University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 1 Methodology: Macro Level Formulating a Strategy: Earl

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 2 Earl’s Approach Earl suggests that three separate activities are needed, each driven by a different group, if a proper corporate strategy is to be developed. He calls this his ‘Multiple Methodology’ Earl M J, Management Strategies for Information Technology, Prentice-Hall, 1989

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 3 Business plans and goals Current systemsIT opportunities AnalyticalEvaluativeCreative Top Down Bottom UpInside Out Strategic Plan Clarify, articulate, find Key Success Factors Where are we now? Survey, audit. Senior ManagementUsers and specialists Techniques, processes and environment Brightsparks, product champions

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 4 Earl’s Multiple Methodology Top Down: –Identify and agree business objectives –Define Critical Success Factors –Find information systems that support/enable these CSFs

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 5 Critical Success Factors ‘..are for any business, the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation.’ Rockart,1979

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 6 Critical Success Factors ‘They are the few key areas where “things must go right” for the business to flourish.’ Ward and Peppard, 2002

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 7 Critical Success Factors ‘CSFs are areas of activity that should receive constant and careful attention from management. The current state of performance in each (CSF) should continually be measured, and that information made available. The determination of CSFs should be started only when objectives have already been identified.’ Ward and Peppard, 2002

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 8 An Example In the following slide, the business objectives are stated in the top box. The CSF are listed below. Finally, the enabling information systems are listed.

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 9 Business Objectives Critical Success Factors I S Needs An Example

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 10 Bottom Up Evaluation What is Done? This activity concerns itself with understanding what systems currently exist It also grades the systems by value to the company.

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 11 Systems Audit Grid Technical Quality (providers ) Business Value (users) HIGH LOW HIGH Technical Quality: Reliable? Maintainable? Cost-Efficient? Business Value: Necessary? Easy to use? How often used?

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 12 Using the Grid Place systems in their boxes, using judgement, and factual analysis. A Low value + Low quality = Get Rid A High value + Low quality = Upgrade A Low value + High quality = Do we need it? A High value + High quality = Ace area

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 13 Inside Out Innovation needs –Vision –To be deliberately cultivated.

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 14 Output From IS Strategy ‘To create a robust information management framework for the long-term management of information and its supporting technologies. To identify current and future information needs for the organisation that reflect close alignment of business and IS strategies.

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 15 Output From IS Strategy Determine policies for the management, creation, maintenance, control and accessibility of the corporate information resource. Ensure that the IS function is outward looking and not focused internally on technology issues.’ Earl M, Managing Strategies for Information Technology, 1989

University of Sunderland COMM03 Quality and Information Systems StrategiesLecture 2 16 Strategic Use of IT/IS Michael Porter (Competitive Strategy, Harvard), offers three strategies for dealing with one’s competitive environment:- –Differentiate products –Pile ‘em high, sell ‘em cheap –Find a niche These emerge from his competitive analysis model.