TOPIC 3 Strategic IS Planning Process

1.0 Visioning Phase

1.1 Initiate and manage the project

1.2 Understanding business situation & vision

1.3 Document & confirm the business analysis

involves setting up and running the project in an efficient manner

Finalize objectives, goals & scope:

Identify resources, roles & responsibilities:

Confirm deliverables & work plan:

Finalize and communicate the purpose of strategic planning:

Announce the project and conduct project orientation

Establish the process to develop the plan:

Communicate the status of strategic planning effort:

This involves figuring out what the project is trying to achieve and setting clear goals and objectives.

This involves figuring out who will be involved in the project and what each person will be responsible for.

This involves figuring out what will be done and when it will be done in order to achieve the project's goals and objectives.

This involves making sure everyone involved understands what the project is trying to achieve and what is expected of them.

This involves officially starting the project and getting everyone involved.

This involves figuring out how the project will be carried out and making sure everyone is on the same page.

This involves regularly updating everyone on the progress of the project and making sure everyone is aware of what is happening.

The project team meets to determine what the project is trying to achieve, such as improving the company's website or creating a new software system.

The project team identifies who will be involved in the project and what each person's role and responsibilities will be, such as a designer, developer, and tester.

The project team outlines what will be done and when it will be done, such as designing the website in the first month, developing it in the second month, and testing it in the third month.

The project manager communicates the project's goals and objectives to all stakeholders, including employees and customers, to ensure everyone understands what the project is trying to achieve.

The project manager holds a meeting to officially announce the project and provide an overview of what will be done and how it will be done.

The project team determines how the project will be carried out, such as using Agile methodology or a Waterfall approach.

The project manager sends regular updates on the project's progress to all stakeholders to keep everyone informed and aware of what is happening.

Common Aims for Adopting IS/IT Strategy Process

Aligning IS/IT with the business:

Gaining competitive advantage:

Building a cost-effective technology infrastructure:

Developing the right resources and competencies:

This involves making sure that the technology the company uses supports its overall business goals and helps the company achieve its objectives.

This involves using technology to give the company an edge over its competitors, such as having a more user-friendly website or a faster system for processing orders.

This involves having the right technology in place to support the company's goals and objectives, while also making sure it is done in a cost-effective way.

This involves having the right people in place with the skills and knowledge to use technology to achieve the company's goals and objectives.

Approaches to IS/IT Strategy Development

Business led – carried out by IT specialists who define an IS/IT investment plan based on the current business strategy

Method driven – the use of techniques

Technological – use analytical modeling and tools

Administrative – budgets, resource plans

Organizational – key themes for IS/IT investment

Problems and Barriers of IS/IT Strategy Development

Lack of senior management support:

Lack of understanding of the role of IS/IT:

Resistance to change:

Budget constraints:

Lack of skills and knowledge:

Difficulty aligning IS/IT with business goals:

Resistance from existing IT departments:

Without the support of senior management, it can be difficult to get the resources and funding needed to develop and implement an IS/IT strategy.

Some organizations do not fully understand the role of IS/IT in their business and how it can be used to achieve their goals and objectives.

Employees may resist changes to their current ways of working or be resistant to using new technology.

Developing and implementing an IS/IT strategy can be expensive, and organizations may not have the budget to invest in new technology or hire the necessary staff.

Organizations may not have the right people in place with the skills and knowledge to develop and implement an effective IS/IT strategy.

It can be difficult to align IS/IT with the overall goals and objectives of the business, making it challenging to measure the success of the IS/IT strategy.

The existing IT department may be resistant to changes to their current systems and processes, making it difficult to implement new technology or change existing processes.

When choosing an Information Systems/Information Technology (IS/IT) strategy approach, it is important to consider certain characteristics to ensure that the approach will be effective.

These characteristics include:

Consistency: The approach should be consistent with the overall goals and objectives of the organization, and should align with the company's culture and values.

Communication: The approach should include clear and effective communication to ensure that everyone involved understands the goals, objectives, and steps involved in the IS/IT strategy.

Documentation: The approach should be well-documented, so that it can be easily understood, implemented, and monitored over time.

