Today’s Turbulent Business EnvironmentToday’s Turbulent Business Environment•Greater uncertainty

•Increased commoditization

•Nontraditional entrants with competitive offerings

Shorter half-life of information (moving strategic enablers to commodity)

•Tighter spending

•New technologies

•New products & services

•Changing customer demands and higher levels of personalized preferences

•Multiple pricing, service, and utility models

•Government regulations, legal compliance, and safety standards

•Increased transparency of information due to the blurring between customers, competitors, and suppliers

IS THIS REALLY NEW???IS THIS REALLY NEW???

IT Problems:IT Problems:• Business plans do not include IT plans

• IT plans do not include business plans

• IT plans focus on technology rather than directly addressing business strategies

• Business managers do not see IT as supporting their strategies

• IT projects do not support business strategies. IT spending on infrastructure and application maintenance does not support strategy

• Company budgets do not reflect the results of IT planning

• IT plans are shelf-ware that does not guide management decisions, projects, or budgets

• IT governance practices are ineffectiveIS THIS REALLY NEW???IS THIS REALLY NEW???

STRATEGY FORMULATION

LUFTMAN

MISSIONMISSION (WHAT)

OBJECTIVES

OBJECTIVES WITH P

LANS

STRATEGYSTRATEGY (HOW)

VISIONVISION (WHERE)

(BHAGS)

AN

AL

YS

IS

t

•PROJECT IMPLEMENTATION

•MEASUREMENTS

•RESOURCES

•MOTIVATION

•GOVERNANCE

•REWARDS

STRATEGY ANSWERS HOWSTRATEGY ANSWERS HOW

do we attain our aspirations

to decide whether to continue, start, or stop

to differentiate core versus context

Strategy That CountsStrategy That Counts

Breaks new ground

Matters

Perpetually evolves

Provides sustainable advantageProvides sustainable advantage

Unique

Versus a plan to convert specific resources you have (or can get) into specific resources

you really want or need.

STRATEGYSTRATEGY

As-Is Could-Be Should-Be

How-To

STRATEGYSTRATEGY

As-Is Could-Be Should-Be

How-To

•Tactics•Governance•Resources•Research•Teaching

•Vision / Mission gaps•Competitive landscape•Top Down possibilities

•Global Brand•Constraints•Priorities

VISIONINGVISIONING BUSINESS CHOICESBUSINESS CHOICES

ACTIONACTIONPLANSPLANS

Do-DoIMPLEMENTATION/CHANGEIMPLEMENTATION/CHANGE

REVIEWREVIEW & LEARN& LEARN

Four Barriers to Strategy ImplementationFour Barriers to Strategy Implementation

Source: Five key principles of corporate performance management by Bob Paladino

9 of 10 companies fail to execute strategy

People Barrier Management Barrier

Vision Barrier

Resource Barrier

85% of executive teams spend less than

one hour/ month discussing strategy

Only 25% of managershave incentives

linked to strategy

60% of organization don’t link budgets

to strategy

Only 5% of the workforce understands

the strategy

SWOT ANALYSIS FOR

STRENGTHS WEAKNESSES

OOPPORTUNITIESPPORTUNITIES TTHREATSHREATS

THESE SHOULD BE THE SAME AS YOUR AS-IS COMPETENCIESTHESE SHOULD BE THE SAME AS YOUR AS-IS COMPETENCIES

THESE ARE YOUR CORE THESE ARE YOUR CORE INCOMPETENCIESINCOMPETENCIES

(Be specific)

Sample IITT SWOT Analysis

SSttrreennggtthhss:: Major transaction control systems are relatively new,

functionality adequate well documented, maintainable, and operationally efficient.

The IS department has demonstrated competence and effectiveness in adding new technologies (e.g., client/server systems)

The IS Department has demonstrated competence and effectiveness in applications development in group decision support systems

Our outsourcing partner seems to manage a reliable, cost effective data center.

There is a substantial in-house electronic mail operation, frequented by most managers in the company.

There is substantial user manager computing expertise in both line and staff organizations.

