Developing an IS/IT Strategy

Faculty of Industry and Information Technology

Telkom Institute of Technology Purwokerto, October 2018
Session Objectives
 Understand the process of developing IS/IT
Strategies
 Nurture the integration of IS/IT Strategies in IS/IT
Strategic Plan
 Understand the components of IS/IT Strategic Plan
Model
 Understand how to evaluate IS/IT Strategic Plan
 IS/IT Strategy Definition….
 IS strategy defines the organization’s requirement
for information systems to support the overall
strategies of the business
 The IT strategy is outlining the vision of how the
organization’s demand for information and
systems will be supported by IT
 “An IS strategy brings together the business
aims of the company, an understanding of the
information needed to support those aims, and
the implementation of computer systems to
provide the information.
 Business Strategy
External &
Internal • Business decisions Where is the
Factors • Objectives and direction business going &
• Change why?

Supports Direction for

business business

IS Strategy What is required?

• Business based
• Demand orientation
• Application focused

Infrastructure Needs &

& service priorities

IT Strategy
• Activity Based
How can it be
• Supply oriented realized?
• Technology focused

Alignment Business Strategy and IS/IT Strategy

Business Environment
IS/IT Strategy is part of IS/IT Strategic Plan
 Planning for the effective long-term
management and optimal impact of
information—in all its forms (IS, IT, manual
and computer systems, organizational
aspects of the management IS/IT throughout
the business).
 “The process of deciding the objectives for
organizational computing and identifying
potential computer applications which the
organization should implement” (Sethi, 88)
 It is a plan for the development of systems
towards some future vision of the role of IS
in the organization
The Objectives of Developing IS/IT Strategy
 Alignment of IS/IT with the business
 Gaining competitive advantage
 Building cost effective
 Developing the appropriate resources

IS/IT strategy process

IS/IT strategy
IS/IT planning
formulation
 Tips to Develop IS/IT strategy
 IS/IT Strategy Process Should Become an
Integral Part of Business Strategy,
Business Plan, and Its Implementation.
 The primary objective to develop IS
strategy is to identify value-added
portfolio of applications that will have
strategic impact .
 The Evolution of the IS/IT Strategy Process:
Technology Focus to Strategic Focus
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Main task IS/IT Defining Detailed IS Strategic/comp Linkage to business

application business planning etitive strategy
mapping needs advantage
Key Management Agreeing Balancing the Pursuing Integrating IS and
objective understanding priorities portfolio opportunities business strategies
Direction IT led Senior User and IT Executives/seni Coalition of
form management together or management users/management
initiative and users and IT
Main Bottom-up Top-down Balanced top- Entrepreneurial Multiple method at
approach development analysis down and (user same time
bottom-up innovation)
Summary Technology led Method Administrativ Business led Organization led
description driven e

Conform these stages with the evolution of IS/IT roles

 IS/IT Planning Problems
 Fail to get top management support
 Value system does not go throughout
organization
 Lack of proper person to the job
 Not having clear-cut business strategy
 Fail to anticipate new IT development
 Ignorance of environment-economy, politic, etc

Research Issues: Faktor apa yang dominan

sebagai penyebab gagalnya IS/IT Planning? Apa
solusinya?
IT Issues yang paling dominan adalah masalah IS/IT Planning
The Model of Strategic IS/IT Planning Processes
 Inputs
 Internal business environment
• Current business strategy, objectives, resources, processes and
culture and values of business
 External business environment
• The economic, industrial and competitive climate
 Internal IS/IT environment
• Current IS/IT perspective in the business, its maturity, business
coverage and contribution, skills, resources and technological
infrastructure
 External IS/IT environment
• Technology trends and opportunities and the use made of
IS/IT by external bodies

Reminder: Use all related techniques and methods to

gather and analyze data of these input factors
 Strategic Management Process
Environmental Analysis

General Environment s
itie
n
Operating Environment r tu ts
p po rea
O Th
Competitive Positioning

Directions for Development

Stakeholder
Company Analysis
Company Strategic Current Chosen Realized
Vision Strategy Vision & Strategy Strategy
History
Strategy

Company Analysis

Structure
s
th s
Values/Culture ng ss
e
re e
St k n
ea
Skills W
Reprinted with permission from
The Strategic Management Blueprint
Figure 7-2 Resources Cambridge, Ma: Blackwell, 1993.
The Model of Strategic IS/IT Planning Processes
 Outputs
 IS/IT management strategy
• The common elements of the strategy that apply throughout the
organization, ensuring consistent policies where needed
 Business IS/IT strategy
• How each unit or function will deploy IS/IT in achieving its
business objectives.
• Alongside each of these are application portfolios to be
developed for business unit and business models, describing the
information architecture of each unit.
• The portfolios may include how IS/IT will be used at some future
date, to help the units to achieve their objectives
 IT strategy
• Policies and strategies for management of technology and
specialist resources

Make sure all outputs have to have a basis

 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

IS/IT Management Strategy Business IS Strategies IT Strategy

Applications Portfolio Model & Matrices

Types of Deliverables from The IS/IT Planning
Processes
 Hard deliverables
• The current situation (As-is condition, Baseline)
• The vision and rationale for what is being put into
place—information, systems, technology, people, and so
on (To-be, Future condition).
• The plans for how it is going to be achieved, with the
milestones along the route (Roadmap, Programs, KPI).
 Soft deliverables
• Relate to human factors: skill, awareness and motivation
(Change Management, Capacity Building).
 Framework for the IS Planning Process
Input (As-is) Proses (Gap Analysis)
Input
Business and Initiate Understand the
Current Situation Other
Technical Planning
Environment and Interpret Planning
Process
Business Needs Activities

