IT Strategy What - Definition Why – Reasons Why – Reasons What – Structures & Components What – Types Who – industries & organisations Lecture Highlights   

Business & IT Strategies’ Relationships Disconnect Influences Influences Business Strategy People Process Information IT Strategy Human Computer Interfaces Business Applications Data Repositories Bus Goals Bus value

What is IT Strategy? The Plan The Planning Process Contents address matters of Current IT Environment Future IT Environment Change Management & Projects Implementation Governance & Control Frameworks Contents Format – varies org to org Example: Varies org to org

Overview of an IT Strategy Planning Practice Model Business Strategies Future Business Operation Model/s Business applications, technology & projects Technology Change Requirements NowFuture Enterprise Architecture Change IT Portfolio, Program & Project Planning Execute IT Portfolios, Programs & Projects Portfolio, Program & Project Management Systems

Enterprise Architecture 4 top EA Methodologies Zachman Framework The Open Group Architecture Framework (TOGAF) Federal Enterprise Architecture (FEA) Customised Hybrids of the Above Video – 5.51 m atch?v=l8w8QSo3OaU atch?v=l8w8QSo3OaU

Enterprise Architecture EA specifies how business and IT are: 1.Aligned in perspectives of: Processes Supply Chain Functional Application sets Information resources ICT infrastructure as information delivery & customer reach channels 2.Packaged as services

Coordination & Service Mgt Plan IS Portfolio of Projects Plan Technology (Infra) Plan IT Strategy Planning Components System Dev Plans Tech Mgt Plan IT mgt & control plan

IT Strategy Taxonomies (Classification of IT Strategies) Taxonomy 4: Sabherwal + Chan (2001) Taxonomy 1: Lucas and Turner (1982) Independent Policy supporting Fully Integrated IT for Efficiency IT for Agility (Market responsive) Both Academe

Components of IT Strategy Operations Systems Market Intelligence Systems Decision Support Systems Inter Organisation Interfaces Org Control Systems

IT Strategies’ Descriptors Ops support systems Eg ERP System Strategic Decision Support Systems Enterprise Market & Performance Tracking systems Inter-Organisation Systems Eg e-procurement 1) IT Management Structure CENTRALISED DECENTRALISED MIXED 2) Types of IS

HLM LHH HHH HLH Ops support Sys Market IS Strategic DDS Inter-Org Sys IT for Efficiency IT for Agility IT for Comprehensiveness 1) IT Management Structure CENTRALISED DECENTRALISED MIXED Centralised IT & more operational focused Decentralised IT & more locally & strategically proactive Common & local control becos of combined strategic & operational reasons

Types of Business Strategies Specialised Strategies based on enterprise strengths Eg Cost leadership Product differentiation Prefers centralised structures, to have high efficient & sustainable specialisation and considers outsourcing. Usually Med to Large Org Market Changing Strategies based on enterprise innovation & agility Eg ICT firms’ strategies Prefers decentralisation structures to allow for local creativity and agility, however run the risk of inefficiency; prefers inhouse dev. Usually Small Org. Mix bag to Minimise Risks Always track market movements to seize any new opportunities; offer core products & growing new ones; strategic outsourcing partnership deals. Usually Large Org

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Prospector Analyser Defender Underpinning Problems Solving Culture Source:

Business Behaviours in Strategy Orientation HML HML LMH LMH Defending market share Business Strategy Classification DEFENDER PROSPECTOR ANALYSER Risk Adverse Risk Taker/ Market Change Market Proactive Market Player

Lecture’s Concepts Theories Research Findings Grounded Explanations Generalised Descriptions Grounded Methods/Techniques BUT Real World is changing faster than the academe theories development & proofing

The Challenges in the Real World Technology Change is Faster than Business Change Advance digital capabilities & infrastructures Untapped Business Value & Market Potentials Learning curves New skills shortage Slower take-ups Expensive take-ups Mass market take-ups as next new technology cycle begins

Class Discussion 5+ years ago – the vision for tomorrow’s technology Vision Update Is IT driving Business, or Business driving IT?

Case 1 Group work 1.Identify the type of business strategy pursued by the case company? 2.Identify the type of IT strategy pursued by the case company? Hint: Which Lecture Slides to Use? How to apply in context of case study?

Case 2 Group work 1.In terms of Lucas and Turner (1982) taxonomy, how would you classify the IT strategy of ModMeters company? Discuss. 2.Identify some of the salient characteristics of IT function discussed in the case report. 3.In terms of three dimensions of IT strategy discussed in Week 3 lecture of FIT9006 unit, discuss the characteristics of IT strategy of ModMeters company Hint: Which Lecture Slides to Use? How to apply in context of case study?