Sanjiva Shankar Dubey

IT Strategy and

Management

Third Edition

IT Strategy and Management

THIRD EDITION

SANJIVA SHANKAR DUBEYFormer Asia Pacific Executive

IGA Service Delivery, IBM

Delhi-1100922016

IT STRATEGY AND MANAGEMENT, Third EditionSanjiva Shankar Dubey

© 2016 by PHI Learning Private Limited, Delhi. All rights reserved. No part of this book may be reproduced in any form, by mimeograph or any other means, without permission in writing from the publisher.

ISBN-978-81-203-5235-3

The export rights of this book are vested solely with the publisher.

Fifth Printing (Third Edition) . . . . . . . . . April, 2016

Published by Asoke K. Ghosh, PHI Learning Private Limited, Rimjhim House, 111, Patparganj Industrial Estate, Delhi-110092 and Printed by Raj Press, New Delhi-110012.

To My Parents-in-law

Late Sri Satya Narayan Mishraand

Late Smt. Padmaja Mishra

Preface ..................................................................................................................... xv

Preface to the First Edition ................................................................................... xvii

Acknowledgements .................................................................................................. xix

1. Business Strategy: Challenges and Opportunities for IT ............................................................................. 1

1.1 Introduction .............................................................................................11.2 Background .............................................................................................11.3 What is Business Strategy? ....................................................................2

1.3.1 Business Strategy: Challenges and Opportunities in the Globalized, Interconnected, Convergent World ..................3

1.3.2 Establish Principles before Practice ...........................................4

1.4 What is IT Strategy? ..............................................................................4

1.4.1 Application Strategy ...................................................................5 1.4.2 Strategy for Cloud Adoption ......................................................6 1.4.3 Enterprise Data Management Strategy ......................................6 1.4.4 Technology Management Strategy for IT ..................................6 1.4.5 Strategy for IT Program, Project and Portfolio

Management ...............................................................................7 1.4.6 IT Service Management Strategy ...............................................7

1.5 Developing IT Strategy for Competitive Advantage .............................71.6 Summary .................................................................................................8

Review Questions .............................................................................................8References ........................................................................................................9

2. Business and IT Alignment ........................................................... 10

2.1 Introduction ...........................................................................................102.2 What is Business and IT Alignment? ..................................................11

2.2.1 Definition of Alignment ...........................................................14

2.3 Challenges of IT and Business Strategy Alignment............................15

2.3.1 Inhibitors of Business and IT Strategy Alignment ..................15

Contents

v

vi • Contents

2.4 Three-D Framework for Business and IT Alignment: Discipline, Design and Drive ...............................................................17

2.4.1 Uniqueness about Alignment ...................................................18

2.5 How Can We Achieve Business and IT Alignment? ..........................18

2.5.1 Communication School ............................................................18 2.5.2 Architecture School ..................................................................20 2.5.3 Technology School ...................................................................21 2.5.4 People School ...........................................................................21

2.6 Business and IT Alignment Tools, Tips and Traps .............................242.7 Summary ...............................................................................................26

Review Questions ...........................................................................................28

Case study Bank of Hindustan ....................................................................29

References ......................................................................................................30

3. Information Systems in Organization ..................................... 31

3.1 Introduction ...........................................................................................313.2 Revisiting the Two Interdependent Perspectives of Business and

IT Interrelationship ...............................................................................323.3 IT Application’s Transformational Impact and Resultant Benefits ....33

3.3.1 Examples of Applications at Various Levels of a Telecom Service Provider ........................................................35

3.4 The Ultimate Goal of any IT Application, 4 Cs of IT Applications ....................................................................................35

3.5 Understanding Information Systems (IS) and IT Relationship ...........363.6 Challenges while Implementing Information Systems ........................383.7 Typical Reactions of Business Managers Towards IT ........................393.8 Data, Information, Knowledge and Wisdom .......................................423.9 Types of Information System within Business Organization..............433.10 Enterprise Resource Planning Systems (ERP Systems) ......................463.11 Information Systems in Business Firms Interfacing with

External World (CRM and SCM Systems) .........................................473.12 What is the Role of Planning and Execution in Achieving IT

Strategy? ..............................................................................................493.13 A Typical Information Systems Department’s Organization .............503.14 Information Systems in Health Care ....................................................50

3.14.1 What is Health Care Information Systems? ...........................51 3.14.2 Types of Health Care Data ......................................................53 3.14.3 Health Management Information Systems (HMIS) .................54 3.14.4 HMS Value Chain ....................................................................56 3.14.5 Some of the Emerging IT Enables Health Care Systems ......57

3.15 Information Systems in Government ...................................................57

3.15.1 Can IT Systems Impact Governance? ......................................58 3.15.2 Challenges in Adopting IT Applications in

the Government .......................................................................60

Contents • vii

3.15.3 Best Practices for IT Adoption in Government and Public Sector ...........................................................................62

3.15.4 Some of the Recent Initiatives of the IT Applications in Government ..........................................................................62

3.15.5 Some of the Popular Applications in the Government ...........63

3.16 Summary ...............................................................................................65

Review Questions ...........................................................................................66References ......................................................................................................67

4. Strategic IT Planning ......................................................................... 69

4.1 Introduction ...........................................................................................694.2 Business Implications for IT Strategy and Planning ...........................704.3 What is a Strategic Plan? .....................................................................714.4 Strategic IT Planning Motivations .......................................................714.5 SITP Process: Prevalent Planning Approaches ..................................724.6 Difficulties in Developing and Executing SITP ..................................744.7 Best Practices for Achieving Good SITP ............................................744.8 SITP Approaches: Prevalent Researches................................................75