Rationalizing decisions: The approach should involve making well-thought-out, logical decisions about the use of technology, based on the goals and objectives of the organization and the available resources.

Goal: to get a clear understanding of where the business wants to go and what it wants to achieve

This is done by reviewing the business's official documents and goals (such as objectives, goals, etc.)

and then talking to key people in the business through interviews and workshops.

To do this, the IS/IT strategy team creates a plan to gather information, which includes developing questions for interviews and workshops, creating surveys, and figuring out how to structure these interactions.

Finally, the team schedule and conduct the interviews and workshops to gather information and get a deeper understanding of the business.

to understand the current state of the business and its goals, as well as the impact that IS/IT have on the business.

To achieve this goal, the IS/IT strategy team collects

  1. information about the business, including its description, vision, values, goals and strategies
  2. information about industry trends and the requirements of both the business and its customers.
  3. the team identifies the strengths, weaknesses, opportunities, and threats of the business, and
  4. documents the impact that IS/IT has on the business.

Once the information has been collected, it is documented in a clear and organized manner, providing a comprehensive understanding of the business.

2.0 Analysis Phase

2.1 Understand current IS situation

2.2 Analyze current IS situation

2.3 Develop recommendations, solution alternatives

step involves gathering information about the current state of the organization's IS

process involves:

Reviewing existing IS documentation

Developing interview questions and conducting interviews with IS employees

Documenting the information gathered from the interviews and the current IS situation,

such as IS organization chart, reports provided to management, IS vision, mission, objectives, project lists, current project priorities, and IS standards, policies, procedures.

to understand their concerns, suggestions for improvement, job satisfaction, and career interests.

including the business application environment, desktop environment, server environment, network environment, telecommunications environment, and data center environment.

cth: data center: how the security? besar mn? where the data?

involves several steps to determine the strengths, weaknesses, opportunities and threats of the current IS environment.

Conducting industry benchmarking:

Identifying IS industry trends and competitor profiles:

Reviewing information needs and data context

Reviewing business processes and applications:

Identifying functional requirements and gaps:

Developing a SWOT analysis:

Developing scorecards and getting team input:

This involves comparing the current IS situation with that of other similar companies in the industry, based on factors such as IS budget, spending per employee, etc.

This involves researching the latest technologies and how they are being used by competitors, and determining what technologies are becoming obsolete, ready to implement, emerging, or still need further review.

This involves looking at the data and information that is currently used by the company and determining if there are any areas for improvement

This involves evaluating the current business processes and applications to identify any areas for improvement or areas where current applications can be enhanced.

This involves determining the requirements for the IS environment and comparing these requirements to what is currently in place to identify any gaps.

This involves identifying the strengths, weaknesses, opportunities, and threats of the current IS environment, and comparing it to industry and business requirements.

This involves getting feedback from a group of people on the current IS situation and rating it based on factors such as technology, processes, etc.

obsolete = xguna dh, tpi company lain guna
ready to implement =available technology, competitor pun pkai jugk
emerging = newer technology, company kita pkai, but not widely use
still need further review = more on experimental than commercial

Techniques to analyse current IS situation


Critical Success Factors

Balanced Scorecard

Balanced Scorecard: This technique is a performance management tool that helps organizations to balance their focus on financial and non-financial performance measures. The balanced scorecard can be used to evaluate the performance of the IS by considering four perspectives: financial, customer, internal processes, and learning and growth. This can help to ensure that the IS is delivering value to the organization and contributing to its overall success.

is to come up with recommendations and solution alternatives

Business applications: Consider different solutions that can be used to improve business processes and meet the information needs of the organization.

Infrastructure: Evaluate various options for improving the technical infrastructure, such as servers, networks, and telecommunications systems.

Organization: Look into ways to reorganize the IS/IT department, if necessary, to align with the business goals and objectives.

IS/IT processes: Identify opportunities to improve the processes and procedures related to IS/IT, such as project management, information security, and incident management.

Let's say a company wants to improve its customer service process.


they could develop several recommendations for improving the customer service process, such as:

Business application options: Implementing a customer relationship management (CRM) system to better track customer interactions and improve communication between departments.

