SISP

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Chapter 1
Introduction  what this course is all about
Why and how to develop a strategy to use IS
effectively Strategy -It is a desired future
state for the business/organization. -it also
provide purposeful direction to organization.
A Strategy must identify. where an
organization want to be in the future
access accurately where it is now decide
how best to be there(with alternative option
and resources) 
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Chapter 1
IS or IT ? Homework????!!!!! Strategic
Information System -system that support or shape
a businesss unit competitive strategy. -is
characterized by its ability to significantly
change the manner in which the business is
done. -it can also change the goals, process,
product or environmental relationships to help
organization gain competitive advantage.
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Chapter 1

• 4 main types of Strategic information system
• Those that share information via technology-based
  systems
• with customers/consumers/suppliers and
  change a nature
• of the relationship e.g. American Hospital
  Supplies
• Those that produce more effective integration of
  the use of
• information in the organizations value
  adding process.
• Those that enable the organization to develop,
  produce, market
• And deliver new enhance products or service
  based on
• information.
• Those that provide executive management with
  information to
• The development and implementation of
  strategy .

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Chapter 1
Strategic Planning Is a process by which
corporate objective for the future are
identified in response to perceived opportunities
and treats and by understanding company
situation. Objective Provide direction,
concentration of effort, consistency of purpose
and flexibility as a business continually
strives to improve its competitive
position.  Competition Is the core of firms
success or failure! Michael Porter(1985-1996)
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Chapter 1

• Corporate Strategy
• -sense of direction for the entire organizational
  group.
• What business are we in
• Strategic Process
• -making strategic decision.

Strategic analysis
Strategic choice
Strategic implementation
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Model of strategic planning process
Vision
What should we be doing?
Strategic Analysis
Where are we going?
Mission
Strategic Choice
Strategies
What route have we selected
How do we guide our collective decision to get
there
Policies
Decisions
Strategic Implementation
What choices do we have?
Shall we do it
Actions
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Example Vision To be industry cost
leader Mission Achieve staff productivity gain
of 5 within three years Strategy Reduce
Time lost to ill health Policy Maintain a
healthy workplace Decision Ban
smoking Action Put up the signs and police the
decision
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Chapter 2Models of SISP
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Strategic Information Systems Planning
Methodologies

• Strategic information systems planning is a major
  change for organizations, from planning for
  information systems based on users demands to
  those based on business strategy.
• the time horizon for planning changes from 1 year
  to 3 years or more and development plans are
  driven by current and future business needs
  rather than incremental user needs.

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Strategic Information Systems Planning
Methodologies

• Increase in the time horizon is a factor which
  results in poor response from the top management
  to the strategic information systems planning
  process as it is difficult to hold their
  attention for such a long period.
• Because of the complexity of the strategic
  information systems planning process and
  uniqueness of each organization, there is no one
  best way to tackle it.

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Strategic Information Systems Planning
Methodologies

• Strategic information systems planning is a major
  change for organizations, from planning for
  information systems based on users demands to
  those based on business strategy.
• SISP methodologies are classified into two
  categories impact and alignment.

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Strategic Information Systems Planning
Methodologies

• Impact methodologies help create and justify new
  uses of IT, while the methodologies in the
  alignment category align IS objectives with
  organizational goals.

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Information Systems Planning
Corporate Strategic Planning
Current Situation listing of manual automated
processes listing of manual and automated
data technology inventory human resources
inventory
Current Enterprise
Future Situation blueprints of manual automated
processes blueprints of manual and automated
data technology blueprints human resources
blueprints
Future Enterprise
Schedule of Projects 1.. 2.. 3..
Strategic Plan
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Model of SISP