WWeeaakknneesssseess:: A single point of IS contact for end user operational

problem diagnosis and resolution has not been established

There are limited data center performance measurement systems.

There has been only limited transaction based systems development productivity.

There is a high degree of technology specialization (narrowness) among IS professional staff and a limited degree of business orientation.

There is a limited departmental use of information technology beyond simple decision support and participation in common transaction processing systems

OOppppoorrttuunniittiieess:: Expand successful relationship with the Marketing

organization to R&D. Use the recent BPR to identify integration priorities. Establish an executive steering committee with all divisions

represented SA Maturity assessment

TThhrreeaattss:: The IS department’s effectiveness is threatened by

pockets of user negativism, especially among top management.

End-users are developing a high degree of technical competence, which they may employ in a non-integrated fashion.

The accelerating pace of technological change and proliferation of information technologies pose risks of control loss, obsolescence, and difficulty in maintaining IS professional staff competence.

The extensive internal communication networks and user accessibility to external databases pose security risks to our data.

The IS department is still not an integral part of company’s business planning process.

Sources of Strengths and WeaknessesSources of Strengths and Weaknesses Financial issuesFinancial issues

Cash flow and cash management

People issuesPeople issues

Quality (meaning the ability, experience and attitude) of managers and employees

Operational issuesOperational issues

Current product portfolio

Product and Market issuesProduct and Market issues

Warehousing,

transport and

logistical factors

Financial reporting systems Levels of motivation Market research systems

Financial structure Concentration of skills and expertise (to what extent is the fate of the business in the hands of a talented few?)

Research and technical expertise, and the ability to develop popular new products

Distribution channels, including discount structures and dealership or franchise operations

Pricing

Credit-control activities

Ability to attract and retain the best people

Supply chains

Brand perception

Risk-management systems

Scope and effectiveness of training methods

Flexibility of people and their ability to adapt to changing situations

Organizational culture: does it promote efficiency or frustrate it?

Organizational structure: is it still relevant and effective?

Levels of delegation and empowerment, and productivity in

terns of quality and quantity of work competed

The degree of initiative that is both allowed and taken

Levels of pressure (a strength) and stress (a weakness)

Effectiveness of communication channels

Production lead times and efficiency

New processes that reduce costs and increase efficiency

Stock control

Ability to raise capital

Rates of pay Information management systems

Customer service

Overall market potential for the product

Experience of the marketing mix (knowing which sales activities are most effective)

Sources of Opportunities and Threats (MIS760)Sources of Opportunities and Threats (MIS760)Opportunities (Ansoff) Opportunities (Ansoff)

New markets (including export market)

New technologies

New products and product enhancements

Mergers, acquisitions and divestments

New investment

Factors affecting competitors’ fortunes

Commercial agreements and strategic partnerships

Political, economic, regulatory and trade developments

Threats (Porters Barriers to Entry)Threats (Porters Barriers to Entry)Industrial actionPolitical and regulatory developmentsEconomic issuesTrade factorsMergers and other developments among

competitorsNew market entrantsCompetitors’ pricing actionsCompetitors’ market innovationsEnvironmental factorsNatural disastersCrises, notably including health and safety liability

problemKey staff attracted away from the business Security issues, including industrial espionage and

the security of IT systemsSupply chain problemsDistribution and delivery problemsBad debts (resulting from the misfortunes of

others)Demographic factors and social changes affecting

customers’ tastes or habits

Stakeholders Stakeholders

External External StakeholdersStakeholders

•Competitors

•Creditors

•Customers/Clients

•Local Communities

•General public

•Governments

•Regulators

•Suppliers/Vendors

•Unions

The The

CompanyCompany

Internal Internal StakeholdersStakeholders

•Board Members

•Employees

•“End User” Partners

•IT

•Managers

•Senior Managers

•Stockholders

Contributions Contributions

Inducements Inducements

Key Stakeholders(with regards to major problems & opportunities)

Stakeholder (who)

Role Responsibilities Current State of Affairs

Desired State of Affairs

Sponsor

Champion

Business Partners

IT Staff

Competitors

Sponsors Decision-Making SpectrumSponsors Decision-Making Spectrum

More More Leader Leader ControlControl

Less Less Leader Leader ControlControl

Unilateral(One-Sided)

Consult-and-Decide

Build Consensus Unanimous

Consider the following questions:Consider the following questions:

•Does the BU have the leadership focus & capability to make this Does the BU have the leadership focus & capability to make this effort effort happen?happen?

