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Strategic Management of IS/IT. Organization and Resources Chapter 8. Context of This Session. External Business Environment. Internal Business Environment. Internal IS/IT environment. Current Applications Portfolio. Strategic IS/IT Planning Process. External IS/IT Environment.

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strategic management of is it

Strategic Management of IS/IT

Organization and Resources

Chapter 8


Context of This Session

External Business Environment

Internal Business Environment

Internal IS/IT environment

Current Applications Portfolio

Strategic IS/IT

Planning Process

External IS/IT Environment

Planning Approaches, Tools and Techniques

We are here …

IS/IT Management Strategy

Business IS Strategies

IT Strategy

Applications Portfolio

Model & Matrices

strategic management assumption definition igor ansoff 87
Strategic Management: Assumption & Definition (Igor Ansoff , 87)
  • Asumsi:
    • Contingency: tidak ada satu solusi tunggal yang berlaku universal, maka setiap organisasi akan mempunyai solusi yang spesifik, khusus, dan berbeda dengan organisasi lainnya.
    • Environmental Dependence:solusi yang dihadapi setiap institusi tergantung kepada lingkungan dimana institusi tersebut berada.
    • Requisite Variety: untuk memperoleh suatu keberhasilan yang optimal, maka diperlukan suatu strategy yang agresif yang dapat mengatasi turbulensi lingkungannya.
    • Strategy-Capability-Performance: kinerja institusi akan optimal apabila Strategynya sesuai dengan lingkungan.
    • Multi-component Capability: tidak ada satu komponen tunggal yang paling berpengaruh, baik manajer, struktur, budaya, dan system dalam institusi. Semuanya akan menentukaan sukses tidaknya sebuah institusi.
  • Strategic Management terdiri dari langkah-langkah pemilihan dan penentuan strategi, pembangunan kapabilitas institusi, implementasi strategi dan kapabilitas institusi tersebut.
aspect of is it management
Aspect of IS/IT Management
  • Managing the information and data resource of the organization to ensure that its business value is fully exploited and protected
  • Managing applications as investments, development projects and operational systems from the establishment of requirements to successful long-term use in the business
  • Managing information technology: introduction, development, utilization, replacement
  • Organizational management of IS/IT: related to resources, activities, administration.
strategic planning vs strategic management
Fokus pada pembuatan keputusan tentang strategi yang optimal

Suatu proses analitik

Fokus kepada variabel-variabel bisnis, ekonomi dan teknologi

Fokus kepada hasil dari penerapan strategi

Suatu proses aksi

Fokusnya diperluas sehingga mencakup juga variabel-variabel psikologi, sosiologi dan politik

