Transcript Slide 1

Strategic Planning for
Information System
Mata kuliah ini memberikan konsep dasar perencanaan
strategis sistem informasi.
Erwin Sutomo
S1 Sistem Informasi
What is Strategic Planning
Anyhow ?
Introduction
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Strategic ?
• Strategy means consciously choosing to be
clear about your company’s direction in
relation to what’s happening in the dynamic
environment.
• With this knowledge, you’re in a much better
position to respond proactively to the
changing environment.
The fine points of strategy are as
follows : (1)
• Establishes
unique
value
proposition
compared to your competitors
• Executed through operations that provide
different and tailored value to customers
• Identifies clear tradeoffs and clarifies what not
to do
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The fine points of strategy are as
follows : (2)
• Focuses on activities that fit together and
reinforce each other
• Drives continual improvement within the
organization and moves it toward its vision
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Strategy is not :
• Best practice
improvement
• Execution
• Aspirations
• A vision
• Learning
• Agility
• Flexibility
• Innovation
• The Internet (or any
technology)
• Downsizing
• Restructuring
• Mergers/Consolidation
• Alliances/Partnering
• Outsourcing
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What is a strategic plan? (1)
• Simply put, a strategic plan is the formalized
roadmap that describes how your company
executes the chosen strategy.
• A plan spells out where an organization is
going over the next year or more and how it’s
going to get there.
• Typically, the plan is organization-wide or
focused on a major function such as a division
or a department.
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What is a strategic plan? (2)
• A strategic plan is a management tool that
serves the purpose of helping an organization
do a better job, because a plan focuses the
energy, resources, and time of everyone in the
organization in the same direction.
Strategic plans and business plans
aren’t the same concepts
• A strategic plan :
– Is for established businesses and business owners
who are serious about growth
– Helps build your competitive advantage
– Prioritizes your financial needs
– Provides focus and direction to move from plan to
action
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Strategic plans and business plans
aren’t the same concepts
• A business plan :
– Is for new businesses, projects, or entrepreneurs
who are serious about starting up a business
– Helps define the purpose of your business
– Helps plan human resources and operational
needs
– Is critical if you’re seeking funding
– Assesses business opportunities
– Provides structure to ideas
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What are the big planning pitfalls?
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Relying on bad information or no information
Ignoring what your planning process reveals
Being unrealistic about your ability to plan
Planning for planning sake
Get your house in order first
Don’t copy and paste
What are the components
of a strategic plan?
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Strategy and culture
Internal and external
The Balanced Scorecard perspectives
Market focus
Where are we now? Where are we going?
How will we get there?
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The Elements of a Strategic Plan
• Strategic Review
• Mission
• Values
Where are we
now ?
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How are we
going to get
there?
Strategic
Objectives
Goals
Priorities
Action Items
Strategies
Scorecard
Execution
• Vision
• Competitive
Advantage
Where are we
going?
An outline of a typical strategic plan
(1)
• Mission
statement:
To
define
the
organization’s core purpose. Why do we exist?
• Vision statement: To explain where you are
headed, your future state. To formulate a
picture of what your organization’s future
makeup will be and where the organization is
headed. What will our organization look like in
5 to 10 years from now?
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An outline of a typical strategic plan
(2)
• Values statement or guiding principals: To
clarify what you stand for and believe in.
• SWOT: To assess the particular strengths,
weaknesses, opportunities, and threats that
are strategically important
to
your
organization. (You may or may not choose to
include your SWOT in your strategic plan but
as supporting documentation.)
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An outline of a typical strategic plan
(3)
• Competitive advantage: What can your
organization potentially do better than any
other organization?
• Strategic objectives: To connect your mission
to your vision. Strategic objectives are longterm, continuous strategic areas that get you
moving from your mission to achieving your
vision. What are the key activities that you
need to perform in order to achieve your
vision?
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An outline of a typical strategic plan
(4)
• Strategies: To establish a guide that matches
your organization’s strengths with market
opportunities to position your organization in
the mind of the customer. Does your strategy
match your strengths with how you will
provide value and be perceived by your
customers?
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An outline of a typical strategic plan
(5)
• Short-term goals/priorities/initiatives: To set
goals that converts the strategic objectives
into specific performance targets. Effective
goals clearly state what, when, how, who and
are specifically measurable. What are the 1- to
3-year goals you are trying to achieve to get to
your strategic objectives?
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An outline of a typical strategic plan
(6)
• Action items/plans: To set specific actions
plans that lead to implementing your goals.
