IS & KM (INFO 640)
L2: IS Planning
GP Dhillon, PhD
Associate Professor of IS
School of Business, VCU
Inputs to IS planning
External Business
Competitive
Environment
analysis
External IS
Environment
Value Chain
analysis
Strategic
options
Mission; CSFs
Data flow
model
Internal Business
Environment
Organization
model
A Portfolio of IS
Applications
Internal IS
Environment
Expanding the portfolio - a
H
Opportunity seeking
Critical Success Factors
Demand Management
Corporate
Local
Competitive/Effectiveness focus
Competitive focus (Proactive)
Complex - organizational planning, ideal,
multiple methods based on
goal seeking
- coalition
Federation - Business led
Decentralization, Entrepreneurial or
Technology driven
Strategic (attack)
High Potential (Beware)
Key Operational (Explore)
Backbone
-Integrated (top down)
Planning, Centralized control
Reactive
- Current
Effectiveness Focus
L
Business issue
driven
H
Support (Safe)
Traditional
- Stage of growth, isolate applications
decentralized control
Reactive
-Technology focus
- Efficiency focus
Supply Management
Opportunity taking
Current problem solving
IT issue
driven
Degree of dependence of the business on IS/IT application in
achieving overall business performance objectives
L
Expanding the portfolio - b
Strategic
High Potential
Applications which
are critical to
achieving future
business strategy
Applications which
may be important
in achieving future
business success
Applications upon
which the
organization currently
depends
Applications which
are valuable but
not critical to
business success
Key Operational
Support
High potential applications
key features
Driving forces
Requirements
A new business idea or
technological opportunity
The rapid evaluation of prototypes, with
an ability to reject failures, before they
waste resources
An individual initiative in
one part of the business, the
idea being owned by someone
who champions it
To understand the potential of the
application in relation to the business
strategy and the likely economic s
The objective, which is to
demonstrate the value, and then
decide whether and how to exploit it
for business
To identify the best way to proceed what to do next, how that should be
done and by whom
Strategic applications
key features
Driving forces
Requirements
Market requirements and/or
competitive pressures, essentially
externally driven (perhaps by
suppliers or customers)
Rapid development to meet the business
objective, and realize the business
benefits within the window of
opportunity
Business objectives, success factors
and management vision of how to
achieve them
A flexible solution which can be
adapted further to meet changes in the
business environment
Obtaining an advantage and then
sustaining it by further developments
if possible
Links to an associated business initiative
or change to sustain the business
commitment to IS development
Key operational applications
key features
Driving forces
Requirements
Improving the performance of existing
activities, in terms of speed, accuracy,
effectiveness and economies
High quality solutions and effective data
management, to ensure a degree of
stability and reduced costs of change
over time
Integrating systems and data to avoid
misinformation and duplication of
tasks, to minimize the risk of activities
being inconsistent or ineffective
Balancing costs with benefits and
business risks, to identify the best
solution to the business problem
Avoiding a business disadvantage or
preventing a business risk from
becoming critical
The evaluation of options available to
select the most effective, by means of
an objective analysis of the feasible
alternatives
Support applications
key features
Driving forces
Requirements
Improved productivity and efficiency
of specific (often localized) existing
tasks
Lowest cost, long term solutions which
often lead to package software and even
compromising user needs to the
solutions available
Legal requirements which have to be
met to avoid prosecution
Avoiding obsolescence by evolution
at the pace of the IT industry
Most cost effective use of IS funds
and resources, to find the most
business efficient solution
Objective cost benefit analysis to
reduce financial risk, and ensure the
costs of development are easily
controlled
Application portfolio in different IS/IT environments
H
Opportunistic
St
Hp
St
Hp
Ko
Su
Ko
Su
Application portfolio
Application portfolio
L
Application portfolio
Application portfolio
St
Hp
St
Hp
Ko
Su
Ko
Su
Traditional
L
Complex
Backbone
H
Infusion (impact of IS/IT on a business)
Key questions in an application
portfolio
Strategic
Why - do we want to do
it in strategic terms?
What - does the system need
to do for competitive advantage?
How - best to do it?
High Potential
Why? - not clear
What? - not certain
How? - not yet known
Why - to improve performance?
Why - to reduce cost?
What - actually has to improve?
What - of existing tasks?
How - best to do it?
Key Operational
How - best to do it?
Support
Things to do in an application portfolio
Strategic
(Stars)
Continuous innovation
High Potential
(Wild cats)
Vertical integration
High Value added
Process R & D
Minimal integration
Cost control
Defensive innovation
Disinvest/rationalize
Effective resource utilization
High quality
Efficiency
Sustained quality
Key Operational
(Cash cows)
Support
(Dogs)
Managing the evolution of an application over time
Strategic
High Potential
Lose: individual ownership
and freedom
Gain: senior management support;
IT involvement;
project management
Re-engineer for long term
use
Re-evaluate benefits
and costs
Fully integrated with other
applications for effectiveness
Key Operational
Return to
standards
Evaluate lower cost options
to meet core needs
Support
Avoiding the disintegration of the
portfolio
Individual initiatives
Business initiatives
Strategic
How to resource and
manage?
How to justify and
reap benefits from
business changes?
How to ensure
appropriate linkages
etc to avoid enormous
rework later?
How and when
to consolidate
Decisions about
which to exploit
and when
Provision of
resources
High Potential
How to evaluate and
select/reject?
How to convert to
strategic? Or restrict
further risk?
Lack of definition
between HP and Support
How to release resources and ensure existing systems
and infrastructure will support the strategic applications?
Key Operational
Support
Implementing IS Plans
Organizational structures
basic choices

Centralized Structure




One line manager directly responsible
Defined corporate wide procedures and controls
Data administration under singular control
Decentralized Structure



Several individuals work independent of each other
Each unit may conduct independent analysis and
design
Special purpose d/b and applications at each unity
Centralized
CEO
VP Administration VP Manufacturing
Purchasing
VP Finance
Payroll
Accounting
VP Marketing
IS
Decentralized
CEO
VP Division A
VP Division B
VP Division C
IS Director
IS Director
IS Director
Rationale for choosing particular
organizational structures





Central coordination of all requirements will
produce better decision making
Technology can create business advantages
and risks are worth taking
Market makes the best decision and users are
responsible for business results
Information is a corporate good and a key
resource for users to employ
Information is a limited resource and its
development must be clearly justified
Rationale cont/




Central coordination of all requirements will
produce better decision making
Technology can create business
advantages and risks are worth taking
Market makes the best decision and users
are responsible for business results
Information is a corporate good and a key
resource for users to employ
Information is a limited resource and its
development must be clearly justified
Centrally
planned
Leading
edge
Free
market
Monopoly
Scarce
resource
The ‘rationale’ takes the
form of generic
information systems
implementation strategies
Generic strategies and the
application portfolio
Strategic
High Potential
Centrally planned
Leading edge
Free market
Monopoly
Key Operational
Centralized
Free market
Scarce resource
Support
Decentralized
Resourcing applications
Strategic
Matrix/Team structure
Functional Structure with
task separation
Key Operational
High Potential
Individual initiative competitive
Cross functional structure
with multi-skill resourcing
Support