Lecture Highlights
What – Structures & Components

What - Definition

What – Types

IT Strategy
Why –
Reasons
Who – industries &
organisations
Business & IT Strategies’ Relationships
Disconnect

Influences

Influences
Human
Computer
Interfaces
People
Bus value
Bus Goals
Business
Strategy
Process
Information
Business
Applications
IT
Strategy
Data
Repositories
What is IT Strategy?
The Plan
Contents address matters of
• Current IT Environment
• Future IT Environment
• Change Management & Projects
• Implementation Governance & Control
Frameworks
Contents Format – varies org to org
Example:
https://mn.gov/oet/images/Master_Plan_2012.pdf
The Planning Process
Varies org to org
Overview of an IT Strategy Planning Practice Model
Now
Future Business
Operation
Model/s
Future
Business
applications,
technology &
projects
Technology
Change
Requirements
Business Strategies
Enterprise Architecture Change
IT Portfolio, Program
& Project Planning
Execute IT Portfolios, Programs
& Projects
Portfolio, Program
& Project Management Systems
Enterprise Architecture
4 top EA Methodologies
Zachman Framework
The Open Group Architecture Framework (TOGAF)
Federal Enterprise Architecture (FEA)
Customised Hybrids of the Above
Video – 5.51 m
https://www.youtube.com/w
atch?v=l8w8QSo3OaU
Enterprise Architecture
EA specifies how business and IT are:
1. Aligned in perspectives of:
• Processes
• Supply Chain Functional Application sets
• Information resources
• ICT infrastructure as information delivery & customer reach channels
2. Packaged as services
IT Strategy Planning Components
System Dev Plans
IS Portfolio of
Projects Plan
Coordination &
Service Mgt Plan
IT mgt & control plan
Tech Mgt Plan
Technology
(Infra) Plan
IT Strategy Taxonomies
(Classification of IT Strategies)
Taxonomy 1: Lucas and Turner (1982)
•
•
•
Independent
Policy supporting
Fully Integrated
Academe
Taxonomy 4: Sabherwal + Chan (2001)
•
•
•
IT for Efficiency
IT for Agility (Market responsive)
Both
Components of IT Strategy
Market
Intelligence
Systems
Decision Support
Systems
Operations
Systems
Inter Organisation
Interfaces
Org Control
Systems
IT Strategies’ Descriptors
1) IT Management Structure
CENTRALISED
MIXED
DECENTRALISED
Ops support systems
Eg ERP System
Inter-Organisation Systems
Eg e-procurement
Enterprise Market &
Performance Tracking systems
Strategic
Decision
Support Systems
1) IT Management Structure
CENTRALISED
Ops support Sys
Market IS
Strategic DDS
Inter-Org Sys
MIXED
DECENTRALISED
H
L
L
H
M
H
H
H
H
L
H
H
IT for
Efficiency
IT for
Agility
Centralised IT &
more operational
focused
Decentralised IT &
more locally &
strategically
proactive
IT for
Comprehensiveness
Common & local
control becos of
combined strategic &
operational reasons
Types of Business Strategies
Specialised Strategies based
on enterprise strengths
Eg Cost leadership
Product differentiation
Prefers centralised
structures, to have high
efficient & sustainable
specialisation and
considers outsourcing.
Usually Med to Large Org
Mix bag
to Minimise Risks
Always track market
movements to seize any new
opportunities; offer core
products & growing new
ones; strategic outsourcing
partnership deals.
Usually Large Org
Market Changing Strategies
based on enterprise
innovation & agility
Eg ICT firms’ strategies
Prefers decentralisation
structures to allow for
local creativity and
agility, however run the
risk of inefficiency;
prefers inhouse dev.
Usually Small Org.
More Insights
(Source: http://www.unc.edu/~nielsen/soci410/nm2/nm2.htm)
Prospector
Underpinning
Problems
Solving Culture
Defender
Analyser
Source: http://www.emeraldinsight.com/books.htm?chapterid=1759472&show=html
Business Behaviours in Strategy Orientation
Business Strategy Classification
DEFENDER
Defending
market share
ANALYSER
PROSPECTOR
H
M
L
Risk Adverse
H
M
L
Risk Taker/ Market
Change Market
Proactive
Market Player
L
M
H
L
M
H
Lecture’s Concepts
Research Findings
Theories
Grounded Explanations
Generalised Descriptions
Grounded Methods/Techniques
BUT Real World is changing faster than the
academe theories development & proofing
The Challenges in the Real World
Technology Change is Faster than
Business Change
Learning curves
New skills shortage
Slower take-ups
Expensive take-ups
Advance digital capabilities &
infrastructures
Untapped Business Value &
Market Potentials
Mass market take-ups
as next new technology cycle begins
Class Discussion
5+ years ago – the vision for tomorrow’s technology
https://www.youtube.com/watch?v=bwj2s_5e12U
2013 Vision Update
https://www.youtube.com/watch?v=ho00x7ZvDLw
https://www.youtube.com/watch?v=6VfpVYYQzHs
Is IT driving Business , or
Business driving IT?
Case 1
Group work
1. Identify the type of business strategy
pursued by the case company?
2. Identify the type of IT strategy pursued
by the case company?
Hint: Which Lecture Slides to Use?
How to apply in context of case study?
Case 2
Group work
1.
In terms of Lucas and Turner (1982)
taxonomy, how would you classify the IT
strategy of ModMeters company?
Discuss.
2.
Identify some of the salient characteristics
of IT function discussed in the case report.
3.
In terms of three dimensions of IT strategy
discussed in Week 3 lecture of FIT9006
unit, discuss the characteristics of IT
strategy of ModMeters company
Hint: Which Lecture Slides to Use?
How to apply in context of case study?