-Investment in IS/IT are directed towards
achievement business plans. -But IT can also be
enabler of new business strategy(that was not
possible without IT). Success in managing IT
involves both maximising the return on
investment(ROI) and enabling the strategic use of
information either to gain competitive
advantage or to repel competitive threats -Must
involve business managers -Present in the way
that they understand. -Avoid IT Jargon Define
strategy to Strategic Business Unit(SBU)
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Affective alignment of IS/IT strategy with
business will occur most effectively if the
thinking process are intimately link, as early
as possible in the derivation of the intended
business strategy
Business planning tool use in aligning IT and
Bus. strategy -The Boston Consulting Group
Business Matrix(BCG Matrix) -Competitive forces,
Competitive strategy.
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Product Life Cycle
Mature
Decline
Growth
Demand
Emerging
Time
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Product Life Cycle(ct)
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Product Life Cycle(ct)
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Product Portfolios (Boston Consulting Group)
FUNDS
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Implication for IS strategy
Wild Cat -To success through innovation -Or
selecting clearly focused niche -IT/IS strategy
will be focusing on product /process
Development. -or use to identify potential
customer, segment customer type. Star -developing
customer requirement and competing product
offering is vital. -System and information focus
will be toward customer. -Systems also aimed
toward allowing growth in business, handling
greater order volumes and variety product mixture.
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Cash Cow -Defending the current position -make
sure that cost are lower/equal of competitor
-Business productivity and control of
customer/supplier is the main aim -System will
focused on control of the business relationship
and activities rather than innovation. Dog
-not much investment, unless it can clearly be
seen to increase market share or profit.
-IS/IT investment should follow business
direction
-very little IS/IT innovation used
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Business Systems Planning

• Alignment Methodologies
• An IBM proprietary technique also known as
  enterprise modeling or information resource
  management
• A fairly lengthy process that offers a
  structured approached to planning.
• Work well with in organization where the
  organizationally or physically centralize.

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Business Systems Planning

• This methodology, combines top down planning with
  bottom up implementation. The methodology focuses
  on business processes which in turn are derived
  from an organizations business mission,
  objectives and goals.
• Business processes are analyzed to determine data
  needs and, then, data classes. Similar data
  classes are combined to develop databases. The
  final BSP plan describes an overall information
  systems architecture.

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Business Systems Planning

• In its top down strategy, BSP is similar to CSF
  method in that it develops an overall
  understanding of business plans and supporting IS
  needs through joint discussions.
•  major weakness of BSP is the considerable time
  and effort required for its successful
  implementation.

25

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Business Systems Planning
MISSION and OBJECTIVES
Business Processes
Business Applications
Business Data
Operational Databases
Information System Architecture
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Critical Success Factors

• Rockarts Critical Success Factor (CSF) analysis
  involves the identification of key performance
  measures to identify critical factors and issues
  determining a businesss success
• Less time-consuming, expensive than BSP
• Small focus, less structured
• Doesnt address transaction processing systems

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Critical Success Factor Analysis

• Critical success factors analysis can be
  considered to be both an impact as well as an
  alignment methodology.
• Critical Success Factors are used for
  interpreting the objectives, and operational
  activities in terms of key information needs of
  an organization and its managers and strengths
  and weaknesses of the organizations existing
  systems.

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Critical Success Factor Analysis

• critical success factors are areas of activity
  that should receive constant and careful
  attention from management. The CSF approach was
  originally developed as a means to understanding
  the information needs of CEOs.
• CSFs can exist at a number of levels, i.e.,
  industry, organizational, business unit, or
  managers. CSFs at a lower level are derived from
  those at the preceding higher level.

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Critical Success Factor Analysis

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Aggregate and analyse individual CSFs to identify
shared and unique CSFs
Interview individual managers to determine their
CSFs
Obtain management consensus on coy. CSFs
Define ways to measure success in achieving CSFs
Prioritise projects
Define data and processing needs
Define IS projects required to meet needs
Critical Success Factor Analysis
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Critical Success Factor

• Firm common CSF
• Access to raw material.
• Timely delivery.
• Level of CSF
• CSF level page 186-187 Ward 2nd edition
• What to do with CSF
• Identify them among objective
• Consolidate them among across objective
• Question to be asked
• How does existing exhibit CSF
• Apply SWOT analysis to current system
• If CSF achieved, objective is achieved
• CSF ratio 5-8 per objective

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Customer resource Life Cycle

• Examining customer by the model, companies can
  determine not only
• When Opportunity/threats exists for strategic
  application but also
• when a specific applications should be develops.
• Can be apply towards customer or supplier
• Relies on product/service goes through typical
  life cycle
• Four main stages
• Requirement determination
• Acquisition
• Stewardship
• Retirement or disposal

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• Customer Resource Life Cycle
• Our product is a resource for our
• Customer
• How does customer manage this resource?
• What decision do they make?
• How do they make this decision

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Customer resource Life Cycle
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Customer resource Life Cycle (continue..)
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STRATEGIC OPTION GENERATOR

• - used for identifying strategic opportunities in
  relation to customers,
• suppliers and competitors.
• First stage in the analysis is to define the
  targets
• Suppliers
• -Anyone supplying essential resources. Subset
  them either by their
• nature of what they supply or their strength
• Customers
• -Distributors or consumers,classified them on
  what they buy and
• how much leverage they exert
• Competitors
• Obvious competitor, potential new entrants into
  they market and
• threatening substitute product or services.
  Competitors strategies
• should be understood.

