Business Transformation

Overview strategic grid opportunity frameworks index matrix IS strategy transformation graph IT strategy

opportunity frameworks strategic grid identify current IT systems role in organisation plan future developments to IT systems opportunity frameworks identify ways to use IT/IS in support of business strategy/opportunity

index matrix transformation graph identify & plan medium-scale business benefits from IS/IT transformation graph plan major-scale IT/business process re-engineering (BPR)

Transformation benefits MIT 90’s identified 5 transformation levels localised exploitation internal integration business process redesign business network redesign business scope redefinition

Localised exploitation(1) basic level ‘islands of automation’ lacking integrated infrastructure efficiency benefits

Localised exploitation administration administration administration stage1 stage2 stage3 stage4 stage5 stage6 input operations output administration administration administration stage1 stage2 stage3 stage4 stage5 stage6 input operations output

Enablers & inhibitors enablers technological organisational inhibitors favourable cost /performance trends vendor push – system solutions organisational localised impact ease of assessing efficiency benefits minimal disturbance inhibitors technological obsolescence cost performance reduction organisational lack strategic vision unwillingness to recognise strategic role of IT/IS inhibitors level 1

Internal integration(2) IT platform in entire business process integration data sharing/communication common applications integration of task/process/function integration of both technology & organisation

Internal integration administration administration administration stage1 stage2 stage4 stage5 input operations output administration administration administration IT platform for internal integration stage1 stage2 stage3 stage4 stage5 stage6 input operations output

Enablers & inhibitors enablers technological organisational inhibitors increase connectivity capabilities favourable cost/ performance trends vendor push – system solutions organisational strategic integration vision via IT platform inhibitors technological uncertainty integration cost organisational lack strategic integration vision organisational inertia centralisation / decentralisation conflict inhibitors level 2

Business process redesign(3) fundamental rethink of conducting business effectively limited/controlled business transformations

Business process redesign administration administration administration IT platform for internal integration stage1 stage2 stage3 stage4 stage5 stage6 input operations output administration IT platform for redesign stageA stageB stageC stageD input operations output

Enablers & inhibitors enablers inhibitors technological technological favourable cost / performance trends organisational awareness of IT power willingness to change to exploit IT marketplace competitive pressures inhibitors technological uncertainty redesign cost organisational lack strategic redesign vision organisational inertia cost of organisation transformation inhibitors level 3

Business network redesign(4) use of IT by stakeholders new ‘value webs’/alliances traditional/formal organisation ‘virtual’/’networked’ organisation two basic considerations business governance strategies IT governance strategies

Strategic options business network redesign collaborative advantage tightly coupled business govern-ance loosely coupled electronic infrastructure competitive advantage common role IT governance unique role

Enablers & inhibitors enablers inhibitors inhibitors ability to specify/ create standards for integration value added services identification mutual benefits recognition lack of standards lack of vision / understanding lack of integration commitment possible market position erosion level 4

Business scope redefinition(5) new business ventures new markets new ways of doing business

Business domain enlargement products traditional business scope products additional IT generated business markets technology technology markets traditional operating technology new IT infrastructure / IS applications

Shifting the business domain products products traditional business scope markets markets technology technology traditional operating technology increased role for IT operations

Transformation graph high degree of transformation low 5 4 revolution 3 2 1 low range of potential benefits high