corporate development and it - eth zürich · corporate development and it | thomas ... explained...

Part 4

Management of Large Scale Projects – Integration of Strategy-, Process- and Information Systems Development

Thomas Gutzwiller

Sept., 2016

Corporate Development and IT

2| Thomas Gutzwiller - Transformation

| Part 4

Overall Concept

Strategy development

Process development

Implementation

Information system integrationInformation system planning

Standardsoftware

implementation

Process andsystem

integration forlegacy systems

Proprietarydevelopment


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Overall Concept

• The interrelationships between Strategy, Processes and Information Systems are explained with the use of a Meta Data Model and a Project Process Model .

• A Meta Data Model is a concept ional Data Model of the underlying method. It contains the main design objects of the method and explains the concept ional relationship between those design objects.

• A Project Process Model subdivides the project process of the method in overlookable design steps in a proposed sequence.

Every method can be described by a Meta Data Model and a Project Process Method.


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St. Gall Methods

Strategy development: PROMET©BSD

Process development: PROMET©BPR

Implementation

Information system integrationInformation system planning: Total ISM, PROMET®STP

Standardsoftware

implementation:PROMET©SSW

Process andsystem

integration forlegacy systems:PROMET®PSI

Proprietarydevelopment:

CC RIM


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St. Gall Methods

• o.V., PROMET/BSD, Methodenhandbuch für die Geschäftsstrategieentwicklung, Version 1.2, IMG AG, St. Gallen, 1999

• o.V., PROMET/BPR, Methodenhandbuch für den Entwurf von Geschäftsprozessen, Version 2.0, IMG AG, St. Gallen, 1997

• Österle, H., Brenner, W., Hilbers, K., Total Information Systems Management, A European Approach, John Wiley & Sons, Chichester e.a., 1993

• o.V., PROMET/STP, Methodenhandbuch für die System- und Technologieplanung, Version 1.1, IMG AG, St. Gallen, 2001

• o.V., PROMET/SSW, Methodenhandbuch für die Einführung von Standardanwendungssoftware, Version 3.0, IMG AG, St. Gallen, 1997

• o.V., PROMET/PSI, Methodenhandbuch zur Prozess- und Systemintegration, Version 1.0, IMG AG, St. Gallen, 1996

• Gutzwiller, Th., Das CC RIM-Referenzmodell für den Entwurf von betrieblichen, transaktionsorientierten Informationssystemen, Physica (Springer), Heidelberg, 1994


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Process development

Implementation


Standardsoftware

implementation

Process andsystem




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Strategic businessfield (target)

Customersegment

Distributionchannel

Regionalmarkets

Products/services

providesservesusesserves

Meta data model „Strategy development“ – overview


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General project process model for „Strategy developm ent“ - overview


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Project process model of strategy development

Project setup

Vision and mission statement

Externalanalysis

Internalanalysis

Gap analysis

Formulation of strategic options

Selection of strategic options

Implementation planning

Implementation controlling


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Project setup


Externalanalysis

Internalanalysis






Gap analysis


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Project setup


Externalanalysis

Internalanalysis

Gap analysis







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SWOT-Analysis and resulting SWOT-strategies

Opportunities-

-

-

-

Threats-

-

-

-

SO strategies ST strategies

WO strategies WT strategies

Strengths-

-

-

-

Weaknesses-

-

-

-

Companyfactors

Environmentalfactors


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Basic strategies in the product/market matrix (Anso ff)

Market penetration Product development

Market development Diversification

Current offered products/services

New products/services

Current served markets

New markets


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Generic growth strategies (Lechner) – Paths of Growt h

• P1: Growth in the core(= do more of the same, Ansoff‘s market penetration strategy)

• P2: Growth near the core(= growth with existing products in new markets, Ansoff’s market development strategy)

– New customer segments

– New regional markets

– New distribution channels

• P3: Growth by diversification based on core compete ncies (= grow with new products in existing markets, Ansoff’s product development stratregy)

– New products

• P4: Growth by unrelated diversification (= new products and markets, Ansoff‘s diversification strategy)

• P5: Create new industries(=create products for completely new markets, Blue ocean strategies)


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We know 3 mechanisms of growth:

• Internal organic growth(example: 3M)

• Mergers & Acquisitions(example: Holcim)

• Alliances & Networks(example: Star Alliance)

A B

A B

Generic growth strategies (Lechner) – Mechanisms of Growth

Source: Lechner.


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Alliances &Networks

Mechanisms of growthP

aths

of g

row

th

Core (1)

Adjacent to the core (2)

Diversification based on corecompetencies (3)

Unrelated diversification (4)

Creation of newindustries (5)

Internalorganic M&A

Generic P/M growth strategies (Lechner)

Source: Lechner.


