Lecture 5 MGMT © 2012 Houman Younessi Framework for Cogenerating IS Strategy with Business Strategy (Co-Planning)

Lecture 5 MGMT © 2012 Houman Younessi Strategic Information Systems Planning Process The Planning Phases:  Phase 1: Visioning  Phase 2: Analysis  Phase 3: Direction  Phase 4: Recommendation

Lecture 5 MGMT © 2012 Houman Younessi Visioning: Strategic Information Systems Planning Process  Understand the business vision:  Interview project stakeholders  Audit current business process  Analyze business goal congruence  Understand values, limits and “don’t-go-there”s  Analyze current value chain  Do a gap analysis of reality as you see it and their perceptions (and reconcile)  Do a gap analysis of current practice and stated vision  Document, validate and confirm

Lecture 5 MGMT © 2012 Houman Younessi Visioning:  Initiate the project:  Establish objective and scope  Identify resources, roles, responsibilities  Confirm deliverables and work plan  Confirm project plan  Announce the project (as publically as you can) Strategic Information Systems Planning Process

Lecture 5 MGMT © 2012 Houman Younessi Analysis: Strategic Information Systems Planning Process  Understand the current IS situation:  Audit IS  Document current IS strategy (if any)  Document current IS situation  Business application environment  Assets (servers, networks, telecom equipment, mobile devices)  Processes, project work loads, budgets and metrics  Vision of the future (plans), e.g. mobility, social networks, etc.  Validate and confirm current situation

Lecture 5 MGMT © 2012 Houman Younessi Analysis: Strategic Information Systems Planning Process  Compare current situation:  Conduct industry benchmarking  conduct critical competitor benchmarking (critical capability)  Review information needs (Pyramid)  Develop organizational data model  Do gap analysis to determine current IS potential  Do a gap analysis of information needs vis a vis current processes  Do a gap analysis of business vision vis a vis information needs  Develop IS (SWOT) profile  Develop IS assessment scorecard  Review and confirm comparison  Develop recommendations and solution alternatives

Lecture 5 MGMT © 2012 Houman Younessi Direction: Strategic Information Systems Planning Process  Develop the IS vision and direction:  Vision, mission, values  Develop goals  Develop an IS tactical plan  Develop the business application direction  Develop the information architecture  Develop the technical infrastructure direction  Develop E-business direction  Develop organizational direction  Develop the IS process direction  Develop project prioritization process

Lecture 5 MGMT © 2012 Houman Younessi Recommendation: Strategic Information Systems Planning Process  Develop a road map executive summary:  Summarize roadmap  Summarize costs  Summarize organizational impact  Summarize risks, concerns, threats  Summarize risk mitigation options, choices and plans  Develop a business case  Summarize business benefits (case for action)  Develop communication plan  Identify structures needed (e.g. steering committee)  Develop an execution plan

Lecture 5 MGMT © 2012 Houman Younessi Product Process Enterprise Environ. Quality Efficiency Effective- ness Sustain. Demand Side Supply Side Demand and Supply Aggregate Demand and Aggregate Supply The Enterprise, Process, Product Stage

Lecture 5 MGMT © 2012 Houman Younessi ElementConceptInformation CategoryInformation System RevenueDemandMarket trends and marketing Product quality Pricing Data Acquisition Data Analysis Control Forecasting Optimization CostProductionProcess capability Technology Forecasting Estimating Optimization Control RiskUncertaintyEconomic Environment Internal control Forecasting Control LongevitySustainabilityEnvironment Integration and systemicity Forecasting Optimization

Lecture 5 MGMT © 2012 Houman Younessi ElementConceptInformation CategoryInformation System RiskUncertaintyEconomic Environment Internal control Forecasting Control

Lecture 5 MGMT © 2012 Houman Younessi Business Effectiveness Production Support Managing Risk Reducing Uncertainty Integration

Lecture 5 MGMT © 2012 Houman Younessi Marketing Production Human Resources Finance Legal IT Facilities and logistics Integration

Lecture 5 MGMT © 2012 Houman Younessi Note: Each business component may itself be looked at as a production process. As such, it is internally subject – or can be subject at least – to the provisions of process efficiency maximization discussed in the previous lecture. Our objective is to reduce risk and be effective as a cohesive and integrated collection of these individual elements.

Lecture 5 MGMT © 2012 Houman Younessi Integration Requires: Communication and Coordination

Lecture 5 MGMT © 2012 Houman Younessi EXERCISE: What integration opportunities can you discover and how would they inter-relate?

Lecture 5 MGMT © 2012 Houman Younessi Product Process Enterprise Environ. Quality Efficiency Effective- ness Sustain. Demand Side Supply Side Demand and Supply Aggregate Demand and Aggregate Supply The Enterprise, Process, Product Stage

Lecture 5 MGMT © 2012 Houman Younessi ElementConceptInformation CategoryInformation System RevenueDemandMarket trends and marketing Product quality Pricing Data Acquisition Data Analysis Control Forecasting Optimization CostProductionProcess capability Technology Forecasting Estimating Optimization Control RiskUncertaintyEconomic Environment Internal control Forecasting Control LongevitySustainabilityEnvironment Integration and systemicity Forecasting Optimization

Lecture 5 MGMT © 2012 Houman Younessi ElementConceptInformation CategoryInformation System LongevitySustainabilityEnvironment Integration and systemicity Forecasting Optimization

Lecture 5 MGMT © 2012 Houman Younessi Business Sustainability Maintain what maintains you Live to fight another day Discover what maintains you Further Integration

Lecture 5 MGMT © 2012 Houman Younessi Supply chains Social Values Environmental Regulations Cultural Norms Governments Financial Markets and the Macro-economy Further Integration Global Resources

Lecture 5 MGMT © 2012 Houman Younessi Note: Each enterprise must itself be looked at as part of a series of progressively larger enterprises, the largest being the global economy. As such, it is externally subject to the provisions of integration maximization discussed in the previous lecture. Our objective is to integrate the enterprise, systemically, as an optimized component of the larger world enterprise.

Lecture 5 MGMT © 2012 Houman Younessi EXERCISE: How would you integrate your enterprise into the global economy, in a way that it persists?