Define/Update Determine
Information and Business IS
Systems Strategy
Architecture

Previous Formulate IT Prepare

IS/IT Strategy Migration
Strategy Plans and
Business Case

Business IS/IT Strategy

Strategy and and Proposed
Proposed
Development
plans
Programmme
 Initiate Planning Process
 The purpose, objectives, scope and deliverables are confirmed
The approach determined and resourced acquired, such as
automated tools
 Business participants identified and team assembled and trained
Expectations, such issues and problems addressed, and risk
management proposals put into gear
 Process steering and management mechanisms created
How the work will interface with and feed into business planning
 The people to be interviewed, or who are needed to participate
in group sessions are identified
Plan for the work, tasks, timing, roles and responsibilities, and
checkpoints defined.
 Understand the Current Situation and
Interpret Business Need
 Analysis of the business strategy, objectives, critical
success factors (CSFs), critical problems, and processes, in
order to determine the current situation, and its strengths
and weaknesses, and the information needs and thus the
focus for investment in systems to meet these.
 Evaluation of the current IS/IT operation – its systems,
information provision, resources, organization, skills and
services, to determine coverage and contribution and
where improvements would be beneficial.
 Innovative analysis of the external and internal business
environment to identify potential applications of IS/IT.
 Determine the Business IS
Strategy
The accumulated business IS demand is turned
into recommendations for the deployment of
IS/IT throughout the organization and at SBU
level.
 Define Information and System
Architecture
 This step takes the results of the analysis of
procedures and information needs in order
to build a proposed business model for the
business.
 It represents the future “ideal” in process,
information and system terms, and is
needed to plot a direction when developing
migration plans.
Contoh: Arsitektur Aplikasi & Proses Bisnis Value Chain di SEKAB

Pemantauan Permasalahan Pemantauan Permasalahan

Penyusunan PUU Penyiapan Persidangan
Pemerintah Hukum
1 5
Evaluasi Permasalahan
Evaluasi Permasalahan
Hukum Pendokumentasian PUU Pelaksanaan Persidangan
Pemerintah
2 4
Analisis Permasalahan
Analisis Permasalahan Pendokumentasian
Hukum Pendistribusian PUU 8
Pemerintah Persidangan
3 5 6 9
Administrasi Jabatan Legalisasi dan Peminjaman Pendistribusian
Pemantauan Hasil
Eksternal PUU Undangan/Hasil
Persidangan
10 7 Persidangan

Administrasi Kepangkatan Administrasi Alih Status

Perumusan Keppres dan
dan Pensiun Anggota TNI / Polri
Lampiran Keppres Personalia
10 10

Administrasi Personalia Pengumpulan dan Pengolahan Data

Tata Usaha Perbantuan
Internal Perencanaan Program dan Anggaran
11 11
Pendokumentasian Penyusunan Hasil
Penyusunan Program Penyusunan Anggaran 12 Program Kerja dan Pemantauan dan Evaluasi
12 13 Anggaran Program Setkab

Pelaporan Pengawasan Pemantauan dan Evaluasi

Pembayaran Pembukuan
Internal Program Setkab
14

15 Pemeliharaan dan
Perlengkapan 16 Rumah Tangga
Perawatan
17 18 19

Administrasi Perjalanan Pengembangan Sistem

Pemeliharaan Jaringan
Dinas Informasi dan Otomasi
 Formulated IT Supply Proposals
• IS strategy and the IT supply proposals can be
fed back into the business strategy, for
consideration and consolidation to occur, and
senior business management to decide on the
likely candidates for the investment
programme for the business.
• For IS/IT management, it means that the
strategy can be firmed up to give a clearer
directions for where IS is aiming to go.
• Outline plans can the be constructed to give a
route map, and milestone for the main
initiatives.
IT Strategy: Management of Supply
 To define how resources and technologies will be
managed and developed to satisfy business IS
strategies.
 It consists of:
• Application portfolio management
• Organization of IS/IT
• Managing the info resources and provision of info
services
• Managing investment, prioritization and benefits
• Managing application development
• Managing technology
Contoh: Arsitektur Jaringan SEKAB
IS/IT Management Strategy
 Apply throughout the organization, ensuring
consistent policies where needed
 It covers:
• Scope and rationale
• IS/IT organization
• Investment and prioritization policies
• Vendor policies
• Human impact policies
• IS accounting policies
Contoh: Struktur Organisasi TI di SEKAB
Kepala Biro
Perencanaan &
Keuangan

Kepala Biro
Kepegawaian
Deputi Seskab Kepala Bagian
Bidang Perlengkapan
Administrasi Kepala Biro
Kepangkatan &
Pensiun Kepala Bagian
Pemeliharaan

Kepala Biro Umum

Kepala Bagian
Urusan Dalam
Kepala Sub Bagian
Aplikasi Jaringan
Kepala Bagian
Sistem Informasi
Kepala Sub Bagian
Infrastruktur
Jaringan
Success Criteria in Developing IS/IT
Strategy
 Evaluation of IS/IT Strategic Plan:
Success Criteria
• Improve performance
• Gaining competitive advantage
• Align IT investment with business strategy
• Better communication
• Improve management commitment
• Better allocation of IT resources
• Better IT forecasting requirement

Try to quantify the success criteria for old vs. new system??
 Discussions

What is IS/IT Strategy?

Why Develop IS/IT Strategy?
How IS/IT Strategy fits in Business Strategy?
Who in charge developing IS/IT Strategy?
What are the steps to develop IS/IT Strategy?
How do you evaluate the success of IS/IT strategy