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      IS Strategic Planning - M7233



            RESUME CHAPTER 1
The Evolving Role of Information Systems and
        Technology in Organizations:
           A Strategic Perspective



                    Oleh:
                ABDURRASYID
                 1112200642
                Kelas : 04 MBM




        UNIVERSITAS BINA NUSANTARA
  MANAJEMEN SISTEM INFORMASI JENJANG S2
                 JAKARTA
                    2012
IS Strategic Planning - M7233




        Learning from experience—the successes and failures of the past—is one of the most
important aspects of strategic management. much learning about the capability of IT is
experiential, and that organizations tend to learn to manage IS/IT by doing, not appreciating the
challenges until they have faced them.
    Factors that affect the pace and effectiveness of progress in using IS/IT and in delivering
business benefits include:
        the capabilities of the technology;
        the economics of deploying the technology;
        the applications that are feasible;
        the skills and abilities available, either in-house or from external sources, to develop the
        applications;
        the skills and abilities within the organization to use the applications;
        the pressures on the particular organization or its industry to improve performance.

INFORMATION SYSTEMS (IS) AND INFORMATION TECHNOLOGY (IT)
         IT refers specifically to technology, essentially hardware, software and
telecommunications networks.
         IS actually is part of the much wider domain of human language and communication, that
IS will remain in a state of continual development and change in response both to technological
innovation and to its mutual interaction with human society as a whole.’
         Why organizations may fail to realize any benefits from their investments in IT-
investments are often made in technology without understanding or analysing the nature of the
activities the technology is to support—either strategically or operationally—in the organization.

E-BUSINESS AND E-COMMERCE
        E-commerce refers to the conduct of commerce or business electronically—essentially
using Internet technologies. E-business, on the other hand, has come to refer to the automation of
an organization’s internal business processes using Internet and browser technologies.
        Three aspects make the Internet distinct from other technologies from other
technologies. First, it is pervasive, second, it is interactive, third, its virtual nature.

THE THREE-ERA MODEL
  1. Data processing to improve operational efficiency by automating information based
     processes.
  2. Management information systems to increase management effectiveness by satisfying
     their information requirements for decision making.
  3. Strategic information systems to improve competitiveness by changing the nature or
     conduct of business (i.e. IS/IT investments can be a source of competitive advantage).




                                                                                             Page | 1
IS Strategic Planning - M7233




STRATEGIC USES OF IS/IT: CLASSIFICATION, FACTORS FOR SUCCESS AND
MANAGEMENT IMPLICATIONS
      The four main types of strategic system appear to be:
   1. Those that share information via technology-based systems with customers/ consumers
      and/or suppliers and change the nature of the relationship.
   2. Those that produce more effective integration of the use of information in the
      organization’s value-adding processes.
   3. Those that enable the organization to develop, produce, market and deliver new or
      enhanced products or services based on information.
   4. Those that provide executive management with information to support the development
      and implementation of strategy (in particular, where relevant external and internal
      information are integrated in analysis).

DIFFERENT VIEWS OF STRATEGIC INFORMATION SYSTEMS




SUCCESS FACTORS IN STRATEGIC INFORMATION SYSTEMS
  1. External, not internal, focus: looking at customers, competitors, suppliers, even other
     industries and the business’s relationships and similarities with the outside business
     world
  2. Adding value, not cost reduction: although cost reductions may accrue due to business
     expansion at reduced marginal costs, ‘doing it better, not cheaper’ seems to be the
     maxim.
  3. Sharing the benefits: within the organization, with suppliers, customers, consumers and
     even competitors on occasion!
  4. Understanding customers and what they do with the product or service: how they obtain
     value from it, and the problems they mayencounter in gaining that value
  5. Business-driven innovation, not technology-driven: the pressures of the marketplace
     drove developments in most cases
  6. Incremental development, not the total application vision turned into Reality



                                                                                       Page | 2
IS Strategic Planning - M7233




    7. Using the information gained from the systems to develop the business.

RELATIONSHIP BETWEEN BUSINESS, IS, AND IT STRATEGIES




ALIGNING FOUR DOMAINS AS STRATEGIC ALIGNMENT MODEL




THE CONTEXT FOR IS/IT STRATEGY
        Before embarking on developing an IS strategy, it is important to understand the context
within which this strategy is being developed. This context is likely to be different in different
organizations. In this section, two perspectives are presented. The first is largely an internal
perspective focusing on the role of IS/IT in the organization. The second is an external
perspective exploring the overall dynamics of IS/IT.
    1. The Internal Context
    2. The External ContexT




