PPT1-TOPIK1-R0-Business Concept For ISIT Strategy Implications

8037T – IT Strategic Plan and
Enterprise Architecture
Week 1 – Topic 01
Business Concept for IS/IT Strategy
Implications
1
Topic
• Information system and information technology

• Early views models of IT/IS in organizations
• Success factors in strategic information systems
• The management implications
• IS/IT strategic
• Evolution of Strategic Planning
• Strategic Planning in Organizations
Bina Nusantara University 2

Information System and Information
Technology

Strategic Planning for An Organization
• Strategic planning provides
– A direction, a framework, a vision
– Increases the way of success
– Identifies upfront related functionality

Why Do Strategic Planning for
Information Systems?
– Systems are costly; planning enables you to
anticipate
• One time costs
• On-going costs
– Identify your stakeholders at the outset – impact
of a new system is felt by co-workers, your users,
& your administration
– Properly assessing expectations first can lead to
success

An Overview to Strategic Planning for
Information System Decision Makers
• Categories for a strategic plan can include:
– Key business drivers and needs (e.g., what you
need from your information system to deliver
services that meet your mission and vision)
– Identify what opportunities await a success
implementation
– Identify what challenges await a success
implementation

An Overview to Strategic Planning for
Information System Decision Makers
• Categories for a strategic plan, continued:
– The role of a particular information system
– Review of the current state & future state
– Features and functionality
– The anticipated return on investment (ROI); or the
anticipated return on expectations (ROE)
– Implementation plan: one-time & on-going costs;
timeline

Information Technology (IT) &
Information Systems (IS) Definitions
• IS and IT are often used interchangeably
• IT (or ICT) is about technology for storing,
processing, delivering, and sharing information in
digital formats
(H/W, S/W, telecommunications networks)
• Tangible (Servers, PCs, Network cables, etc)
• Intangible (software)

Information Technology (IT) &
Information Systems (IS) Definitions
(Cont.)
• IS is a system addressed to generate information for
users to serve, help, or support them in taking
actions
• Without technology
• With technology (especially IT) CBIS

Information Systems
Yang dicoba untuk
dilakukan sistem
Data terformat,
teks,
gambar, suara,
dan video
Informasi
Orang yang
memasukkan,
Tujuan memproses, dan
menggunakan
data
Prosedur Orang
kerja
Perangkat keras
dan perangkat
lunak yang
memproses data
Teknologi
informasi
Cara kerja yang dilakukan
orang dan teknologi
informasi

Early views models of IT/IS in
organizations

Model Evolution of IS/IT Use

Six Stages Of IT/IS Evolution
(Nolan and Gibson)
1. Initiation  Automation of operational
processes
2. Contagion  Rapid growth of demands
3. Control  Requirement from management:
plans, return of investment, methodologies
4. Integration  Need for integration of
existing systems
5. Data administration  Exploration of
database after users understand values of 13
Bina Nusantara University
Current Role of IS
Strategic Planning
Support of
Strategies for
Competitive
Advantage
Management
Control
Support of
Business Decision Making
Operational
Support of
Control
Business Processes or
Operations

Three Eras of IS
Period Era Characteristics
60s Data Processing Standalone computers, remote from
(DP) users, cost reduction function.
70s & 80s Management Distributed process, interconnected,

Information Systems regulated by management service,
(MIS) supporting the business, user
driven.
80s&90s Strategic Networked, integrated systems,
Information Systems available and supportive to users,
relate to business strategy, enable
the business - business driven.

Prime Objective in the Three Eras
Era Main objective Implementation
DP Improve operational Automating information-based
efficiency processes
MIS Increase Satisfying their information
management requirements for decision making
effectiveness
SIS Improve changing the nature or conduct of
competitiveness business.

