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Information Systems
Strategy
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Learning Objectives
To understand
The need for an IS strategy
Types of strategies that exist within an
organisation, and how they interact with each
other. In particular:
Business strategy.
Information systems strategy.
Information technology strategy
the process of strategic planning for information
systems
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Need for an information system strategy
Due to the multitude of technological
developments over the past two decades
many areas within an organisation can now
take advantage of cheap user-friendly
processing power.
Information needs of users have increased
and can be met in many different ways.
To prevent the proliferation of unique
independent information systems
developing within an organisation, an
overall information system strategy needs
to be considered.
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IS needs an effective strategic plan
Because
IS consumes a portion of the organisations
finite resources
IS must accommodated rapid technological
changes
IS must enable the business to function
effectively
Therefore, IS strategy will ensure that IS will
cost effectively deliver strategic systems.
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Aims of the IS strategic plan
Clearly identify where IS is going
within the organisation therefore
avoiding the dangers of taking
actions that do not contribute to the
overall mission
Provide a formalised set of
benchmarks so that progress of the
plan can be monitored.
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The information system strategy
The information system strategy is derived from the
business strategy which itself is evolved from the
strategies of all the sub-systems. Once an information
strategy has been decided upon EG. providing a better
service or information to the customers about an
organisations products, then a tactical plan for setting
up the system can be devised. This will include, where
it will be located, what hardware and software will be
used, what training is required.
Although it is necessary to consider the information
sub-system as an integral part of the overall business
system, it is also important to consider it in its own
right. That is, the information sub-system must be
concerned with new techniques and technologies which
could benefit the organisation.
All business strategies must be responsive to the
external environment
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Strategies within an organisation
Business Strategy
IS Strategy
Information
Management
Strategy
Information
Technology
Strategy
Information
Strategy
Change Management Strategy
IS Related Human Resource Strategy
Business Strategy
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Elements of a strategic plan
A clear statement of IS objectives
where they want the business to be
An inventory and assessment of both the
current organisational capabilities and
problems resulting from current practises
where the business is now
An implementation plan identifying long-
term and short-term actions and
allocation of resources how to get to
where they want to be
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Elements of IS strategy (Ward &Griffiths, 96)
Business information strategy. This
defines how information and knowledge
will be used to support the business
objectives
IS functionality strategy. Defines the
requirements of the business from the
systems. Defines how the resources will
be used and the allocation of
responsibility
IS/IT strategy. This defines the
hardware and the software standards and
preferred suppliers.

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IS/IT strategy
Determines the technological infrastructure of the
organisation
This ensures
Appropriate technologies used
Standards are set
In terms of costs, efficiency and supporting
business users, customers and others
Determines how IT is applied within the
organisation
Ensures that IT supports the business strategy
Ensures that the resources are made available
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Organisation environment
All organisations operate within an
environment
Micro-environment immediate
includes customers, suppliers and
intermediaries
Macro-environment wider
environment of social, legal, economic,
political and technology
The environment influences the way
in which the organisation works
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Seven Rs of strategy (Lickert, 97)
These are ways in which organisations can
compete, using information system
strategy to respond to its external
environment
Reach
Reaction
Responsiveness
Refinement
Reconfiguration
Redeployment
Reputation


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Strategy process model
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Strategic analysis
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Strategic objectives
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Strategic definition
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Strategic implementation
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Strategy process model features
1. Continual internal and external
environment scanning to assess internal
strengths and weaknesses and external
opportunities and threats
2. Clear statement of objectives
3. Formulation of different strategic options
and then selection
4. Implementation and control of the
strategy
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Elements of information strategic management
Information
tactics
Information
strategic
analysis
Strategic
choice
Technological
and competitive
change
Organisation
culture and
objectives
Existing
information
resources
and funds
Generation
of options
Evaluation
of options
and systems
Selection
of strategy-
framing
principles
People and
systems
Organisation
structure and
information
flow
Resource
planning
acquisition
and
deployment
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Without Planning
Financial losses
Lower staff morale
Missed opportunities
Management will be fire-fighting
continuously
Reduced customer satisfaction.
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To Summarise
Before the tactical planning of information systems
is carried out, the overall information system
strategy must be agreed upon and communication
to all other sub-systems. This strategy will identify
areas within the business strategy that would
benefit from new or improved information systems.
It will map out a plan for the development of these
systems based on strategic importance and
availability of resources. It will incorporate new
developments in technology and future needs. It
will also decide between a policy of centrally-
controlled development of systems or a strategy of
local development to meet local needs.