Guided By: Dr. Jongwook Woo Presented By: Mohit Doshi

CHAPTER 3INFORMATION STRATEGY

CIS 590IS/IT Policy and Strategy

What is Information Strategy?What is Information Strategy?

Learning Objectives

Perspective of SISPPerspective of SISP

SISP Methodologies SISP Methodologies

Malaysian PIHL Case StudyMalaysian PIHL Case Study

Literature on Information Strategy

Information System Strategy

(ISS)

Information System Strategic Planning (ISSP)

Strategic Information

Systems Planning (SISP)

Information Systems & Business Strategy

Literature on Information Strategy

SISP defined as “the process of deciding the objectives for organizational

computing and identifying potential computer applications which the

organization should implement.

SISP

Literature on Information Strategy

• There are two main perspectives on how the alignment between the domains can take place. • In the first perspective business strategy is the driving force for BP or ITS, ultimately affecting ITP.• In the second perspective IT strategy is the driving force for ITP or BS, ultimately affecting BP.

The Perspective of SISPERA CHARACTERISITICS

60s Data Processing (DP) Standalone computers, remote from users, cost reduction function

70s & 80s Management Information Systems (MIS)

Distributed process, interconnected, regulated by management service, supporting the business, user driven

80s & 90s Strategic Information Systems (SIS)

Networked, integrated systems, available & supportive to users, relate to business strategy

The Three Era Model of IS (John Ward)

Not an easy task because such a process is deeply embedded in business process.

Systems need to cater to strategic demands of organizations.

Serving the business goals.

Present SIS Era

SISP Methodologies

Alignment

Impact

Help create and justify new uses of IT.

Align IS objectives with organizational goals.

Two Views of SISP Methodologies

Impact Methodologies1. Value Chain Analysis: Information systems technology is

pervasive in the value chain, since every value activity creates and uses information.

Is a form of business activity which decomposes an enterprise into its parts. Information systems are derived from this analysis.

Helps in identifying the potential for mutual business advantages of component businesses.

Helps in devising information systems which increase the overall profit available to a firm.

Value Chain Analysis

Impact Methodologies2. Critical Success Factor Analysis: Rockart - CSF for any business

the limited number of areas in which results, if they are satisfactory, will insure successful competitive performance for the organization.

Industry CSFs

Organizational CSFs

Business Unit CSFs

Manager’s CSFs

CSFs can exist at a number of levels. CSFs at a lower level are derived from those at the preceding higher level. The CSF approach introduces IT into initial stages of the planning process and helps provide a realistic assessment of IT’s contribution to the organization.

Alignment Methodologies1. Business System Planning (BSP): The methodology focuses on

business processes which in turn are derived from organization’s business mission, objectives and goals. It combines top down planning with bottom up implementation.

Alignment Methodologies2. Strategic System Planning (SSP):

Alignment Methodologies3. Information Engineering (IE): It provides techniques for

building enterprise, data and process models. These models combine to form a comprehensive knowledge base which is used to create and maintain information systems.

Steps in SISP formulation

Study Internal Business

Environment

It is comprised of mission of the organization, its objectives, strategies and plans, business activities, the organizational environment, core competencies, its critical success factors and the internal value chain.

Study Internal IS/IT

Environment

Study External Business

Environment

This helps an organization focus attention on the forces and pressure groups it encounters.

This is mainly comprised of the current and planned applications portfolio that supports the business.

SISP for Malaysian Institutes of Higher Learning

• SISP methodology designed for the organizational requirements of Malaysian Public Institutes of Higher Learning (PIHL).

• Ministry of Higher Education was created for Information & Communication Technology (ICT) and implementation using SISP.

• The methodology provides systematic description of the tasks, steps, techniques and tools that can empower the Malaysian PIHLs.

• SISP helps for ICT implementation in Malaysian PIHLs.

How it was Developed?

Research Design• The objective of the first phase was to understand the requirements of a specific SISP methodology for Malaysian PIHL.

• Literature on relevant SISP concepts, SISP Methodologies, SISP techniques and toolkits were analyzed to identify common elements in an SISP methodology.

• A status study was conducted via questionnaires and interviews at different Malaysian PIHLs.

• Two most critical issues faced by the ICT directors responsible for ICT implementation in these institutions were lack of expertise & lack of funding.

SISP for Malaysian PIHL

Phase 1

• The Initial Phase of SISP Planning Process

• Objective: To define SISP scope and the implementation plan for the SISP project.

• It addresses the main problems identified in the status study, namely lack of funding and lack of expertise.

Phase 2

• Study & Analyze University and IS/IT Environment Phase

• Objective: To assess how ICT is currently supporting university value chain, to identify the strategic drivers and capacity for change and to identify ICT opportunities.

• It identifies strengths, weakness, opportunities, and threats of the university and benchmark IS/IT status in the university.

Phase 3

• Formulation of SISP Strategy in IHL Phase

• Objective: To prioritize the university activities to be supported by ICT and identify the university’s future portfolio of ICT applications.

Phase 4

• Implementation of SISP Planning in IHL’s Phase

• Objective: Define project requirement, analyze cost and benefit, develop and action plan, obtain top management approval, review the SISP plan and manage the SISP implementation.

Conclusion

• Information-based enterprises must be planned in an integrated way whereby all stages of the life cycle are engaged to bring about agility, quality and productivity.

• The business processes and (in a lesser extent) the Business Strategy are the driving force for the IT processes, which subsequently influence the Information Strategy.

• The main role in developing the strategy can be played by the chief executive from the Business Strategy domain, or by the senior IT manager.

Questions