Session 10 Information Systems Management

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1 Session 10 Information Systems Management ITPM - IT Portfolio Management McFarlen matrix The strategic impact of information systems Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -1 - Information systems management Business/SI strategic alignment The strategic importance of information systems SI management model matrix of Fs strategic impact» BCG matrix applied to IS Strategic Systems Operational Systems Support Systems Exploratory Systems IS planning coordination and control Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -2 -

2 Uren an Is management strategy is missing Lack of control» Users compete to obtain Is services Investment is not business related» Incredible increase of investment Systems are not integrated The motion of priority is lacking Management information in missing Difficulty in managing resources (prioritization) Conflicts between users and IS managers Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -3 - Business/IS Strategic alignment Given some IS portfolio... How to regulate IS demand? planning How to manage IS offer? Management model How to manage organizational maturity? Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -4 -

3 IS management strategies We need a management model Board users IS professionals Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -5 - Maturity levels (Nolan) The maturity of an organization is always relative to a given technology» An enterprise can have several technologies See maturity can also be relative to business units The complete matrix has 6 stages of maturity The organization acts differently in each stage» bureaucracy, organizational culture Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -6 -

4 Maturity levels 1. Initiation» efficiency» automatization» Short run concerns» Sometimes IS are managed by the CFO 2. Expansion» Unexpected flourishing» Without planning nor control» Technological concerns Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -7 - Maturity levels 3. Formalization» Motivation -> high levels of expenses» centralization Less FTE for IS management» Formalized Planning and budget» bureaucratization e functional specialization» Use of methodologies and formal planning IS development delay becomes apparent (seems to be the most common level) Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -8 -

5 Maturity levels 4. Plain Maturity Integration» Decrease levels of control to support innovation Manage information for business processes Manage information for global decision making IS planning and strategy are part of business strategy Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -9 - Stage 0 ITPM Maturity Model Ad HOC Stage 2 Defined Centralization, formalization, standardization Stage 3 Managed Strategic alignment and prioritization financial Metrics Stage 4 Synchronized Dynamic strategic alignment ITPM management model in real time Financial metrics with chargeback score-cards use with qualitative components Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -10 -

6 IS Management model For each group of the portfolio: 1. Who is responsible and who participates in IS demand 2. How to submit IT offer and hour to regulate it 3. How to install coordination and control mechanisms Board users IS professionals Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Strategic planning of IS Find the managed Set of IS actual (maintenance) And future (projected) Resource planning human, financial, time Management Model structure coordination Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -12 -

7 IS management model Define a Systems portfolio Following the business strategy» Information Systems are a tactical resource Prepare the use of sub-models» strategic(++)» operational (+)» exploratory(+)» support (-) Manage the portfolio with some policy» That policy should never rule the strategy Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Systems Portfolio + Future risk strategic exploratory strategic importance of planned systems operational support actual risk Strategic importance of actual systems Business risk Financial risk Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -14 -

8 Strategic Systems Support business objectives And critical success factors Time is crucial Fill market needs in» Opportunity window, continuous innovation» moving target: sustain competitive advantages Business vertical integration Understand how to add value in in differentiated manner» It is normally associated will business units with high information intensity Business needs are more important than technological excellence Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Exploratory applications Ideas, opportunities» To apply technology to business Do not waste time Try to prove the strategic potential (meaning )» So important in critical success factors as in competitive advantages Works like R&D» Controlled experimentation IMP: the outcome of this phase is knowledge» To know if the future system is strategic or operational Meaning: what to do next Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -16 -

9 Support systems Question:» Its absence represents a substantial business risk? If not, then it is a support system These are the systems that an enterprise needs» Than can be shared with competitors do what you do best, outsource the rest They are a cost» That should be controlled (minimized) In the long run Objective: efficiency Of business support functions Minimal overhead Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Operational systems Make current business work» are guardians against competitive disadvantages Can increase business effectiveness» Business results... ($$$) Must be integrated» To avoid duplications and inconsistencies» Quality assurance (priority to effectiveness) Investments must be cautious» Returns in effectiveness rather than competitive advantages» With efficient resource use Defensive innovation Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -18 -

10 Planning coordination and control of information systems Manage the IS portfolio in a differentiated manner Give priority to important aspects Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Planning coordination and control of information systems Operational IS: the majority of systems» Create a simple bureaucracy to ensure systems quality (medium maturity) Strategic IS: ensure the future» Consider all options: business strategy (high maturity) Support systems: minimal investment» Time and money Exploratory systems exploratory» Give autonomy to business experiments strategic support operational Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -20 -

11 Strategic planning of IS = regulate demand Portfolio evaluation to encounter projects (priorities are defined according to internal rates of potential returns)» Business impact» plan Expected benefits to manage The business change IS development, test, and acceptance IT infrastructure estratégicos suporte operacionais exploratórios Users leader respons. Respons. Respons. IS prof. Particip. Follow inform advise Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral Manage IT: regulate offer Manage and regulate Technological infrastructure Systems integration Systems exploitation estratégicos suporte operacionais exploratórios Users leader respons. leader respons. IS prof. Respons. Advice respons. advice Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -22 -

12 Conclusion IS management model must follow strategy Coordination and control of IS follows the IS management model Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral -23 -

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