Business Information Systems Strategy
A collection of statements that express or propose a means through which an organization can fulfill its primary purpose or mission, or “An integrated set of actions aimed at increasing long-term well-being and strength of enterprise relative to competitors”
Relationship of Strategies to Plans
Strategy is a collection of statements that expresses or proposes a means through which an organization can fulfill its mission
- Identifies the goal or objective
Plan is a detailed description of how an organization can accomplish its mission
- oLays out in detail the steps necessary for the organization to accomplish the goal
- oPlans turn insights into actions
•Prescriptive: Planned analytical approach
•Emergent: Responsive to changes to market and business needs.
Elements of IS strategy
- Business information strategy: This defines how information, knowledge and the applications portfolio will be used to support business objectives. Increasingly, a chief information officer (CIO) or chief knowledge officer (CKO) who is part of, or reports to, the senior management team is appointed to be responsible for defining and implementing this strategy.
- IS functionality strategy: This defines, in more detail, the requirements for e-business services delivered by the range of business applications (the applications portfolio).
- IT strategy (IS/IT strategy): This defines the software and hardware standards and suppliers which make up the e-business infrastructure.
- Applications portfolio: The range of different types of business information systems deployed within an organisation.
IT versus IS strategy
- IS strategy: Determination of the most appropriate processes and resources to ensure that information provision supports business strategy.
- IT strategy: Determination of the most appropriate technological infrastructure comprising hardware, networks and software applications.
•Micro-environment: Immediate environment includes customers, competitors, suppliers and distributors.
•Macro-environment: Wider environment of social, legal, economic, political and technological influences.
Seven R‟s of strategy
Tools for Strategic Analysis and Definition
- Porter and Millar‟s five forces model
Porter‟s competitive strategies
- Overall cost leadership
- Focus or nich
There is also a possible undesirable outcome
- ‘Stuck in the middle’:The firm is unable to adopt any of the above approaches and, therefore, is ultimately at the mercy of competitors that are able to offer these approaches.
Nolan‟s stage model
- Data Administration
Four sectors on strategic grid
- Support: These applications are valuable to the organisation but not critical to its success.
- Key operational: The organisation currently depends on these applications for success (mission-critical).
- High potential: These applications may be important to the future success of the organisation.
- Strategic: Applications that are critical to sustaining future business strategy.
Alignment and impacting strategy
- Business-aligning IS strategy: The IS strategy is derived directly from the business strategy in order to support it.
- Business-impacting IS strategy: The IS strategy is used to favourably impact the business strategy, perhaps by introducing new technologies.
- A framework for setting and monitoring business performance.
- Metrics are structured according to customer issues, internal efficiency measures, financial measures and innovation.
- Internal environment
- Extenal environmen
- Strengths: attributes of the organization that are helpful to achieving the objective.
- Weaknesses: attributes of the organization that are harmful to achieving the objective.
- Opportunities: externalconditions that are helpful to achieving the objective.
- Threats: externalconditions that are harmful to achieving the objective.
Creative Use of SWOTs: Generating Strategies
- How can we Use each Strength?
- How can we Stop each Weakness?
- How can we Exploit each Opportunity?
- How can we Defend against each Threat?
- Strengths and Opportunities (SO) –How can you use your strengths to take advantage of the opportunities?
- Strengths and Threats (ST) –How can you take advantage of your strengths to avoid real and potential threats?
- Weaknesses and Opportunities (WO) –How can you use your opportunities to overcome the weaknesses you are experiencing?
- Weaknesses and Threats (WT) –How can you minimize your weaknesses and avoid threats?
- Business application
- Technical infrastructure
- People, organization, culture
- This can provide both defensive mechanism against possible future threat and capabilityto exploit the opportunities by identifying the pressure groups and the stakeholders.
- Future options can be discovered by undertaking scenario planning to identify ‘discontinuities’ and predict the potential implications or bring in outside experts to facilitate ‘breakthrough thinking’.
Future possible strategies are evaluated against criteria, such as the following :
- The risks –financial and managerial; and likely responses of main competitors.
- The degree to which the organization needs to create new capabilities to be offensive or improve control to be defensive.
- Appropriateness of current organization structure to achieve intended strategies.
- The ability of the organization to implement the strategy in terms of ability, resources, processes and culture.
- The implications for customers and trading partners.
- Requirement for alliances or joint ventures to enable or secure strategies.