. Then, senior managements join and lead the project in later stages, finally, IS,top management and user involve and develop strategic coalitions.

13. The Earl model

14. The Bhabuta Model • This model proposes four phase of evolution towards strategic planning. • It attempts to map the progress towards formal strategic planning of information systems. • Bring together strategy formulation , information systems, mechanisms in managing information systems and value systems with each phase of the model.

15. The Bhabuta Model

16. The Hirschheim et al. Model • The three phases of the model are labeled ‘delivery’ ,‘reorientation’ and ‘reorganization’. • Delivery phase concerns the ability of IS/ IT function to deliver IS services and whether the function really supports current needs and runs efficiently.

17. The Hirschheim et al. Model • Reorientation phase attempts to align IS/IT investment with business strategy. The focus is on the market place and use IT for competitive advantage. • Reorganization phase concerns with managing relationship between IS function and the rest of the organization. The focus is on internal organization.

18. The Hirschheim et al. Model

19. The Seven ‘S’ s • 7S model is a useful way to look at the many interrelated aspects of a complex organization and it's a great way to help you understand your organization and leverage it to maximum efficiency and profitability. • Seven ‘S’ mean : Strategy, Structure, Systems, Staff, Style, Skills, Superordinate goals.

20. The Seven ‘S’ s The Seven ‘S’ s

21. Revised stages of growth model • The growth in IT maturity can be represented as six stages, each with its particular set of conditions associated with the seven ‘S’ s.

22. Revised stages of growth model

23. Revised stages of growth model

24. Revised stages of growth model

25. Summary • IS management is important topic in organization. • IS strategy must be firmly imbedded within the business strategy. • IS/IT ’s standing become more important and it helps achieve business goals in organization.