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3.0 STRATEGIC PERSPECTIVE (IN ORGANIZATION (Information Technology…
3.0 STRATEGIC PERSPECTIVE
IN ORGANIZATION
Information Technology
(Technology that help produce, manipulate, store, communicate/disseminate info)
used to build
Information System
(To store, process data to inform about info that may benefit to IS and to support decison making)
IT STRATEGY
:star: Planning document that explains how IT be utilized as part of organization business strategy.
:star: What technology required to support business as a whole
:star: Guiding Principles
Training
Security
Maintenance
WHY NEEDED?
:star: To help make better decisions.
:star: Any issues that raise, strategic perspective help to see in other perspective, can make better decisions.
MANAGEMENT INFORMATION SYSTEM (MIS)
:star: The instrumentation of an organization.
:star: Give summary of organization performance (Like dashboard)
:star: 3 Layer : 1.
Strategic Planning
Long range goals
What new product should be offered?
Management Control & Tactical Planning
Long + Short term
Make sure resource provided fully utilized
Operational Planning & Control
Short term, dealing with current state
What should be today's production level?
DECISION (Final Result)
:star: Choice among alternatives to achieve our goals
:star: Nature Of Decision
1. Structured
Routine and repetitive solution
Bottom layer (operational part)
2. Semi-structured
Input/ output/ procedure not well define
3. Unstructured
Top layer (strategic planning)
All phases of decision process are unstructured
IS / IT IMPLICATION
Produce more effective integration of the use of information.
Enable organization to develop, produce, market, deliver new product.
Provide executive management with information.
Improve traditional ways of doing business.
IS / IT : REVOLUTIONARY
Business process redesign.
Business network redesign.
Business scope redefinition.
IS STRATEGY
:star: Development that can support business goals and objectives.
:star: Information System Strategies
1. Business Strategy
Driver / leader
Well-articulated vision where business seeks to go
Porter's Generic Strategies Model
1) Cost Leadership
(Only one cost leader exist within an industry)
2) Differentiation
(Price charged customer by the differentiator must fair to price charged by competitors)
3) Focus
(To achieve local competitive advantages)
2. Organizational Strategy
Corporate Strategy
Concerned what type of organization the organization is in
Responsible manage resource in strategy business unit (SBU)
Scope : Product Scope
(what product should be specialized)
, Geographical Scope
(what geographical spread of activity for company)
, Vertical Integration
(decision to redesign SBU)
Business Strategy
More to dev. and sustain competitive advantage, less about operating units.
Strategy formulation
(Positioning business against rivals, Anticipating demand and technology and adjust the strategy to accommodate them)
Functional Strategy
Functional level is the level of operating division and department
Each functional area have their own strategy
3. IS Strategy
Must complement with business strategy-Refer to IS Strategy matrix