By: Zainal A. Hasibuan Faculty of Computer Science University of Indonesia. Zainal A. Hasibuan, PhD

Size: px

Start display at page:

Download "By: Zainal A. Hasibuan Faculty of Computer Science University of Indonesia. Zainal A. Hasibuan, PhD"

Spencer Sullivan
7 years ago
Views:

1 By: Zainal A. Hasibuan Faculty of Computer Science University of Indonesia Zainal A. Hasibuan, PhD

2 Review Ques4ons What are the success criteria for IS/IT Strategic Plan? Improve performance Gaining compe44ve advantage Align IT investment with business strategy BeIer communica4on Etc. What are the objec4ves of IS/IT Strategy formula4on? Iden4fy current and future informa4on needs Create flexible and adap4ve IS func4ons Determine police and management for informa4on resources Etc.

3 Review Ques4ons What are the outputs of IS/IT Strategic Plan? IS/IT management strategy Business IS/IT strategy IT strategy What aspects to analyzed in the internal business environment? The business strategy as the means to achieve business objec4ves The current business process, ac4vi4es, and the main informa4on en44es The organiza4onal environment: structure, asset and skills, competency, culture, etc. What are the components of business model architecture? Business process model Business data model

4 Session Objec4ves To understand the development of applica4on portolio from a strategic perspec4ve To understand industry value chain to get maximum benefit from IS/IT investment To iden4fy the business opportuni4es and threats formulate IS/IT strategy To describe a framework to develop the business informa4on strategy To understand the integra4on of informa4on, system, and technology

5 Session Agenda Applica4on portolio and strategic perspec4ve Aligning IS/IT Investment Strategy to the Business Dimensions of competence Value chain analysis Value system analysis Strategic op4ons generator Resource life cycle analysis Comparison of techniques

6 Application portfolio and strategic perspective

7 IS/IT Investment Strategy and the Business

9 Dimensions of Competence Competitive advantage through customer intimacy Competitive advantage through operational excellence Level of competence required to avoid competitive disadvantage Competitive advantage through product leadership

10 Value Chain Analysis Defini4on: A collec4on of ac4vi4es that are performed to design, produce, market, deliver, and support its product Ac4vi4es can be separated into primary and secondary Ac4vi4es add value to sa4sfy customer requirements Ac4vi4es incur costs by consuming resources Adopts a business unit perspec4ve, independent of organiza4onal structures

11 Internal Value Chain Analysis Administration and General management of the business unit as entity Infrastructure Human resource Recruit, train, develop, and reward people management Product and techno- Develop the technology of products or services logy development and production processes Procurement Acquire the necessary inputs to the value adding activities Inbound Operation Outbound Sales and Service logistics logistics marketing Receive, Transform Distribute Provide Enhance store, and inputs into products or ways for value of disseminate products or services to customers products inputs services customers to purchase or services products or sold service Margin = value added - costs

12 Internal Value Chain Analysis Administration and General management, financial management, accounting, infrastructure and legal Human resource Manpower planning, remunerations, recruitment, and management training Product and techno- Research and development, product design, and process logy development engineering Procurement Supplier mgt., subcontracting, outsourcing, specification Inbound Operation Outbound Sales and Service logistics logistics marketing Quality Manufacture, Products Customer Warranty, control, packaging, storage, management, maintenance, materials quality control, order promotion, education, control, maintenance handling, sales training, and materials delivery, analysis upgrading storage invoicing Margin = value added - costs

13 External Value Chain Analysis Materials Capital Local distributors Agencies Distributors Business unit Markets Suppliers Components Workforce Competitors Export distributors Costs and supply information Value and demand information

14 Strategic Op4ons Generator Suppliers Strategic thrust Strategic target Competitors Customers Differentiation: premium pricing through better perceived quality Cost: aggressive pricing through better performance Innovation: new product, services, or processes that transform relationship Growth: expansion in volume and flexibility without more overheads Alliance: agreement or joint ventures that enhance other strategic thrusts

15 Compe4tor Can we use IS to: Raise the entry costs of poten4al compe4tors? Differen4ate or create new products or services? Reduce our costs or increase their costs? Control the channels of distribu4on? Iden4fy or establish new market niches? Form joint ventures to enter new market? Customers Can we use IS to: Reduce their costs or increase their revenues? Increase their switching costs to alterna4ve suppliers? Increase their knowledge of our products or services? Improve our services to them or reduce the costs of exis4ng services? Discover more about their needs? Iden4fy new poten4al customers?