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DIS

TAN

CE

TOC

OR

E

RIS

K

SPEED

RISK

small risk high risk

Alliances &Networks

Mechanisms of growth

Internalorganic M&A

Pat

hs o

f gro

wth

Core (1)

Adjacent to the core (2)

Diversification based on corecompetencies (3)

Unrelated diversification (4)

Creation of newindustries (5)

Generic P/M growth strategies (Lechner)

Source: Lechner.


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Generic competitive strategies (Porter)

Differentiation(unique selling

proposition)Low costs

Differentiationstrategy

Cost Leadershipstrategy

Focusstrategy

(differentiation)

Focusstrategy

(low cost)

Broad(industry wide)

Narrow(market segment)

Place orextent ofcompetition

Advantagesthrough


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Project setup


Externalanalysis

Internalanalysis

Gap analysis







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Strategic businessfield

Customersegment

Distributionchannel Region Market service

(product, service)

providesservesuses

serves

Processoutput

hashas

transports

consumes

Manufactorydepth Variants

has

has

Macro processbundles

Customer

Needs

Business unit

Strengths/Weaknesses

Critical successfactor

contains

has

serves has handles

has

Meta data model „Strategy development“ Strengths/weaknesses analysis


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Strategic businessfield

Customersegment

Distributionchannel Region Market service

(product, service)


Environment

Opportunity/threat

Critical successfactor

has

has

has

handles

influences

Stakeholder

Business partners

Competition

determinesPolitics, law

Economicalfactors

Environmentalfactors

Culturalfactors

Technology

Media

determines

...

...

Meta data model „Strategy development“Opportunity/Threat analysis


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Process development


Process development

Implementation


Standardsoftware

implementation

Process andsystem




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Understanding the difference between “product/servic e” and “process outputs” (customer relationship interactions)

Product/service $

Product information

Reservation

Payment methods

and terms

Warranty handling

Recycling

etc.

Process outputs (customer relationship interactions)

You pay for the product/service. Buying decisions are often based on the right process outputs (customer relationship interactions)


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Source: Muther, 1998

Process outputs (customer relationship interactions , CRI’s) is the anchor point for process development

Customer Buying CycleSupplier Customer

After sales Motivation

Purchase Evaluation


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Effectiveness before efficiency

Process outputs (CRI’s) as basic indication for pro cess development

• We want to distinguish between

– „Doing the right things“ (effectiveness) and

– „Doing the things right“ (efficiency)

• All too often existing processes are redesigned (efficiency) without thinking about their effectiveness.

• Therefore process development always begins with process outputs (CRI’s) and asks the question, if the right process outputs are generated for the specific process customer. Only then the question will be answered, how the process performance can be provided most efficiently.


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Business field

Customersegment

Distributionchannel Region

Market service(Product, service)


Process output(Customer relationship interaction)

Macro process

Micro process

Activity

bundles

is divided inprovides

contains

Meta data model „Process development“

makes use of


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Specialist dealer Discounters Department stores Mail order retailers

A: AudioVideo

A V C C S A V C C S A V C C S A V C C S

Segments

Outputs

Productinformation

Frameworkagreement Advise on Sales strategyProduct

Purchasingproposals

Goods

After-salessupport

Rep. goods

C: ComputersS: Services

Range selection

Sales - Specialist dealer

Sales - general

Logistics

Customer service Specialist dealer

Customer service - general

support

C: CommunicationsV:

Distribution channelCustomer relationship interaction:Process output

Product

Macro process 1Macro process 2

Example of macro processes

The business segmentation and the customer relation ship interactions of Entertainment Equipment

Distribution D/A/CH deliver the process architectur e


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From macro process to micro process

Macro process (Which outputs are produced?)

Customer Sales Production Purchasing Supplier

Activity Activity Activity Activity Activity

Micro process 1 (How is output produced?)Micro process 2

Micro process 3


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Example of micro process

UNTEL

Purchasing process

Salesrep.

Productmanage-

ment

26.Advise

customeron purchase

47.Providemarketdata

Salessupport

Microprocess

Getorder

Ordermanage-ment

Customer

48.Specify

needs withMIS

27.Specifyneeds49.

Selectsupplierswith MIS

29.Select

suppliers

50.Select

goods withMIS

30.Select goods

with elec.catalog

52.Placeorderonline

51.Placeorder

with MIS

53.Place order

fromcatalog

with MIS

36.Bookorder

32.Takeorderfrom

sales rep.

61.Agreespecialorders

34.Recordorder

60.Record

EDIFACTpurchase

order

33.Place

order inwriting/bytelephone

31.Passorder

to salesrep.