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STRATEGIC OPTION GENERATOR
STRATEGIC THRUST -Having determine strategic
targets, for each of them a number of a number
strategic thrusts-major offensive or defensive
moves Differentiation -Being better and ensuring
that quality is perceived and leads to premium
pricing. -the thrust is not to be a better
supplier or competitor but also to be a better
customer of a supplier to obtain a preferential
service. Cost -Being cheaper or enabling
customer to reduce their costs(sharing
benefits). Innovation -Introduce new product,
services or process or way of doing business
which transforms the relationship and competitive
forces in the industry.
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STRATEGIC OPTION GENERATOR
Growth -Enable volume/expansion in geography or
increase flexibility of production without
indirect overhead increase. Alliance -Forging
agreement, join ventures or joint investment in
systems to prevent new entrants or competitors
achieving advantage. To identify what to do,
questionnaire approach is used.
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STRATEGIC OPTION GENERATOR
Differentiation
Cost
Innovation
Growth
Alliance
Strategic Target
Strategic Thrust
Framework for Accessing Strategic IS opportunities
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STRATEGIC OPTION GENERATOR
Customers/Supplier/competitor should be segmented
and potentially Different thrusts made towards
different groups. -To be Offensive Create or
increase a competitive age -To be Defensive
Reduce competitor advantage or prevent potential
advantage Relies on thorough understanding of
the state of the industry
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Value Chains
Value chains model a long-linked technology
where value is created by transforming
inputs into products
The product is the medium for transferring value
between the firm and its customers
Marketing serves two complementary functions
1. Providing product specifications and volume
estimates 2. Stimulate the required level of
demand capacity utilization
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Value Chains
Interdependencies between activities are handled
through coordination
The value of products is a function of Buyer
Purchasing Criteria

• Customer value is defined by either
• 1. Cost reductions that lead to performance
• improvements
• 2. Performance improvements in use

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Representing Value Creation
Value Chain analysis postulates that competitive
advantage is understood by disaggregating the
value creation process into discrete activities
that contribute to cost position or
differentiation
The disaggregation must be complete

• Activities should be defined such that they have
• different economics
• high potential impact on differentiation (value)
• represent a significant portion of cost

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Taxonomy of Value Creation Activities
Primary activities are directly involved in
creating value for the customer
Support Activities enable and improve performance
of primary activities
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Primary Activities
Inbound Logistics receiving, storing and
disseminating inputs
Operations activities associated with
product transformation
Outbound Logistics activities associated
with collecting, storing and distributing the
product(s)
Marketing and Sales providing means
and inducements for product purchase
Service activities that enhance or maintain the
value of the product
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Support Activities
Procurement activities associated with
purchasing inputs to the value chain
Technology Development efforts to improve
the product or process
Human Resource Management recruiting,
hiring, training, developing and compensating
personnel
Firm Infrastructure general management,
planning finance etc.
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Drivers of Cost and Value
The cost behavior of value activities is
determined by structural factors defined as cost
drivers.
Cost drivers are partly related to 1.
Internal relationships 2. External factors 3.
The relationship between internal and external
factors
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Environment Analysis
Porters Five Forces Model
Threat of new entrants
Rivalry amongst existing Competitor
Bargaining power of supplier
Bargaining Power of supplier
Threats of substitutes Product or services
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• Entries Barriers
• Economics of scale
• Proprietary product differences
• Brand Identity
• Switching costs
• Capital Requirements
• Access to Distribution
• Absolute cost advantages
• Proprietary learning curve
• Access to necessary input
• Proprietary low-cost product design
• Government policies
• Expected retaliation

