Key Concepts and Models from Lecture 1: Informa8on Systems Strategy and
Management (ISSM)
1. Role of IS/IT in Business
- Technology as a Means to an End: Technology should always be linked to a business need or
opportunity, rather than being a solu2on in itself. (effec2ve? Adds value or supports value crea2on;
efficient? Cost/benefit ra2o is agood enough)
- Market vs. Technology Drivers: Market changes and opportuni2es oQen drive the need for IS/IT
solu2ons more than the technological advancements themselves.
2. Core Ques2ons to Consider
- What problem does IS/IT solve or what opportunity does it exploit?
- What is the role of technology beyond just its implementa2on?
- What alterna2ve solu2ons exist?
- How are we organized to create, maintain, operate, and decommission IS/IT?
- What is the value of IS/IT in terms of data, informa2on, and improved products/services both
internally and externally?
3. Informa2on Systems Strategy & Management: The Big Picture
- Data-Driven vs. Decision-Driven: Organiza2ons aim to be data-driven but should focus on being
decision-driven to make be]er use of the collected data.
- Systems Defini<on: Systems are interrelated components working together to achieve specific
objec2ves, using data science for insights and foresight.
4. Informa2on Systems (IS)
- Defini<on: Systems designed to get the right informa2on to the right person at the right 2me.
(intangible)
- Purpose: Facilitate gathering, processing, storing, using, and dissemina2ng informa2on to support
business decisions and ac2ons.
- Domain: Includes studying the social and technological phenomena influencing IS development and
use, focusing on the purposeful u2liza2on of IT.
5. Informa2on and Communica2on Technologies (IT)
- Components: Encompasses hardware, soQware, and telecommunica2ons networks including
computers, sensors, soQware applica2ons, and personal produc2vity tools. (tangible)
- Role in Business Strategy:Aligning IS/IT with business strategy ensures the right systems and
management prac2ces are in place to support and enhance business processes.
6. Management and Quality in IS/IT (ensure things work well and reliably)
- SoCware Quality AGributes: Focus on func2onal quality (conformance to requirements, the degree
wo which the correct soQware was produced) and structural quality (robustness and maintainability,
ho wit meets the non-func2onal requirements that support the delivery of the func2onal
requirements).
- Governance: Includes data quality control, guidelines, principles, risk management, and ensuring
ethical use of data.
7. Project Management Methodologies
- Agile vs. Waterfall: Agile is flexible and adap2ve, whereas Waterfall is more rigid and follows a
sequen2al plan.
- BizDevOps: Integrates business, development, and opera2ons to enhance the success of IT projects
by promo2ng con2nuous collabora2on and integra2on.
Laurien Deckers – Informa2on Systems Strategy & Management
,8. Tech Company
- A company that sells technology: Samsung
- A company that is driven by technology: Google
- A company with technology as its main differen2ator: Neilix
Key Models and Frameworks
1.Michael Porter’s Value Chain
Michael Porter's value chain framework outlines the series of ac2vi2es within an organiza2on that
add value to a product or service. These ac2vi2es are divided into primary ac2vi2es (such as inbound
logis2cs, opera2ons, outbound logis2cs, marke2ng and sales, and service) and support ac2vi2es
(including firm infrastructure, human resource management, technology development, and
procurement).
In the context of the changing role of Informa2on Systems (IS) and Informa2on Technology (IT), these
technologies have significantly impacted how value chain ac2vi2es are executed and op2mized.
Here’s how:
• Inbound Logis<cs: IS/IT systems streamline inventory management, supplier communica2on,
and order processing, enhancing efficiency and reducing costs.
• Opera<ons: Automa2on, real-2me monitoring, and data analy2cs improve produc2on
processes, quality control, and opera2onal efficiency.
• Outbound Logis<cs: Advanced logis2cs soQware op2mizes shipping routes, tracks deliveries,
and manages warehouse opera2ons more effec2vely.
• Marke<ng and Sales: Digital marke2ng, customer rela2onship management (CRM) systems,
and data analy2cs enable targeted marke2ng, personalized customer experiences, and be]er
sales forecas2ng.
• Service: Online support systems, AI chatbots, and customer feedback plaiorms enhance
customer service and support, leading to higher customer sa2sfac2on.
Support ac2vi2es also benefit:
• Firm Infrastructure: Enterprise resource planning (ERP) systems integrate various func2ons,
providing be]er informa2on flow and decision-making capabili2es.
• Human Resource Management: HR informa2on systems facilitate recruitment, training, and
performance management.
• Technology Development: Con2nuous innova2on in IS/IT drives product and process
innova2on, giving companies a compe22ve edge.
• Procurement: E-procurement systems and online marketplaces improve supplier selec2on
and nego2a2on processes.
Overall, IS/IT transforms the value chain by enhancing efficiency, reducing costs, and enabling new
business models, thereby crea2ng more value for organiza2ons.
Laurien Deckers – Informa2on Systems Strategy & Management
, 2. Strategic Alignment Model (Henderson & Venkatraman, 1989)
-Business Strategy: The overall direc2on and goals of the organiza2on.
-IT Strategy: The plan for using technology to support business goals.
-Organiza<onal Infrastructure and Processes: The structure, culture, and processes within the
organiza2on.
-IT Infrastructure and Processes: The technical systems and processes that support the IT strategy.
The model emphasizes the alignment between these domains through two key types of integra2on:
-Strategic Fit: Aligning business strategy with organiza2onal infrastructure and IT strategy with IT
infrastructure.
-Func<onal Integra<on: Ensuring that the IT strategy and infrastructure support the business
strategy and infrastructure.
