Lecture Business management information system - Lecture 11: Information systems planning. In this chapter, the following content will be discussed: critical success factors, competitive forces model, the five competitive forces that shape strategy, porter three strategies competitive forces, five forces analysis of the internet,...
Information Systems Planning Lecture 11 Today lecture n n n Stages of Planning continued… Electric Power Research Institute Case example: Linkage Analysis Planning CASE EXAMPLE Scenarios on the Future of IS Management Critical Success Factors Critical Success Factors n In 1977, Jack Rockart and his colleagues at the Center for Information Systems Research (CISR), Sloan School of Management, at the Massachusetts Institute of Technology (MIT), began developing a method for defining executive information needs n It focuses on individual managers and their current information needs, whether factual or opinion information Critical Success Factors Conti n The CSF method has become a popular planning approach and can be used to help companies identify information systems they need to develop n For each executive, critical success factors (CSFs) are the few key areas of the job where things must go right for the organization to flourish Critical Success Factors conti n Executives usually have fewer than 10 of these factors that they each should monitor n CSFs are both time sensitive and time dependent n These key areas should receive constant attention from executives, yet CISR research found that most managers had not explicitly identified these crucial factors Critical Success Factors conti Rockart Four sources for these factors: q q One source is the industry that the business is in Each industry has CSFs relevant to any company in it A second source is the company itself and its situation within the industry q Actions by a few large, dominant companies in an industry most likely provide one or more CSFs for small companies in that industry Critical Success Factors conti n Furthermore, several companies may have the same CSFs but, at the same time, have different priorities for those factors ă A third source of CSFs is the environment, such as consumer trends, the economy, and political factors of the country (or countries) in which the company operates ă A prime example is that prior to, say, 1998, few chief executives would have listed “leveraging the Internet” as a CSF Today, most Critical Success Factors conti n The fourth source is temporal organizational factors, or areas of company activity that normally not warrant concern but are currently unacceptable and need attention ă A case of far too much or far too little inventory might qualify as a CSF for a short time Critical Success Factors conti Rockart has found two types of CSFs: n One he calls monitoring, or keeping abreast of ongoing operations n The second he calls building, which involves tracking the progress of “programs for change initiated by the executive ă The higher an executive is in the organization, the more building CSFs are usually on his or her list CISCO Executive Dashboard System Linkage Analysis Planning Linkage Analysis Planning n n Examines the links organizations have with one another with the goal of creating a strategy for utilizing electronic channels Methodology includes the following steps: ă Define power relationships among the various players and stakeholders: – Identify who has the power – Determine future threats and opportunities for the company Linkage Analysis Planning cont • Map out your extended enterprise (Figure 4-9) to include suppliers, buyers, and strategic partners – The enterprise’s success depends on the relationships among everyone involved – Some 70% of the final cost of goods and services is in their information content • Plan your electronic channels to deliver the information component of products and services – Create, distribute, and present information and knowledge as part of a product or service or as an ancillary good Electric Power Research Institute Case example: Linkage Analysis Planning • EPRI’s challenge - compress “information float” - elapsed time from availability research findings to the use of those results in industry • Answer: EPRINET - a natural language front end for accessing – Online information – Expert system-based products – e-mail facilities, and – video conferencing Scenario Planning Scenario Planning n n n Scenarios are stories about the way the world might be in the future The goal of scenario planning is not to predict the future (= hard to do!), but to explore the forces that could cause different futures to take place Then decide on actions to take if those forces begin to materialize Scenario Planning cont n n Long-term planning has traditionally extrapolated from the past and has not factored in low-probability events that could significantly alter trends ă Straight-line projections have provided little help! Four steps in Scenario Planning: Define a decision problem and time frame to bound the analysis Identify the major known trends that will affect the decision problem Identify just a few driving uncertainties Construct the scenarios CASE EXAMPLE Scenarios on the Future of IS Management n What will IS management look like in 10 years? n Four potential futures are presented: The Firewall scenario could occur if companies use traditional forms of management and see their data as proprietary The Worknet Enterprise scenario could occur if companies outsource management of their data and share it extensively with specific partners The Body Electric scenario could occur if new organizational forms flower (such as people owning parts of work cells in which they work) and obtain all their IT from interconnected service providers The ‘Tecknowledgy’ scenario could occur if there is an open information society where any kind of information is available for a price The main job of IS could be facilitation of knowledge processes across organizations Scenario Planning Conclusion n Based on the successes and failures of past information systems planning efforts, we see two necessary ingredients to a good strategic planning effort: IS plans must look towards the future § Future is not likely to be an extrapolation of the past § Successful planning needs to support “peering into the future” – most likely in a sense-andrespond fashion IS planning must be intrinsic to business planning Conclusion cont n IS plans typically use a combination of planning techniques presented ¨ No single technique is best and no single one is the most widely used in business n Sense-and-respond is the new strategy-making mode ă Creating an overall strategic envelope and conducting short experiments within that envelope, moving quickly to broaden an experiment that proves successful Planning is “Peering into an unknown future” ... among competitors n IT-based alliances can change rivalries by, for instance, extending them into value-chain-versus-value-chain competition rather than just company-versus-company competition... criticality to business- High in newness of idea=test new technologies and ideas ă Breakthrough strategy: High-High=potentially have a huge impact on the company ¨ CISCO SYSTEMS Case Example – E -Business. .. language front end for accessing – Online information – Expert system- based products – e-mail facilities, and – video conferencing Scenario Planning Scenario Planning n n n Scenarios are stories about