4.8.1 Business Systems Planning Approach .....................................76 4.8.2 Critical Success Factors Approach ..........................................77 4.8.3 Stages of Growth ......................................................................78 4.8.4 Value Chain Analysis ...............................................................79 4.8.5 e-Business Value Matrix ..........................................................80 4.8.6 Linkage Analysis Planning .....................................................81 4.8.7 Scenario Planning .....................................................................82

4.9 Critical Comments on Various Planning Approaches .........................834.10 Integrated Planning Approach ..............................................................844.11 Content of SITP ....................................................................................85

4.11.1 Typical Content of SITP .........................................................86 4.11.2 Planning Stages of IT Plan ......................................................87

4.12 Consideration for System Operations .................................................90

4.12.1 Considerations for Committed Service Levels ........................91

4.13 The Planning Horizon ..........................................................................92

4.13.1 Rapid-Response Planning for Internet Applications ...............93

4.14 Resource Planning ................................................................................93

4.14.1 People Plans..............................................................................94 4.14.2 Financial Plans..........................................................................94 4.14.3 Administrative Actions Needed for Successful Planning .......94 4.14.4 Technology Planning ................................................................94

4.15 Managing Project Scope Tightly is the Key........................................944.16 Implementation Considerations of SITP .................................................954.17 Change Management Issues of SITP Development and

Implementation ...................................................................................100

4.18 Monitoring and Measuring SITP Success ............................................ 101

4.18.1 Information Technology Steering Committee ......................102

4.19 Summary ............................................................................................103

Review Questions .........................................................................................104References ....................................................................................................105

5. Enterprise IT Architecture ......................................................... 107

5.1 Introduction .........................................................................................107

5.1.1 Challenges Addressed by Enterprise IT Architecture ..........107

5.2 Why Define Enterprise IT Architecture? ..............................................108

5.2.1 Enterprise IT Architecture Aids Agility for Global Firms ..109

5.3 What is Enterprise IT Architecture? .................................................1095.4 Need for EITA Study and Contemporary Research ..........................110

5.4.1 Advantages of Defining EITA ..............................................111

5.5 Contents of a Typical Enterprise IT Architecture .............................1125.6 Standard for Enterprise IT Architecture ...........................................1145.7 Summary .............................................................................................115

Review Questions .........................................................................................116References ....................................................................................................116

6. IT Application Strategy ................................................................. 118

6.1 Introduction .........................................................................................1186.2 Why Develop Applications (Either In-house or Through

Subcontracting)? .................................................................................120

6.2.1 Why COTS? ..........................................................................120

6.3 Requirements Engineering is Common Challenge for Both ............1226.4 COTS Package Selection Life Cycle .................................................123

6.4.1 Identification of Candidate Packages ....................................124 6.4.2 Defining Evaluation Criteria and Selection Process for

COTS .....................................................................................124 6.4.3 Package Customization Strategy ...........................................128

6.5 COTS Implementation Strategy .........................................................129

6.5.1 Best Practices for Successful Implementation .....................130 6.5.2 Multi-unit Implementation Alternatives ...............................132

6.6 Post-Implementation Support and Management ................................1326.7 Summary .............................................................................................134

Review Questions .........................................................................................135References ....................................................................................................136

7. Strategy for Cloud Computing Adoption ............................ 137

7.1 Introduction .........................................................................................137

viii • Contents

7.2 What is Cloud Computing? ................................................................138

7.2.1 Successful Examples of Cloud Computing Implementations .......................................................................138

7.3 Why Cloud Computing?.....................................................................1387.4 Various Models of Cloud Computing ................................................1397.5 Classification of Cloud Computing Based on Ownership ...............1417.6 Building Blocks of Cloud Computing ...............................................1417.7 Challenges while Adopting Cloud Computing ..................................142

7.7.1 When to Adopt Cloud Computing and for What Purposes? ......................................................................143

7.8 Adoption Planning for Cloud Computing ..........................................1457.9 Considerations for Adopting Cloud Model .......................................1487.10 Opportunities and Challenges of Cloud Adoption ............................1517.11 Summary ............................................................................................152

Review Questions .........................................................................................153References ....................................................................................................153

8. Enterprise Data Management Strategies ........................... 154

8.1 Introduction .........................................................................................1548.2 Why Data is Important? .....................................................................1548.3 Why So Much of Increased Interest Around Data Management? ....1548.4 What is Enterprise Data Management (EDM)? .................................1558.5 EDM Activities ...................................................................................1558.6 What is Data Quality? .......................................................................1568.7 Principles of Data Management .........................................................1578.8 Challenges in Data Management .......................................................1588.9 Types of Database ..............................................................................1598.10 Data Management Application Usage ...............................................1648.11 Big Data ..............................................................................................1658.12 Strategies for Data Management ........................................................1668.13 Summary ............................................................................................168

Review Questions .........................................................................................168References ....................................................................................................169

9. Technology Management Strategy for IT ........................... 170

9.1 Introduction .......................................................................................1709.2 Technology Management Strategy Framework .................................1709.3 Technology Management Strategy Motivation .................................1749.4 How Easy it is to Define Technology Strategy? ...............................1759.5 What if we do not have Technology Management

Strategy for IT? .................................................................................1769.6 What are the Constituents of Technology Management

Strategy for IT? ..................................................................................176

Contents • ix

IT Strategy And Management

Publisher : PHI Learning ISBN : 9788120352353 Author : Sanjiva ShankarDubey

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