Transcript Kap. 4: Planlegging av informasjonssystemer

Ch. 4: Planning
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Types of planning:
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Strategic
Tactical
Operational planning
Traditional planning
”Sense-and-Respond”
Case studies
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3 planning horizons
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Traditional strategic planning
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Goals, where we want to go
Business plan
IS plan that support the business plan
Plan for implementing this IS strategy
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Traditional planning based on:
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Foreseeing the future
That we have time to perform the planning
IS supports and follows the organization
That management has the full overview
Hierarchic structure
Our textbook tells us that this is no longer
possible because of the Internet. Do we
agree?
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Can we foresee the future?
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”Disruptive” changes can make this
impossible:
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examples:
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Development of the microprocessor
Internet/Web
ADSL
Is this the rule or the exception?
Most areas enjoy stability
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Do we have time for planning?
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Internet demand frequent changes
IT-implementation may be lagging behind the
business ideas
IT should be ahead
One has to react fast to follow the dot-com
development
Is the textbook correct?
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Partly, less time for planning and implementation
Do we need much time, with a good infrastructure
development time can be reduced
We can make an IT plan at the same time as we make the
business plan
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Case: The financial crisis
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As huge as the 1930 crisis?
Then, a lot of mistakes were made
(protection, reduced spending)
Today we know better
However, today all systems are
interconnected. The crisis spread faster.
We may have less time to react.
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IT for the dot-com
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A platform to develop the business
Makes eBusiness possible
IT must be ahead
Business ideas can be built on IT
Is the textbook correct?
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Company dependent
IT is important for many businesses, but not all
will become dot-coms
CIO as a part of the executive leadership
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Enterprise Information Management
Model (Benson and Parker)
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Do management know
everything?
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Management may be far from the front-line
Big enterprises, many lines of business
Trend towards niche markets
Different strategy for each market
Customers, suppliers and partners are important
”inside-out becomes ”outside-in”
Textbook correct?
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Division leadership becomes important here
In SME the top-management will have this role
Management is always important in strategy work, however, we have to
employ management at the right level
knowledge workers are knowledgeable => flat structures
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Organizations are not an army!
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Modern organizations are flat, not hierarchical
Many BPR projects showed that it was
impossible to control big changes from the
top.
A new type of leadership:
 listen
 inspire
 make people work together
 common goals
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Case: Høyskolene
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Ledelse
men ikke mulig
å gi ordrer
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Vit. ansatte
Hierarkisk struktur
(styre, rektor,
dekaner på toppen)
Passer ikke for en
kunnskapsbedrift
Flat struktur bedre?
A strategy for each line
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avoid one strategy for the whole
enterprise
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Hydro, Statoil
line-oriented strategies are required
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”Sense-and-Respond”
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”Sense-and-Respond”:
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find new possibilities
experiment
under an overall vision and strategy
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Case: Microsoft
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Sense-and-Respond to develop their Internet
strategy
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Tried their own network as an alternative to AOL (gave up)
Buying Internet companies
Different business areas:
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Web-magazine (Slate)
News channel (med NBC)
Digital movies (Dreamworks)
XBOX
But their focus on Internet was a strategic decision
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Case: Shell Oil
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New leader – new ideas
Direct contact with employees at gas stations
Work with grass-root
Action laboratories:
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Team from different countries
One week camp
60 days to develop ideas to be used in their own stations
Discussion, critique
Bottom-up approach
main idea: radical change based on ideas from below
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Case: Lotus
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Sport cars
Nearly bankrupt in
1997
New leader
Outside consultants
Dramatic
improvement in a
short time
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Case: Lotus
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Big potential for savings
Established teams, non hierarchic, participants from different divisions
”quick-wins” (big advantages, little complexity)
Order-oriented production
Pay on delivery
Delivery according to plan
Early successes made the team believe in what they were doing
Improved stock handling
more effective production processes (25% reduction)
Saved $4.5 millions in 45 days!