Evolution of Business IS/IT
Aspects Era
DP MIS SIS
Nature of Computers Distributed processes Networks
technology Fragmented Interconnected Integrated
Hardware limitation Software limitation People/vision
limitation
Nature of Remote from users Regulated by Available and
Operations controlled by DP management supportive to users
services
Issues in Technical issues Support business Related to business
system (programming/project user needs strategy
development management) (information
management)
Reason for Reducing cost Supporting the Enabling the
using the (espec. Administrative) business (manager) business
technology Technology driven User driven Business driven
Characteristics Regimented/Operational Accommodating/Cont Flexible/strategic
of system (Internal) rol (external)
Important Keys
• MIS systems usually rely on DP systems
• Functions of SIS are usually same as for DP/MIS
application. The difference is its impact on the
business due to the changes they enable or cause

The strategic information system era

Characteristics of Strategic Systems
1. Share information via technology-based

systems with customer and/or suppliers and
change the nature of the relationship
2. Produce more effective integration of the use
information in the organization’s value adding
processes
3. Enable organization to develop, produce,
market and deliver new or enhanced products
or services base on information
4. Provide executive management with
information to support he development and
implementation of strategy
Category of SIS
• Internal systems: have direct benefit for the

company
• External systems: have direct benefits for the
company’s customers

Strategic Use of IT/IS
• Linking to customers and/or suppliers

– Wal-Mart and its suppliers
– American Hospital Supplies
– Online reservation system (SABRE) by American
Airlines
– Amazon.com
– Ryanair

Web page of Ryan Air

(cont.)
• Improving integration of internal processes

– Use of ERP
– Implementation of CRM systems
• Information-based product and services
– Provide information-based services (online
support, order tracking, order history, etc)

Tracking a Package

(cont.)
• Executive information systems

– Support top executives who need information (internal
and external) and knowledge for strategic decision
purposes.

Success Factors in SIS
(Ward and Peppard)
1. External, not internal, focus (by looking at
customers, competitors, suppliers, and
other industries)
2. Adding value, not cost reduction (doing
better, not cheaper)
3. Sharing the benefits (even with
competitors!)

(Cont.)
4. Understanding customers (ex: tracking
system on FedEx or DHL)
5. Business-driven innovation, not technology
driven (Success of Silicon Valley is not
because of e, but of i – power of i –
innovation and imagination)
• Major failures of IT are often based on better
technology but bad business vision
(Cont.)
6. Incremental development, not the total
application
• Prototyping of systems has a key role
7. Using information gained from the system
to develop the business
• To improve the products or services that match
of marketplace or influence its development

Relationship Between the Business,
SIS, MIS, and DP

The management Implications

Management Implications
• Focused on the technology itself does not lead to
its successful strategic application (Earl)
• Effective way in achieving strategic benefits from
IS/IT is to concentrate or rethinking business by
analyzing:
– Current business
– Environmental change

• Research’s result by Earl:
– Most of the IT strategies were STRONG on
technology but WEAK on identifying application
needs and business thinking

(cont.)
• Suggestions by Earl:
– Use WHAT QUESTION to achieve IS
– Use HOW QUESTION related to the technology

IS/IT Strategic

Relationship Between Business and IS/IT
Strategies

IS/IT Strategy
• Consist of IS Strategy and IT Strategy
• IS Strategy: defines the organizations
requirement or demand for information and
systems to support the overall strategy of
business
• IT Strategy: is focused on how the organization’s
requirement or demand can be facilitated by
technology

Applications portfolio
• In reality, an organization needs a combination of
DP, MIS, and SIS or applications portfolio
• In traditional portfolio models, the focus is not on
business success, but is in relationship of systems
to each other and the task being performed

(Cont.)
• New model of applications portfolio developed by
McFarlan defines 4 categories of application:
– Strategic applications
– High potential applications
– Key operational applications
– Support applications

(Cont.)
STRATEGIC HIGH POTENTIAL
Applications that are critical to Applications that may be important in
sustaining future business strategy achieving future success
 Providing competitive advantage
Applications on which the organization Applications that are valuable but not
currently depends for success critical to success
 Sustaining the existing business  Improve business efficiency and
(ex: EPOS, ATM) management effectiveness, but do not
provide competitive advantage or
sustain the business
KEY OPERATIONAL SUPPORT

(Cont.)
• Each segment needs a different strategy
• They fulfill different role in the business

Strategic Alignment
• It used to align
between
business and
IT/IS Strategies
• It can be used
to make
dynamic
alignment

