CORPORATE STRATEGIC INFORMATION SYSTEMS PLANNING

7/29/2019 CORPORATE STRATEGIC INFORMATION SYSTEMS PLANNING

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CORPORATE STRATEGIC

INFORMATION SYSTEMS

PLANNING (ITS 582)

1.0 STRATEGIC MANAGEMENT CONCEPTS

Definitions of Strategic Management

The major elements of strategic management

Evolution of information and information

systems strategies


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DEFINITIONSOF STRATEGY

Strategy is the pattern of resource allocation decisions made

throughout an organization. These encapsulate both desired

goals and beliefs about what are acceptable and, most

critically, unacceptable means for achieving them

(Robson, 1997)

Strategy is the direction and scope of an organization over

the long term; which achieves advantage for the organization

through its configuration of resources within a changing

environment, to meet the needs of markets and to fulfil

stakeholder expectations

(Johnson & Scholes, 1999)


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THE VOCABULARYOF STRATEGY

TERM DEFINITION A PERSONAL EXAMPLEMission Overriding purpose in line

with the values or

expectations of

stakeholders

Be healthy and fit

Vision orstrategic intent

Desired future state: theaspiration of the

organization

To run the London Marathon

Goal General statement of aim or

purpose

Lose weight and strengthen

muscles

Objective Quantification (if possible)or more precise statement

of the goal

Lose 10 pounds by 1September and run the

Marathon next year

Core

Competences

Resources, processes or

skills which provide

Competitive advantage

Proximity to a fitness centre,

supportive family and friends

and past experience of

successful diet.


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THE VOCABULARYOF STRATEGY

TERM DEFINITION A PERSONAL EXAMPLEStrategies Long-term direction Associate with a collaborative

network (e.g. join running club),

exercise regularly, compete in

marathon locally, stick to

appropriate diet

Strategic

architecture

Combination of resources,

processes and

competences to put

strategy into effect

Specific exercise and diet

regime, appropriate training

facilities, etc.

Control The monitoring of action

steps to:Assess effectiveness of

strategies and actions

Modify strategies and/or

actions as necessary

Monitor weight, miles run and

measures times: if progresssatisfactory, do nothing; else,

consider other strategies and

actions


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WHY WE NEED STRATEGY?

FAILINGTOPLANISPLANNINGTOFAIL!

THEFUTUREISAPROBLEMFOREVERYBUSINESS


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WHY WE NEED STRATEGY?

Business opportunities are missed Systems and technology

investment do not support the business objectives

Lack of integration os systems and ineffective information

management produces duplication of effort, inaccurate and inadequate

information for managing the business.

Priorities are not based on business needs, resource levels are not

optimal, project plans are consistently changed- Business performance

is not improved, cost are high, solutions are of poor quality and IS/IT

productivity is low.

Technology strategy is incoherent, incompatible options areselected and large sums of money are wasted attempting to fit things

together retrorespectively.

Lack of understanding and agreed direction between users, senior

management and the IS/IT specialists - leads to conflict, inappropriate

solutions and a misuse of resources.

Results from lack of a coherent strategy for IS/IT investment


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THE CHARACTERISTICSOF STRATEGIC

DECISIONS

Concern with or affect the long-term direction of an

organization

Trying to achieve some advantage for the organization,for example over competition.

Concern with the scope of an organizations activities;

does (and should) the organization concentrate on one area

of activity, or should it have many?

Matching of the activities of an organization to theenvironment in which it operates.


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Strategic

Plan

Operating

Plan

ProjectPlan

Plan covering a particular capital investment or marketing

operation. E.g an investment in a new factory would besupported by a detailed study of the expected results of

that investment.

Prepared on as a required basis

Sets out the objectives of the company and the means

(strategy) by which the company intends to reach those

objectives

Plan of an established areas of the company.

E.g.- A division or a subsidiary

THE TYPES OF PLAN


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CHARACTERISTICS OF STRATEGIC MANAGEMENT

AND OPERATIONAL MANAGEMENT

STRATEGIC MANAGEMENT OPERATIONAL

MANAGEMENT

Ambiguous Routinised

Complex

Organization-wide Operationally specific

Fundamental

Long-term implications Short-term implications


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WHATIS STRATEGIC MANAGEMENT

Strategic management is :

Something to do with deriving and describing

the strategy.

Applicable to all organizations whether large or

small, public or private, profit or non-profitmaking.

Encompasses the entire enterprise and looks

beyond day-to-day operating concerns in order to

focus upon the organizations long-termprospects and development.


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WHATIS STRATEGIC MANAGEMENT

Strategic management is :

Not a technique; it is a complete way of running

a businessWith strategic management, the future

implications of every decision are evaluated in

advance of implementation

The shorter the period, the more accurate the

forecasting events


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DEFINITIONSOF STRATEGIC MANAGEMENT

Strategic management is a systematic approach to a major and increasingly

important responsibility of general management to position and relate the

firm to its environment in a way which will assure its continued success and

make it secure from surprises (Ansoff, 1990).

Strategic management is concerned with the overall long-range direction of

organizations and consequently also provides a framework for

operational management (Greenley, 1989).


