CORPORATE STRATEGIC INFORMATION SYSTEMS PLANNING
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Transcript of 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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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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EVOLUTIONOFINFORMATIONAND
INFORMATIONSYSTEMSSTRATEGIES
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