•Are stakeholders incentives in harmony with this new offerings Are stakeholders incentives in harmony with this new offerings criteria for success?criteria for success?

•Are the stakeholders capable of the change required?Are the stakeholders capable of the change required?

AlternativesAlternatives• Problem/Opportunity 1

– Alternative a . .

– Alternative n.

.

• Problem/Opportunity n– Alternative a

. .

– Alternative n.

.

RecommendationsPrioritized

Recommendations& Key Subactions

(Description)

ExpectedBenefits

(Quantitative/Qualitative)

Why Better ThanAlternatives

Responsibility Risks

TINATINA – TThere IIs NNo AAlternative – Here’s what we know about the future. Now let’s go meet it.

Three R’s: RRegulations, RRestraint, and RRules

Next StepsStep Step Description

and objectives Assigned

Responsibility Target

Completion Date

Issues/Comments and

Dependencies

1 Market recommendations

2 Secure: Sponsor (who?) Champion (who?) Team (who?)

3 Proof of concept Prototype

4 Establish a beachhead

5 Phased deployment

Recommendations and Next Steps Recommendations and Next Steps should answer the following:should answer the following:

1. How is this relevantrelevant to what I do?

2. What, specificallyspecifically, should I do?

3. How will I be measuredmeasured and what are the consequences?

4. What tools and supportsupport are available?

5.5. WIIFMWIIFM-What’s in it for me? For us?

6.6. Next steps are the specific things that must be Next steps are the specific things that must be immediately doneimmediately done to carry out your to carry out your recommendationsrecommendations

Give stakeholders what they need to act, QUICKLY!!!Give stakeholders what they need to act, QUICKLY!!!

PROBLEMS/OPPORTUNITIESPROBLEMS/OPPORTUNITIES: : OLD KITCHEN & BATHROOMOLD KITCHEN & BATHROOM

ALTERNATIVESALTERNATIVES: : DIFFERENT DESIGNERS/CONTRACTORSDIFFERENT DESIGNERS/CONTRACTORS- KITCHEN: CABINETS (MODERN, COLONIAL, DARK/LIGHT…) - KITCHEN: CABINETS (MODERN, COLONIAL, DARK/LIGHT…)

VENDORS FOR OVEN, REFRIGERATOR, VENDORS FOR OVEN, REFRIGERATOR, DISHWASHERDISHWASHER

- BATHROOM: STYLE (MODERN/TRADITIONAL, LIGHTS, - BATHROOM: STYLE (MODERN/TRADITIONAL, LIGHTS, COLORS)COLORS)

RECOMMENDATIONSRECOMMENDATIONS: : XYZ CONTRACTORXYZ CONTRACTORKITCHEN: STYLE (MODERN, MAPLE), KITCHEN AID KITCHEN: STYLE (MODERN, MAPLE), KITCHEN AID

APPLIANCESAPPLIANCESBATHROOM: STYLE (TRADITIONAL, WHITE; TOTO) BATHROOM: STYLE (TRADITIONAL, WHITE; TOTO) THESE ARE THE BEST CHOICES BECAUSE…THESE ARE THE BEST CHOICES BECAUSE…

NEXT STEPSNEXT STEPS: : OBTAIN SPOUSE APPROVAL (today)OBTAIN SPOUSE APPROVAL (today)-CONTRACT WITH XYZ (Tuesday)CONTRACT WITH XYZ (Tuesday)-REVIEW/APPROVE XYZ PLAN; GIVE $10K DEPOSIT (2 weeks)REVIEW/APPROVE XYZ PLAN; GIVE $10K DEPOSIT (2 weeks)-ORDER APPLIANCES AND FIXTURES (Saturday)ORDER APPLIANCES AND FIXTURES (Saturday)