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Case SAS
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Big problems in the eighties
Janne Carlzon defined a new strategy
An airline for business people
On time
Good service (Business class)
Today SAS is in trouble again
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Lotus
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Both definition and implementation of a strategy is important
Traditionally a ”command and control” firma, with many failed
top-projects
Competence at the bottom level (marketing, sales, engineering)
Small teams with many ”action labs”
 Non-bureaucratic
 examples: development of models for small niches, new
service programs
New organizational structure became necessary
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Seven techniques for the introduction
of new technology
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Growth analysis
CSF – Critical Success Factors
Analyzing competitive forces
Value chain analysis
Internet value matrix
Linkage analysis
Scenario planning
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Stages of growth
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1. Early successes
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2. Contagion (“infection”)
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New products, rapid growth, many applications…
3. Control
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New technology, try and fail, experimentation
Proliferation must be controlled, standardization.
4. Integration
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Use of technology has reached a mature level
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CSF (Critical Success Factors)
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Focus on management and their information needs
Can help organizations to find the IS systems they
need
CSF let each manager define 10 critical factors
Sources:
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Industry
The company
Environment (market trends, economy, regulations,…)
Temporal organizational factors (too much, too little
inventory)
Men er disse stabile?
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Competing forces
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Michael Porter
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Potential entrants
Bargaining power of buyers
Bargaining power of suppliers
Substitute products and services
Rivalry among existing firms
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How the Internet Influences Industry Structure
Mini exercise: SAS
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Discuss the competitive situation for
SAS today based on Porter’s ideas
Can IT help SAS?
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Strategies to meet competition
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Porter:
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Specialization
Cheapest producer (Ryan Air, Norwegian)
Find a niche
However:
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It is always possible to improve the situation by
forcing competitors out of the market. Many huge
companies use this strategy.
We see often that a market with just a few
competitors does not work
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Value chain analysis
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(just a superficial view here, this is covered in other courses)
Inbound logistics
Operations (converts inputs to products and services)
Outbound logistics
Marketing and sales
Service
4 supporting activities (next page)
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Value chain analysis
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E-commerce and Industry Value Chains
E-commerce and Firm Value Chains
Virtual value chains
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Marketplaces: (physical products)
Marketspaces: (virtual products)
Both: Brick & click
Information can be a product in itself
(account information, insurance, whereabouts
of packets in the postal system)
Virtual value chain where information is
flowing through the chain
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Virtual assembly line
Virtual Product
Specifications
Virtual product
Virtual product
Virtual
“assembly line”
New
Virtual
product
Production data
Physical
assembly line
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Refined virtual
product
Production data
“as built”
description
Service data
Finished
product
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Internet-Enabled Value Web
eBusiness value matrix
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Used by Cisco and others to prioritize
projects (”portfolio management”)
Look at:
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”Fundamentals” – Internal, new ways of
performing processes, 3-6 months perspective
”Operational Excellence” - reengineering,
improved quality, more satisfied customers.
”Rational Experimentation”
”Breakthrough Strategy”, potential huge effects,
established as a separate unit/company, venture
capital, big risks
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Case: Cisco
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Components for data networks
New Fundamentals:
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Operational Excellence:
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Web based information system (”dashboard”) for management
Rational Experimentation:
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reporting system, e.g., travel expenses, Web-based, routed to
manager
continuous experimentation
”streaming video”, on-line meetings, etc.
Breakthrough Strategy:
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virtual value chain
Only 5 of 26 factories are owned by Cisco
an effective value chain necessary to adjust to market demands
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Linkage analysis planning
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Linkage to other organizations
Strategy to use electronic channels
Steps:
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Define linkage to all important actors
Include customers, partners, etc
Plan for use of eChannels
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Case: Electric Power Research
Institute
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Consultant and research organization, 700 customers (power plants),
350 employees, 1600 projects)
Task: Present research results for the 400.000 member employees
Problem: Costly, to long time to reach customers
eChannel:
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Linkage analysis:
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Expert system with a natural language interface
Email and Video-conference system
Partners (universities, …)
Customers (members, …)
Possible changes (partners becoming competitors)
System to handle all parts
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