16 Suppliers Can we use IS to: Improving our bargaining power over them? Reduce our buying costs? Reduce their selling costs? Be a beier customer and obtain a beier service? Iden4fy alterna4ve poten4al supplier? Improve the quality of products or services purchased?

17 Resource Life Cycle Analysis Products are resources from customer perspec4ve Four stages of resources management Requirements Establish quan4ty requirements and specify aiributes Acquisi4on Select sources of purchase, order resources, authorize and pay for resources, acquire resources, and test resources against specifica4on Stewardship Integrate resources with exis4ng inventory, monitor access and use of resources, upgrade resources if necessary, maintain resources if necessary Re4rement Transfer or dispose of resources and account for expenditure on resources

18 Comparison of Techniques Technique External Internal Product or service Executive linkage linkage enhancement or information systems systems innovation systems Critical success Low Moderate Low High factor analysis Process effectiveness Low High Low Nil analysis Value chain analysis Nil High Low Moderate Value system analysis High Nil Moderate Low Strategic options Moderate Moderate High Nil generator Resource life cycle Low Low High Nil analysis

19 DETERMINING the BUSINESS INFORMATION SYSTEMS STRATEGY (Chapter 6)

20 The IS/IT Strategic Planning Environment Intended Strategy: Business, IS, IT Imposed strategy Opportunistic strategy Actual Implementation Planned Implementation Emergence strategy Realized Strategy: Business, IS, IT Intended Outcomes: Business, IS, IT Unrealized Strategies: Business, IS, IT

21 Process and Activity Analysis Strategic Planning Model Competitive Analysis Mission Objectives CFSs Business Portfolio Analysis Resource Life Cycles Data Flow Analysis and Modeling Value Chain Analysis Strategic Option Generator Organizational Modeling Informal/ Opportunistic Creative thinking Strategic High Potential Key Operational Support

22 A Framework for Crea4ng the Assessing the Need for Immediate Investment (1-2 years) (short/medium term-analytical) Interpret business Objectives and strategy Determine CSFs for The company and its Competitors etc. Identify critical Business processes And activities Determine short-term Focus for investment Applica4ons PorTolio Appraisal of IS/IT as it Relates to the Business Understand the industry Structure and business Position (SWOT) Analysis the external Value chain and information Flow implications Analysis the internal Value chain and organizational relationship Analysis the business Contribution of existing Systems (SWOT) > Existing Required Potential applications portofolio Identifying Potential Future Investments (1-5years) Consider potential IT/IS Impact on product/market etc. Consider the strategic Potential of IS/IT and Its effects on the value chain Identify options for Long term IS/IT Investment and select Most beneficial

23 Understanding The Industry and Business Posi4on Interpre4ng business objec4ves and Strategy Permanent objec4ves Strategic objec4ves Tac4cal objec4ves Analyzing the industry (external) value chain and informa4on flow Determining CSF To assess the rela4ve importance of systems opportuni4es to support business objec4ve To iden4fy the informa4on required to manage and to plan Determining the Strategic Poten4al Rela4onship among informa4on and systems to the industry value chain

24 Analyzing the Internal Value Chain and Organiza4on Rela4onships Understood internal primary value chain Examined organiza4onal structure to allocate primary func4ons Iden4fy where costs are incurred, where success depends on management effec4veness and how and where value is added

25 Q/A What are the approaches to analyze the external business environment? How these external factors affect the IS/IT strategy? How do methodologies to develop SPIS differ one to other?

26 Questions to be Answered from Previous Session: Analysis of Existing Systems How well the existing IS/IT support and enhance the operational performance? How well the existing IS/IT support management control? How well the existing IS/IT fits in the ongoing development of business? Points to identify: system deficiency, obsolescence, ineffective linkages, poor utilization, etc. The answers to these questions are used for benchmarking the current condition

Project Management Introduc1on

Project Management Introduc1on Session 1 Part I Introduc1on By Amal Le Collen, PMP Dr. Lauren1u Neamtu, PMP Session outline 1. PART I: Introduc1on 1. The Purpose of the PMBOK Guide 2. What is a project?