Business Transformation

1. Business Transformation

2. Overview strategic grid opportunity frameworks index matrix IS strategy transformation graph IT strategy

3. strategic grid • identify current IT systems role in organisation • plan future developments to IT systems • opportunity frameworks • identify ways to use IT/IS in support of business strategy/opportunity

4. index matrix • identify & plan medium-scale business benefits from IS/IT • transformation graph • plan major-scale IT/business process re-engineering (BPR)

5. Transformation benefits • MIT 90’s identified 5 transformation levels • localised exploitation • internal integration • business process redesign • business network redesign • business scope redefinition

6. Localised exploitation(1) • basic level • ‘islands of automation’ • lacking integrated infrastructure • efficiency benefits

7. Localised exploitation administration administration administration stage1 stage2 stage3 stage4 stage5 stage6 input operations output administration administration administration stage1 stage2 stage3 stage4 stage5 stage6 input operations output

8. Enablers & inhibitors • enablers • technological • favourable cost /performance trends • vendor push – system solutions • organisational • localised impact • ease of assessing efficiency benefits • minimal disturbance • inhibitors • technological • obsolescence • cost performance reduction • organisational • lack strategic vision • unwillingness to recognise strategic role of IT/IS inhibitors level 1

9. Internal integration(2) • IT platform in entire business process integration • data sharing/communication • common applications • integration of task/process/function • integration of both technology & organisation

10. Internal integration administration administration administration stage1 stage2 stage4 stage5 input operations output administration administration administration IT platform for internal integration stage1 stage2 stage3 stage4 stage5 stage6 input operations output

11. Enablers & inhibitors • enablers • technological • increase connectivity capabilities • favourable cost/ performance trends • vendor push – system solutions • organisational • strategic integration vision via IT platform • inhibitors • technological • uncertainty • integration cost • organisational • lack strategic integration vision • organisational inertia • centralisation / decentralisation conflict inhibitors level 2

12. Business process redesign(3) • fundamental rethink of conducting business effectively • limited/controlled business transformations

13. Business process redesign administration administration administration IT platform for internal integration stage1 stage2 stage3 stage4 stage5 stage6 input operations output administration IT platform for redesign stageA stageB stageC stageD input operations output

14. Enablers & inhibitors • enablers • technological • favourable cost / performance trends • organisational • awareness of IT power • willingness to change to exploit IT • marketplace • competitive pressures • inhibitors • technological • uncertainty • redesign cost • organisational • lack strategic redesign vision • organisational inertia • cost of organisation transformation inhibitors level 3

15. Business network redesign(4) • use of IT by stakeholders • new ‘value webs’/alliances • traditional/formal organisation ‘virtual’/’networked’ organisation • two basic considerations • business governance strategies • IT governance strategies

16. Strategic options business network redesign collaborative advantage tightly coupled business govern-ance loosely coupled electronic infrastructure competitive advantage common role IT governance unique role

17. Enablers & inhibitors enablers inhibitors inhibitors • ability to specify/ create standards for integration • value added services identification • mutual benefits recognition • lack of standards • lack of vision / understanding • lack of integration commitment • possible market position erosion level 4

18. Business scope redefinition(5) • new business ventures • new markets • new ways of doing business

19. Business domain enlargement products traditional business scope products additional IT generated business markets technology technology markets traditional operating technology new IT infrastructure / IS applications

20. Shifting the business domain products products traditional business scope markets markets technology technology traditional operating technology increased role for IT operations

21. Transformation graph high degree of transformation low 5 4 revolution evolution 3 2 1 low range of potential benefits high