Porter’s Generic Value Chain
Infrastructure
Human Resource Management
Support
Activities
Technology Development
Procurement
Primary
Activities
Inbound
Logistics
Operations
Outbound
Logistics
Elapsed Time - Value added time cost
Marketing
& Sales
Service
Potential IS Contributions
Support Infrastructure Activities Human Resource -
Primary
Activities
Planning Models
Skills & Experience Databases
Technology -
Computer-Aided Design
Procurement -
On-line parts ordering
Automated
Warehouse
Automated
Check
Clearing
Point of
Sale
Scanners
E-Commerce
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
& Sales
Elapsed Time - Value added time cost
Remote
Equipment
Servicing
Service
Project Selection Factors
Support
From Top
Management
Available
Organizational
Resources
Development Project
Selection Decision
- Accept - Reject - Redefine - Postpone - Proof of Concept -
Degree of
Perceived Need
Within the
Firm
Established
Evaluation
Criteria
IS Planning Process
Assess the
current state of
affairs with
regard to IT
assets
Create a set of
“blueprints”
that represent
the desired state
of affairs
Create a prioritized
schedule of projects
Project Process Flow Model
Current System
New
System
1
5
2
“How”
“What”
Physical
Physical
Logical
Logical
4
3
Project Evaluation Criteria
Evaluation Criteria
Potential Organizational Benefits
Strategic Fit
Level of Resource Allocation
Value Chain Analysis
Description of Criteria
The degree to which the proposed project will
improve profits, customer service, organizational
performance, etc. and the expected duration of
these benefits.
The degree to which the proposed project will
assist the organization in achieving its strategic
objectives and other long-term goals.
The various types of resources and their
expected levels associated with the proposed
project, including time, labor, capital, and
identifiable opportunity costs.
The degree to which the proposed project
contributes value to the manufacture or delivery
of goods and services to the marketplace.
Measurable vs. Unmeasurable
Measurable Benefits
Unmeasurable Benefits
Market share will improve to a sustainable
minimum of 35%.
We will be one of the leading suppliers in
the market.
Line throughput will increase by 7% within
the first quarter and by at least 3% each
quarter thereafter.
Line throughput will be dramatically
increased and will continue this trend over
time.
Product quality will increase such that
rework will be reduced more than 12%
annually.
Product quality will increase and rework
will decrease.
Production costs for the auxiliary power
unit will be reduced by at least $3.00 per
unit.
Production costs for the auxiliary power
unit will go down significantly.
Corporate IS Strategy Objectives
A corporate IS strategy is necessary to define:

what IS services will be provided and to whom;

who is responsible for providing specific IS services;

how these services will be provided;

priorities for provision of new facilities and improvement of existing facilities;

who has access to what information;

how access to IS services will be distributed and supported;

what common standards should be applied;

what resources are required and how resources available should be utilized;

mechanisms for understanding and mapping current and future business
processes;

a mechanism for maintaining and renewing the strategy.
Typical Corporate IS Plan
Section of Plan
Section Contents
Organizational Mission
Statement
Describes the objectives and goals
of the organization including both
current and future perspectives.
Inventory of Information
Requirements
Describes the objectives and goals
of the IS organization with regard to
its role in the achievement of the
stated organizational goals and
objectives.
IS Development Constraints
Itemizes and describes the
constraints imposed on current and
future development including
technological, financial, human
resource, and operational assets
and resources.
Typical IS Plan (continued)
Section of Plan
Section Contents
Long-Term IS Needs and
Strategies
Presents the set of long-range (2 – 5
year) needs and strategies of the IS
department prioritized in keeping with
the information requirements previously
described.
Short-Term IS Needs and
Strategies
Provides a prioritized list of current
projects and a schedule of all additional
projects intended to commence within
the current year.
Implications of IS
Corporate Plan
Discusses the various expected
impacts on the organization of both the
short-term and long-term IS strategies.
Additionally, this section can be used to
discuss any expected changes in the
current business environment.
Project Feasibility Assessment
Feasibility Assessment
Category
Description
Technical
Determines the relationship between the present
technology resources of the organization and the
expected technology needs of the proposed
project.
Operational
Determines the degree to which the proposed
development project fits with the existing
business environment and objectives with regard
to development schedule, delivery date,
corporate culture, and existing business
processes.
Human Factors
Determines the relationship between the present
human resource base of the organization and the
expected human resource needs of the proposed
project.
Project Feasibility Assessment
(continued)
Feasibility Assessment
Category
Legal and Political
Economic
Description
Identifies any potential legal ramifications
resulting from the construction and
implementation of the new system including
copyright or patent infringements, violation of
existing antitrust laws, foreign trade restrictions,
or any existing contractual obligations of the
organization.
Assesses the cost/benefit relationship of the
proposed project and its net value contribution to
the organization.