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IS/IT Roles in Organization and Their Relationship to Business Strategy. Session Objectives. Understand the strategic context of IS/IT in organization Understand the business strategy formulation Understand the impact of business strategy to IS/IT strategy development.
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Characterize the nature of business at DP era?
Characterize the nature of business at MIS era?
Characterize the nature of business at SIS era?
Sales forecasting operating plans capacity
planning, profit/earnings forecasts,
business mix analysis, manpower
planning, financial modeling
Sales analysis budgetary control, management
accounting, inventory management, quality analysis,
expense reporting, market research/statistics, WIP
control, requirements planning, supplier analysis, etc.
Order entry, processing, tracking shipping documents, vehicle
scheduling/loading, invoicing, sales and purchase ledgers, cost
accounting, stock control, shop-floor scheduling, bill of materials,
purchase orders, receiving, employee records, payroll, word
Early Views and Models of IS/IT in Organizations (Anthony, 65)
Exercise your critical thinking by giving more examples to those success factors !!
from R.D. Galliers and E. Somogyi)
An Applications Portfolio for the ‘Combined Era’ McFarlan ‘84
Start thinking about the example of IS/IT Strategy!!
Internal organization pressures:
demanding further distribution of IS/IT control
the criticality of
IS/IT to the business
Infusion-degree of dependence of
IS/IT of the business
Well defined strategic
Supportive value system
Static allocation of
Situation analysis and
Evaluation of strategic
Dynamic allocation of
Stage 1 Stage 2 Stage 3 Stage 4
Financial Forecast-based Externally Strategic
planning planning oriented management
(meet budget) (predict the (think (create the
future) strategically) future)
Economic Political Ecological
Technological Social Legal
Objectives Identify current Identify future Threats and
strategies strategies opportunities
Evaluate Analyze Evaluate
feedback internal strategies
Monitor Implement Select
Strategies Strategies Strategies
Strategic planning of
Strategic thinking and opportunistic
Threat of new
Business strategy: “how to discourage new entrants to come
into the business”
Business strategy: “how to create a loyal customers?”
Business strategy: “how to differentiate your products?”
Business strategy: “how to make the buyers depend on your business”
Business strategy: “how to make the suppliers depend on your business”