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In this chapter, the following content will be discussed: Case examples include microsoft, types of planning, why is planning so difficult? The changing world of planning, traditional strategy-making, today’s sense-and-respond approach.
Information Systems Planning Lecture Today Lecture n Case examples include Microsoft n Introduction ă Types of planning ă Why is planning so difficult? Today Lecture n The Changing World of Planning ă Traditional ă Todays Strategy-Making Sense-and-Respond Approach Introduction n Systems planning, especially strategic systems planning, is becoming more difficult and more important at the same time Technology is changing so fast that it is seems futile to plan for it, yet the dependence on this technology makes planning its effective use a matter of organizational life and death n This lecture / chapter contrasts the traditional view of planning with the sense-and-respond approach of strategy-making, presenting seven IS planning techniques Introduction n IS management is becoming more difficult and more important at the same time: ă Technology changing so fast: “Why bother?” Vs Most organizations’ survival is dependant on technology ă How to resolve this apparent paradox? n Good News = variety of approaches, tools and mechanisms available Bad News = no ‘best’ way to go about it n Planning Good and Bad News! Introduction cont n It is important to establish the appropriate mindset for planning: ă Some managers believe = “determining what decisions to make in the future ă Better view = developing a view of the future that guides decision making today ă Subtle difference = ‘strategy making’ n Strategy = stating the direction in which you want to go and how you intend to get there ă The result of strategy-making is a plan Why Planning Is So Difficult Types of Planning: n Planning is usually defined in three forms, which correspond to the three planning horizons (Figure 4-1) ă Strategic = 3-5 years ¨ Tactical = 1-2 years ¨ Operational months – year 4-8 Why Planning Is So Difficult Types of Planning: n Planning is usually defined in three forms, which correspond to the three planning horizons (Figure 4-1) ă Strategic = 3-5 years ă Tactical = 1-2 years ă Operational months – year Types of Planning The Changing World of Planning MICROSOFT Case example: Sense and Respond Strategy-Making § Microsoft, the software giant in Redmond, Washington, has taken a sense-and-respond approach to creating its Internet strategy § Throughout its history, Microsoft has been slow to embrace some of the computer industry’s most significant technology shifts and business chances § To adopt innovation, the company has often succeeded in using its financial might to acquire successful leaders (e.g., Lotus Development Corp for office automation and Netscape Communications Corps for Web browsers) § Microsoft moved on to buying Internet companies, aligning with Sun to promote Java (and create a proprietary version of Java), and even forging an alliance with AOL § This catch-up-and-strive approach has worked rather successfully for Microsoft MICROSOFT Case example: Sense and Respond Strategy-Making n software giant moved into a variety of technologies: n BASIC programming language for PC n MS-DOS (Microsoft Disk Operating System) n MS Mouse n MICROSOFT Case example: Sense and Respond MSN Web Portal and ISP (Internet Service Provider) Strategy-Making n Visual BASIC n MS Windows XP n MS Business Solutions (Financial Management, CRM, SCM) n Tablet PC n MICROSOFT Case example: Sense and Respond Windows Mobile OS Strategy-Making n Visual Studio Net Enterprise Developer n Xbox 360 and the multiplayer broadband gaming service, Xbox Live n Vista Operating System n MICROSOFT Case example: Sense and Respond MS Word Strategy-Making n Internet Explorer n MS Windows n MS Office n n MICROSOFT Case example: Sense and Respond Strategy-Making sectors, to Microsoft diversifies in a number of related include: Web-only magazine, Slate, Web News site with NBC, Cable news channel with NBA, digital movie production via Dreamworks, mobile application, NET platform for Web Services, and search engines to compete with Google As the company celebrates its 30th year anniversary, it is moving even more to applications areas (e.g., healthcare) while continuing to explore new software technologies (e.g., multi-core programming technology called “F-Sharp” to manage massive server computers) n n n n MICROSOFT Sense and Respond BillCase Gates example: has made defining announcements, to be sure, focusing Strategy-Making the company on the Internet, security, and Web Services The strategies have not always come from top management The company’s first server came from a rebel working on an unofficial project In addition, management mistakenly passed up some cheap acquisitions that later cost them much more via licensing agreements MICROSOFT Case example: Sense and Respond Strategy-Making n In short, Microsoft has been sensing and responding to the moves in several industries, getting its fingers into every pie that might become important n Craig Mundle, Microsoft’s chief research-and-strategy officer, is designated to replace Bill Gates, who relinquishes his chairmanship in 2008, as the new longterm strategic thinker MICROSOFT Case example: Sense and Respond Strategy-Making n In a report to the Wall Street Journal (July 30, 2007), Mr Mundle wants Microsoft units to constantly search for innovation: “This is something that should be stuck in the face of the people who still think this is science fiction.” MICROSOFT CaseStrategy example: Sense Respond Formulate Closest to theand Action: Strategy-Making n The major change introduced by the Internet is faster communication, not only within organizations but, more importantly, with others—customers, suppliers, and partners n MICROSOFT Casecorporate example: Sense and Respond Aligning strategy with the marketplace in fastStrategy-Making paced times requires staying in close contact with that marketplace n Hence, strategy development needs to take place at these organizational edges, with the people who interact daily with outsiders n MICROSOFT Today, thisexample: means including younger employees because Case Sense and Respond they have grown up in an era of the Internet, PDAS, and cell phones Strategy-Making n They take all three for granted; they wear them like clothing n One company that is taking this premise of downside-up strategizing to heart is Skandia Future Centers Different Microsoft Products http://www.microsoft.com/enable/products/default.aspx Summary n n n Case examples include Microsoft Introduction ă Types of planning ă Why is planning so difficult? The Changing World of Planning ă Traditional Strategy-Making ¨ Today’s Sense-and-Respond Approach ... Joint Business planning, not just a technology issue ă Other Đ Đ planning issues Top-down Vs bottom-up; radical change Vs continuous Planning culture Business Goals and Systems Plans n Strategic systems. .. Furthermore, systems planning does not exist in a vacuum Most organizations have a planning culture into which systems planning must fit This sampling of issues illustrates why systems planning is... Planning ă Traditional ă Today’s Strategy-Making Sense-and-Respond Approach Introduction n Systems planning, especially strategic systems planning, is becoming more difficult and more important