Business Transformation

1
Business Transformation
Acknowledgements to Euan Wilson (Staffordshire
University)
2
Overview
strategic grid
opportunity frameworks
index matrix
IS strategy
transformation graph
IT strategy
3

• strategic grid
• identify current IT systems role in organisation
• plan future developments to IT systems
• opportunity frameworks
• identify ways to use IT/IS in support of business
  strategy/opportunity

4

• index matrix
• identify plan medium-scale business benefits
  from IS/IT
• transformation graph
• plan major-scale IT/business process
  re-engineering (BPR)

5
Transformation benefits

• MIT 90s identified 5 transformation levels
• localised exploitation
• internal integration
• business process redesign
• business network redesign
• business scope redefinition

6
Localised exploitation(1)

• basic level
• islands of automation
• lacking integrated infrastructure
• efficiency benefits

7
Localised exploitation
administration administration administration
stage1 stage2 stage3 stage4
stage5 stage6
input operations output
administration administration administration
stage1 stage2 stage3 stage4
stage5 stage6
input operations output
8
Enablers inhibitors

• enablers
• technological
• favourable cost /performance trends
• vendor push system solutions
• organisational
• localised impact
• ease of assessing efficiency benefits
• minimal disturbance

• inhibitors
• technological
• obsolescence
• cost performance reduction
• organisational
• lack strategic vision
• unwillingness to recognise strategic role of IT/IS

inhibitors
level 1
9
Internal integration(2)

• IT platform in entire business process
  integration
• data sharing/communication
• common applications
• integration of task/process/function
• integration of both technology organisation

10
Internal integration
administration administration administration
stage1 stage2 stage4
stage5
input operations output
administration administration
administration
IT platform for internal
integration
stage1 stage2 stage3 stage4
stage5 stage6
input operations output
11
Enablers inhibitors

• enablers
• technological
• increase connectivity capabilities
• favourable cost/ performance trends
• vendor push system solutions
• organisational
• strategic integration vision via IT platform

• inhibitors
• technological
• uncertainty
• integration cost
• organisational
• lack strategic integration vision
• organisational inertia
• centralisation / decentralisation conflict

inhibitors
level 2
12
Business process redesign(3)

• fundamental rethink of conducting business
  effectively
• limited/controlled business transformations

13
Business process redesign
administration administration
administration
IT platform for internal
integration
stage1 stage2 stage3 stage4
stage5 stage6
input operations output
administration
IT platform for redesign
stageA stageB stageC
stageD
input operations output
14
Enablers inhibitors

• enablers
• technological
• favourable cost / performance trends
• organisational
• awareness of IT power
• willingness to change to exploit IT
• marketplace
• competitive pressures

• inhibitors
• technological
• uncertainty
• redesign cost
• organisational
• lack strategic redesign vision
• organisational inertia
• cost of organisation transformation

inhibitors
level 3
15
Business network redesign(4)

• use of IT by stakeholders
• new value webs/alliances
• traditional/formal organisation
  virtual/networked organisation
• two basic considerations
• business governance strategies
• IT governance strategies

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Strategic options
business network redesign
collaborative advantage
tightly coupled business govern-ance loosely
coupled
electronic infrastructure
competitive advantage
common role IT governance unique role
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Enablers inhibitors
enablers
inhibitors
inhibitors

• ability to specify/ create standards for
  integration
• value added services identification
• mutual benefits recognition

• lack of standards
• lack of vision / understanding
• lack of integration commitment
• possible market position erosion

level 4
18
Business scope redefinition(5)

• new business ventures
• new markets
• new ways of doing business

19
Business domain enlargement
products
traditional business scope
products
additional IT generated business
markets
technology
technology
markets
traditional operating technology
new IT infrastructure / IS applications
20
Shifting the business domain
products
products
traditional business scope
markets
markets
technology
technology
traditional operating technology
increased role for IT operations
21
Transformation graph
high degree of transformation low
5
4
revolution evolution
3
2
1
low range of potential benefits high