Strategic Alignment
• Business Strategy
– Business scope (4P)
– Distinctive competencies (brand, research, manufacturing, and
product development, price and cost, sales and distribution
channels)
– Business governance (relationship between management,
stakeholders, and the board of directors; also related to
government regulations and alliances with strategic partners)

Strategic Alignment
• Organization infrastructure and processes
– Administrative structure
– Processes (related to value-added activities and process
improvement)
– Skills (related to HRD: recruitment, reward, motivation, training,
culture)

Strategic Alignment
• IT Strategy
– Technology scope
– Systemic competencies (capabilities that distinguishes the IT
services)
– IT governance (policy and procedure related to IT operations)

Strategic Alignment
• IS Infrastructure and processes

– Architecture (technology priorities, policies, and
choices for integration)
– Processes (related to development and
maintenance applications)
– Skills (IT HRD)

Several Key Points in Strategic Alignment
• Alignment is evolutionary and dynamic

• Needs :
– strong support from senior management,
– good working relationship,
– strong leadership,
– appropriate prioritization,
– effective communication, and
– understanding of the business and technical environment

Why Have an IS/IT Strategy?
• If do not have an IS/IT Strategy:
– Waste of system investment
– Loss of control of IS/IT (Leading an individual strive to achieve
unmatched objective)
– System are not integrated
– And many other problems

Internal Context for IS/IT Strategy

External Context
• Duality of
technology
– Support the
strategy of an
organization
– Define
business

Evolution of strategic planning

• IS strategies MUST BE developed within the context of
corporate and business strategic planning processes.
Achievement of business objectives/goals

$$$
Maximize ROI
IS/IT Enabling strategic use of information
Gain competitive advantage Repel competitive Threat

PLANNING
INVOLVEMENT
IS managers IS Managers
should understand
the corporate
perspective of the
world
Business Managers
• Formal approaches to business planning – 1950s

• Evolved to cater for changes of the dynamic business environment

Strategic Planning in Organization
• The formal approaches to business planning
started in 1950s.
• They have evolved since in order to take
account of technological, economics, social
and political changes.
• They will continue to evolve in response to
the dynamics of the business environment.

Evolution of Strategic Management
Effectivness
Of Strategic
Maturity
Decision
Making
- Well– Defined
Strategic Framework
I - Multi- Year - Strategically Focused
N
C Budgets Organisation
R
E - Annul Budgets - Gap Analysis - Situation Analysis - Widespread Strategic
A - Functional and Competitive Thinking Capability
S -“ Static” Assessments
I
N Allocation of
Focus Resources - Evaluation of - Reinforcing
G Strategic Options Management Processes
-“ Dynamic” Allocation - Supportive Value

of Resources System and Climate
Phase 1 Phase 2 Phase 3 Phase 4

Financial Planning Forecast– Based Externally Orientated Strategic
Planning Planning Management
Meet Budget Predict the Think Create the
Future Strategically Future
VALUE SYSTEM
The Evolving Nature of Strategic
Planning in Organisations
• In 1980, a model was developed to
describe the increasing maturity of
strategic planning in organisations. The
model consists of 4 phases.
• In phase 1, the focus is on cash flow and
annual financial planning.
It involves simple techniques to develop
medium term budgets.
The focus of the management is to reduce
Cont…
• In phase 2, the focus is on trying to
predict, or forecast, what is likely to
happen within a 5 years horizon.
Historical performance analysed and
projected into the future using internal
trends and external parameters such as
economic and market research data.
It forecasts sales and market growth and
predicts the effects on income and
expenses and changes to the balance
sheet.
Cont…
• In phase 3, the organisation starts to look
outside itself an concentrate on
understanding the nature of competition in
its industry, and positions itself to gain
advantage.
Managers try to shift company’s product
portfolio to more attractive market sectors.
• In phase 4, the organization is driven by
innovation and becomes capable of creating
its own business environment.
Thus, the organisation gains a leading role in 58
Strategic Planning in Organizations

