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CE53802-3 Information Systems Strategy Week 5

Formulating IT/IS StrategyThis is an easy topic in the classroom but very difficult and complex in application. 3. Earl's approach to strategy. Earl suggests that three separate activities are neededeach driven by a different group, if a proper corporate strategy is to be developedHe calls this his Multiple Methodology', orThree Pronged ApproachThe arguable' rational for this is that no single IS/IT strategy will work".

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CE53802-3 Information Systems Strategy Week 5

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    1. CE53802-3 Information Systems Strategy Week 5

    2. Formulating IT/IS Strategy This is an easy topic in the classroom but very difficult and complex in application

    3. 3 Earl’s approach to strategy Earl suggests that three separate activities are needed each driven by a different group, if a proper corporate strategy is to be developed He calls this his ‘Multiple Methodology’, or Three Pronged Approach The ‘arguable’ rational for this is that “no single IS/IT strategy will work”

    4. 4 Earl’s approach to strategy Top Down – this week, Week 5 Bottom Up - Week 6 Inside Out - Week 6

    8. Top-down - why use it? It is built on the desire to match IT/IS investment with business aims and objectives though a structured approach. It has a lot in common with BPR (Business Process Re-engineering) philosophies and Top down oriented application development methods like Joint applications development Central to the prong is the clear definition of business aims and objectives.

    9. Earl’s multiple methodology Top down: Identify and agree business objectives through interviews, debates, existing policies. Define Critical Success Factors (areas where success is necessary for survival, growth). Find information systems that support/enable these CSFs

    10. Critical success factors CSFs are areas of activity that should receive constant and careful attention from management The current state of performance in each CSF should continually be measured, and that information made available. The determination of CSFs should be started only when objectives have already been identified

    11. Critical success factors ‘..are for any business, the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation.’ (Rockart 1979) ‘They are the few key areas where things must go right for the business to flourish’ (Ward, Griffiths and Whitmore, 1994)

    12. Example In the following slide, the business objectives are stated in the top box The CSF are listed below, for example, ‘automate factories’ Finally, the enabling information systems are listed (for example, flexible manufacturing systems)

    14. Become known as one of the top 5 companies in selected markets Secure long term survival Return the highest profits in the industry to our share holders Be known as a quality organisation which is customer driven Have a reputation for supplying the highest quality products and services Top-down business objectives example

    15. Be rated in market surveys as one of the top five companies within one year. Reduce long term debt to Ł2M and gain a credit line of Ł1M within two years. Pay a share dividend higher than any of our competitors next year. Gain an 80% rating in customer satisfaction surveys in next year. Be rated 1st on quality in competitive customer surveys next year. More top-down example objectives

    16. Top-down example - graphically

    17. S pecific M easurable A greed R ealistic T ime profiled Setting top-down objectives

    18. References Earl M. J., Management Strategies for Information Technology, Prentice Hall, 1989

    19. Self Study Read Earl Chapter 4: pp 67-73 Consider what objectives are appropriate for case study More reading http://www.scribd.com/doc/8357250/Module-3-Enabling-Technologies Look at management websites

    20. Next week Earl's three pronged approach – Bottom up & The inside out approach

    21. Workshop Top down analysis Do a top-down analysis for the case study. First you will need to define some aims and objectives for Hermes!

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