The Problem of IS Planning Generating Ideas Ken Peffers Associate Professor of MIS UNLV September 2004

Presentation Agenda Motivation and history Motivation and history Case study Case study Research agenda Research agenda

Setting the Scene SIM Interchange 2002—Snowbird Resort Utah SIM Interchange 2002—Snowbird Resort Utah 400 CIOs from around the country 400 CIOs from around the country Two issues dominate meeting Two issues dominate meeting Security Security Managing the IS portfolio Managing the IS portfolio Where to allocate resources to IT investment in the firm Where to allocate resources to IT investment in the firm Y2K and EC had hidden this problem Y2K and EC had hidden this problem

Managing the IS Project Portfolio McFarlan speaker at SIM McFarlan speaker at SIM Strategic Grid Strategic Grid Managing the portfolio 1980 Managing the portfolio 1980 CSF (Rockart, 1979) CSF (Rockart, 1979) Top down method to manage IS portfolio Top down method to manage IS portfolio Why CSF? Only executives have strategic view. Why CSF? Only executives have strategic view. MaintenanceDecision-makingOperationsStrategic

The IS Portfolio 20 Yrs Later Payoff Strategic 3 years Cost saving 1 year Option Bets 10 + years Operations Tactical Strategic Maintenance Service Operations Supplier Integration Value Chain Channel Integration Support Activities Knowledge necessary to determine what is important all available in the executive suite?

The IS Portfolio 20 Yrs Later More dimensions for allocating attention/resources More dimensions for allocating attention/resources Political & cultural Political & cultural Project size--$10 million, $100 K, $5 K projects Project size--$10 million, $100 K, $5 K projects Infrastructure Infrastructure Sourcing Sourcing Seven dimensions—many cells Seven dimensions—many cells How many ways are there to create dissatisfaction? How many ways are there to create dissatisfaction?

CIOs Concerned, Unsure How To identify most important new systems To identify most important new systems To determine what innovative IS users will pay for To determine what innovative IS users will pay for To identify the essential and valuable features for new system To identify the essential and valuable features for new system

Planning Framework Idea Generation Evaluation FeasibilityDecision Making Design Portfolio Project Application Features Planning Requirements Determination CSF, CSC, Brainstorm Cost- Benefit, PIR CSC, JAD, Brainstorm, FG Cost- Benefit, PIR FG, JADER, DFD

Toward a solution Use knowledge distributed around in and outside of the firm. (Execs don’t have all the answers) Use knowledge distributed around in and outside of the firm. (Execs don’t have all the answers) Need for method to use this knowledge effectively. (Bottom up methods produce unusable portfolios of ideas.) Need for method to use this knowledge effectively. (Bottom up methods produce unusable portfolios of ideas.) Wouldn’t it be nice extend CSF to incorporate knowledge of many around the organization? (But keep focus on what’s important) Wouldn’t it be nice extend CSF to incorporate knowledge of many around the organization? (But keep focus on what’s important)

We Turn to Personal Constructs Theory State of Universe Consequence Value

Implicit CSF Theory System Feature Attribute Performance Consequence (CSF) Firm Value (goals) Implicit CSF theory a specific case of the general PCT model

New method for identifying important innovative applications Application of practical applied research methods from marketing, called “laddering.” Application of practical applied research methods from marketing, called “laddering.” Critical Success Chains (CSC) Critical Success Chains (CSC) Use knowledge of many Use knowledge of many Create meaningful models of what is important for the firm (or customers, etc.) Create meaningful models of what is important for the firm (or customers, etc.) Understand reasoning Understand reasoning

Setting: Digia, Inc. Digia small Helsinki R&D firm, specializing in developing applications for mobile communications industry Digia small Helsinki R&D firm, specializing in developing applications for mobile communications industry Our mandate: identify “killer cocktails” for mobile financial services Our mandate: identify “killer cocktails” for mobile financial services

Critical Success Chains at Digia Pre-study scoping Pre-study scoping Data collection—structured interviewing Data collection—structured interviewing Analysis Analysis Content analysis Content analysis Clustering Clustering Modeling Modeling Ideation workshop Ideation workshop Post workshop analysis Post workshop analysis