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• Determinants of supplier power
• Differentiation of inputs
• Switching costs of supplier and firms in the
  industry
• Presents substitute inputs
• Supplier concentration
• Importance volume to supplier
• Cost relative to purchase in the industry
• Impact of input on cost or differentiation
• Threat of forward integration

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• Determination of supplier power
• Bargaining Leverage
• Buyer concentration
• Versus firm concentration
• Buyer volume
• Buyer switching costs
• relative to firms
• Buyer info
• Ability to backward integrate
• Substitute product
• pull through

• Price Sensitivity
• Price total Purchase
• Products differences
• Brand identity
• Impact on quality/performance
• Buyer profits
• Decision maker insentive

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• Determinants of substitution threats
• Relative price/performance of substitute
• Switching costs
• Buyer propensity to substitute

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• Rivalry Determinant
• Industry growth
• Fixed storage /value added
• Intermittent overcapacity
• Product differences
• Brand identity
• Switching costs
• Concentration and balance
• Information and complexity
• Diversity of competitor
• Corporate stake
• Exit barriers

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Chapter 3SISP FRAMEWORK
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The Challenge is to Improve Organisational
Performance
The overall aim of SISP is to direct IS resources
to those areas offering the most important
corporate benefits

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SISP - Inputs Outputs
External business environment
Internal IS / IT environment
Current applications portfolio
I N P U T S
Internal business environment
External IS / IT environment
Strategic IS / IT planning process
Planning, approaches, tools techniques
O U T P U T S
IT strategy
Source Ward et al Figure 3.8
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SI SP FRAMEWORK

• Input, Process, Output and Feedback from SISP

• Input
• The internal business environment
• The external business environment
• The internal IS/IT environment
• The external IS/IT environment

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SISP FRAMEWORK

• Output
• IS/IT management strategy
• Business IS strategies
• IT strategy

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SISP FRAMEWORK
Other planning activities
S
Initiate Planning Process
Understand the current Situation and understand
the business needs
Business Technical environment
Define/update Information and Systems Architectur
e
Determine Business IS strategy
Previous IT/IS Strategy
Formulate IT strategy
Prepare Migration Plan
Business strategy and proposed Development
Programme
IT/IS strategy and Proposed plans
Framework For IS/IT strategic Planning Process
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SISP FRAMEWORK
Initiate The Planning Process -enable sponsor to
develop an understanding of the business needs
Which prompt the start of the strategic
planning -understand the problem faced by top
management, their objective s And basics problems
faced by the top management, their objectives and
basic strategy
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SISP FRAMEWORK

• The purpose, objectives, scopes and deliverables
  are confirmed
• The approach determine and resource acquired,
  such as automated tools
• Business participants identified and the team
  assembled and trained expectations,issues and
  problems address, and risk management
• proposals put into gear
• Process steering and managing mechanisms created

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SISP FRAMEWORK

• How the work will interface with and feed into
  business planning group sessions are identified .
  This gives an indication of the time needed for
  the fact finding and analysis stage, since on
  average it planning, writing up, analysis and
  feedback
• Plan for the work,tasks, timing, roles and
  responsibilities, and checkpoints defined

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SISP FRAMEWORK

• Understand the Current Situation and interpret
  Business Needs
• Analysis of the business strategy,CSF,critical
  problem and process
• Evaluation of the current IS/IT operation
• Innovative analysis of external and internal
  business environment
• Determine the Business IS Strategy
• The accumulated business IS demand is turned into
  recommendation for the
• Deployment of IS/IT throughout the organization
  and SBU level.

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SISP FRAMEWORK
Define Information Systems Architecture This step
takes results of the analysis of process and
information needs in order to build a proposed
business model for the business. Formulate IT
Supply Proposals It Strategy and IT Supply can be
proposal can be feedback to business strategy.
Prepare outline migration plan and a Business
Case to gain Approval An outline migration plan
and high level business case can then be prepared
for approved proposals.
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SISP FRAMEWORK

• Understand the current Situation/Interpret
  business IS needs
• Purpose?
• -To understand business and its environment
• -Develop current, planned and future potential
  needs
• How?
• Analysis business strategy, objective, csf,
  critical problem, process
• For determine current situation, its strength and
  weakness, what
• information is needed and focus on investment in
  system that meet
• these requirement.
• Evaluate current IS/IT operation
• Its system, information, provision, resources and
  organization, skills and service.
• to determine contribution and where improvement
  can be made.
• Innovative analysis on exterior and interior
  business environment
• -To identify potential application

