Strategic Management of IS/IT

IS/IT Organization and Resources

December, 2018
Overview
 At this point, we have analyzed
internal/external business environment
and internal/external IS/IT environment.
 Problems are identified
 Baselines are defined

 Then, we analyze the ideal condition for

the future.
 Delivers at least: IS/IT Management Strategy,
Business IS Strategies, IT Strategies
 Manage the Application Portfolio
 Context of This Session
External Business Environment

Internal Business Environment

Internal IS/IT environment

Current Applications Portfolio

Strategic IS/IT
Planning Process External IS/IT Environment

We are here … Planning Approaches, Tools and Techniques

IS/IT Management Strategy Business IS Strategies IT Strategy

Applications Portfolio Model & Matrices

 Strategic Planning Vs. Strategic Management

Strategic Planning Strategic Management

 Fokus pada pembuatan  Fokus kepada hasil dari
keputusan tentang penerapan strategi
strategi yang optimal  Suatu proses aksi
 Suatu proses analitik  Fokusnya diperluas
 Fokus kepada variabel- sehingga mencakup juga
variabel bisnis, ekonomi variabel-variabel
dan teknologi psikologi, sosiologi dan
politik
The Impact of IS/IT Strategy Failure

1. The systems that are developed and

implemented do not meet overall business
needs;
2. Resources are misused;
3. Strategy formulation is essentially a retrofitting
process, producing enormous rework.
 The causes of IS/IT Strategy Failure

1. Lack of alignment between the business and IS

strategies;
2. Uncoordinated management of IS demand and
IT supply;
3. Over-centralization or decentralization of
responsibility
Aspects of IS/IT Management
 Managing the information and data resource of the
organization to ensure that its business value is fully
exploited and protected: Data  Database  Big
Data
 Managing applications as investments, development
projects and operational systems from the
establishment of requirements to successful long-
term use in the business: support applications 
enabler applications.
 Managing information technology: introduction,
development, utilization, replacement: IT resources.
 Organizational management of IS/IT, related to
resources, activities, administration: Governance.
Common Burdens in IS/IT Management
 No Operational &Maintenance (O/M) budgets
 Too dependent on the vendors…
 Lack of unit capacity…
 Imbalance responsibility…
 Lack of support from top management…
 Lack of capable human resources…
 Stereotype of IS/IT Unit as a “cost… center”
unit
In your group project, identify and analyze how your
case study responds to these issues?
IS/IT Organization Strategies
 Written-formal: the approach is very structured and
procedural
 Applied to key operational and support

 Personal-formal: the approach is partially structured

which relies on individuals reaching agreement within
a formally constituted group process.

 Personal-informal: no formal planning relationship

exists between IS, senior and line managers.

 Give the examples of each types of IS/IT strategies.

The Roles of IT Division

 User services: delivery services, systems

development, support center, information
center
 Architecture management: planning,
technology diffusion, data management
 Technology development: research and
development
 General: administration, quality assurance

Write up these roles: example of

of delivery IT services, administration, etc.
Imperatives for the Management of IS/IT

1. Achieve two-way alignment between the business

and IS/IT strategy;
2. Develop effective relationships with line
management;
3. Deliver and implement new systems;
4. Build and manage IT infrastructure;
5. Re-skill the IS function with new competencies and
knowledge;
6. Manage vendor partnerships;
7. Redesign and manage the federal IS organization
How do you that?
 Four Components Reflects The Strategic Role For
IT Unit
 The cost centre has an operational focus that minimizes
risks with an emphasis on operational efficiency. Cost-
centre activities are good candidates for outsourcing.
 The service centre, although still minimizing risk, aims to
create an IT-enabled business capability to support
current strategies.
 The investment centre has a long-term focus and aims to
create new IT-based business capabilities. It seeks to
maximize business opportunity from IT resources.
 The profit centre is designed to deliver IT services to the
external marketplace for incremental revenue and for
gaining valuable experience in becoming a world-class IS
function.
What kind of IT Unit your group project has?
 Five Key Competencies For IT
Person In Charge in IT Unit
 IT leadership, which includes IT envisioning, fusing IT
strategy with business strategy, and managing IS
resources.
 Architecture development, which is concerned with
developing a blueprint for the overall IT technical design.
 Business enhancement, which includes business
process analysis and design, project management and
managing relationships with users.
 Technology advancement, which is application design
and development.
 Vendor management, which includes managing and
developing relationships with vendors and suppliers,
negotiating and monitoring contracts and purchasing.

Do your group project has them all?

Location of IS/IT Decision Making
 Content—the decision areas that are being managed.
Included here are decision areas about the whole realm of
IS demand and IT supply—areas
 Authority—the individuals or groups that have the power
actually to make decisions in the various areas
 Responsibilities—the individuals or bodies responsible for
day-to-day execution in decision areas.
 Coordination—essentially, the mechanisms and processes
for ensuring coherence across all decision areas.
 Policies—statements of principles or actions defining
acceptable behaviour.
 Control—outlining the approaches to policing decisions,
ensuring conformance across the organization
Four Distinct Contract Types Or Sourcing Strategy
 Four Distinct Contract Types Or Sourcing
Strategy
 Contract out strategy—with this strategy the vendor is
responsible for delivering the results of IT activity.
 Buy-in strategy—this strategy sees the organization buying in
resources from the external market, often to meet a
temporary requirement.
 Preferred contractor strategy—with this approach,
organizations contract long term with a vendor to reduce risk,
with the vendor responsible for the management and delivery
of an IT activity or service.
 Preferred supplier strategy—this strategy takes the buy-in
approach further, with an organization seeking to develop a
long-term close relationship with a vendor in order to access
its resources for on going IT activities.
Five Roles Critical to Success

 Leadership;
 Visionary;
 Relationship builder;
 Politician;
 Deliverer.
Reflect to yourself to
be the CIO:
Where do you stand?
Establishing IS/IT Committees

 Ensuring top management involvement in IS

planning;
 Ensuring the fit between IS and business
strategy;
 Improving communication with top and middle
management;
 Changing user attitudes to IT.
1. Strategy: the ability to identify and evaluate the implications of
IT-based opportunities as an integral part of business strategy
formulation and define the role of IS/IT in the organization.
2. Define the IS contribution: the ability to translate the business
strategy into processes, information and systems investments
and change plans that match the business priorities (i.E. The IS
strategy).
3. Define the IT capability: the ability to translate the business
strategy into long-term information architectures, technology
infrastructure and resourcing plans that enable the
implementation of the strategy (i.E. The IT strategy).
4. Exploitation: the ability to maximize the benefits realized from
the implementation of IS/IT investments through effective use of
information, applications and it services.
5. Deliver solutions: the ability to deploy resources to develop,
implement and operate IS/IT business solutions that exploit the
capabilities of the technology.
6. Supply: the ability to create and maintain an appropriate and
adaptable information, technology and application supply chain
and resource capacity.
End of Presentation