ISIT Strategic Analysis:

1
Chapter 4

• IS/IT Strategic Analysis
• Current Situation

2
Agenda

• Business re-engineering and IS strategy
• Understanding the current IS/IT requirements
• Understanding IS/IT needs of the business
  strategy
• Examining current IS/IT supply
• Analysis techniques
• Critical success factors
• Process effectiveness
• Organizational model

3
Business Re-engineering and IS Strategy

• Re-engineering initiatives spring from business
  strategy
• IS demand supports business strategy
• Re-engineering needs IS/IT element
• Re-engineering and IS strategy forms potential
  models of the business

4
Understanding the Current IS/IT Requirements - I

• Business strategy analysis for information needs.
• External environment, current and future business
  portfolio, and competitive strategy for IS/IT
  competitive contribution
• Critical success factor identification for
  finding the information change drivers

5
Understanding the Current IS/IT Requirements - II

• Current process effectiveness evaluation for
  IS/IT to improve the performance
• Internal and external value chain analysis for
  information flow and IS/IT opportunities
• Conceptual architecture of information and
  processes restructuring to reach IS/IT maximum
  contribution

6
Understanding the Current IS/IT Requirements -
III

• Hardware and software functions for future plan
  migrating
• Current application portfolio evaluation for
  assessing contribution and potential
• IS/IT principles, organization, processes,
  services, and capabilities evaluation for meeting
  current and future business needs

7
Understanding IS/IT Needs of Business Strategy -
I

• Information, system, and technology for
• The achievement of the business objectives
• The measurement of the performance towards
  achieving the business objectives

8
Understanding IS/IT Needs of Business Strategy -
II

• Internal business environment
• Business strategy
• Current business processes, activities, and main
  information entities
• Organizational environment structure, assets
  skills, values, style, culture, and relationship
• External business environment
• Opportunities
• Threats

9
Business Strategy - I

• Components of business strategy
• Mission an unambiguous statement of what the
  business does and its long-term purpose
• Vision an easy identify picture of what the
  business will be in the future, and how it will
  operate
• Goals the set of major achievements that will
  accomplish the vision

10
Business Strategy - II

• Components of business strategy
• Objectives the targets (unambiguous and
  measurable) for accomplish the business vision
• Strategies the methods to meet the business
  objectives
• Critical success factors (CSFs) a few areas have
  to be right in order for the business to flourish

11
Business Strategy - III

• Components of business strategy
• Business drivers a set of critical forces for
  the business to change
• Business area plans document the response or
  information needs to the business strategy

12
Business Process, Activities and Key Entities - I

• Business processes the sets of interlinked
  activities to deliver specific outputs to
  customers
• Activities the elements of processes
• To produce, promote and distribute products or
  services
• To develop, support, and administer the
  infrastructure
• To measure the performance against objectives

13
Business Process, Activities and Key Entities -
II

• Key entities important data and information
  associated with business processes
• Models
• Process flow models or process dependency charts
• Hierarchical activity models or functional
  decomposition diagrams
• Entity relationship models

14
Business Process, Activities and Key Entities -
III

• Models
• Data flow diagrams (DFDs)
• Activity/entity matrices
• Class diagram

15
Examining Current IS/ITSupply - I

• Objectives
• Categorize in terms of strategic, high potential,
  key operational, and support
• Contribution to business needs
• Assessment of effectiveness, robustness, and
  unrealized potential
• Potential improvement
• Risks and opportunities
• Strength and weakness in terms of CSFs

16
Examining Current IS/ITSupply - II

• Evaluate
• Application portfolio and applications under
  development content, coverage, and contribution
• Current databases and those under construction
• Users perception of the value of the portfolio
• Current infrastructure and IT supply provisions

17
Examining Current IS/ITSupply - III

• Evaluate
• Current infrastructure and IT supply provisions
• Current/previous strategy and policies
• IS/IT organization and processes
• Current assets, resources, and skills
• Methods and training provisions

18
Analysis Techniques - I

• Business strategic analysis
• CSF analysis
• SWOT analysis
• Business portfolio and competitive strategic
  analysis
• Value chain analysis
• Process effectiveness

19
Analysis Techniques - II

• Business process redesign
• Organizational modeling
• Business modeling-information analysis techniques
• Current portfolio evaluation
• Technology assessment and IS/IT infrastructure
  review

20
Critical Success Factors - I

• Levels
• Industry
• Corporate
• Business unit or function
• Manger
• Usages in management
• IS opportunities to achieve Objectives
• Information needed by executives

21
Critical Success Factors - II

• Analysis process for IS requirements
• Understand mission and objectives
• Determine CSF for each objective
• Conduct a SWOT on each CSF
• Consolidate across objectives and identify
  information dependencies
• Outline plan of IS requirements

22
Critical Success Factors - III

• Analysis process for executive information system
• Understand mission and objectives
• Determine CSF for each objective
• Develop measures
• Guides for the executive information systems

23
Process Effectiveness

• Identify core processes
• Assess effectiveness of processes against their
  drivers
• Assess risks of not improving the processes
• Investigate urgency of opportunities for
  improvement
• Establish future vision of the business processes

24
Organizational Model

• The formal organizational arrangements
• Employees and other tangible assets
• Social structure
• Technology employed
• The external environment
• The dominant coalition
• The key processes

25
Points to Remember

• Business re-engineering and IS strategy
• Understanding the current IS/IT requirements
• Understanding IS/IT needs of the business
  strategy
• Examining current IS/IT supply
• Analysis techniques
• Critical success factors
• Process effectiveness
• Organizational model

26
Questions

• What are the critical success factors associated
  with an e-business?
• How do you conduct a strategic analysis for an
  e-business?