What is Strategy?
• A strategy is a collection of statements that
express or propose a means through which an
organization can fulfill its primary purpose or
mission
– A chosen strategy must focus and coordinate the firm’s
activity from the top down toward accomplishing its mission
– Developing a strategy begins with:
• a thoughtful understanding of the firm’s mission
• analysis of the environment
• a detailed assessment of how various business units interact
• Strategy (text book)

“An integrated set of actions aimed at increasing long-term
well-being and strength of enterprise relative to
competitors”
Why Are Strategies Needed?
To proactively shape To mold the independent actions and
how a company’s
decisions of managers and
business will be
employees into a coordinated,
conducted
company-wide game plan

61
Relationship of Strategies to Plans
• Strategy is a collection of statements that
expresses or proposes a means through which an
organization can fulfill its mission
– Identifies the goal or objective
– Insights
• Plan is a detailed description of how an
organization can accomplish its mission
– Lays out in detail the steps necessary for the
organization to accomplish the goal
– Plans turn insights into actions

Missions vs. Strategic Visions
• A mission statement
A strategic vision
focuses on current
business activities -- concerns a firm’s future
“who we are and what business path -- “where
we do” we are going”
– Markets to be pursued
Current product and
service offerings Future technology-
– Customer needs being product-customer focus
served Kind of company that
– Technological and management is
business capabilities trying to create

What is a Strategic Plan?
Where firm is headed -- Strategic
vision and business mission
Short and long term performance targets

-- Strategic and financial objectives
Action approaches to achieve

targeted results -- A comprehensive
strategy

Establishment of Strategy
There are essentially three processes that can
contribute to the establishment of a strategy:
1. Strategic thinking – creative, entrepreneurial
insight into the ways the enterprise could
develop.
2. Strategic planning – systematic, comprehensive
analysis to develop a plan of action.
3. Opportunistic decision-making – effective
reaction to unexpected threats and
Thinking Strategically : The Three Big
Strategic Questions
1. Where are we now?
2. Where do we want to go?
Business(es) to be in and market positions to stake out?
Buyer needs and groups to serve?
Outcomes to achieve?
3. How do we get there?

A Company’s Strategy is Partly Planned and
Partly Reactive
Abandoned strategy
features
Company Experiences, Planned Stra
tegy
Know-how, Resource New initiatives p
Strengths and lus ongoing
Weaknesses, and strategy feature
Competitive Capabilities s continued
from prior perio Actual
ds
Company
o n s to Strategy
r ea cti es
tiv e t a n c
Adap circums
ng i n g trate
gy
cha Reac
tive S

The Strategic Framework
• Any organization in stages 3 and 4 of the model
will need to consider most aspects of the FW
(see page 71) to succeed.
• Three layers factors:-
1. The external environment
2. Pressure groups and stakeholders
3. Internal business planning

A Strategic FW
• The external environment
– Economic/ Social / Political / Legal / Ecological /
Technological
• Pressure groups and stakeholders
– Shareholders / Competitors / Customers/Suppliers /
Government / Unions / Employees / “The public” /
Media / Financial Institutions
• Internal business strategizing and planning
– “SBU” / Objectives / Situation analysis / Future
strategies
Page 71 - Text

A Strategic Framework
EXTERNAL ENVIRONMENT - More rapid change and increasingly global influences
Monitoring Signals
from the Environment Economic Social
PRESSURE GROUPS - Demanding recognition and rapid management response
Media Shareholders Competitors Suppliers Government

Market analysis Unions
Share Organiza
Holders Management Competitive analysis
tional
Values PEST analysis Threats and
Values Value
Industry analysis Opportunities Customers
System
Allocation
Techno of Created Objectives Where are we now? Identify future
Political
Public
logical Wealth Strengths & Weaknesses strategies
Feedback Evaluate Financial

Analysis of Institutions
Customers Select
Monitor Internal resources
And Control and competencies
Implement
Employees
Public
Suppliers Unions Employees Government
Demanding ‘fair share’ of created wealth - STAKEHOLDERS
Ecological Legal
The External Environment
• PEST (Political, Economic, Social and
Technological )Analysis
Political: Economic:
Government type and stability Stage of business cycle
Freedom of press, rule of law and levels Current and project economic
of bureaucracy and corruption growth, inflation and interest rates
Regulation and de-regulation trends Unemployment and labor supply
Social and employment legislation Labor costs
Tax policy, and trade and tariff controls Levels of disposable income and
Environmental and consumer-protection income distribution
legislation Impact of globalization
Likely changes in the political Likely impact of technological or
environment other change on the economy
Likely changes in the economic
environment