Strategic Planning Vs. Strategic Management
the impact of is it strategy failure
The Impact of IS/IT Strategy Failure
  • The systems that are developed and implemented do not meet overall business needs;
  • Resources are misused;
  • Strategy formulation is essentially a retrofitting process, producing enormous rework.
any or all three can occur the cause can usually be attributed to three main reasons
Any or all three can occur. The cause can usually be attributed to three main reasons:
  • Lack of alignment between the business and IS strategies;
  • Uncoordinated management of IS demand and IT supply;
  • Over-centralization or decentralization of responsibility
organization strategies
Organization Strategies
  • Written-formal: the approach is very structured and procedural
    • Applied to key operational and support
  • Personal-formal: the approach is partially structured which relies on individuals reaching agreement within a formally constituted group process
  • Personal-informal: no formal planning relationship exists between IS, senior and line managers
the roles of it division
The Roles of IT Division
  • User services: delivery services, systems development, support center, information center
  • Architecture management: planning, technology diffusion, data management
  • Technology development: research and development
  • General: administration, quality assurance
imperatives for the management of is it
Imperatives for the Management of IS/IT
  • Achieve two-way alignment between the business and IS/IT strategy;
  • Develop effective relationships with line management;
  • Deliver and implement new systems;
  • Build and manage IT infrastructure;
  • Re-skill the IS function with new competencies and knowledge;
  • Manage vendor partnerships;
  • Redesign and manage the federal IS organization
four components reflects the strategic role for it
Four Components Reflects The Strategic Role For IT
  • The cost centre has an operational focus that minimizes risks with an emphasis on operational efficiency. Cost-centre activities are good candidates for outsourcing.
  • The service centre, although still minimizing risk, aims to create an IT-enabled business capability to support current strategies.
  • The investment centre has a long-term focus and aims to create new IT-based business capabilities. It seeks to maximize business opportunity from IT resources.
  • The profit centre is designed to deliver IT services to the external marketplace for incremental revenue and for gaining valuable experience in becoming a world-class IS function.
five key competencies
Five Key Competencies
  • IT leadership, which includes IT envisioning, fusing IT strategy with business strategy, and managing IS resources.
  • Architecture development, which is concerned with developing a blueprint for the overall IT technical design.
  • Business enhancement, which includes business process analysis and design, project management and managing relationships with users.
  • Technology advancement, which is application design and development.
  • Vendor management, which includes managing and developing relationships with vendors and suppliers, negotiating and monitoring contracts and purchasing.
location of is it decision making
Location of IS/IT Decision Making
  • Content—the decision areas that are being managed. Included here are decision areas about the whole realm of IS demand and IT supply—areas
  • Authority—the individuals or groups that have the power actually to make decisions in the various areas
  • Responsibilities—the individuals or bodies responsible for day-to-day execution in decision areas.
  • Coordination—essentially, the mechanisms and processes for ensuring coherence across all decision areas.
  • Policies—statements of principles or actions defining acceptable behaviour.
  • Control—outlining the approaches to policing decisions, ensuring conformance across the organization
four distinct contract types or sourcing strategy
Four Distinct Contract Types Or Sourcing Strategy
  • Contract out strategy—with this strategy the vendor is responsible for delivering the results of IT activity.
  • Buy-in strategy—this strategy sees the organization buying in resources from the external market, often to meet a temporary requirement.
  • Preferred contractor strategy—with this approach, organizations contract long term with a vendor to reduce risk, with the vendor responsible for the management and delivery of an IT activity or service.
  • Preferred supplier strategy—this strategy takes the buy-in approach further, with an organization seeking to develop a long-term close relationship with a vendor in order to access its resources for on going IT activities.
five roles critical to success
Five Roles Critical to Success
  • Leadership;
  • Visionary;
  • Relationship builder;
  • Politician;
  • Deliverer.
establishing is it committees
Establishing IS/IT Committees
  • Ensuring top management involvement in IS planning;
  • Ensuring the fit between IS and business strategy;
  • Improving communication with top and middle management;
  • Changing user attitudes to IT.
the executive steering group
The Executive Steering Group
  • This group is as critical to the whole structure as the keystone to an arch.
  • Its membership should reflect the dominant coalition, which implies they are:
    • Able to recognize the potential of IS/IT in terms of the business strategy;
    • Keen to exploit IS/IT as a business weapon;
    • Able to influence the management of systems in the area of the business they represent;
    • Have the confidence of the executive to whom they report
Strategy: the ability to identify and evaluate the implications of IT-based opportunities as an integral part of business strategy formulation and define the role of IS/IT in the organization.
  • Define the IS contribution: the ability to translate the business strategy into processes, information and systems investments and change plans that match the business priorities (i.E. The IS strategy).
  • Define the IT capability: the ability to translate the business strategy into long-term information architectures, technology infrastructure and resourcing plans that enable the implementation of the strategy (i.E. The IT strategy).
  • Exploitation: the ability to maximize the benefits realized from the implementation of IS/IT investments through effective use of information, applications and it services.
  • Deliver solutions: the ability to deploy resources to develop, implement and operate IS/IT business solutions that exploit the capabilities of the technology.
  • Supply: the ability to create and maintain an appropriate and adaptable information, technology and application supply chain and resource capacity.
four solutions to the development of the requisite skills
Four Solutions To The Development Of The Requisite Skills
  • Training new recruits from school or university, which is expensive. Also, people early in their careers are more likely to move on within three to five years.
  • Recruiting experienced staff from other organizations, which can be risky.
  • Training existing non-IS people, especially in application skills in user areas, which may require the development of new job roles.
  • Using external resources, either on a short-term basis to overcome peak loads, etc. Or longer term to provide the organization with particular skills.
positioning is it resources in the organization
Positioning IS/IT Resources in the Organization
  • Decentralize resources: IS/IT resources under the control of the business units
  • Disperse resources:resources are dispersed into functions within the unit
  • Convert IT to a profit center: this is really a service bureau mentality
  • Set up a separate business entity: transforms profit center into a business in its own right.
the culture gap
The Culture Gap
  • Lack of shared values
  • No agreed strategy
  • Failed projects and systems