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Application Portfolio (What) Determines
Architectures (How)
How
What
Data
Application
Organisation
Architectures may vary in harmony by application
type
Technical
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SISP FRAMEWORK

• Analysis of the existing and expected future
  business and IS/IT environment and strategy.
• IS demand arise out of current business strategy
  through aligning IS requirement with business
  needs and initiatives.
• Future/Potential IS/IT by identify opportunity to
  
• Understand the current situation
• Determine IS/IT requirement
• Figure 4.1 page 158
• one way ask each area of business their
  requirements
• The problem no focus, priorities
• 2nd form group to define and updating IS/IT
  strategy
• This need well defined business strategy.
• 3rd Develop parallel with business strategy
• -profound u/standing drivers for change
• where we are
• where we want to go
• how to get there

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SISP FRAMEWORK
Fact Finding -IS/IT strategy depend upon
u/standing business and needs -construct needs
into beneficial information, systems or IT
service. Some task in figure 4.1 need to be
done. More details table 4.1 page
160 Understanding The Business strategy Fact
Finding Analysis Critical Success Factor Used for
interpreting more clearly the objective, tactics
and operational activities in term of key
information needs by the organization managers
and strategy and weakness of the existing
system. It help prioritizing activities and
information requirement Also help focusing on
key issues. What is CSF? Key area where things
must go right to flourish Constant and careful
attention area.
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Techniques for Uncovering Strategic Uses of IS/IT

• Application Type
• Technique External linkage Internal Product /
  service Executive
• systems integration enhancement information
• innovation
• SBU/product
• portfolio analysis
• Competitive analysis
• Value chain (external)
• analysis (internal)
• Critical success factors

Adapted from Ward et al page 243
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Developing the IS StrategyAnalysis and
Innovation DefineWHY WHAT
External business environment

• Understand the current situation
• Analyse information requirements
• Search for innovative opportunities

Internal business environment
Strategic IS / IT planning process
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Ward p. 239 Figure 5.1Developing the application
portfolio from a strategic perspective
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A Framework for Models Techniques
Short term (analytical)
Long term (creative)
Appraisal of IS/IT as it relates to the
organisation
Understand the industry structure and business
position (inc. SWOT)
Interpret business objectives and strategy
Consider potential IS/IT impact on
products/markets etc.
Assessing the opportunities threats
Analyse the external value chain and information
flow implications
Determine CSFs for the company and its
competitors etc.
Consider the strategic potential of IS / IT and
its effects on the value chain
Analyse the internal value chain and
organisational relationships
Identify critical business processes and
activities
Identify options for long-term IS/IT investment
and select most beneficial
Assessing the internal situation
Assess the business contribution of existing
systems (SWOT)
Determine short-term focus for investments
Existing
Required
Potential Applications portfolio
organisational, data technology architectures
Adapted from Ward et al Figure 6.3
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Chapter 4

• Project Team

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Project Team
Chief Information Officer(CIO) -IT
Director -Someone at board level -oversees
corporate implementation of IT. -can be someone
from business or operation rather than technical
person -responsible of setting policies and
strategy Management Sponsor
- Must be Director, Senior executive and fulfill
the job of chairing the steering committee,
assuring management participation and commitment.
IT Manager -Someone who the overall IT \IS
at head office. -Help by IS Manager at
business/Functional units Steering
Group Figure 8.8 page 34 1. Executive Steering
Group -critical to the whole structure
-form the dominant coalition Characteristic
-able to recognize the potential of IT/IS in
terms of business strategy
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Project Team
-Keen to employee IT/IS as a business
weapon. -Able to influence the management of
systems in the area of the business they
present -Have the confident of executive to
whom they present. 2. Business(or Functional)
IS Planning Groups - Establish in each
business units - senior Line Manager should
be involve in planning -responsible also to
ensure that business business priorities and
requirement are reflected in planned
application portfolio 3. IT Planning Group
(Service Management And Technical Management
Groups) -responsible for the resource,
technology planning and development -head by
member of steering committee must be a senior
manager and IT professional.
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Project Team
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Project Team