EXAMPLE OF EXAMPLE OF REQUIRED DETAILREQUIRED DETAIL

1. Attracting, Developing, and Retaining IT Professionals1. Attracting, Developing, and Retaining IT Professionals

2. IT and Business alignment2. IT and Business alignment

3.Build business skills in IT3.Build business skills in IT

4. Reduce the cost of doing business4. Reduce the cost of doing business

5. Improve IT Quality 5. Improve IT Quality

6. Security and privacy6. Security and privacy

7. Manage Change7. Manage Change

8.IT Strategic Planning8.IT Strategic Planning

9. Making better use of Information9. Making better use of Information

10. Evolving CIO leadership role10. Evolving CIO leadership role

2007 Top “10” IT Management Concerns2007 Top “10” IT Management Concerns

How is IT viewed in Most Companies?How is IT viewed in Most Companies?

• Necessary Evil

• Does not meet commitments

• Speaks another language

• Large expense; questionable value

• Strategic Enabler

• Driver of Shareholder Value

SOURCE: CUTTER CONSORTIUM, ARLINGTON, MASS, FEBRUARY 2002

Product strategy

E-business strategy

Sales/marketing

Customer service

Competitive position

IT’s RoleIT’s Role

Manufacturing

35%35%

8%

38%

43%

43%

49%

51%

Corporate executives were asked:

Which subjects are included in your formal business strategy?Which subjects are included in your formal business strategy?

10 20 30 40 50 60

Profit Center

Responsible primarily for technology maintenance

Core part of decision-making Core part of decision-making team that sets overall strategyteam that sets overall strategy

Instrument for cutting costs within the company

Resource for creating new business processes

Ref: Optimize Research

What is the role of IT at

your company ?

% of respondents

Cost Center and drain on corporate resources

70

Tool for improving business-process efficiency

Vital utility, like electricity

Manager of key data, communications, hardware, and software

Note: Multiple responses allowed

Where is the Value From IT Investments?

ITInvestments

StrategicBenefits

BusinessTransformation

External

Internal

Every business is an information business.

Information is the glue that holds value chains & organizations together.

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

INBOUNDLOGISTICS

OPERATIONS OUTBOUND LOGISTICS

MARKETING & SALES

SERVICE

MARG

INM

AR

GIN

PRIMARY ACTIVITIES

SUPPORT ACTIVITIES

THE GENERIC VALUE CHAIN

Michael Porter, HBR, 1985

THE IT VALUE CHAIN

Demand/Relationship Management

Solutions Development

ServiceSupport

IT Enablement

Facilities & Operations

Risk, Security, & Compliance

Sourcing, Staff & Vendors

IT Finance

Architecture, Portfolio, and Service Delivery

Su

pp

ort

Ac

tiv

itie

sP

rim

ary

Ac

tiv

itie

s

Ma

rgin

STRATEGIC ALIGNMENT

Strategic Alignment Model

InformationTechnology

Strategy

InformationTechnology

Strategy

Manufacturing & Engineering

Infrastructure

Manufacturing & Engineering

Infrastructure

Marketing InfrastructureMarketing

Infrastructure

Technology InfrastructureTechnology

Infrastructure

Functional fitFunctional fit

Str

ate

gic

fit

Str

at e

gi c

fit

Business Strategy

Business Strategy

Marketing Strategy

Marketing Strategy

Business Infrastructure

Business Infrastructure

Complex cross alignments

Complex cross alignments

Manufacturing and Engineering

Strategy

Manufacturing and Engineering

Strategy

Functional Integration

Business Scope

Distinctivecompetencies

Business Governance

Administrative Structure

Processes Skills

Technology Scope

Systemic competencies

IT Governance

IT Architecture

Processes Skills

BUSINESS Business Strategy

IT IT Strategy

IT Infrastructure

Strategic Fit

Organizational Infrastructure

The Strategic Alignment Model

Sources of CompetenceSources of Competence

REF: The Future of Competition – Co-Creating Unique Value with Customers, by C.K. Prahalad, Venkat Ramaswamy

Business unitas the sourceof knowledge

Corporation as

a portfolio ofcompetencies

Supplier baseand partnersas a source ofcompetence

Consumers andconsumer

communities asa source ofcompetence

Stage 1:Pre-1990

Stage 2:1990 Onward

Stage 3:1995 Onward

Stage 4:2000 Onward

We need to engage IT as an enabler/driver in all of these!!! We need to engage IT as an enabler/driver in all of these!!! That is the focus of our course.That is the focus of our course.