                                                                                           Page | 3

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M7233 is strategic planning summary chapter 1 rasyid

  • 1. Tugas 1 IS Strategic Planning - M7233 RESUME CHAPTER 1 The Evolving Role of Information Systems and Technology in Organizations: A Strategic Perspective Oleh: ABDURRASYID 1112200642 Kelas : 04 MBM UNIVERSITAS BINA NUSANTARA MANAJEMEN SISTEM INFORMASI JENJANG S2 JAKARTA 2012
  • 2. IS Strategic Planning - M7233 Learning from experience—the successes and failures of the past—is one of the most important aspects of strategic management. much learning about the capability of IT is experiential, and that organizations tend to learn to manage IS/IT by doing, not appreciating the challenges until they have faced them. Factors that affect the pace and effectiveness of progress in using IS/IT and in delivering business benefits include: the capabilities of the technology; the economics of deploying the technology; the applications that are feasible; the skills and abilities available, either in-house or from external sources, to develop the applications; the skills and abilities within the organization to use the applications; the pressures on the particular organization or its industry to improve performance. INFORMATION SYSTEMS (IS) AND INFORMATION TECHNOLOGY (IT) IT refers specifically to technology, essentially hardware, software and telecommunications networks. IS actually is part of the much wider domain of human language and communication, that IS will remain in a state of continual development and change in response both to technological innovation and to its mutual interaction with human society as a whole.’ Why organizations may fail to realize any benefits from their investments in IT- investments are often made in technology without understanding or analysing the nature of the activities the technology is to support—either strategically or operationally—in the organization. E-BUSINESS AND E-COMMERCE E-commerce refers to the conduct of commerce or business electronically—essentially using Internet technologies. E-business, on the other hand, has come to refer to the automation of an organization’s internal business processes using Internet and browser technologies. Three aspects make the Internet distinct from other technologies from other technologies. First, it is pervasive, second, it is interactive, third, its virtual nature. THE THREE-ERA MODEL 1. Data processing to improve operational efficiency by automating information based processes. 2. Management information systems to increase management effectiveness by satisfying their information requirements for decision making. 3. Strategic information systems to improve competitiveness by changing the nature or conduct of business (i.e. IS/IT investments can be a source of competitive advantage). Page | 1
  • 3. IS Strategic Planning - M7233 STRATEGIC USES OF IS/IT: CLASSIFICATION, FACTORS FOR SUCCESS AND MANAGEMENT IMPLICATIONS The four main types of strategic system appear to be: 1. Those that share information via technology-based systems with customers/ consumers and/or suppliers and change the nature of the relationship. 2. Those that produce more effective integration of the use of information in the organization’s value-adding processes. 3. Those that enable the organization to develop, produce, market and deliver new or enhanced products or services based on information. 4. Those that provide executive management with information to support the development and implementation of strategy (in particular, where relevant external and internal information are integrated in analysis). DIFFERENT VIEWS OF STRATEGIC INFORMATION SYSTEMS SUCCESS FACTORS IN STRATEGIC INFORMATION SYSTEMS 1. External, not internal, focus: looking at customers, competitors, suppliers, even other industries and the business’s relationships and similarities with the outside business world 2. Adding value, not cost reduction: although cost reductions may accrue due to business expansion at reduced marginal costs, ‘doing it better, not cheaper’ seems to be the maxim. 3. Sharing the benefits: within the organization, with suppliers, customers, consumers and even competitors on occasion! 4. Understanding customers and what they do with the product or service: how they obtain value from it, and the problems they mayencounter in gaining that value 5. Business-driven innovation, not technology-driven: the pressures of the marketplace drove developments in most cases 6. Incremental development, not the total application vision turned into Reality Page | 2
  • 4. IS Strategic Planning - M7233 7. Using the information gained from the systems to develop the business. RELATIONSHIP BETWEEN BUSINESS, IS, AND IT STRATEGIES ALIGNING FOUR DOMAINS AS STRATEGIC ALIGNMENT MODEL THE CONTEXT FOR IS/IT STRATEGY Before embarking on developing an IS strategy, it is important to understand the context within which this strategy is being developed. This context is likely to be different in different organizations. In this section, two perspectives are presented. The first is largely an internal perspective focusing on the role of IS/IT in the organization. The second is an external perspective exploring the overall dynamics of IS/IT. 1. The Internal Context 2. The External ContexT Page | 3