Strategic Planning for Information System

1. Strategic Planning for Information System Mata kuliah ini memberikan konsep dasar perencanaan strategis sistem informasi. Erwin Sutomo S1 Sistem Informasi

2. What is Strategic Planning Anyhow ? Introduction

3. Strategic ? • Strategy means consciously choosing to be clear about your company’s directioninrelation to what’s happening in the dynamic environment. • With thisknowledge, you’re in a much better position to respond proactively to the changing environment.

4. The fine points of strategy are as follows : (1) • Establishes unique value proposition compared to your competitors • Executed through operations that provide different and tailored value to customers • Identifies clear tradeoffs and clarifies what not to do

5. The fine points of strategy are as follows : (2) • Focuses on activities that fit together and reinforce each other • Drives continual improvement within the organization and moves it toward its vision

6. Strategy is not : • Best practice improvement • Execution • Aspirations • A vision • Learning • Agility • Flexibility • Innovation • The Internet (or any technology) • Downsizing • Restructuring • Mergers/Consolidation • Alliances/Partnering • Outsourcing

7. What is a strategic plan? (1) • Simply put, a strategic plan is the formalized roadmap that describes howyour company executes the chosen strategy. • A plan spells out where an organizationis going over the next year or more and how it’s going to get there. • Typically, the plan is organization-wide or focused on a major function suchas a division or a department.

8. What is a strategic plan? (2) • A strategic plan is a management tool thatserves the purpose of helping an organization do a better job, because a planfocuses the energy, resources, and time of everyone in the organization in the same direction.

9. Strategic plansand business plans aren’t the same concepts • A strategic plan : • Is for established businesses and business owners who are serious about growth • Helps build your competitive advantage • Prioritizes your financial needs • Provides focus and direction to move from plan to action

10. Strategic plansand business plans aren’t the same concepts • A business plan : • Is for new businesses, projects, or entrepreneurs who are serious about starting up a business • Helps define the purpose of your business • Helps plan human resources and operational needs • Is critical if you’re seeking funding • Assesses business opportunities • Provides structure to ideas

11. What are the big planning pitfalls? • Relying on bad information or no information • Ignoring what your planning process reveals • Being unrealistic about your ability to plan • Planning for planning sake • Get your house in order first • Don’t copy and paste

12. What are the componentsof a strategic plan? • Strategy and culture • Internal and external • The Balanced Scorecard perspectives • Market focus • Where are we now? Where are we going? How will we get there?

13. The Elements of a Strategic Plan How are we going to get there? • Strategic Review • Mission • Values • Strategic Objectives • Goals • Priorities • Action Items • Strategies • Scorecard • Execution • Vision • Competitive Advantage Where are we now ? Where are we going?

14. Anoutline of a typical strategic plan (1) • Mission statement: To define the organization’s core purpose. Why do we exist? • Vision statement: To explain where you are headed, your future state.To formulate a picture of what your organization’s future makeup will beand where the organization is headed. What will our organization looklike in 5 to 10 years from now?

15. Anoutline of a typical strategic plan (2) • Values statement or guiding principals: To clarify what you stand for and believe in. • SWOT: To assess the particular strengths, weaknesses, opportunities,and threats that are strategically important to your organization. (Youmay or may not choose to include your SWOT in your strategic plan but as supporting documentation.)

16. Anoutline of a typical strategic plan (3) • Competitive advantage: What can yourorganization potentially do better than any other organization? • Strategic objectives: To connect your mission to your vision. Strategicobjectives are long-term, continuous strategic areas that get you movingfrom your mission to achieving your vision. What are the key activitiesthat you need to perform in order to achieve your vision?

17. Anoutline of a typical strategic plan (4) • Strategies: To establish a guide that matches your organization’s strengthswith market opportunities to position your organization in the mind ofthe customer. Does your strategy match your strengths with how youwill provide value and be perceived by your customers?

18. Anoutline of a typical strategic plan (5) • Short-term goals/priorities/initiatives: To set goals that converts thestrategic objectives into specific performance targets. Effective goalsclearly state what, when, how, who and are specifically measurable.What are the 1- to 3-year goals you are trying to achieve to get to your strategic objectives?

19. Anoutline of a typical strategic plan (6) • Action items/plans: To set specific actions plans that lead to implementingyour goals. Are your action items comprehensive enough to achieve your goals? • Scorecard: To measure and manage your strategic plan. What are thekey performance measures you can track in order to monitor if you are achieving your goals?

20. Anoutline of a typical strategic plan (7) • Financial assessment: To determine if your strategic plan makes financialsense. Do the estimated revenue projections exceed your estimated expenses?

21. An effective plan and execution require several elements: (1) • Purpose-driven: A plan based on a mission and a real, true competitiveadvantage is key. Without it, what is the point of the plan or the organization? • Integrated: Each element supports the next. No objectives that are disconnectedfrom goals and no strategies that sit all alone.

22. An effective plan and execution require several elements: (2) • Systematic: Don’t think of the plan as one big document. Instead, give itlife by breaking into executable parts. • Dynamic: Not a static document, but a living document.

23. An effective plan and execution require several elements: (3) • Holistic: All areas of organization are included. Don’t plan based ondepartments first because you risk limiting your thinking. Plan by thinkingabout the organization as a whole entity and then implement on a department by department basis.

24. An effective plan and execution require several elements: (4) • Understandable: Everyone gets it. If anyone, from the top of the organizationto the bottom, does not understand the plan or how they fit in, it won’t work. • Realistic: You can implement it. Don’t over-plan. Make sure you have theresources to support the goals you decide to focus on.