EXAMPLE: TEN IT COMPETENCIES1.Global Networking Networking expertise of the highest order. Design,

build and manage global WANs.

2.Project and Process Management This need is already strong and will not wane in the foreseeable future. Enterprises will look for ways to measure the expertise of project and process managers, such as through certification programs. The end of Y2K work will unleash a herd of experienced managers, but there will still be a shortfall.

3.Vendor / Contract negotiations and management

Competency in this area has developed due to the widespread use of outsourcing and other external sources.

4.IS Human Capital Management The coordination of training and development of IS staff. It will be a bigger focus as companies struggle to migrate legacy workers to new technologies and align business goals.

5.Cross-platform security Encompasses date and networking security expertise for Web-enabled existing applications.

6.E-Commerce A hybrid of marketing and technical knowledge

7.Web and Database Integration Ability to connect legacy databases to the Internet. Knowledge of Web languages (HTML,JAVA) and SQL.

8.Information and Knowledge Architecture

Defines the flow of information through the company or on a website. This competency is not well defined in many companies today. It may be part of the knowledge officer or Webmaster.

9.Data warehousing/database design and administration.

Delivery of high-value applications including e-commerce.

10.Customer service / CRM IS – professional who are adept at building customer-service systems (particularly Web-based)

Ref :Gartner Group

CORE IT COMPETENCIES CORE IT COMPETENCIES

Information ServicesInformation Services

PlanPlan MarketMarket

MaintainMaintain IntegrateIntegrate

Policy

Asset Management

Portfolio Management

Procurement

Architecture

Enterprise Arch

Metrics

Compliance

Biz& IT Strategy

Techtonics

Dynamic Planning

Digital Innovation

Alignment

Biz Imperatives

Executive

Process

Security

Data Center

Infrastructure

Application Help Desk

Technology

Business Continuance

Operations

Security Service Center

Fulfillment

Manage Human Capital

Enterprise Program Mgmt

OfficeScope &

Scale, Deliver & Manage

Program Mgmt

Program Governance &

Risk Mgmt

Business Process & Integration

Application Development

Business Logic

User Interface

Servers, Storage,

Middleware & DBMS

Infrastructure Development

Network

Points of Interaction

Packaging & Selling

Value Management

Personal Value Cards

Relationship Management

Performance Report

IT Products Catalog

Source: META Group

IT Management Competencies (1 of 2)

Business Deployment•Examination of the potential business value of new, emerging IT •Utilization of multidisciplinary teams throughout the organization•Effective working relationships among line managers and IT staff•Technology transfer, where appropriate, of successful IT applications, platforms, and

services•Adequacy of IT-related knowledge of line managers throughout the organization.•Visualizing the value of IT investments throughout the organization•Appropriateness of IT policies•Appropriateness of IT sourcing decisions•Effectiveness of IT measurement systems

External Networks•Existence of electronic links with the organization’s customers•Existence of electronic links with the organization’s suppliers•Collaborative alliances with external partners (vendors, systems integrators, competitors) to develop IT-based products and processes.

Line Technology Leadership•Line managers’ ownership of IT projects within their domains of business responsibility•Propensity of employees throughout the organization to serve as “project champions”

Business Deployment•Examination of the potential business value of new, emerging IT •Utilization of multidisciplinary teams throughout the organization•Effective working relationships among line managers and IT staff•Technology transfer, where appropriate, of successful IT applications, platforms, and

services•Adequacy of IT-related knowledge of line managers throughout the organization.•Visualizing the value of IT investments throughout the organization•Appropriateness of IT policies•Appropriateness of IT sourcing decisions•Effectiveness of IT measurement systems

External Networks•Existence of electronic links with the organization’s customers•Existence of electronic links with the organization’s suppliers•Collaborative alliances with external partners (vendors, systems integrators, competitors) to develop IT-based products and processes.

