Models and Frameworks
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1 City University of Hong Kong IT Strategic Planning Models and Frameworks Dr. Andy Chun, Hon Wai Department of Computer Science Y6305 x7194
2 What You Will Learn Strategic Grid Index Matrix Transformation Graph 5 Competitive Forces Value Chain Strategic Alignment Process IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
3 McFarlan: Strategic Grid High Dependency Factory Applications on which the organization currently depends for success Applications which are valuable but not critical for success Strategic Applications which are critical to sustaining future business strategy Applications which may be of important in achieving future success Low Support Turnaround Low Impact High IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
4 Index Matrix Beneficiary Zone 1 Zone 2 Zone 3 Individual Function Organization Benefits Efficiency Task Automation Process Automation Organizational Integration Effectiveness Work Improvement Functional Improvement Service Enhancement Transformation Role Enhancement Functional Definition Product Innovation IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
5 Benefits Efficiency ( Doing the thing right ) Doing something in an optimum way, e.g. faster, cheaper, better Effectiveness ( Doing the right thing ) Identifying the correct/most appropriate application of resources Transformation Changes induced IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
6 Scott Morton: Transformation Graph High Scope Redefinition Revolutionary Levels (Transformate) Network Redesign Process Redesign Internal Integration Localized Exploitation Evolutionary Levels (Automate & Informate) Low Low Range of potential benefits High IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
7 Evolutionary Levels localised exploitation within individual business functions primary objectives addressed are local efficiency and effectiveness internal integration btw different systems and applications besides automation - rationalisation and using common IT platform efficiency and effectiveness are enhanced by coordination and cooperation within the enterprise IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
8 Revolutionary Levels business process redesign thorough re-evaluation of enterprise value-chain and production process more far-reaching changes business network redesign reconfiguration of scope and tasks of business network involved in creation and delivery of products and services Coordination and cooperation extend, selectively, beyond enterprise's boundaries IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
9 Revolutionary Levels business scope redefinition involving migration of functions across the enterprise's boundaries, to the extent of changing the organisation's conception of the business it is in IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
10 Porter: Competitive Forces Model IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
11 Example IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
12 Porter: Value Chain Secondary Activities Value Primary Activities IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
13 Chain of Activities A firm is seen as a chain of activities Each activity adds value to products/ services and making them more desirable to customers Each activity has a physical component and an information processing component, which encompasses the steps required to capture, manipulate and channel data to perform the activity IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
14 Airline Example IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
15 Strategic Alignment Process Strategy I/T Strategy External Scope Technology Scope Distinctive Competencies Governance Systemic Competencies IT Governance Strategic Fit Organizational Infrastructure and Processes I/S Infrastructure and Processes Internal Administrative Infrastructure IT Infrastructure Processes Skills Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
16 Functional Integration integration of IT and business strategy (i.e. strategic alignment) two types: strategic integration: integration of external IT and external business strategies operational integration: integration of internal IT and internal business strategies IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
17 Operational Integration Organizational Infrastructure and Processes I/S Infrastructure and Processes Internal Administrative Infrastructure IT Infrastructure Processes Skills Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
18 Strategic Integration Strategy I/T Strategy External Scope Technology Scope Distinctive Competencies Governance Systemic Competencies IT Governance IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
19 4 Alignment Drivers Dominant Alignment Perspectives: Strategy Execution Technology Transformation Competitive Potential Service Level IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
20 Strategy Execution Strategy External Scope Distinctive Competencies Governance Organizational Infrastructure and Processes I/S Infrastructure and Processes Internal Administrative Infrastructure IT Infrastructure Processes Skills Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
21 Technology Transformation Strategy I/T Strategy External Scope Technology Scope Distinctive Competencies Governance Systemic Competencies IT Governance I/S Infrastructure and Processes Internal IT Infrastructure Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
22 Competitive Potential Strategy I/T Strategy External Scope Technology Scope Distinctive Competencies Governance Systemic Competencies IT Governance Organizational Infrastructure and Processes Internal Administrative Infrastructure Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
23 Service Level I/T Strategy Technology Scope Systemic Competencies IT Governance Organizational Infrastructure and Processes I/S Infrastructure and Processes Internal Administrative Infrastructure IT Infrastructure Processes Skills Processes Skills Information Technology IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
24 Questions? IT Strategic Planning Models and Frameworks Copyright Chun, Hon Wai
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