Socio-Cultural: Technological Environment:
Population growth rate and age Impact of emerging technologies
profile Impact of Internet, reduction in
Population health, education and communications costs and increased
social mobility, and attitudes to remote working
these Research & Development activity
Population employment patterns, Impact of technology transfer
job market freedom and attitudes
PEST Analysis is a useful tool for understanding the “big
to work picture” of the environment in which firms are operating, and
Press attitudes, public opinion, the opportunities and threats that lie within it.
By understanding the environment, firms can take advantage
social attitudes and social of the opportunities and minimize the threats.
taboos
Lifestyle choices and attitudes to
these
Socio-Cultural changes
Firms can draw conclusions as to the significant

forces of change operating within the environment.

Pressure Groups &
Stakeholders
Pressure Groups:
• Make demands of the organization;
• Demand their existence and effects be acknowledged;
• Expect appropriate responses from mgmt to satisfy their particular interest;
Stakeholders:
•Have a direct financial interest in the organization and demand a fair share of the
wealth created;
•Expect some form of material and financial benefit;

Pressure Groups: Stakeholders:
• Media • Shareholders
• Shareholders
• Competitors • Customers
• Suppliers • Public
• Government • Suppliers
• Unions
• Customers • Unions
• Public • Employees
• Financial Institution • Government
• Employees

Internal Business Strategy
Formulation and Planning
Market analysis
Competitive analysis Threats and Opportunities
Value System PEST analysis
Industry analysis
Objectives Where are we now? Identify future strategies

Strengths & Weaknesses
Evaluate
Feedback
Analysis of Select
Monitor Internal resources
And Control and competencies
Implement

Business Strategy Formulation
• Identify, evaluate, and decide strategies to be pursued;
• Establish how to achieve the strategies by planning for the required
actions and by effective development and use of resources;
• Determine scope:
– Whole organization versus
– Strategic Business Unit (SBUs): a unit that sells
a distinct set of products & services, serves a
specific set of customers and competes with a
well-defined set of competitors;
– Can be reconciled by considering the
enterprise strategy as combination of
achievement of corporate objectives via SBU
contributions;
Business Planning Process Elements
• Described by reference to profitability,
growth, market share, customer satisfaction,
new product development, employment,
social responsibility, etc.
1. Objectives • Changes from year to year, evolve quite
significantly over a period of time;
2. Situation Analysis • Reflect values of organization, management,
3. Future Strategies • and major stakeholders;
Values are expressed in terms of MISSION or
VISION statement
– Long term aims and purpose;

Types of Objectives Required
Strategic Objectives Financial Objectives
Outcomes focused on Outcomes focused on
improving long-term, improving financial
competitive business performance
position

Situation Analysis
• Where are we now ?
• Consists of two essential elements: EXTERNAL
– looking inside the organization; • Market segments, and within them,
– looking outside the organization. identifying competitors (current &
potential);
INTERNAL • Market shares within segments – increase
• Resources available in the organization;
share or increase the total size of market;
• Financial health of the organization;
• • The organization’s position in the product
Employees, skills, training, experience,
motivation, resulting business life cycles
competencies; • An examination of all current and potential
• Physical assets, age, technology, usefulness; competitors to understand their current and
• R&D potential strategies, Strengths &
• The organization, its structure and Weaknesses;
relationships, attitudes and culture, and
effectiveness of operational and • Future competitive actions – concerning
management processes, and its ability to potential substitute products and thrusts
change the circumstances; into new markets;

S.W.O.T Analysis
• Strengths: attributes of the organization that are
helpful to achieving the objective.
• Weaknesses: attributes of the organization that
are harmful to achieving the objective.
• Opportunities: external conditions that are
helpful to achieving the objective.
• Threats: external conditions that are harmful to
achieving the objective.

