1. Business Systems:Strategy & Application
CM322 BMIBT
Material supplied by:
Richard Bertram
Babak Akhgar
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2. Strategy definitions Quinn
Pattern or plan that integrates organization’s major goals, policies and actions into cohesive whole
Strategic decisions
Those that determine direction, goals, limits, use of key resources

3. Purpose of strategy To position or set direction within environment
To focus effort within the organization
To define the organization, to give meaning to the organization’s activities
To provide consistency
For efficiency & focus

4. Thinking Strategically: The Three Big Strategic Questions
1. Where are we now -- what is our situation?
2. Where do we want to go?
3. How will we get there?

5. What Is Strategy? Concept
Competitive moves and business approaches management employs in running a company
Management’s “game plan” to
Please customers
Position a company in its chosen market
Compete successfully
Achieve good business performance
A. Thompson, Jr. & A. J. Strickland, (1998)I

6. The Five Tasks of Strategic Management
Develop a
Strategic
Vision
& Mission
Set
Objectives
Craft a
Strategy
to Achieve
Objectives
Implement
& Execute
Strategy
Evaluate & Make Corrections
Revise as
Needed
Revise as
Needed
Improve/
Change
Improve/
Change
Recycle
as Needed

7. Missions vs. Strategic Visions
A mission statement focuses on current business activities
For example:
Customer needs currently being served
A strategic vision concerns a firm’s future business path
The kind of company it is trying to become
Customer needs to be satisfied in the future

8. Developing a Strategic Vision
A strategic vision is a roadmap of a company’s future --
Direction it is headed
Business position it intends to stake out
Capabilities it plans to develop
Customer needs it intends to serve

9. Examples: Mission and Vision Statements
Otis Elevator
Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world.
Microsoft Corporation
One vision drives everything we do: A computer on every desk and in every home using great software as an empowering tool.

10. TERM DEFINITION Mission Vision or strategic intent Goal
Core competences
DEFINITION
Overriding purpose in line with the values or expectations of stakeholders
Desired future state: the aspiration of the organisation
General statement of aim or purpose
Resources, processes or skills which provide ‘competitive advantage’

11. A DEFINITION OF STRATEGY
Strategy is the direction and scope of an organisation over the long term which
achieves advantage for the organisation
through its configuration of resources within
a changing environment to meet the needs
of markets and to fulfil stakeholder
expectations. 2

12. LEVELS OF STRATEGY (1)
Corporate Level strategic decisions are concerned with:
overall purpose and scope
adding value to shareholder investment
portfolio issues
resource allocation between SBUs
structure and control of SBUs
corporate financial strategy 3

13. LEVELS OF STRATEGY (2) Business Unit strategy is concerned with:
competitive strategy
developing market opportunities
developing new products/services
resource allocation within the SBU
structure and control of the SBU 4

14. LEVELS OF STRATEGY (3) Operational Strategies are concerned with:
the integration of resources, processes, people and skills
to implement strategy 5

15. Expectations and purposes
Resources,
competences
and capability
The
environment
Strategic
analysis
Bases
of strategic
choice
Organisation
structure and
design
Strategic
choice
Strategy
implementation
Resource
allocation and
control
Strategic
options
Strategy
evaluation and
selection
Managing
strategic
change
A summary model of the elements of strategic management 14

16. Information Systems Eras
Evolution of Information Systems
(Time Frame)
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17. Working Definition of IS:
A system for the most efficient and effective means of identifying the "real" needs of users, and developing information processing systems for satisfying these needs; ensuring that the resulting information processing systems continue to satisfy changing user needs by the most efficient means of acquiring , storing, processing, disseminating and presenting information; by providing facilities and a learning environment for users and information systems specialists to improve the effectiveness of their decision models; and by supporting operational. Control and strategic organisational objectives." (Jayaratna p:21)
Understanding and Evaluating Methodologies (NIMSAD)
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18. Working Definition of IT
The term Information Technology is is used to emphesize the use of computers for information processing, storage, transmission and presentation with a clear need for satisfying user needs.
Jayaratna 1994
Also See P. Checkland Information Systems and Information Systems Chapter one
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19. Working definition of ISS
An information system strategy is about creating a fit among information system activities.
To us this means a three way fit between business needs, current IT systems and new opportunities offered by technology.
The need for an information system strategy will depend upon an
organisation's size and line of business. The larger an organisation and the greater the information content of the product or value chain then the greater the need for an enterprise-wide information
system strategy.
M. Porter (IS Strategy and business Fit, 1998)
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24. Six Major types of Systems
TPS: Transaction Processing Systems
MRS: Management Reporting Systems
DSS: Decision Support Systems
EIS: Executive information systems
PSS: Professional Support Systems
OIS: Office Information Systems