35.Confirmorder

Letter:1-2

days

Letter: 1-2 days

Activity

Internal organizationalunit

Customer

Process flow

Micro process


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Project processmodel for processdevelopment

Source: IMG


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Information system planning


Process development

Implementation


Standardsoftware

implementation

Process andsystem

integration for legacy systems



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Organizer/business manager

Business analystSoftwareengineer

Development of organizational structures, CRI’s, processes and instruments for management

Development of business support applications andintegration of standard application software Development of software

Diverse perspectives regarding process andinformation system development

• In process and information system development several parties (roles) are involved

• They have different perspectives on the process and information system development


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Activity sequence

Process output(customer relationship

interaction)

Business partner(process customer)

Key performanceindicator

Process

Activity

Location

Position

goes to

relates to

produces

has

contains

iscontainedin

is realized by

is linked to

Perspective of organizer/business manager


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Activity sequence

Process

Activity

Transaction

Application

Transactionsequence

Document,list, message Screen

Screen sequence(Dialog)

Effect

(Data)Object type*

Data base

*Entity type

contains

is contained inuses

contains

contains

on

has

hasproduces

is containedin

is contained in

Perspective of business analyst


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Transaction

Application

(Data)Object type*

Data base

*Entity type

Program

Service function(method, services)

Library

Effect

contains

is realized as

uses

contains

has

on

contains

Perspective of software engineer


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ORGANIZER/BUSINESS MANAGER

BUSINESSANALYST

SOFTWAREENGINEER

Program

Service function(method, services)

Library

Transaction

Application

Activity sequence

Process

Activity

contains

uses

uses

is containedin uses

contains

is realized as

Interfaces between different perspectives


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ApplicationA

ApplicationB

ApplicationC

Micro process 1

Micro process 2

Transaction A1Transaction A2Transaction A3

...

Transaction B1Transaction B2Transaction B3

...

Transaction C1Transaction C2Transaction C3

...

Integration between processes and applications


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Product/service

Regionalmarket

Customersegment

Processoutput

(customer relationship interaction)

Macroprocessbundles

Micro process

has for CRI delivery many

Activitycontains inprocess flow

Transaction

uses

Distributionchannel

contains

contains contains

contains

consumes transportsoffersHas in thecustomer buying cycle

Businessstrategy

Process

Informationsystem

Strategicbusinesssegment

Program

is realized as

Integration of “Strategy”, “Process” and “Informationsystem” (Meta data model)

delivers


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Information system planning


Process development

Implementation


Standardsoftware

implementation

Process andsystem




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Case Study "Bank Lione"


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Bank LIONE is located in Switzerland and focuses as an universal bank with3’000 employees on retail customer business and individual customer business.LIONE uses old information technology on the basis of an legacy IBM technology (CICS, 3270-Technology, hierarchical DB-Systems).

On request of the management, the board of directors has decided to approve a projectfor replacement of the whole information system and a renewal of its information technology.

Information system planning/information system mana gement(example Bank LIONE)


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Question:

How much does this cost?


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Question:

How fast will this be accomplished?


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Question:

What do we have to do? What needs to be ‘managed’?


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IS concept

IS architecture

IS project-portfolio

IS project

IS supportIS = information system

What needs to be 'managed'?

Source: Brenner/Österle.


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IT InfrastructurePC based client/server,

JAVA and Browsersolutions, Windows 8-Clients, LINUX-Server

old new

IBM host system,Character oriented terminal

screens

Network

Development & Tools

IS Organization

...

TCP/IP BT WAN TCP/IP Network based onVPN

Conventionally COBOLbased

Object oriented

Centrally organizeddecentralized,

Customer segment oriented

IS concept: Sets the guard railing for the IS

IS concept

IS architecture


IS project

IS support


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Value ChainActivities

Who completes whichactivities where?

Organizationalstructure

ApplicationsProcesses

How are the CRI’s provided

on customers?

Which information technology

and systems are deployed to support the

business?

IS architecture is the conceptual framework for the IS

What are the customer relationship

interactions (CRI’s)?

Process outputIS concept

IS architecture


IS project

IS support


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Customer administration system

Signature administration

Credit information system

Credit execution system

Global limits system

Securities administration system

Securities order administration system

Portfolio management system

Card administration system

Traffic of payments system

Teller system

Internet banking system

...

Automated teller machine

On the level of IS architecture business supportingapplication are planned


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Customer Employee

ApplicationTeller system

Transactions:In-payment CHF

Out-payment CHFAccount transfer

Stock price informationChange

Travelers cheques...