Creative Use of SWOTs: Generating
Strategies
• How can we Use each Strength?
• How can we Stop each Weakness?
• How can we Exploit each Opportunity?
• How can we Defend against each Threat?

TOWS analysis
• Strengths and Opportunities (SO) – How can you use your strengths
to take advantage of the opportunities?
• Strengths and Threats (ST) – How can you take advantage of your
strengths to avoid real and potential threats?
• Weaknesses and Opportunities (WO) – How can you use your

opportunities to overcome the weaknesses you are experiencing?
• Weaknesses and Threats (WT) – How can you minimize your

weaknesses and avoid threats?

Business SWOT
Business Strengths: Business Weaknesses:
· Technical innovation · Profitability
· Reputation · Cost competition
· Product quality · Continuous improvement
· Market position · Silos by department
· Employees with long tenure · Lack of competitive information
· High values · Global presence
· Customer relationships · Communication
· Flexible · Reactive, firefighting
· Execution of projects
· Strategic planning, focus
Business Opportunities:
· Internal controls and metrics
· Use of Web technology · Customer satisfaction metrics
· Worldwide company growth
· Vendor-managed inventory Business Threats:
· Smaller lot sizes · Seasonality of product
· Business process improvement · Larger competitors
· Reverse auctions on Web
· Legislature changes
· Federal funding changes
· Economic uncertainty
· Consumers desires changing
· Price pressures
· EPA and environmental regulations
· International competition
IS SWOT
• Business application
• Technical infrastructure
• People, organization, culture
• Processes

Application Strengths and Weaknesses
Strengths Weakness
· They work · Not designed for current business
· Customized · Manufacturing functionality weak
· Handles volume, throughput · Information access
· Relatively stable · Data integrity
· Interface broker · Size/volume limitations
· Warehouse functionality · Visibility to costs, profit
· Web-based functionality · Architecture out of date
· Electronic EDI · Risk
· Scalable costs · Not flexible, requires programming
· Customized, not best practice
· Warehouse, shipping systems
· Interfacing data
· Ease of use, “green screen”
· Standard ERP functionality lacking
· CRM lacking
· International
· Fragile
· Not real-time
· Tools 85
· Costs relative to functionality
Technical Infrastructure Analysis
Strengths Weakness
· Reliable · Large, complex server
· Standard PC hardware/software infrastructure
environment · Microsoft Office 97
· Up-to-date technology · Potential limitations of Internet for
· Security, firewalls, UPS, anti-virus WAN
· Standard network components · Gauntlet firewall
· Management tools · Server failover
· Internet cost-effective WAN · Some single points of failure
· Gigabit Ethernet backbone · SAN

IT Organization, Culture
Strengths Weakness
· Knowledgeable people · Leadership
· Have made improvements · Decision making
· Fun environment · Trust, respect
· Strong IS values · Too many meetings
· Institutional skills · Organizational structure
· Upper management - Managers, span of control
commitment - No project management
· Customer service focus - Clarity in roles
- Business analyst role
· Resources allocated per - Worldwide coordination
division - Skill set capacity
· Flexibility · Accountability
· Teamwork
IS Process Analysis
Strengths Weakness
· Some documented policies, · Informal processes,
procedures inconsistent, undocumented
· Job descriptions · Project management not
· System change log, SCR implemented
process · Complete test system, process
· Project management framework · Documentation
· Partial disaster recovery · User training
process · Prioritizing
· Governance, overall steering
committee
· Business continuance plan
· Communication
Future Strategies
• This can provide both defensive mechanism
against possible future threat and capability to
exploit the opportunities by identifying the
pressure groups and the stakeholders;
• Future options can be discovered by
undertaking scenario planning to identify
‘discontinuities’ and predict the potential
implications or bring in outside experts to
facilitate ‘breakthrough thinking’;
Future Strategies
• Future possible strategies are evaluated

against criteria, such as the following :
– The risks – financial and managerial; and likely
responses of main competitors;
– The degree to which the organization needs to
create new capabilities to be offensive or
improve control to be defensive;
– Appropriateness of current organization
structure to achieve intended strategies;
– The ability of the organization to implement
the strategy in terms of ability, resources,
processes and culture;
Bina Nusantara– The implications for customers and trading 90
University
Summary and references

Summary
• The evolution of information systems and technology in a

business and organizational context has been erratic, but,
without doubt, IS/IT has inexorably increased its importance
as the economics and capability have enabled more to be
achieved
• Competitive business environments have provided a
motivation to invest in more efficient and effective ways of
carrying out business processes and managing the business.
Although the progress has been fitful and unsynchronized,
patterns can be observed.

