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IT Planning and Strategy

IT Planning and Strategy. TEAM: Nora Lizeth Gil Carlón 784211 Andres Carlo Casso 801600 Victor David Rivas Carrión 805228. Key Points. IT Strategic Alignment – Role of CIO Competitive Forces Model Strategies for Competitive Advantage Tools and methodologies of IT planning

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IT Planning and Strategy

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  1. IT Planning and Strategy TEAM: Nora Lizeth Gil Carlón 784211 Andres Carlo Casso 801600 Victor David Rivas Carrión 805228

  2. Key Points • IT Strategic Alignment – Role of CIO • Competitive Forces Model • Strategies for Competitive Advantage • Tools and methodologies of IT planning • E-Planning • Managerial Issues

  3. IT Strategic Alignment • Business/IT alignment  Optimize the relational mechanisms between the business and IT organization IT effectiveness maximize the business value from IT. • Examples: Hewlett-Packard VivaAerobus

  4. Role of CIO • Strong business orientation • Harnessing the benefits of information technology toward solving business problems • Ability to manage costs and risks • Identify and evaluate new technologies • Ability to communicate with non-technical internal clients and understand their needs • Ability to transform technical language, in simple terms • Possess strong organizational skills

  5. Competitive Forces Model Example: The music industry 20 years ago Very Difficult to entry Monopoly of record companies Low They have no options Monopoly of record companies

  6. Strategies for Competitive Advantage 5. Alliance Strategy IBM - Accelrys 6. Innovation Strategy Apple (i-Pod and i-Tunes) 7. Entry-barriers Strategy Cisco 1. Cost Leadership Strategy Soutwest Airlines Viva Aerobus 2. Differentiation Strategy Hero Honda 3. Niche Strategy Amazon.Com 4. Growth Strategy Mc-Graw Hill

  7. Tools and Methodologies of IT Planning • Business Systems Planning (BSP) Model * Business Processes and Data Classes. • Stages of IT Growth Model * Initiation  Contagion  Control  Integration  Data Administration  Maturity • Critical Success Factor Approach to IT Planning * Identify the information needs of managers • Scenario Planning * Situations with uncertainty  IT in general and e-commerce

  8. E-Planning • It touches E-Commerce infrastructure, and the interaction between different divisions of the same company at different places powered by web-based systems. Characteristics. • Different planning exercise than IT Planning • Alignment Both E-planning and IT planning is needed • Less formal • Areas of more attention on E-planning: - Application Portfolio - Risk Analysis - Strategic planning Issues such as the use of metrics.

  9. E-planning Applications Portfolio • Tjan’s Portfolio Strategy. Tjan (2001) a toy company adopted a business project portfolio applications approach to create an Electronic portfolio planning. • The strategy is based on company fit • All possibilities are valued and then mapped on the Internet portfolio matrix • Viability and fit - low  the project is killed. Viability and fit - high  the project is adopted. Fit - high and Viability - slow  the project is redesigned Fit - low and Viability - high  the project may be sold.

  10. Managerial Issues • Development of IT as Powerful competitive advantages • Organizing for effective planning  IS Department • IT architecture Planning  Fitting IT architecture to the organization • IT Policy. • Ethical and Legal Issues. • IT Strategy. - Be a leader in technology. - Be a follower. - Be an experimenter.

  11. References • Muñoz, Hector. 'IT Risk Management' Emerging as Strategic Corporate Initiative. IT Value Consulting. Retrieved March 8, 2009 from Your IT Governance Coach Web Site: <http://youritgovernancecoach.typepad.com/> • Wikipedia Web Site. <www.wikipedia.org> • Value Based Management Web Site. <http://www.valuebasedmanagement.net/> • Porter, Michael E. The Five Competitive Forces That Shape Strategy (2008). Harvard Business Review. Retrieved March 8, 2009. • Hero Honda Web Site. <http://www.herohonda.com/> • Mitra, Sramana. Mc-Garaw Hill: Growth Strategy Solidly in Place (2007). Retrieved March 8, 2009 from Seeking Alpha Web Site: <http://seekingalpha.com/article/32019-mcgraw-hill-growth-strategy-solidly-in-place> • Nussbaum, Bruce. Apple's Innovation Strategy: More Than MacBook Air. Business Week. Retrieved March 8, 2009 from Business Week Web Site: <http://www.businessweek.com/innovate/NussbaumOnDesign/archives/2008/01/apples_innovati.html>

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