IS265 Ch 13 - Gaining Strategic Value from Information

what are strategic information systems

Designed and implemented to enable creation and appropriation of value (competitive advantage)

 No need for proprietary IT:

 Technology alone does not determine added value.

strategic planning & goal

definitions and visual

—> add to cheatsheet

Strategic planning: a structured set of steps; an iterative process.

Goal: identification of strategic information systems initiatives.

step 1: strategic business planning —> add to cheatsheet

know who you are

Identify the organization’s:

•  Mission

•  Strategies (How to achieve the mission)

•  Goals and objectives

step 2: Information Systems Assessment —> add to cheatsheet

IS resources ≠ IT resources

know where you start

Assessment of the organization’s current IS resources and how well they fulfill the needs of the organization

IS resources ≠ IT resources

•  Technical resources

•  Data and information resources

•  Human resources

what is an information systems assesment

a picture of the current state of information system resources in the organization

Step 3: Information Systems Vision —> add to cheatsheet

and what is information systems vision

Know Where You Want To Go

information systems vision = Broad statement of how the organization should use and manage its information systems for strategic purposes

Step 4: Information Systems Architecture —> add to cheatsheet

and what is information systems architecture

Know How You Are Going to Get There

information systems architecture = How IS resources should be used and how

they should work together.

• Architectural guidelines can include statements about all information resources

• Hardware, software, networks

Step 5: Strategic Initiatives Identification —> add to cheatsheet

proposals and frameworks

Know What You Need

strategic information systems initiatives

Proposals

•  Long-term (two to five year)

•  Identify new systems, new projects, or new directions for the organization.

Frameworks

•  IS SWOT Analysis

•  Porter Five Competitive Forces Model

•  Porter’s Value Chain

•  Virtual Value Chain

Advantages of the IS Strategic Planning Process

 Improved Communication

 Improved Coordination

•  Shared mental image of initiatives

•  Clear responsibilities agreed upon

 Improved Decision Making

•  Clear guidelines and criteria

•  Consistent decisions making over time

SWOT analysis

chart and what it stands for

what is Porter’s Five Competitive Forces Model and diagram —> add to cheatsheet

Analysis of how competitive an industry is, and the major forces of that competitive environment

• Can determine if a particular market could be attractive for an organization to consider.

porter’s five competitive forces & the table —> add to cheatsheet (“Five Competitive Forces Model”)

• potential threat of new entrants

• bargaining power of buyers

• bargaining power of suppliers

• potential threat of subsitutes

• industry competitive rivalry

what is porter’s value chain analysis + diagram —> add to cheatsheet

managers identify all the activities an organization must perform to conduct its business

two types of activities and two sources of competition according to porter’s value chain —> add to cheatsheet

Two types of activities: primary and support

Competition can come from two sources:

•  Lowering cost to perform an activity

•  Adding value to product or service

what is a virtual value chain + diagram —> add to cheatsheet? maybe remove later

looks at activities that turn raw data into useful information

evaluating strategic initiatives with critical success factors (CSF) —> add to cheatsheet

Critical Success Factors

•  Important considerations to be achieved for organizational survival and success

•  Not focused on technology!

•  Aligned with business vision and mission

•  Only a few critical success factors

ex. in a school

1. have highest quality students

2. have best possible faculty

3. provide a close link to the community

what is a priority matrix —> add to cheatsheet

allows managers to evaluate potential initiatives and prioritize them along 2 key dimensions

• the effort to implement the system or project

  • ex. cost, time, effort, complexity

• the potential returns from the implementation

  • ex. market share, savings, reputation

priority matrix quadrants chart for initiatives

imperatives

quick wins

evaluate

“stay away”

—> add to cheatsheet

imperatives

• initiatives that should be easy to implement / low effort and can bring high returns

  • ex. cost little or the tech is already implemented

quick wins

• initiatives that do not have much upside potential but are easy to implement with limited effort

evaluate

• these initiatives in this section need to be discussed and evaluated thoroughly by managers

• have potential for high returns but need a lot of effort

“stay away”

• lost causes

• high effort and limited potential returns

hypercompetition definition, and according to D’Aveni’s 7Ss

—> add to cheatsheet

hypercompetition - theres just sm fast pace of change in IT and innovations, leading ppl to question the sustainability of any competitive advantage that comes from initiatives

D’Aveni’s 7Ss suggest:

•  Every competitive advantage is eroded

•  Sustaining an advantage can be a deadly distraction

•  Goal of advantage should be disruption, not sustainability

•  Initiatives are achieved through series of small steps

D’Aveni’s 7Ss chart —> add to cheatsheet

an approach to directing an organization in high velocity or hypercompetitive markets.

The framework was designed to enable a business to remain competitive through a series of initiatives delivering temporary advantages