Prestudy at Digia Participant sample Participant sample Industry experts and lead end-users Industry experts and lead end-users Experts: most knowledgeable scientists, professionals, and managers Experts: most knowledgeable scientists, professionals, and managers End users: wealthy, educated, technologically sophisticated, mobile, SMS users End users: wealthy, educated, technologically sophisticated, mobile, SMS users Identified 40, contacted 18 experts & 14 lead users Identified 40, contacted 18 experts & 14 lead users Collected idea from each for stimuli Collected idea from each for stimuli Converted ideas into four bland application descriptions Converted ideas into four bland application descriptions

Data collection: Structured Individual Interviews Asked participant to rank-order ideas Asked participant to rank-order ideas For higher ranked ideas For higher ranked ideas “Why would that application be important to you?” “Why would that application be important to you?” Series of “why is that important to you?” questions Series of “why is that important to you?” questions “What about the application made you think it would do that “What about the application made you think it would do that Transcribed responses as chains Transcribed responses as chains

Example chain Personal values Performance impacts Expected system feature

Analysis Resulting data Resulting data 147 chains, more than 1000 statements 147 chains, more than 1000 statements Content analysis Content analysis Qualitative clustering to assign similar statements common label (construct) Qualitative clustering to assign similar statements common label (construct) 114 constructs 114 constructs Clustering Clustering Cluster chains to minimize construct variance within cluster Cluster chains to minimize construct variance within cluster Modeling Modeling Transformed clusters into five network models Transformed clusters into five network models

Example CSC Network Model

Example

Ideation workshop Objective: translate 5 CSC models into feasible application projects Objective: translate 5 CSC models into feasible application projects Business and R&D people Business and R&D people Chairman, Nokia Key Account Exec., 2 bus. Mgrs, 2 eng. Mgrs Chairman, Nokia Key Account Exec., 2 bus. Mgrs, 2 eng. Mgrs Five hours on one day Five hours on one day Goals: ‘back of envelop ideas’ Goals: ‘back of envelop ideas’ No outside help No outside help

Business model

My Financial Advisor Description An easy and intelligent way of receiving real time financial information. An 'aggressive' screensaver that pushes information. Architecture Always on connection (GPRS, i-MODE etc.), Multiple user interfaces / access methods, speak synthesizer, Browser, storing of information, chronological order of information (Archiving the information), structuring of the information, Lotus Domino client/server environment Players Stock Exchange, Customer, Infomediary, Analyst, Network Operator Customers for the developer Analysts for developer, For Analysts day traders Benefits for players and customer's) End-customers - Real time information, better decisions, Stock Exchange - more volume for trading, Infomediary - Revenues from Analyst, Network Operator - more network traffic, Analyst - increased revenues, better customer relationship Revenues and market size 2x People traveling in business class, Nokia Communicator users Profit model for the developer License sales to analyst(s)

Workshop results 3 ideas: My Financial Advisor, Transaction Assistant, Mobile Wallet 3 ideas: My Financial Advisor, Transaction Assistant, Mobile Wallet For one model it was apparent that Digia wouldn’t be a part of the value chain. “Let’s move on.” For one model it was apparent that Digia wouldn’t be a part of the value chain. “Let’s move on.” For the last two maps, participants decided to treat them as one. For the last two maps, participants decided to treat them as one.

Post Workshop Analysis Prepare workshop results for presentation Prepare workshop results for presentation Interaction model Interaction model Business value model Business value model

Interaction Model V{(a),(b)}Interaction(s) Involved processes Customer : Analyst 1:1, 1:Many Service fees, information requests, real time analysed information Analyst : Infomediary 1:1 Information brokering services, fees Analyst : Stock Exchange 1:1 Financial information, fees Analyst : Company 1:1 Information flow Analyst : Customer 1:1 Information push, service fee revenues Company : Analyst 1:1, 1:Many Information push Stock Exchange : Analyst 1:1, 1:Many Information flow, fee revenues Stock Exchange : Customer 1:Many Information push (mass push) Infomediary : Analyst 1:1 Information brokering services, service fee revenues Portfolio manager : Customer 1:1 Customer service, information push