25. The Evolving Role of Information Systems and Technology in Organizations: A Strategic Perspective Chapter 1

26. Preface (1) • Informationtechnology has become inextricably intertwined with business. • In industries such as telecommunications,media, entertainment and financial services, where the product is already oris being increasingly digitized, the existence of an organization cruciallydepends on the effective application of information technology (IT).

27. Preface (2) • With the emergence of e-commerce, the use of technology is becoming just anaccepted, indeed expected, way of conducting business. • Consequently,organizations are increasingly looking toward the application of technologynot only to underpin existing business operations but also to create newopportunities that provide them with a source of competitive advantage.

28. Preface (3) • Tomanage information systems and information technology(IS/IT) strategically, it is helpful to understand how the role oftechnology-based information systems has evolved in organizations. • While organizations today want to develop a more ‘strategic’ approachto managing IS/IT, many have probably arrived at their current situationas a result of various short-term ‘tactical’ decisions regarding IS/IT.

29. Preface (4) • Many organizations would no doubt like to rethink their investments,or even begin again with a ‘clean sheet’, but unfortunately have a ‘legacy’resulting from a less than strategic approach to IS/IT in the past. • Learning from experience—the successes and failures of the past—is one of the most important aspects of strategic management

30. Information System - Information Technology (1) • IT refers specifically to technology, essentially hardware, software andtelecommunications networks. It is thus both tangible (e.g. with servers,PCs, routers and network cables) and intangible. • ICT is generally used instead of IT to recognize the convergence of traditional information technology and telecommunications

31. Information System - Information Technology (2) • IS as the means by which people and organizations, utilizingtechnology, gather, process, store, use and disseminate information. It isthus concerned with the purposeful utilization of information technology. • Some information systems are totally automated by IT.

32. Information System - Information Technology (3)

33. Structurefor information systems in an organization • Structurefor information systems in an organization, based on a stratification of management activity into: • Strategic planning • Management control • Operational control

34. Typical planning, control and operational systems

35. Transition between computer and information management (1)

36. Transition between computer and information management (2) • To achieve effective Information (Systems) Management, a new top-down approach was required, depends on the role of IS in relation to the outside world.

37. Three stage model transition role of IS (1) • Delivery: • IS issues are mainly internal—improving the ability todeliver and support the systems and technology. • Achieving topmanagementcredibility as a valuable function is a prime objective.This means improving delivery performance, not necessarily providingusers with what they really need

38. Three stage model transition role of IS (2) • Reorientation: • establishing good relationships with the main businessfunctions • supporting business demands through the provision of avariety of services as computing capability spreads through thebusiness. • The issues focus is extended outside the ‘DP department’and a key objective is to provide a valued service to all businessfunction management.

39. Three stage model transition role of IS (3) • Reorganization: • Thehigh level of awareness created both ‘locally’ inthe business area and ‘centrally’ in senior management creates theneed for a reorganization of responsibilities designed to achieve integrationof the IS investment with business strategy and acrossbusiness functions. • A key objective becomes the best way of satisfyingeach of the differing business needs through a coalition of responsibilitiesfor managing information and systems.

40. Early Views And Models: Up To 1980 from the 1960s onwards—the DP era; from the 1970s onwards—the MIS era.

41. The DP And MIS Eras: The Lessons Learned (1) • There have been essentially three parallel threads of evolution that haveenabled more extensive and better information systems to be developed: • Hardware—reducing cost and size, improving reliability and connectivity,enabling the system to be installed closer to the business problem.

42. The DP And MIS Eras: The Lessons Learned (2) • There have been essentially three parallel threads of evolution that haveenabled more extensive and better information systems to be developed: • Software, more comprehensive & flexible operating software & improved languages, enabling business applications to be developedmore quickly, with greater accuracy & by staff with less experience.In addition, there was an increased availability of applicationpackages available ‘off the shelf ’.

43. The DP And MIS Eras: The Lessons Learned (3) • There have been essentially three parallel threads of evolution that haveenabled more extensive and better information systems to be developed: • Methodology, ways of organizing andcarrying out the multiplicityof tasks, in a more coordinated, synchronized and efficient way toenable ever more complex systems to be implemented and largeprojects to be managed successfully.

44. DP lessons (1) • Need to understand the process of developing complete informationsystems, not just the programs to process data. • More thorough requirements and data analysis to improve systemslinkages and a more engineered approach to designing system components.

45. DP lessons (2) • More appropriate justification of investments by assessing theeconomics of efficiency gains and converting these to a return on investment. • Less creative, more structured approaches to programming, testingand documentation to reduce the problems of future amendments.More discipline was introduced with ‘change control procedures’and sign-off on specifications and tests.

46. DP lessons (3) • Extended project management that recognized the need for coordinationof both user and DP functions and the particular needto establish user management in a decisive role in the systemsdevelopment—the user had to live with the consequences.

47. DP lessons (4) • The need for planning the interrelated set of systems required bythe organization. Better planning produced overall improvementsin systems relevance and productivity.

48. MIS lessons (1) • Justification of IS investments is not entirely a matter of return on investment/financial analysis. • Databases require large restructuring projects and heavy userinvolvement in data definition—data integration had been weakbased on the project by project DP approach.

49. MIS lessons (2) • The IS resource needs to move from a production to a serviceorientation to enable users to obtain their own information from the data resource—the information centre concept. • Need for organizational policies, not just DP methodologies.

50. MIS lessons (3) • Personal computers and office systems enable better MIS to bedeveloped, provided that users and IS specialists both focus on theinformation needs rather than the technology.