Transcript Business Transformation

Business Transformation
Overview
strategic grid
opportunity
frameworks
index matrix
IS strategy
IT strategy
transformation
graph

strategic grid
identify current IT systems role in
organisation
 plan future developments to IT systems


opportunity frameworks

identify ways to use IT/IS in support of
business strategy/opportunity

index matrix


identify & plan medium-scale business
benefits from IS/IT
transformation graph

plan major-scale IT/business process reengineering (BPR)
Transformation benefits

MIT 90’s identified 5 transformation
levels
localised exploitation
 internal integration
 business process redesign
 business network redesign
 business scope redefinition

Localised exploitation(1)
basic level
 ‘islands of automation’
 lacking integrated infrastructure
 efficiency benefits

Localised exploitation
administration
stage1 stage2
input
administration
stage1 stage2
input
administration
stage3
stage4
operations
administration
stage3
stage4
operations
administration
stage5
stage6
output
administration
stage5
stage6
output
Enablers & inhibitors
enablers
inhibitors
inhibitors
technological
•favourable cost
/performance trends
•vendor push – system
solutions
organisational
•localised impact
•ease of assessing
efficiency benefits
•minimal disturbance
technological
•obsolescence
level 1
•cost performance
reduction
organisational
•lack strategic vision
•unwillingness to
recognise strategic role
of IT/IS
Internal integration(2)

IT platform in entire business process
integration
data sharing/communication
 common applications



integration of task/process/function
integration of both technology &
organisation
Internal integration
administration
stage1 stage2
input
input
stage4
operations
administration
stage1
administration
administration
administration
stage5
output
administration
IT platform for internal integration
stage2
stage3
stage4
stage5
operations
stage6
output
Enablers & inhibitors
enablers
inhibitors
inhibitors
technological
•increase connectivity
capabilities
•favourable cost/
performance trends
technological
• uncertainty
level 2
•integration cost
organisational
•vendor push – system
solutions
•lack strategic
integration vision
organisational
•organisational inertia
•strategic integration
vision via IT platform
•centralisation /
decentralisation conflict
Business process redesign(3)
fundamental rethink of conducting
business effectively
 limited/controlled business
transformations

Business process redesign
administration
stage1
input
administration
administration
IT platform for internal integration
stage2
stage3
stage4
stage5
operations
stage6
output
administration
stageA
input
IT platform for redesign
stageB
stageC
operations
stageD
output
Enablers & inhibitors
enablers
inhibitors
inhibitors
technological
•favourable cost /
performance trends
organisational
•awareness of IT power
•willingness to change to
exploit IT
marketplace
•competitive pressures
technological
• uncertainty
level 3
•redesign cost
organisational
•lack strategic redesign
vision
•organisational inertia
•cost of organisation
transformation
Business network redesign(4)
use of IT by stakeholders
 new ‘value webs’/alliances
 traditional/formal organisation
‘virtual’/’networked’ organisation
 two basic considerations

business governance strategies
 IT governance strategies

Strategic options
tightly
coupled
business
governance
loosely
coupled
collaborative
advantage
business
network
redesign
electronic
infrastructure
common role
competitive
advantage
IT governance
unique role
Enablers & inhibitors
enablers
•ability to specify/
create standards
for integration
•value added
services
identification
•mutual benefits
recognition
inhibitors
inhibitors
•lack of standards
level 4
•lack of vision /
understanding
•lack of integration
commitment
•possible market
position erosion
Business scope redefinition(5)
new business ventures
 new markets
 new ways of doing business

Business domain enlargement
products
traditional
business scope
products
additional IT
generated
business
markets
technology
technology
traditional operating
technology
markets
new IT infrastructure
/ IS applications
Shifting the business domain
products
products
traditional
business
scope
markets
markets
technology
traditional
operating
technology
technology
increased role
for IT
operations
Transformation graph
high
5
degree
of
transfor
mation
4
3
2
revolution
evolution
1
low
low
range of potential benefits
high