SISP Tools
•
•
•
•
Introduction
Grouping SISP Tools
Selected SISP Tools
Conclusion
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Introduction
• Over the years a number of tools have
been developed to assist with the IS
strategy planning process
• Some organisations use 1 or 2 models
only, others use a number of tools to deal
with different aspects of IS planning
Slide 2 of 26
SISP Tools (Some Examples)
•
Checklists
–
–
•
Opportunity Search
Strategic Analysis
Internal Position
–
–
–
–
Analysis of the internal position
• Generic IS Strategies
• Value Chain Analysis
Evolutionary Models
• E.g. Stages of Growth Model
Information Requirements Analysis
• E.g. CSF Analysis
Portfolio Management Approach
• E.g. Internet Value Matrix
External Position
– Analysis of Competitive
Position e.g.
• Five forces model
• Generic Strategies
• Strategic Thrusts
Business Analysis e.g. Swot,
PLEETS
Sector Analysis
Business Opportunities
–
–
•
•
•
Linkage/Future Models
– Linkage Models
• E.g Linkage Analysis
Planning
– Future Models
• E.g. Scenario planning
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SISP TOOLS
Analysed Further (10)
– Checklists
• SWOT
– Business Opportunities
• Strategic Analysis Matrix
– Analysis of the Internal Position
•
•
•
•
Value Chain Analysis
Stages of Growth Model
CSF Analysis
Internet Value Matrix
– Analysis of Competitive Position
• Competitive Five Forces Model
• Generic Business Strategies
– Linkage/Future Models
• Linkage Analysis Planning
• Scenario Planning
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CHECKLISTS
Slide 5 of 26
Situation IS Faces
SWOT Analysis
Opportunity
Threat
Attack
Beware
Explore
Play Safe
Strength
Weakness
Evaluation of IS Capability
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BUSINESS OPPORTUNITIES
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Strategic “IS Portfolio” Analysis(1996)
Ward and Griffiths (1996)
(Market
Growth)
Star (Invest)
Wild cat (Examine)
Turnaround
Strategic
competitive Dog (Divest)
importance
Support
of planned
IS
Strategic
importance
advice
Cash Cow (Milk)
Factory
Strategic competitive importance of current IS
(Market Share)
BCG Matrix Robson ch 2 page 53, McFarlan & McKenney (1983) IS Strategic Grid
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ANALYSIS OF THE
INTERNAL POSITION
Slide 9 of 26
Firm’s Value Chain Analysis (1985)
Firm Value Chain
Analysis ...
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Stages of Growth Model (Nolan,
1974)
Stages of Growth Model ….
STAGES OF GROWTH
(Nolan)
Learning
Cost
Initiation
cost
reduction
Contagion Control
Maturity
“hold”
new
database+
functions
telecomms+
end user computing
time
Slide 11 of 26
Stages of Growth Model
contin..
Stages of Growth Model ….
• Expenditure on IT/ IS followed an S-curve
over time
• Organisational learning also followed an Scurve
• Each stage marks a new approach to
managing and using IT/IS
• Movement between stage often prompted by
an organisational crisis in the life of the IT
function
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Critical Success Factors (Rockart,1977)
• Identify Critical Success Factors
• Identify Key Decisions related to the
CSFs
• Identify the Information Required to
support those decisions
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CSF Analysis
• Successful application requires skilled
team
• Attractive to top management teams
• Managers not experienced in strategic
planning may find it difficult
• Incorporated into a number of
methodologies e.g. Andersen
Consulting’s Method/1
Slide 14 of 26
Internet Value Matrix( Alexander, 2000)
Criticality to Business
New
fundamentals
Operational
Excellence
Newness of Idea
Low
Low
High
Low
Rational
experimentation
Low
High
Breakthrough
Strategy
High
High
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Internet Value Matrix contin..
• This is a Portfolio planning technique
used by Cisco to ensure it develops a
well-rounded Portfolio of IT projects
• Today, Cisco’s portfolio revolves around
the internet
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ANALYSIS OF COMPETITIVE POSITION
(EXTERNAL)
Slide 17 of 26
Porter’s Competitive 5 Forces Model (1985)
Porters 5 Forces ...
Can IS Change
the balance of
power with
suppliers?
Can IS Build
barriers to entry?
Can IS change
the basis of
competition ?
Can IS build in
switching costs?
Can IS generate
new products or
services?
Robson, ch 5, pg 128
Porter’s five forces
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Generic Business Strategies (Porter, 1985)
• Low Cost
– Reduce overall costs in production and
operations
• At point of sale
• Differentiation
– Add features to the product or service
directly
• Focus/niche
– Identify and create market niches directly
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Strategic Thrusts (Rackoff, 1985)
• Strategic Thrusts …..
• Extends Porters Generic strategies into five:
– Low Cost
– Differentiation
– Innovation
– Growth
– Alliance
• These are targeted at
– Suppliers
– Customers
– Competitors
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Strategic Options Generator
Strategic Options Generator ...
What is the strategic Target?
Supplier
Customer
Competitor
What is the strategic Thrust?
Differentiation
Low Cost
Innovation Growth Alliance
What is the Mode?
Offensive
Use
Defensive
What is the Direction?
Provide
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LINKAGE/FUTURE MODELS
Slide 22 of 26
Linkage Models (Primozic,
1991)
• Examines links organisations have with one another
• Goal – create a strategy utilising electronic channels
Step 1: Define power relationships among the various players
and stakeholders
Step 2: Map out the extended enterprise to include suppliers,
buyers and strategic partners
Step 3: Plan electronic channels to deliver the information
component of products and services
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Scenario Planning (Schwartz, 1991)
• SCENARIOS
– stories about the way the world might be in the
future
• The goal is not to predict the future
• Explore forces that may cause different
futures to take place
• Decide on actions if forces materialise
• Case Example – Scenarios on the Future of
IS Management
Slide 24 of 26
Scenario Planning contin..
Step 1:
Define a decision problem and timeframe to
bound the analysis
Step 2:
Identify major known trends that will affect the
decision problem
Step 3:
Identify just a few driving uncertainties
Step 4:
Construct the scenarios
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