• Vital to have a steering group chaired by a
  senior executive who reports directly to the
  Chief Executive Officer. The chairperson /
  project sponsor must not be an IS specialist
  unless that person is accepted by the top
  management group as having very strong user
  oriented perspectives on the business
• IS specialists should be a minority on all
  committees and working groups other than
  specialist technical groups. Such groups should
  include some users
• There is a need for a small core group of one or
  more individuals , including a SISP expert, to
  guide and undertake much of the detailed work
  involved in a SISP project
• Size of groups is heavily influenced by the
  culture of each organisation
• The number and size of working groups should be
  that which is considered necessary to ensure that
  there will be a strong understanding of, and
  commitment to, the recommendation of the SISP
  project

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Organising the SISP project Some broad options
100
External personnel
50
x
Low
High
Management IS sophistication / Probability of
success

• In general, the greater the proportion of
  external involvement the less likely it is that
  the project will be successful.
• In essence, empowering the users is usually very
  successful.

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SISP - Project overview
Reporting Communications (20)
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SISP project organisation Concluding thoughts (I)

• There is no magic formula. Each project has to
  be treated on its merits. The following ideas
  may help
• Seek to achieve a good plan which will be
  implemented. This normally implies an
  organisational approach with as much user
  involvement as the culture of the organisation
  will allow
• SISP projects are primarily about helping people
  identify means of making the most appropriate and
  organisationally feasible uses of technology
• Technically excellent projects which can not be
  implemented for organisational reasons need to be
  excluded
• SISP projects are not primarily technical
  projects. Further, they most definitely are
  not about selling technology to innocent users
• Sometimes, the time taken to complete a SISP may
  result in individuals discovering means of
  implementing projects which were initially
  considered infeasible

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CHAPTER 5Information System Growth
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Information System Growth

• Stage of System Growth
• Initiation.
• Expansion.
• Formalization.
• Maturity.
• (Integration).
• (Data administration).

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Information System Growth

• Initiation
• -Introduction of computer into organization.
• -the objective is to lower cost.
• -Long implication for org. are rarely considered.
• -lack of management interest.

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Information System Growth

• Expansion
• -stage of contagious, unplanned and manage
  growth.
• -technocrat lead the way.
• -Long implication for org. are rarely considered.
• -lack of management interest.
• -Full of chaos and failure.
• -Typically computer staff feel free to
  concentrate on
• technically exciting rather than business
  worthy.
• -Budget grow.

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Information System Growth

• Formalization
• -Senior management become concern about the
  budget
• growth.
• -Slim down staff member and centralized for
  tighter control
• and lower cost.
• -Concentration on system that save money rather
  than system
• That make money.

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Information System Growth

• Maturity
• -Senior management now include senior IS staff.
• -A stage of balance between stability and
  innovation, between
• control and chaos between autonomy and cohesion .
• -

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Information System Growth

• Integration
• -lower the control of stage 3control in order to
  encourage
• innovation.
• IS function is reorganize, in order to allow IS
  staff more
• involve in org. as a whole.
• Data Administration
• -Org. require information drive development.
• -Great recognition of business value of cross
  functional
• data access. The stage of corporate database.

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Information System Growth
-Each strategy should be consistent with the org.
stage, with respect to that technology.-e.g.
org. stage of maturity is control stage then it
will difficult to adopt any projects without
strong econ. justification. -At this stage all
proposal must clearly define the expected cost
saving or expected revenues -The only project
treated should be those that help mgt.. Gain
control over that particular technologys use and
costs.
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Information System Growth
-IS model give a universal view of IS
problem. -It explicitly define the extent which
IS pervade the org. and how it effect all sorts
of things such as financing the purchase MIS to
planning for their control to different styles
of user involvement. -Give better understanding
of the factor influencing the strategy and so
mgt.. are able to do more job of planning.
-Mgt.principle differ from one stage to another
different technologies perhaps different
areas in different stage at anytime. -Therefore
this model also make explicit the need for a
portfolio of strategies to cater the
differences.
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Chapter 6

• Impact of IT On SISP

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Impact of IT On SISP

• The need to establish relationship between
  corporate and business strategy
• Need to incorporate and establish and
  understanding of the potential impact of IS/IT
  over the industry,corporation and its component
  business.
• The best level which IS/IT strategies can be
  develop within corp. umbrella.
• Differentiate between managing the DD for IS
  app.. To establish needs, priorities to be
  satisfied by SS (IT) strategy. Whether IT
  strategy or s required depend on similarity or
  otherwise of the business.