Summary (Cont.)
• We are now well into the third era, with bigger prizes and,
reciprocally, greater risks, when the business can become
critically dependent on its investment in systems not just for
its success but for its very survival—planning for information
systems has become strategic for many companies.
• In this new millennium, increasing business pressures and the
improving capabilities and price/performance of IT have led to
the consideration of more radical strategies than previously.
These can require the transformation of business processes,
organizational structures and relationships to achieve major
improvements in business performance

Summary (Cont.)
• The evolution of strategic planning for IS/IT is that it is now
clearly a process that depends on users and senior
management involvement for success. It has become difficult
to separate aspects of IS/IT strategy from business strategy.
• It is important to use the tools and techniques of business
strategic analysis and planning to ensure that approaches to
IS/IT strategy formulation and planning are knitted into the
pattern of business strategic management.
• The emerging fourth era seeks to embed an IS capability in the
very fabric of the organization.

Summary (Cont.)
• It is vital that the IS/IT strategies and plans be linked directly
to the objectives and strategies of the business unit and of the
corporation as a whole.
• There are now a number of examples where IS/IT strategy
formulation and planning takes place within the same process
as corporate strategy formulation and planning, and, indeed,
the entire strategy process is now fully integrated.

Reference
• Ward, J dan Pepard, J. (2004), Strategic Planning for

Information System, third Edition, John Wiley & Sons Ltd,
England.

Thank You
97

PPT1-TOPIK1-R0-Business Concept For ISIT Strategy Implications

Uploaded by

Copyright:

Available Formats

You might also like

PPT1-TOPIK1-R0-Business Concept For ISIT Strategy Implications

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PPT1-TOPIK1-R0-Business Concept For ISIT Strategy Implications

Uploaded by

Copyright:

Available Formats

8037T – IT Strategic Plan and

• Information system and information technology

Bina Nusantara University 2

Bina Nusantara University 3

Bina Nusantara University 4

Bina Nusantara University 5

Bina Nusantara University 6

Bina Nusantara University 7

Bina Nusantara University 8

Bina Nusantara University 9

Bina Nusantara University 10

Bina Nusantara University 11

Bina Nusantara University 12

Bina Nusantara University 14

70s & 80s Management Distributed process, interconnected,

Bina Nusantara University 15

Bina Nusantara University 16

Bina Nusantara University 18

Bina Nusantara University 19

1. Share information via technology-based

• Internal systems: have direct benefit for the

Bina Nusantara University 21

• Linking to customers and/or suppliers

Bina Nusantara University 22

Bina Nusantara University 23

• Improving integration of internal processes

Bina Nusantara University 24

Bina Nusantara University 25

• Executive information systems

Bina Nusantara University 26

Bina Nusantara University 27

Bina Nusantara University 29

Bina Nusantara University 30

Bina Nusantara University 31

Bina Nusantara University 32

Bina Nusantara University 33

Bina Nusantara University 34

Bina Nusantara University 35

Bina Nusantara University 36

Bina Nusantara University 37

Bina Nusantara University 38

Bina Nusantara University 39

KEY OPERATIONAL SUPPORT

Bina Nusantara University 41

Bina Nusantara University 42

Bina Nusantara University 43

Bina Nusantara University 44

Bina Nusantara University 45

• IS Infrastructure and processes

Bina Nusantara University 46

• Alignment is evolutionary and dynamic

Bina Nusantara University 47

Bina Nusantara University 48

Bina Nusantara University 49

Bina Nusantara University 50

Bina Nusantara University 51

Achievement of business objectives/goals