Laurien Deckers – Informa2on Systems Strategy & Management
Management (ISSM)
1. Role of IS/IT in Business
- Technology as a Means to an End: Technology should always be linked to a business need or
opportunity, rather than being a solu2on in itself. (effec2ve? Adds value or supports value crea2on;
efficient? Cost/benefit ra2o is agood enough)
- Market vs. Technology Drivers: Market changes and opportuni2es oQen drive the need for IS/IT
solu2ons more than the technological advancements themselves.
2. Core Ques2ons to Consider
- What problem does IS/IT solve or what opportunity does it exploit?
- What is the role of technology beyond just its implementa2on?
- What alterna2ve solu2ons exist?
- How are we organized to create, maintain, operate, and decommission IS/IT?
- What is the value of IS/IT in terms of data, informa2on, and improved products/services both
internally and externally?
3. Informa2on Systems Strategy & Management: The Big Picture
- Data-Driven vs. Decision-Driven: Organiza2ons aim to be data-driven but should focus on being
decision-driven to make be]er use of the collected data.
- Systems Defini<on: Systems are interrelated components working together to achieve specific
objec2ves, using data science for insights and foresight.
4. Informa2on Systems (IS)
- Defini<on: Systems designed to get the right informa2on to the right person at the right 2me.
(intangible)
- Purpose: Facilitate gathering, processing, storing, using, and dissemina2ng informa2on to support
business decisions and ac2ons.
- Domain: Includes studying the social and technological phenomena influencing IS development and
use, focusing on the purposeful u2liza2on of IT.
5. Informa2on and Communica2on Technologies (IT)
- Components: Encompasses hardware, soQware, and telecommunica2ons networks including
computers, sensors, soQware applica2ons, and personal produc2vity tools. (tangible)
- Role in Business Strategy:Aligning IS/IT with business strategy ensures the right systems and
management prac2ces are in place to support and enhance business processes.
6. Management and Quality in IS/IT (ensure things work well and reliably)
- SoCware Quality AGributes: Focus on func2onal quality (conformance to requirements, the degree
wo which the correct soQware was produced) and structural quality (robustness and maintainability,
ho wit meets the non-func2onal requirements that support the delivery of the func2onal
requirements).
- Governance: Includes data quality control, guidelines, principles, risk management, and ensuring
ethical use of data.
7. Project Management Methodologies
- Agile vs. Waterfall: Agile is flexible and adap2ve, whereas Waterfall is more rigid and follows a
sequen2al plan.
- BizDevOps: Integrates business, development, and opera2ons to enhance the success of IT projects
by promo2ng con2nuous collabora2on and integra2on.
Laurien Deckers – Informa2on Systems Strategy & Management
,8. Tech Company
- A company that sells technology: Samsung
- A company that is driven by technology: Google
- A company with technology as its main differen2ator: Neilix
Key Models and Frameworks
1.Michael Porter’s Value Chain
Michael Porter's value chain framework outlines the series of ac2vi2es within an organiza2on that
add value to a product or service. These ac2vi2es are divided into primary ac2vi2es (such as inbound
logis2cs, opera2ons, outbound logis2cs, marke2ng and sales, and service) and support ac2vi2es
(including firm infrastructure, human resource management, technology development, and
procurement).
In the context of the changing role of Informa2on Systems (IS) and Informa2on Technology (IT), these
technologies have significantly impacted how value chain ac2vi2es are executed and op2mized.
Here’s how:
• Inbound Logis<cs: IS/IT systems streamline inventory management, supplier communica2on,
and order processing, enhancing efficiency and reducing costs.
• Opera<ons: Automa2on, real-2me monitoring, and data analy2cs improve produc2on
processes, quality control, and opera2onal efficiency.
• Outbound Logis<cs: Advanced logis2cs soQware op2mizes shipping routes, tracks deliveries,
and manages warehouse opera2ons more effec2vely.
• Marke<ng and Sales: Digital marke2ng, customer rela2onship management (CRM) systems,
and data analy2cs enable targeted marke2ng, personalized customer experiences, and be]er
sales forecas2ng.
• Service: Online support systems, AI chatbots, and customer feedback plaiorms enhance
customer service and support, leading to higher customer sa2sfac2on.
Support ac2vi2es also benefit:
• Firm Infrastructure: Enterprise resource planning (ERP) systems integrate various func2ons,
providing be]er informa2on flow and decision-making capabili2es.
• Human Resource Management: HR informa2on systems facilitate recruitment, training, and
performance management.
• Technology Development: Con2nuous innova2on in IS/IT drives product and process
innova2on, giving companies a compe22ve edge.
• Procurement: E-procurement systems and online marketplaces improve supplier selec2on
and nego2a2on processes.
Overall, IS/IT transforms the value chain by enhancing efficiency, reducing costs, and enabling new
business models, thereby crea2ng more value for organiza2ons.
Laurien Deckers – Informa2on Systems Strategy & Management
, 2. Strategic Alignment Model (Henderson & Venkatraman, 1989)
-Business Strategy: The overall direc2on and goals of the organiza2on.
-IT Strategy: The plan for using technology to support business goals.
-Organiza<onal Infrastructure and Processes: The structure, culture, and processes within the
organiza2on.
-IT Infrastructure and Processes: The technical systems and processes that support the IT strategy.
The model emphasizes the alignment between these domains through two key types of integra2on:
-Strategic Fit: Aligning business strategy with organiza2onal infrastructure and IT strategy with IT
infrastructure.
-Func<onal Integra<on: Ensuring that the IT strategy and infrastructure support the business
strategy and infrastructure.
Laurien Deckers – Informa2on Systems Strategy & Management
