Business Information Systems
Lecture 2
IS & Strategy
Learning objectives
- Understand the relationship between business strategy, information
systems strategy, and di erent types of IS
- Explain the importance of aligning organisation and IS
- Describe the role of IS in organisations as we move into the digital world
Strategic value of IS
- «Fit» between
strategy and IS
depends on
strategic focus
- IS strategy is
needed
ff
,Business and IS strategy
- A portfolio of IS to be implemented, which is both highly aligned with
business strategy and may have the ability to create an advantage over
competitors
- The organisational perspective on the investment in, deployment, use
and management of information systems
IS strategy process
- The process of identifying a portfolio of computed-based applications that
will support an organisation’s business plans, thus enabling he
organisation to align its IS with its business needs and achieve its
business goals
- Five phases
- Strategic awareness
- Situation analysis
- Strategy conception
- Strategy formulation
- Strategy implementation planning
Strategic awareness
- Determining key planning issues
- Identifying business strategic objectives
- Identifying IS strategic objectives
- Aligning business and IS strategies
- Organising the planning process
Situation analysis
- SWOT analysis
- Analysing current internal and external business environment
- Analysing current internal and external information systems environment
, Strategy conception
- Identifying opportunities for improvement
- Evaluating opportunities for improvement
- Identifying role of IS in realising opportunities
- Identifying high level IS strategies
Strategy formulation
- Formulation IS strategy goals
- Formulation new business architecture / organisation
- Formulating new IT architecture / portfolio
Strategy implementation planning
- De ning change management approach
- Identifying speci c new projects
- De ning action plan
- Evaluation action plan
- De ning follow-up and control procedure
Strategic awareness: alignment
- Alignment: the degree of t and integration among business strategy, IT
strategy, business infrastructure and IT infrastructure (Henderson
&Venkatraman, 1993)
- Positive in uence IS contribution to competitive advantage (Kearns &
Lederer, 2000)
- Persistent issue for IT managers in practice
Strategic alignment
- Henderson & Venkatraman (1993)
- External & internal domain
- Business & IT domain
- Four approaches to alignment
fi fl fi fi
, Strategic alignment: technology potential
- Business strategy is driver
- Determines IT strategy
- How can IS support business
strategy ?
- Not considered by current
organisation
- Example: VU
- Operational excellence
- Integration through SAP
Strategic alignment: competitive potential
- IT strategy is driver
- Determines business strategy
- What are emerging IT capabilities we can exploit in shaping our business
strategy ?
- Adapt organisation to IT possibilities
- IT-driven innovation
- Example: Net ix
- Digitisation of content
- From dvd rental to content
Strategic alignment: strategy
execution
- Business strategy is driver
- Determines organisational
structure & processes
- How can IS optimally support
current organisation ?
fl
Lecture 2
IS & Strategy
Learning objectives
- Understand the relationship between business strategy, information
systems strategy, and di erent types of IS
- Explain the importance of aligning organisation and IS
- Describe the role of IS in organisations as we move into the digital world
Strategic value of IS
- «Fit» between
strategy and IS
depends on
strategic focus
- IS strategy is
needed
ff
,Business and IS strategy
- A portfolio of IS to be implemented, which is both highly aligned with
business strategy and may have the ability to create an advantage over
competitors
- The organisational perspective on the investment in, deployment, use
and management of information systems
IS strategy process
- The process of identifying a portfolio of computed-based applications that
will support an organisation’s business plans, thus enabling he
organisation to align its IS with its business needs and achieve its
business goals
- Five phases
- Strategic awareness
- Situation analysis
- Strategy conception
- Strategy formulation
- Strategy implementation planning
Strategic awareness
- Determining key planning issues
- Identifying business strategic objectives
- Identifying IS strategic objectives
- Aligning business and IS strategies
- Organising the planning process
Situation analysis
- SWOT analysis
- Analysing current internal and external business environment
- Analysing current internal and external information systems environment
, Strategy conception
- Identifying opportunities for improvement
- Evaluating opportunities for improvement
- Identifying role of IS in realising opportunities
- Identifying high level IS strategies
Strategy formulation
- Formulation IS strategy goals
- Formulation new business architecture / organisation
- Formulating new IT architecture / portfolio
Strategy implementation planning
- De ning change management approach
- Identifying speci c new projects
- De ning action plan
- Evaluation action plan
- De ning follow-up and control procedure
Strategic awareness: alignment
- Alignment: the degree of t and integration among business strategy, IT
strategy, business infrastructure and IT infrastructure (Henderson
&Venkatraman, 1993)
- Positive in uence IS contribution to competitive advantage (Kearns &
Lederer, 2000)
- Persistent issue for IT managers in practice
Strategic alignment
- Henderson & Venkatraman (1993)
- External & internal domain
- Business & IT domain
- Four approaches to alignment
fi fl fi fi
, Strategic alignment: technology potential
- Business strategy is driver
- Determines IT strategy
- How can IS support business
strategy ?
- Not considered by current
organisation
- Example: VU
- Operational excellence
- Integration through SAP
Strategic alignment: competitive potential
- IT strategy is driver
- Determines business strategy
- What are emerging IT capabilities we can exploit in shaping our business
strategy ?
- Adapt organisation to IT possibilities
- IT-driven innovation
- Example: Net ix
- Digitisation of content
- From dvd rental to content
Strategic alignment: strategy
execution
- Business strategy is driver
- Determines organisational
structure & processes
- How can IS optimally support
current organisation ?
fl