Are your action items comprehensive enough
to achieve your goals?
• Scorecard: To measure and manage your
strategic plan. What are the key performance
measures you can track in order to monitor if
you are achieving your goals?
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An outline of a typical strategic plan
(7)
• Financial assessment: To determine if your
strategic plan makes financial sense. Do the
estimated revenue projections exceed your
estimated expenses?
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An effective plan and execution
require several elements : (1)
• Purpose-driven: A plan based on a mission
and a real, true competitive advantage is key.
Without it, what is the point of the plan or the
organization?
• Integrated: Each element supports the next.
No objectives that are disconnected from
goals and no strategies that sit all alone.
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An effective plan and execution
require several elements : (2)
• Systematic: Don’t think of the plan as one big
document. Instead, give it life by breaking into
executable parts.
• Dynamic: Not a static document, but a living
document.
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An effective plan and execution
require several elements : (3)
• Holistic: All areas of organization are included.
Don’t plan based on departments first
because you risk limiting your thinking. Plan
by thinking about the organization as a whole
entity and then implement on a department
by department basis.
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An effective plan and execution
require several elements : (4)
• Understandable: Everyone gets it. If anyone,
from the top of the organization to the
bottom, does not understand the plan or how
they fit in, it won’t work.
• Realistic: You can implement it. Don’t overplan. Make sure you have the resources to
support the goals you decide to focus on.
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The Evolving Role of Information
Systems and Technology in
Organizations: A Strategic
Perspective
Chapter 1
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Preface (1)
• Information
technology
has
become
inextricably intertwined with business.
• In industries such as telecommunications,
media, entertainment and financial services,
where the product is already or is being
increasingly digitized, the existence of an
organization crucially depends on the effective
application of information technology (IT).
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Preface (2)
• With the emergence of e-commerce, the use
of technology is becoming just an accepted,
indeed expected, way of conducting business.
• Consequently, organizations are increasingly
looking toward the application of technology
not only to underpin existing business
operations but also to create new
opportunities that provide them with a source
of competitive advantage.
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Preface (3)
• To manage information systems and
information technology (IS/IT) strategically, it
is helpful to understand how the role of
technology-based information systems has
evolved in organizations.
• While organizations today want to develop a
more ‘strategic’ approach to managing IS/IT,
many have probably arrived at their current
situation as a result of various short-term
‘tactical’ decisions regarding IS/IT.
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Preface (4)
• Many organizations would no doubt like to
rethink their investments, or even begin again
with a ‘clean sheet’, but unfortunately have a
‘legacy’ resulting from a less than strategic
approach to IS/IT in the past.
• Learning from experience—the successes and
failures of the past—is one of the most
important aspects of strategic management
Information System - Information
Technology (1)
• IT refers specifically to technology, essentially
hardware, software and telecommunications
networks. It is thus both tangible (e.g. with
servers, PCs, routers and network cables) and
intangible.
• ICT is generally used instead of IT to recognize
the convergence of traditional information
technology and telecommunications
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Information System - Information
Technology (2)
• IS as the means by which people and
organizations, utilizing technology, gather,
process, store, use and disseminate
information. It is thus concerned with the
purposeful
utilization
of
information
technology.
• Some information systems are totally
automated by IT.
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Information System - Information
Technology (3)
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Structure for information systems in
an organization
• Structure for information systems in an
organization, based on a stratification of
management activity into:
– Strategic planning
– Management control
– Operational control
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Typical planning, control and
operational systems
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Transition between computer and
information management (1)
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Transition between computer and
information management (2)
• To achieve effective Information (Systems)
Management, a new top-down approach was
required, depends on the role of IS in relation
to the outside world.
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Three stage model transition role of IS
(1)
• Delivery:
– IS issues are mainly internal—improving the ability
to deliver and support the systems and
technology.
– Achieving top management credibility as a
valuable function is a prime objective. This means
improving delivery performance, not necessarily
providing users with what they really need
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Three stage model transition role of IS
(2)
• Reorientation:
– establishing good relationships with the main
business functions
– supporting business demands through the
provision of a variety of services as computing
capability spreads through the business.
– The issues focus is extended outside the ‘DP
department’ and a key objective is to provide a
valued service to all business function
management.
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Three stage model transition role of IS
(3)
• Reorganization:
– The high level of awareness created both ‘locally’
in the business area and ‘centrally’ in senior
management creates the need for a
reorganization of responsibilities designed to
achieve integration of the IS investment with
business strategy and across business functions.