Infrastructure options: Upgrading the company's network to improve response times and ensure more reliable customer service.

Organizational options: Reorganizing the customer service team to improve communication and ensure accountability.

IS process options: Implementing a standard process for handling customer complaints and requests, and regularly reviewing and updating the process to ensure it is effective.

3.0 Direction Phase

stage where the company decides where it wants its IS to be in the future in order to meet its business requirements.

focus of this phase is to determine what changes are needed in the IS/IT systems in order to support the company's future business goals and objectives.

3. 1 Developing IS vision and mission

The vision is a concise (ringkas) statement about the future of IS,

while the mission is a statement about what the IS group does and why it exists also what purpose and function it provides to the company

where you want to go

what you aspire to be

blh start dgn : to be leading bla2

blh start dgn : Our mission is to provide bla2

Need to do for each company for the next
5years

should be specific and concise, and it should provide a clear sense of direction for the organization's day-to-day activities.

Developing IS goals and strategies

The goals

describe how the IS will achieve the vision and mission.

The strategies

are detailed directional statements that explain how the IS will achieve the goals.

example:


Vision: "To be the leading provider of innovative and reliable technology solutions (specific application) in the industry"


Mission: "To provide top-quality technology solutions and services to our clients, enabling them to achieve their business objectives and stay ahead of their competition"


Goals:

  1. Expand our offerings to include the latest technologies and services
  2. Increase customer satisfaction by providing personalized and efficient support
  3. Build partnerships with leading technology vendors to offer the best solutions to our clients

Strategies:

  1. Invest in research and development to stay ahead of the technology curve
  2. Offer continuous training and development opportunities to our team to ensure their expertise in the latest technologies
  3. Foster long-term relationships with clients through regular communication and follow-ups to understand their evolving needs
  4. Implement a robust quality control process to ensure the reliability and efficiency of our technology solutions.

Determine IS balanced scorecards and metrics

means figuring out the best way to measure the performance of IS in a company

There are several ways to do this, including

asking executives what they believe is important and and how they would measure success

Benchmark IS performance to industry standards, and using industry metrics like

➢IS budget as a percentage of revenue

➢IS spending per employee

➢Overall IS budget

➢IS comparison with last year

best method for measuring IS performance is using a balanced scorecard

method that looks at four different areas: financial, customer, internal process, and innovation.

3.2 Develop IS plan

Develop business application direction

done by first identifying the principles that will guide the business application area. Principles are a reflection of the general culture and values of the company.

For example, if a company values innovation and efficiency, then one of its principles for the business application area could be to implement cutting-edge technology solutions that streamline processes and increase productivity.

Once the principles have been established, the specific direction for the business application area can be determined.

This could involve implementing new software or hardware systems, updating existing systems, or exploring new areas of technology that can help the company meet its goals and objectives.

Custom Vs. Packaged Business Application Direction

It refers to the choice between using custom-built business applications or using commercially available packaged applications.

Custom-built business applications

are unique and tailored to the specific needs of a business.

They are often developed in-house or by a third-party software development company

These applications are built to meet the exact requirements of a business and can offer greater flexibility and customization options.

packaged business applications

are pre-made, commercial off-the-shelf software solutions that are designed to meet the needs of multiple businesses.

These applications are widely available, often less expensive, and can be implemented quickly.

Develop business application direction

Develop technical infrastructure direction

Develop organizational direction

Develop IS process direction

Develop prioritization process 🔥

Determine the specific direction for the business applications.

Assess the current situation and identify any weaknesses in the business applications.

Review the existing principles that guide the business applications and identify any gaps.

Identify specific areas that need to be changed to achieve the desired business application direction.

Evaluate various options for achieving the desired direction, including:

Analyze the best option based on the evaluation and implement it to achieve the desired business application direction.

The company wants to increase sales and improve the customer experience through its e-commerce platform.

he company realizes that its current e-commerce platform is slow, difficult to use, and not mobile-friendly.

The company believes in providing a seamless customer experience and values innovation and simplicity.

The company identifies the need to improve the speed and ease of use of the platform, as well as making it mobile-friendly.