25. 1.TPS transaction processing systems
operational level
perform and record daily routine transactions necessary to conduct the business

26. 2.MRS Management Reporting Systems
Used by managers responsible for specific functions or processes in a firm
provide routine summary and exception reports
managers use these reports to help control their area of responsibility

27. 3.DSS decision support systems
Designed to support individual and collective decision making
often use information from external sources
more analytical power than other types of systems

28. 4.EIS executive information systems
strategic level of the organization
support long-term, strategic view
used by senior executives
easy access to summarised company data
incorporate external information on industry and economy

29. 5.PSS Professional Support Systems
Support performance of tasks specific to a given profession
For example
lawyers doing legal research
architects designing buildings
designers modeling a new automobile
student C&P system (cut and paste system) !!

30. 6.OAS office information systems
support and help coordinate knowledge work in an office environment
emphasis on increased productivity
systems include , scheduling systems, word processing

31. Analysis Frameworks Overview
What are frameworks for?
They help us to understand and classify the relation between competitive strategy and information technology. (Neumann)
They are a means of viewing, analysing and reaching meaningful conclusions about the role of information systems in helping achieve desired organisational performance.
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32. Framework of Frameworks

33. Awareness Framework

34. Awareness Framework Refocusing Framework Strategic Opportunities Framework

35. Awareness Framework Impact Model Degree of Strategic Change

36. Awareness Framework Scoping Model Information Intensity Matrix
of the Value Chain

37. Opportunity Framework

38. Opportunity Framework System Analysis Framework The Value Chain
Firm
infrastructure
Human resource
management
Support activities
Technology
development
Procurement
Inbound
logistics
Operations
Outbound
logistics
Marketing
and Sales
service
Margin
Source: Porter & Millar
Primary activities

39. Opportunity Framework Applications Search Tool Customer Resource Life-Cycle

40. Opportunity Framework Applications Search Tool Marketing Opportunity Search Framework

41. Competitive Advantage
Opportunity Framework Business Strategy Framework Generic Strategy Options
Competitive Advantage
Competitive Scope

42. Opportunity Framework Business Strategy Framework Strategic Option Generator
What is the strategic target?
Supplier
Customer
Competitor
What is the strategic thrust?
Differentiation
Cost
Innovation
Growth
Alliance
What is the mode?
Offensive
Defensive
What is the direction?
Use
Provide
Source: Wiseman

43. Positioning Framework

44. Positioning Frameworks Scaling Frameworks Strategic Grid

45. Three - level IT Strategy
IS Strategy
Division/SBU/function based
Demand oriented
Business focused
Applications
What?
IM Strategy
Organisation based
Relationships oriented
Management focused
Wherefore?
Management
IT Strategy
Activity based
Supply oriented
Technology focused
How?
Delivery
Source: Earl

46. A Multiple Methodology
Business plans
and goals
Current systems
IT opportunities
Analytical
Evaluative
Creative
Techniques,
processes and
environment
Top
down
Bottom up
Methodology
Surveys and
audits
Inside
out
Brightsparks
and product
champions
Teamwork
Users and
specialists
Application strategic plan
Source: Earl

47. Reference
Information Systems evolution; Strategic Planning for Information Systems, by John Ward and Pat Griffiths 1997, pp:6-34
Strategic Information systems; SISPby DSJ Remenyi 1992, pp:46-77
ISS and IM strategy; Information Management by, Earl 1998
ISS frameworks; Strategic Management of IS; Wendy Robson 1998, pp:48-74, 96, 128, 142, 155, , , , 193,
CMS Forum / CMS Learning Environment / CMS Courses /CM303-ISBS FT
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