– A key objective becomes the best way of satisfying
each of the differing business needs through a
coalition of responsibilities for managing
information and systems.
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Early Views And Models: Up To 1980
from the 1960s onwards—the DP era; from the 1970s onwards—the MIS era.
The DP And MIS Eras: The Lessons
Learned (1)
• There have been essentially three parallel
threads of evolution that have enabled more
extensive and better information systems to
be developed:
– Hardware—reducing cost and size, improving
reliability and connectivity, enabling the system to
be installed closer to the business problem.
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The DP And MIS Eras: The Lessons
Learned (2)
• There have been essentially three parallel
threads of evolution that have enabled more
extensive and better information systems to
be developed:
– Software, more comprehensive & flexible
operating software & improved languages,
enabling business applications to be developed
more quickly, with greater accuracy & by staff with
less experience. In addition, there was an
increased availability of application packages
available ‘off the shelf ’.
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The DP And MIS Eras: The Lessons
Learned (3)
• There have been essentially three parallel
threads of evolution that have enabled more
extensive and better information systems to
be developed:
– Methodology, ways of organizing and carrying out
the multiplicity of tasks, in a more coordinated,
synchronized and efficient way to enable ever
more complex systems to be implemented and
large projects to be managed successfully.
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DP lessons (1)
• Need to understand the process of developing
complete information systems, not just the
programs to process data.
• More thorough requirements and data
analysis to improve systems linkages and a
more engineered approach to designing
system components.
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DP lessons (2)
• More appropriate justification of investments
by assessing the economics of efficiency gains
and converting these to a return on
investment.
• Less creative, more structured approaches to
programming, testing and documentation to
reduce the problems of future amendments.
More discipline was introduced with ‘change
control procedures’ and sign-off on
specifications and tests.
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DP lessons (3)
• Extended
project
management
that
recognized the need for coordination of both
user and DP functions and the particular need
to establish user management in a decisive
role in the systems development—the user
had to live with the consequences.
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DP lessons (4)
• The need for planning the interrelated set of
systems required by the organization. Better
planning produced overall improvements in
systems relevance and productivity.
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MIS lessons (1)
• Justification of IS investments is not entirely a
matter of return on investment/financial
analysis.
• Databases require large restructuring projects
and heavy user involvement in data
definition—data integration had been weak
based on the project by project DP approach.
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MIS lessons (2)
• The IS resource needs to move from a
production to a service orientation to enable
users to obtain their own information from
the data resource—the information centre
concept.
• Need for organizational policies, not just DP
methodologies.
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MIS lessons (3)
• Personal computers and office systems enable
better MIS to be developed, provided that
users and IS specialists both focus on the
information needs rather than the technology.
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The Three-era Model
• The prime objective of using IS/IT in the eras
differs:
– Data processing, to improve operational efficiency
by automating information-based processes.
– Management information systems, to increase
management effectiveness by satisfying their
information requirements for decision making.
– Strategic information systems, to improve
competitiveness by changing the nature or conduct
of business.
Trends in the evolution of business
IS/IT
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Aligning the IS Direction and
Priorities to the Business
Direction and Priorities
Introduction
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IS and Business Direction
• Over the past few years, companies have felt
increasing pressure to improve efficiency and
effectiveness, decrease costs, and enhance
competitive position.
• Companies can attain these goals through
aligning the IS direction with the business
direction.
• Proper alignment can have a considerable
impact on a company’s financial performance
What is alignment? How do you
achieve alignment?
• When all IS activities provide optimal support
for the business goals, objectives, and
strategies, then IS and the business are in
alignment.
• True alignment implies that the IS strategy and
the business strategy are developed
concurrently rather than sequentially so that
technology enables the business strategy.
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Alignment components
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Business value and alignment
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Business and IS plan alignment
Identify organizations that have not
achieved alignment (1)
• Canceled projects
• Redundant projects
• Projects that do not
deliver the intended
value
• Lack of coordination
between the business
and IS
• Systems that do not
meet the needs of the
business
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• Systems that cannot
respond quickly to the
demands of the business
• Business users
unsatisfied with IS
services
• Reactive, constant fire
fighting
• Never enough resources;
fighting for resources
Identify organizations that have not
achieved alignment (2)
• Churning of priorities;
slow progress
• Uninvolved business
management
• High IS costs with a
sense of low value
• Systems and tools not
fully utilized
• Lack of integration of
systems
• IS decisions made as a
result of emotion or
opinions
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With Planning, Companies Transform
IS
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