Description of each option

Advantages and disadvantages of each option

Estimated costs and resources required for each option

The company considers several options, such as developing a new platform from scratch, acquiring an existing platform, or partnering with a technology provider.

The company evaluates each option by considering the description, advantages, disadvantages, cost, and resource estimates. Based on this analysis, they make a decision on the best option to move forward with.

refers to the process of determining the direction of your technical infrastructure, which includes the hardware, software, and networks

To support this vision, the company needs to have a technical infrastructure that is up-to-date and can accommodate new technology advancements. The company can start by reviewing its current technical infrastructure and identifying any weaknesses that need to be addressed. Then, the company can create a plan to implement the necessary updates and advancements to its technical infrastructure, such as executive summary, architecture overview, client architecture, workgroup server, etc. This will ensure that the company stays ahead of the technology curve and remains on track to achieve its vision.

refers to creating a plan for how the IT department within a company will support the business systems and computing architecture (blueprint)

This plan includes

identifying the processes, people, organization structure, company culture, technology, and metrics that are necessary to support the IT operations

The goal is

to ensure that the IT department is aligned with the overall goals of the company and can effectively support its technology needs.

refers to creating a plan for improving the information technology (IT) processes within a company.

For example, one principle could be to prioritize efficiency and another could be to prioritize customer satisfaction. These principles would then inform the decision making around which IT processes need improvement and how those improvements should be made.

common prioritization processes:

Squeaky wheel: This process prioritizes IT projects based on who is complaining the loudest. Whichever group is making the most noise about their project gets the attention of the IT department.

First in, first out: This process prioritizes IT projects based on the order in which they were submitted. The first project that was submitted is worked on first, followed by the next project, and so on.

Consensus: This process involves the IT Steering Committee agreeing on what the most important project is. The decision can be influenced by politics, as different groups may try to push their own projects to the top of the list.

Return on Investment: This process prioritizes IT projects based on the estimated return on investment (ROI). The goal is to add objectivity and business value into the selection criteria. However, the accuracy of the prioritization depends on how well the benefits of each project have been estimated

3.3 Identify IS projects

This refers to identifying potential IT projects that could be undertaken by the company,

such as new business applications, infrastructure upgrades, changes to the organization, or improvements to processes.

The costs of each project are estimated, as well as the potential benefits for the business.

Using the prioritization process (such as return on investment), the company will then rank the projects in order of priority, with the highest priority projects being those that are expected to bring the greatest benefits and return on investment.

However, the company may not have unlimited resources to allocate to these projects, so it will need to balance the list of projects against the resources available. For example, if the company has limited funding and staffing resources, it may not be able to undertake all of the projects on the list.

In this case, the company would prioritize the projects and only work on the most important ones that can be accomplished with the resources available.

Prioritize IS projects

Economic value and strategic value

Economic value refers to the tangible financial benefits that a project is expected to bring to the organization, such as cost savings, increased revenue, or reduced risk

Strategic value, on the other hand, refers to the intangible benefits that a project is expected to bring to the organization, such as improved customer satisfaction, enhanced brand reputation, or increased competitiveness.

Potential
contribution and Degree of dependence of the
business on IS/IT application

3.4 Implementation Strategy 🔥

How to implement the project that have been prioritise

Centrally Planned: This approach involves central coordination by senior management, where IT decisions are made at the highest level of the company.

Leading Edge: This approach focuses on using technology to create a competitive advantage for the company.

Free Market: This approach allows each business unit to make its own IT decisions, based on what it believes is best for its particular needs.

Monopoly: This approach involves the centralized IT management having control over data integration and making decisions that impact the entire company.

Scarce Resource: This approach involves the company implementing a financial strategy to control its spend on IT.

What the current technology available outside, bcs org lain pakai system tu depa pun nk ikut

Business unit only know what is needed,
depa yg hadap daily

Looking at the budget, must go through the financial department first

click to edit

Not necessarily implement satu ja, integration pun blh. Cth management kdg xtau psal budget, jdi kna combine ngn financial department, dependent on the case given to u

This can lead to more efficient and cost-effective IT operations, but can also limit innovation and restrict the ability of business units to make independent decisions.