Business Model

Results for Digia According to Digia executives, results of the analysis exceeded their expectations According to Digia executives, results of the analysis exceeded their expectations Rich information about what lead users might value Rich information about what lead users might value Modeling with reasoning to help turn preference into applications Modeling with reasoning to help turn preference into applications Solid information to support development Solid information to support development Plan to develop some of the application ideas Plan to develop some of the application ideas

CSC benefits to decision making and development Potentially uses knowledge of many about what applications may be important Potentially uses knowledge of many about what applications may be important Suppliers, customers, employees Suppliers, customers, employees Models reasons why applications important Models reasons why applications important Promotes system ‘buy-in’ Promotes system ‘buy-in’

Agenda—Current Research Peffers, K. and C. Gengler, “How to Identify High-Payoff Information Systems for the Organization,” Communications of the ACM, 46:1, January Peffers, K. and C. Gengler, “How to Identify High-Payoff Information Systems for the Organization,” Communications of the ACM, 46:1, January Peffers, K., C. Gengler, and T. Tuunanen, "Extending Critical Success Factors Methodology to Facilitate Broadly Participative Information Systems Planning," Journal of Management Information Systems, 20:1, 2003, Peffers, K., C. Gengler, and T. Tuunanen, "Extending Critical Success Factors Methodology to Facilitate Broadly Participative Information Systems Planning," Journal of Management Information Systems, 20:1, 2003, Peffers, K. and Tuunanen, T., “Using Rich Information to Plan Mobile Financial Services Applications with Maximum Positive Impact: A Case Study,” in press, Information & Management. Peffers, K. and Tuunanen, T., “Using Rich Information to Plan Mobile Financial Services Applications with Maximum Positive Impact: A Case Study,” in press, Information & Management.

Research in Progress—Data Collection Stage CSC applied to requirements engineering CSC applied to requirements engineering Helsingin Sanomat Helsingin Sanomat Develop Multi-channel access to sell advertising Develop Multi-channel access to sell advertising Data collection similar to CSC Data collection similar to CSC Follow up survey to participants Follow up survey to participants Article ready October 2004 for submission to JMIS Article ready October 2004 for submission to JMIS

Research in Progress—Presence Study Problem: how do you design the features for new system when the users are: Problem: how do you design the features for new system when the users are: Outside the organization with little connection to the organization Outside the organization with little connection to the organization Widely dispersed and largely unavailable for interactive data collection Widely dispersed and largely unavailable for interactive data collection Unfamiliar with the innovative technology of the applications Unfamiliar with the innovative technology of the applications Importance: inadequate requirements engineering a leading cause of system failure Importance: inadequate requirements engineering a leading cause of system failure If the system doesn’t meet the functional needs of users they won’t use it If the system doesn’t meet the functional needs of users they won’t use it If the system is difficult to use, users will be very dissatisfied and lose effectiveness If the system is difficult to use, users will be very dissatisfied and lose effectiveness

Presence Study Setting: Design the features for services in mobile communications that make use of presence and location Setting: Design the features for services in mobile communications that make use of presence and location Lead user interviews in Hong Kong, Las Vegas, and Helsinki Lead user interviews in Hong Kong, Las Vegas, and Helsinki Use laddering interviews Use laddering interviews Participants imagine services that would be valuable to them and how they work work Participants imagine services that would be valuable to them and how they work work Build prototype applications Build prototype applications

Research in Design stage Requirements engineering. Survey of methods and synthesis—in design stage Requirements engineering. Survey of methods and synthesis—in design stage Requirements engineering—integrating CSC RE method with UML Requirements engineering—integrating CSC RE method with UML

Other Idea Generation methods Focus Groups Focus Groups Good for exploring customer preferences for features Good for exploring customer preferences for features Weak on modeling aggregated ideas Weak on modeling aggregated ideas Surveys Surveys Must have ideas in advance Must have ideas in advance Good for determining importance of ideas Good for determining importance of ideas

Research that’s needed Idea generation for IS planning Idea generation for IS planning Demonstration projects: “action research” Demonstration projects: “action research”

Applicable Research Institute Practical research for firms Practical research for firms Tackle research in IS and related areas Tackle research in IS and related areas Solution for the firm Solution for the firm New knowledge about how to plan for and build systems New knowledge about how to plan for and build systems Several of the largest firms in Nevada will be partners Several of the largest firms in Nevada will be partners