Line Technology Leadership•Line managers’ ownership of IT projects within their domains of business responsibility•Propensity of employees throughout the organization to serve as “project champions”

Ref:ZMUD

Process Adaptiveness•Propensity of employees throughout the organization to learn about and subsequently

explore the functionality of installed IT tools and applications•Restructuring of business processes, where appropriate, throughout the organization•Visualizing organizational activities throughout the organization

IT Planning•Integration of business strategic planning and IT strategic planning•Clarity of vision regarding how IT contributes to business value•Effectiveness of IT planning throughout the organization•Effectiveness of project management practices

IT Infrastructure•Restructuring of IT work processes, where appropriate•Appropriateness of data architecture•Appropriateness of network architecture•Knowledge of and adequacy of the organization’s IT skill base•Effectiveness of software development practices

Data Center Utility•Appropriateness of processor architecture •Adequacy of quality assurance and security controls

Process Adaptiveness•Propensity of employees throughout the organization to learn about and subsequently

explore the functionality of installed IT tools and applications•Restructuring of business processes, where appropriate, throughout the organization•Visualizing organizational activities throughout the organization

IT Planning•Integration of business strategic planning and IT strategic planning•Clarity of vision regarding how IT contributes to business value•Effectiveness of IT planning throughout the organization•Effectiveness of project management practices

IT Infrastructure•Restructuring of IT work processes, where appropriate•Appropriateness of data architecture•Appropriateness of network architecture•Knowledge of and adequacy of the organization’s IT skill base•Effectiveness of software development practices

Data Center Utility•Appropriateness of processor architecture •Adequacy of quality assurance and security controls

IT Management Competencies (2 of 2)

Ref:ZMUD

The only true IT Core Competency:AT&T

The 26-terabyte data warehouse contains two years of telephone records and is used by 3,000 employees for functions such as marketing analysis and pricing calculations

LAND REGISTRY

The 20-terrabyte transactional database contains land-ownership records for all of England and Wales, including documents that date back to the 1700s.

EXPERIAN

The data warehouse is used for direct marketing to consumers and is one of the busiest in the world, handling nearly 900 simultaneous queries during peak times.

BOEING

The transactional database contains information on every aircraft assembled and is one of the biggest and fastest in the world, processing nearly 300 transactions per second.

DEPARTMENT OF DEFENSE

When completed in two years, with an initial projected capacity of 5 petabytes, the data warehouse and repository will hold medical records for 9 million military personnel. WHAT ARE COMPANIES DOING WITH THE WHAT ARE COMPANIES DOING WITH THE

INFO THEY HAVE ABOUT THEIR CUSTOMERS?INFO THEY HAVE ABOUT THEIR CUSTOMERS?

Strategy vs Organization Matrix

Improve InventoryControl / / # / /Streamline Order Cycle / # / @Expand Product Line / / / / @ # @ / @ /Increase AdvertisingPenetration / @ @Tie Production toDemand / # @ / /Expand SellingRelationships @ # @Reduce Raw Materials #

Pre

siden

tPla

ns

/Con

trol

Legal

Cou

nse

l

Exec

utive

VP

Man

ufa

cturi

ng

Purc

has

ing

Pro

duct

Dev

elop

men

t

Man

ufa

cturi

ng

Exec

utive

VP

Sal

es

Sal

es W

est

War

ehou

sing

STRATEGY

ORGANIZATION

@ Essential / Desirable # Primary Responsibility

Process vs Strategy Matrix

Design Product @ Develop Manufacturing Process @ Process Customer Order / @ @ / Control Product Inventory @ @ @ / Analyze Marketplace @ @ @ Market Vehicles

Impro

ve Inv

Con

trol

Str

eam

line

Ord

er C

ycle

Expan

d

Pro

duct

Lin

eIn

crea

se A

dv

Pen

etra

tion

Tie

Pro

duct

ion

to D

eman

dEx

pan

d S

ellin

g

Rel

atio

nsh

ips

PROCESS

STRATEGY

@ Major Impact

/ Minor Impact

Process vs Organization Matrix

Develop Manufacturing Process @ / # @ Design Product / / / @ / # / / / Process Customer Order / @ # @ @ Analyze Marketplace @ @ @ @ Control Product Inventory / # / / Market Product @ # @ Establish Business Direction # @ / @ @

