Developing an IS/IT Strategy. Faculty of Industry and Information Technology Telkom Institute of Technology Purwokerto, October 2018

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1 Developing an IS/IT Strategy Faculty of Industry and Information Technology Telkom Institute of Technology Purwokerto, October 2018

2 Session Objectives Understand the process of developing IS/IT Strategies Nurture the integration of IS/IT Strategies in IS/IT Strategic Plan Understand the components of IS/IT Strategic Plan Model Understand how to evaluate IS/IT Strategic Plan

3 IS/IT Strategy Definition. IS strategy defines the organization s requirement for information systems to support the overall strategies of the business The IT strategy is outlining the vision of how the organization s demand for information and systems will be supported by IT An IS strategy brings together the business aims of the company, an understanding of the information needed to support those aims, and the implementation of computer systems to provide the information.

4 External & Internal Factors Business Strategy Business decisions Objectives and direction Change Where is the business going & why? Supports business Direction for business IS Strategy Business based Demand orientation Application focused What is required? Infrastructure & service Needs & priorities IT Strategy Activity Based Supply oriented Technology focused How can it be realized? Alignment Business Strategy and IS/IT Strategy

5 Business Environment

6 IS/IT Strategy is part of IS/IT Strategic Plan Planning for the effective long-term management and optimal impact of information in all its forms (IS, IT, manual and computer systems, organizational aspects of the management IS/IT throughout the business). The process of deciding the objectives for organizational computing and identifying potential computer applications which the organization should implement (Sethi, 88) It is a plan for the development of systems towards some future vision of the role of IS in the organization

7 The Objectives of Developing IS/IT Strategy Alignment of IS/IT with the business Gaining competitive advantage Building cost effective Developing the appropriate resources IS/IT strategy process IS/IT strategy formulation IS/IT planning

8 Tips to Develop IS/IT strategy IS/IT Strategy Process Should Become an Integral Part of Business Strategy, Business Plan, and Its Implementation. The primary objective to develop IS strategy is to identify value-added portfolio of applications that will have strategic impact.

9 The Evolution of the IS/IT Strategy Process: Technology Focus to Strategic Focus Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Main task Key objective IS/IT application mapping Management understanding Defining business needs Agreeing priorities Detailed IS planning Balancing the portfolio Strategic/comp etitive advantage Pursuing opportunities Linkage to business strategy Integrating IS and business strategies Direction form Main approach Summary description IT led Bottom-up development Technology led Senior management initiative Top-down analysis Method driven User and IT together Balanced topdown and bottom-up Administrativ e Executives/seni or management and users Entrepreneurial (user innovation) Business led Coalition of users/management and IT Multiple method at same time Organization led Conform these stages with the evolution of IS/IT roles

10 IS/IT Planning Problems Fail to get top management support Value system does not go throughout organization Lack of proper person to the job Not having clear-cut business strategy Fail to anticipate new IT development Ignorance of environment-economy, politic, etc Research Issues: Faktor apa yang dominan sebagai penyebab gagalnya IS/IT Planning? Apa solusinya?

11 IT Issues yang paling dominan adalah masalah IS/IT Planning

12 The Model of Strategic IS/IT Planning Processes Inputs Internal business environment Current business strategy, objectives, resources, processes and culture and values of business External business environment The economic, industrial and competitive climate Internal IS/IT environment Current IS/IT perspective in the business, its maturity, business coverage and contribution, skills, resources and technological infrastructure External IS/IT environment Technology trends and opportunities and the use made of IS/IT by external bodies Reminder: Use all related techniques and methods to gather and analyze data of these input factors

13 Strategic Management Process Environmental Analysis General Environment Operating Environment Competitive Positioning Opportunities Threats Directions for Development Company Vision Company Strategic History Current Strategy Stakeholder Analysis Vision & Strategy Chosen Strategy Realized Strategy Company Analysis Figure 7-2 Structure Values/Culture Skills Resources Strengths Weaknesses Reprinted with permission from The Strategic Management Blueprint Cambridge, Ma: Blackwell, 1993.

14 The Model of Strategic IS/IT Planning Processes Outputs IS/IT management strategy The common elements of the strategy that apply throughout the organization, ensuring consistent policies where needed Business IS/IT strategy How each unit or function will deploy IS/IT in achieving its business objectives. Alongside each of these are application portfolios to be developed for business unit and business models, describing the information architecture of each unit. The portfolios may include how IS/IT will be used at some future date, to help the units to achieve their objectives IT strategy Policies and strategies for management of technology and specialist resources Make sure all outputs have to have a basis

15 External Business Environment Internal Business Environment Internal IS/IT environment Current Applications Portfolio Strategic IS/IT Planning Process External IS/IT Environment Planning Approaches, Tools and Techniques IS/IT Management Strategy Business IS Strategies IT Strategy Applications Portfolio Model & Matrices

16 Types of Deliverables from The IS/IT Planning Processes Hard deliverables The current situation (As-is condition, Baseline) The vision and rationale for what is being put into place information, systems, technology, people, and so on (To-be, Future condition). The plans for how it is going to be achieved, with the milestones along the route (Roadmap, Programs, KPI). Soft deliverables Relate to human factors: skill, awareness and motivation (Change Management, Capacity Building).