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DEFINITIONSOF STRATEGIC MANAGEMENT

Strategic management is concerned with decising on strategy and planning

how that strategy is to be put into effect via :

Strategic analysis

Strategic choice

Strategic implementation

(Johnson and Scholes, 1993)


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THEMAJORELEMENTSOFSTRATEGIC

MANAGEMENT

Strategic

Analysis

Strategic

Choice

Strategy

Implemen-

tation

Concerned with understanding thestrategic position of the organizations in

terms of its external environment, internal

resources and competences, and the

expectations and influence of

stakeholders

Concerned with the translation of strategy

into organizational action through

organizational structure and design,

resource planning and the management of

strategic change

Involves understanding the

underlying bases guiding future

strategy, generating strategic options

for evaluation and selecting from

among them


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Strategic

Analysis

Strategic

Choice

Strategy

Implemen-

tation

Resources

Expect-

ations,

objectives

and power

: cultureThe

environ-

ment

Organization

structure and

design

Resources

allocation

and control

Managing

strategic

change

Bases of

strategic

choice

Strategic

options

Strategy

evaluation

and

selection


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STRATEGICMANAGEMENTIN DIFFERENT

CONTEXT

The small business context

The multinational corporation

Manufacturing and service organizations

The innovatory organization

Strategy in the public sector

Privatised utilities

The voluntary and non-for-profit sectors

Professional service organizations


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EVOLUTIONOFINFORMATIONAND

INFORMATIONSYSTEMSSTRATEGIES

Transaction

ProcessingSystem

Management

Information

System

Decision

Support

System

Executive

InformationSystem

Expert

System and

Knowledge

Management

System


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Transaction

ProcessingSystem

Management

Information

System

Decision

Support

System

Executive

InformationSystem

Expert

System and

Knowledge

Management

System

These process data resulting from business

transactions, update operational databases,

and produce business documents. Examples:

sales and inventory processing and

accounting systems.


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Transaction

Processing

System

ManagementInformation

System

Decision

SupportSystem

Executive

Information

System

Expert

System and

Knowledge

Management

System

Provide information in the form of pre-

specified reports and displays to support

business decision-making.

Examples: sales analysis, production

performance and costtrend reporting systems.


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Transaction

Processing

System

Management

Information

System

DecisionSupport

System

Executive

Information

System

ExpertSystem and

Knowledge

Management

System

Provide interactive ad hoc support for the

decision-making processes of managers

and other business professionals.

Examples: product pricing, profitabilityforecasting and risk analysis systems.


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Transaction

Processing

System

Management

Information

System

DecisionSupport

System

Executive

Information

System

ExpertSystem and

Knowledge

Management

System

Provide critical information from MIS, DSS

and other sources, tailored to the

information needs of executives.

Examples: systems for easy access to

analysis of business performance, actions of

all competitors, and economic

developments to support strategic planning.


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Transaction

Processing

System

Management

Information

System

DecisionSupport

System

Executive

Information

System

ExpertSystem and

Knowledge

Management

System

Expert systems knowledge-based systems that provide expert

advice and act as expert consultants to users.

Examples: credit application advisor, process monitor, and

diagnostic maintenance systems.

Knowledge management systems knowledge-based systems

that support the creation, organization and dissemination of

business knowledge within the enterprise. Examples: intranet

access to best business practices, sales proposal strategies and

customer problem resolution systems.


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From MIS to e-Commerce:

The rapid growth of the Internet, intranets, extranets and other

interconnected global networks in the 1990s dramatically changed the

capabilities of information systems in business.

Higher level of integration of system functions across applications, greater

connectivity across both similar and dissimilar system components, and the

ability to reallocate critical computing tasks such as data storage, processing,

and presentation to take maximum advantage of business and strategic

opportunities.

E-business is the use of Internet technologies to work and empower

business processes, electronic commerce and enterprise collaboration within a

company and with its customers, suppliers and other business stakeholders. These companies rely on e-business applications to (i) reengineer internal

business processes, (ii) implement electronic commerce systems with their

customers and suppliers, and (iii) promote enterprise collaboration among

business teams and workgroups.


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TRENDS IN THE EVOLUTION OF

BUSINESS IS/IT

Aspects Era

DP MIS SIS

Nature of the

technology

Computers Distributed process Networks

Fragmented Interconnected Integrated

Hardware limitation Software limitation People/Vision

limitation

Nature of operations Remote from users

controlled by DP

Regulated by

management services

Available and

supportive to users

Issues in systems

development

Technical issues

(programming/ projectmanagement)

Support business users

needs (informationmanagement)

Relate to business

strategy?


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TRENDS IN THE EVOLUTION OF

BUSINESS IS/IT

Aspects Era

DP MIS SIS

Reasons for using

the technology

Reducing costs

(esp administrative)

(technology driven)

Supporting the

business (manager)

(user driven)

Enabling the

business? (business

driven)

Characteristics of

systems

Regimented/

Operational

(internal)

Accommodating/

Control

Flexible/Strategic?

(External)


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TUTORIAL 1 :

STRATEGIC MANAGEMENT IN DIFFERENT CONTEXT

The small business context

The multinational corporation

Manufacturing and service organizations The innovatory organization

Strategy in the public sector

Privatised utilities

The voluntary and non-for-profit sectors

Professional service organizations


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TUTORIAL 1 :

STRATEGIC MANAGEMENT IN DIFFERENT CONTEXT

1.Each group will pick one context.

2.Identify the key strategic issues.

Example:

The Multinational Corporation.

Key strategic issues:

1. Structure and control at the corporate level

2. Relationship between business and the corporate centre

3. The coordination of operational logistics across different

countries

CORPORATE STRATEGIC INFORMATION SYSTEMS PLANNING

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