Pre

siden

tPla

ns

/Con

trol

Legal

Cou

nse

l

Exec

utive

VP

Man

ufa

cturi

ng

Purc

has

ing

Pro

duct

Dev

elop

men

t

Man

ufa

cturi

ng

Exec

utive

VP

Sal

es

Sal

es W

est

War

ehou

sing

PROCESS

ORGANIZATION

@ Major Involvement / Minor Involvement # Primary Responsibility

Where do we go from here?

1. Establish team & commitment.

2. Define “as is” & “to be” using the model.

3. Evaluate “as is” “to be” via a gap analysis.

4. Prioritize gap analysis.

5. Develop strategic planning approach.

6. Review conclusions with stakeholders.

7. Carry out plan.

AS IS Presentations•If working – Use your company/organization

•Must team up with co-workers

•If not working – work in team of at least 4

•Select case from included cases

•Cannot use Kodak or Air Products

•Research on web for additional information

•As Is Analysis: Use forms on next 2 pages

•1 chart (1 page ONLY) for Business As Is

•1 chart (1 page ONLY) for IT As Is

BUSINESS STRATEGYBUSINESS STRATEGY

BUSINESS SCOPEBUSINESS SCOPEPRODUCTS/SERVICES:

CUSTOMERS/CLIENTS:

COMPETITORS:

DISTINCTIVE COMPETENCIESDISTINCTIVE COMPETENCIES

BUSINESS GOVERNANCEBUSINESS GOVERNANCE INTERNAL DECISIONS:

GOVERNMENT REGULATION:

STRATEGIC PARTNERS:

BUSINESS INFRASTRUCTUREBUSINESS INFRASTRUCTURE ORGANIZATION STRUCTURE

KEY PROCESSES

H/R

BUSINESS As-IsBUSINESS As-Is

IT STRATEGYIT STRATEGY

TECHNOLOGY SCOPETECHNOLOGY SCOPEKEY APPLICATIONS:KEY APPLICATIONS:

KEY TECHNOLOGIES:KEY TECHNOLOGIES:

SYSTEMIC COMPETENCIESSYSTEMIC COMPETENCIES

IT GOVERNANCEIT GOVERNANCE

IT INFRASTRUCTUREIT INFRASTRUCTURE

ARCHITECTUREARCHITECTURE

KEY PROCESSESKEY PROCESSES

H/RH/R

IT As-IsIT As-Is

AS IS Presentations•Considerations

•Split Business Segments when discussing Business Strategy (Products, Customers, Competitors)

•Every company has ALL 38 IT processes; focus on the ones that are very good and are in need of

improvement

•Include major products & vendors when discussing Key Technologies and Architecture

•Marketing should always be included as a Business Process

•When discussing Competencies “10 years of profit” is not a competency; how they made the profit is

•Do not forget Skills in HR

AS IS Presentations

•Presentations

•10 minutes

•All team members must present

•Bring hard copy to class

Good Luck!

Metrics to Include in AppendixMetrics to Include in Appendix1. As-Is2. To-Be3. SWOT4. Stakeholders5. Alternatives6. Recommendations7. Next Steps8. Governance Archetype9. Alignment Maturity Assessment10.TVO11.Others???12.Lessons Learned

Three Planning HorizonsThree Planning Horizons

Horizon Focus IssuesPrimary

Responsibility

3-5 years StrategicStrategic Vision architecture, business goals, mission

Senior Management

CIO

1-2 years Tactical Tactical Resource allocation, project selection

Middle Managers

CIO

6 months – 1 year Operational Operational Project management, meeting time and budget

IS ProfessionalsLine ManagersPartners

HighPriority!

MediumPriority

Low Priority

High Medium Low

High

Medium

Low

Scenario Planning Grid

Impact on Firm

Pro

bab

ilit

y o

f O

ccu

rren

ce