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Impact of IT On SISP

• -Achieving proper impact is difficult.
• -because need to react to changing circumstances
  the need to plan ahead and supporting coherent
  infrastructure.
• -In order to enable IS/IT strategic planning
  process and to allow for evolving circumstances,
  no. of input have to be reviewed constantly

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Impact of IT On SISP

• The Input are
• External business environment
• Internal business environment
• External IS/IT environment
• Internal IS/IT environment

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Impact of IT On SISP

• The portfolio approach, considering app.. as
  high potential, strategic and key operational and
  support is the main criteria for success.
• Creating the app.. Portfolio, then developing it
  further as the business and the systems change
  over time, implies a process of planning that can
  interpret the effect of each 4 key inputs
  continuously.

98
Impact of IT On SISP

• Impact Of IT at organization level
• -Improve and change how business process
• work, e.g. delivery product and service to
• customer control and planning activities.
• -Improve and change organization process e.g
• less formal ways and means by which people
• Carry out there responsibilities.

99
Impact of IT On SISP

• Impact Of IT at industry level
• Process automation- exchange of invoice etc.
• Boundary extension- integrating process carried
  by trading partners
• Service enhancement more and different type of
  information to trading partners to develop their
  business.

100
Impact of IT On SISP

• Impact Of IT at industry level
• Product innovation-provide something that
  customer require.
• Globalization-terms market and supply.
• Risk management-u/stand share risk among
  trading partner by sharing info about changing
  market DD.
• Service-better by having better resource and
  information to meet DD of customer.

101
Impact of IT On SISP

• Impact Of IT at industry level
• Time to market-develop deliver new product
  quickly requires coop suppliers channel of
  distribution.
• Cost-carrying out essential value adding process
  at the lowest cost based on where
• In the industry the tasks can be carried out most
  economically.

102
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103
Types of System

• Strategic Information
• High Potential
• Key Operational
• Support

104
Types of System
Strategic System -Vital to the company
success. -Arise out business strategy. -Critical
in attainment of competitive advantage. -must
be integrated with underlying system and out
source as well.
105
Types of System
High Potential System -RD category. -New
technology is tried out to ascertain its
potential. -Or partially from user idea can be
prototype. -advantages to explore potential of
innovative business ideas. -If it prove to
valuable, system move to strategic type. -Its
must separated from mainstream system.
106
Types of System
High Potential System(continue) -Often
organization have to acquire or develop new
skills to develop the applications and support
the process of evaluation.
107
Types of System
Key Operational System -Critical in
sustaining the current business. -If the
system failed business will suffer competitive
disadvantage. -Known as the workhorse
system. -Function as automating the main
operational process -e.g. customer order entry
and fulfillment.D -need to be integrated with
other primary process system.
108
Types of System
Support System -Found in an organization that
have computerized application. -e.g.
financial system and personnel's record
system. -they have value to they system but
not critical to success -they are many
software packages available in the market.
109
Types of System

• Strategic Information
• High Potential
• Key Operational
• Support

110
Types of System
Strategic System -Vital to the company
success. -Arise out business strategy. -Critical
in attainment of competitive advantage. -must
be integrated with underlying system and out
source as well.
111
Types of System
High Potential System -RD category. -New
technology is tried out to ascertain its
potential. -Or partially for user idea can be
prototype. -advantages to explore potential of
innovative business ideas. -If it prove to
valuable, system move to strategic type. -Its
must separated from mainstream system.
112
Types of System
High Potential System(continue) -Often
organization have to acquire or develop new
skills to develop the applications and support
the process of evaluation.
113
Types of System
Key Operational System -Critical in
sustaining the current business. -If the
system failed business will suffer competitive
disadvantage. -Known as the workhorse
system. -Function as automating the main
operational process -e.g. customer order entry
and fulfillment.D -need to be integrated with
other primary process system.
114
Types of System
Support System -Found in an organization that
have computerized application. -e.g.
financial system and personnel's record
system. -they have value to they system but
not critical to success -they are many
software packages available in the market.