TransactionIn-payment CHF

Customer number ______Account number ______Amount CHF ______

Applications are technology aids, which provide emp loyees or customers mini-tools, so called transactions, for e xecutions of activities


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Question:

How many transaction types has the bank LIONE, which must be developed, implemented and maintained?


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Migration

Migrationsplan

Staffplan

Financeplan

Project 1...

Project n

Realization of the IS concept and the IS architectur e

As is IS concept

As is

architecture

To be IS concept

To be IS architecture

IS concept

IS architecture


IS project

IS support


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2005 2006 2007

Migration plan

Replacement of network

Evaluate/implement el. archive

New customer accounts management system

Desk „3000"

New securities administration El. stock market order management system

Customer support management system

...

...

Realization of the IS concept and the IS architectur e

IS concept

IS architecture


IS project

IS support


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Project portfolio: Overview of all projects

Σ Σ

Ongoing projects

Change request out of the ongoing business

mergers & acquisitions

Migration

MY EUR

Legaladjustments

IS concept

IS architecture


IS project

IS support


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Question:

How many projects are running at the same time at bank LIONE?


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Kinds of IS projects:

• Technical infrastructure projects (e.g. net replacement, PC infrastructure, Server infrastructure, el. archive)

• Application development projects (e.g. new teller system for customer hall “3000”)

• Application enhancement projects(e.g. new transactions for ticket selling and reservations on the counter)

• Implementation of standard application software(e.g. evaluation, adjustment, integration of a bought counter system)

• Customer relationship management projects(e.g. electronic banking via internet)

• Process automation projects(e.g. automatic cheque processing system)

• Management information and controlling systems(e.g. process performance monitoring in credit administration)

IS project: Execution of one sole project with a pr oject process model

IS concept

IS architecture


IS project

IS support


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User

Change needs

Change requests

Evaluation/acceptance/denial

Bundling into releases

Application release

IS support: Managing of incremental change

IS concept

IS architecture


IS project

IS support


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The 5 management level model of the St.Gall “Total Information Systems Management”

IS concept

IS architecture


IS project

IS supportIS = information system


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Meta data model for systems and technology planning

Migrationplan

Skills,

competences

Decision-makingprinciples

determines

To-beapplication

ITunit

IT supplier

IT set

Methods &procedures

contains

IT strategy

determines

defines

implementationrequires

Development

Testing

Production

relatesto

relatesto

Changemanagement

Integrationareas

definesstructure defines

contains

As-isapplication

can be

definesactivities

Meta data model PROMET/STP, Strategy-View (Source IMG)


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Project process model for systems and technology pl anning

Source: IMG


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Standard application software implementation


Process development

Implementation


Standardsoftware

implementation

Process andsystem


In-housedevelopment


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Process and system integration


Process development

Implementation


Standardsoftware

implementation

Process andsystem


In-housedevelopment


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In-house development


Process development

Implementation


Standardsoftware

implementation

Process andsystem


In-housedevelopment


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Implementation


Process development

Implementation


Standardsoftware

implementation

Process andsystem


In-house development


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Set up preproductionsystem

Integration testingIn test system Test Cases Test Results

Implementation Plan

Plan Master Data Transfer

Master Data Collection

Training

Final Fall-back Plan

Plan Transaction Data Transfer Install Resources Backup Concept

Setup Syst. Parameter

Create Data Migr. Progr.

Create Batchjobs

Create Interface Progr.

Setup authorizations

Finalize DocumentationOrg. DocumentationSystem docu.

Finalize Organizational Design

Processes

Activities

Forms

Downtime plan

Org. structure/Capacity plan

Install Test System Implementation Planning

Training Concept

Resources concept

Data Transfer Concept

Fall-back Plan

Project process model „Implementation“

Source: IMG

Fall-Back Plan: In case go-live is not successful and the legacy system must bereactivated.

Downtime Plan:In case the system is not available from time to time after go-live.

Backup Concept:Data backup and data archiving


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Integrationstest

System Implementation

TablesInterfaces

Authorizations

Install Productive System

Data Migration

Master Data

Transaction Data

Control

Last integration test in productive system

Test CasesTest Results

System Transfer to an Business (RUN)

System Doc. Org. Documentation.System Release

Implementation Plan – Final check

Backup Concept

Downtime Plan

Fall-back Plan

Resources

Simulation Implementation

Master Data Transfer Transaction Data Transfer

Productive System(Onsite)-Support

Incremental Enhancement

Operating/Monitoring

Backup

Hotline

Project process model „Implementation“ (continued)

Fall-Back Plan: In case go-live is not successful and the legacy system must bereactivated.

Downtime Plan:In case the system is not available from time to time after go-live.

Backup Concept:Data backup and data archiving

Source: IMG

corporate development and it - eth zürich · corporate development and it | thomas ... explained...

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