17 Framework for the IS Planning Process Input (As-is) Proses (Gap Analysis) Input Business and Technical Environment Initiate Planning Process Understand the Current Situation and Interpret Business Needs Other Planning Activities Define/Update Information and Systems Architecture Determine Business IS Strategy Previous IS/IT Strategy Formulate IT Strategy Prepare Migration Plans and Business Case Business Strategy and Proposed Development Programmme IS/IT Strategy and Proposed plans

18 Initiate Planning Process The purpose, objectives, scope and deliverables are confirmed The approach determined and resourced acquired, such as automated tools Business participants identified and team assembled and trained Expectations, such issues and problems addressed, and risk management proposals put into gear Process steering and management mechanisms created How the work will interface with and feed into business planning The people to be interviewed, or who are needed to participate in group sessions are identified Plan for the work, tasks, timing, roles and responsibilities, and checkpoints defined.

19 Understand the Current Situation and Interpret Business Need Analysis of the business strategy, objectives, critical success factors (CSFs), critical problems, and processes, in order to determine the current situation, and its strengths and weaknesses, and the information needs and thus the focus for investment in systems to meet these. Evaluation of the current IS/IT operation its systems, information provision, resources, organization, skills and services, to determine coverage and contribution and where improvements would be beneficial. Innovative analysis of the external and internal business environment to identify potential applications of IS/IT.

20 Determine the Business IS Strategy The accumulated business IS demand is turned into recommendations for the deployment of IS/IT throughout the organization and at SBU level.

21 Define Information and System Architecture This step takes the results of the analysis of procedures and information needs in order to build a proposed business model for the business. It represents the future ideal in process, information and system terms, and is needed to plot a direction when developing migration plans.

22 Contoh: Arsitektur Aplikasi & Proses Bisnis Value Chain di SEKAB Pemantauan Permasalahan Pemerintah 1 Pemantauan Permasalahan Hukum Penyusunan PUU 5 Penyiapan Persidangan Evaluasi Permasalahan Pemerintah 2 Evaluasi Permasalahan Hukum Pendokumentasian PUU 4 Pelaksanaan Persidangan Analisis Permasalahan Pemerintah Analisis Permasalahan Hukum 3 5 Pendistribusian PUU 6 Pendokumentasian Persidangan 8 9 Administrasi Jabatan Eksternal 10 Legalisasi dan Peminjaman PUU Pemantauan Hasil Persidangan 7 Pendistribusian Undangan/Hasil Persidangan Administrasi Kepangkatan dan Pensiun 10 Administrasi Alih Status Anggota TNI / Polri 10 Perumusan Keppres dan Lampiran Keppres Personalia Administrasi Personalia Internal Penyusunan Program Tata Usaha Perbantuan 11 Penyusunan Anggaran Pengumpulan dan Pengolahan Data Perencanaan Program dan Anggaran Pendokumentasian Program Kerja dan Anggaran Penyusunan Hasil Pemantauan dan Evaluasi Program Setkab Pelaporan Pengawasan Internal Pemantauan dan Evaluasi Program Setkab Pembayaran 14 Pembukuan Perlengkapan Pemeliharaan dan Perawatan Rumah Tangga Administrasi Perjalanan Dinas Pengembangan Sistem Informasi dan Otomasi Pemeliharaan Jaringan

23 Formulated IT Supply Proposals IS strategy and the IT supply proposals can be fed back into the business strategy, for consideration and consolidation to occur, and senior business management to decide on the likely candidates for the investment programme for the business. For IS/IT management, it means that the strategy can be firmed up to give a clearer directions for where IS is aiming to go. Outline plans can the be constructed to give a route map, and milestone for the main initiatives.

24 IT Strategy: Management of Supply To define how resources and technologies will be managed and developed to satisfy business IS strategies. It consists of: Application portfolio management Organization of IS/IT Managing the info resources and provision of info services Managing investment, prioritization and benefits Managing application development Managing technology

25 Contoh: Arsitektur Jaringan SEKAB

26 IS/IT Management Strategy Apply throughout the organization, ensuring consistent policies where needed It covers: Scope and rationale IS/IT organization Investment and prioritization policies Vendor policies Human impact policies IS accounting policies

27 Contoh: Struktur Organisasi TI di SEKAB Kepala Biro Perencanaan & Keuangan Deputi Seskab Bidang Administrasi Kepala Biro Kepegawaian Kepala Biro Kepangkatan & Pensiun Kepala Biro Umum Kepala Bagian Perlengkapan Kepala Bagian Pemeliharaan Kepala Bagian Urusan Dalam Kepala Bagian Sistem Informasi Kepala Sub Bagian Aplikasi Jaringan Kepala Sub Bagian Infrastruktur Jaringan

28 Success Criteria in Developing IS/IT Strategy

29 Evaluation of IS/IT Strategic Plan: Success Criteria Improve performance Gaining competitive advantage Align IT investment with business strategy Better communication Improve management commitment Better allocation of IT resources Better IT forecasting requirement Try to quantify the success criteria for old vs. new system??

30 Discussions What is IS/IT Strategy? Why Develop IS/IT Strategy? How IS/IT Strategy fits in Business Strategy? Who in charge developing IS/IT Strategy? What are the steps to develop IS/IT Strategy? How do you evaluate the success of IS/IT strategy