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Developing IT Strategy : People, Process & Technology Approach

The importance of IT for delivering the overall strategy

There is a worldwide consensus about the importance of IT for delivering the overall strategy of the organization. This is observed across most industries (IT/telecom, financial services, manufacturing and public sector -- average 93 percent).
CIO insight research study

COMPETITIVE FORCES MODEL Michael Porter

New Entrants

Supplier

Industry Competitors

Buyers

Substitute

Future competition is between internet-worked businesses, and IT is one of the most important enabler of this internetworking.

Enabling Technology The Net Interenterprise Computing Enterprise Infostructure Workgroup Computing Personal Multimedia

The Promise
The Internetworked Business The Extended Enterprise

The Change Wealth Creation, Social Development Recasting External Relationships Organizational Transformation Business Process and Job Redesign Task, Learning Efficiency

The Integrated Enterprise

The HighPerformance Team

The Effective Individual

Sumber: The Digital Company Don Tapscott (1996)


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Role of IT Increases
CRM
Marketing Automation Sales Force Automation Service Automation Contact Center

Suppliers

ERP
Procurement

eCommerce
Sell Side Buy Side

Exchange

2001 Compaq Computer Corporation

Customers
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SCM

BI/ Analytics

Role of IT Increases

Integration Level

Automate Inform
Narrow

Reinvent Integrate
Broad

Entity Scope

IT ROADMAP

Reinvent

Value network level CEO or startup team leads Transformation outcomes Enterprise Level Tight integration

Integrate

Line of business leads Revenue outcomes

Automate Inform

Process level Some integration CRM team leads Effectiveness outcomes

Activity level No integration Grassroots efforts Efficiency outcomes

Peran IT Strategy

The Corporate Strategy The Corporate Strategy

The Information Capital Current Current State State Target Target State State

Masterplan Masterplan

IT Strategy Framework
Description Current State Target State Analysis

Business Security Requirement

Business Framework
IT Strategy
Principles Data Function Platform People & Process Models Inventory Standard

IT Security Strategy

Definition Metrics Measurement

IT Architecture Framework

IT Master Plan

ISMS

Projects Metrics Buy-In Process People

ADIM

Implementation Framework

IT Security Cycle IT Implementation Plan Dimitri Mahayana, Budi Rahardjo , Arry Ahmad Arman, Jane A. Carbone
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Toolkit Process Flow

Business Framework IT/Arch. Framework Framework for Implem.


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1. Business Framework

Collect Business Current State Data

Analyze Business Current State Data

Business

Gap Analysis Define Opportunities

Business Target State

Collect Business Target State Data

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1. Business Framework

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Business Framework:

1. Describing

The Business Current State

Collect the most visible and most accepted business strategy documents that capture the business purpose (vision, mission, strategic and operational business plan, major program)

Interview the organizations leader (goal, what work today?, change?)

Recognize and account for history or culture and significant change in business direction (e-business, acquisition, new product, )

Key constraints Basic information of organization (5Ws: What, When, How, Who, Why)

Common organization information (company size, revenue, expenses, number of employees, type of customer, service location, )
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Business Framework:

1. Describing

The Business Current State

Contoh hasil describing business current state GaneshaCD adalah adalah sebuah perusahaan yang stabil, menjual CD musik, DVD film dan masih mempertahankan menjual kases musik serta poster musik dan film untuk para kolektor. GaneshaCD menjual hampir 5 juta items pada tahun 2003 dengan revenue mencapai 500 juta rupiah. Pada bulan Desember 2003, pimpinan perusahaan memutuskan untuk melakukan ekspansi ke penjualan buku dengan cara meng-akuisisi sebuah perusahaan GajahBuku Saat ini GaneshaCD memiliki 5 outlet di Bandung, 8 outlet di Jakarta dan 2 outlet di Bogor. dan seterusnya .

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Business Framework:

2. Analyzing Business Current State


Pendekatan-pendekatan yang dapat dilakukan:

Assessment Indicators Environmental Scan

Mengukur beberapa parameter penting dari fakta-fakta yang ada Mencari informasi dari riset industri, asosiasi bisnis atau perdagangan, dan publikasi-publikasi untuk mendeteksi pengaruh perubahan trend terhadap organisasi Menelusuri jalannya proses-proses bisnis kunci dalam perusahaan untk mengetahui kelemahan-kelemahan proses bisnis

Using Process Flow

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Business Framework:

2. Analyzing Business Current State


Apply assessment indicator to the following key indicator:
What are the worries/possible downsides of the current business plan? Analyze the strengths & weaknesses of the enterprise A challenge is a shorter-term situation the organization trying to accomodate These are forces outside of the control of the enterprise that require response Extract potential growth and cost saving opportunity available to the enterprise

Stress Points / Risks Strength & Weakness Challenges Environmental Factors Growth/Cost Saving Opportunity

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Business Framework:

2. Analyzing CASE
Hasil analisis business current state (assessment indicators approach), terhadap GaneshaCD Co :

Stress Points / Risks Strength & Weakness Challenges Environmental Factors Growth/Cost Saving Opportunity

pertumbuhan pendapatan mulai menurun seiring dengan meningkatnya kompetisi dari online music GaneshaCD Co. tidak memiliki sistem pembayaran online dan tidak memiliki penawaran khusus untuk gabungan musik dan buku permasalahan akurasi dan kecepatan pengiriman produk oleh outsource vendor baru mengakibatkan komplain customer. hukum tentang download free music secara online masih belum jelas akusisi Bookseller memperluas kesempatan penawaran kepada customer. Di samping itu, ada dua resource IT yang redundant dan tidak kompatibel.
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Business Framework:

3. Constructing Business Target State


Pendekatan-pendekatan yang dapat dilakukan:

Menggunakan assesment indicators Menggunakan process flows Menggunakan digging down

Membuat pernyataan-pernyataan positif untuk mendeskripsikan target state sebagai jawaban dari current business analysis

Memperbaiki process flow

Menyatakan target-target dan inisiatif yang terdokumentasi dan melakukan dekomposisi, misalnya, business leader yakin bahwa terlalu cepat mengadopsi teknologi baru sebelum teknologi yang ada digunakan secara maksimal

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Business Framework:

3. Constructing

Business Target State, CASE!

Stress point lebih rileks / risk dimitigasi Weakness teratasi, strength diperkuat Challenge terpecahkan Environment teratasi Growth/cost saving diperoleh

Revenue is growing due to enhanced website

GaneshaCD Co. has an easy-to-use, online, automatic bill payment capability New B2B e-commerce exchange has improved the accuracy of inventory/shipping and reduce the number of customer complaints The strategy for competing with downloading of free music is in place and addresses potential regulatory outcomes Service offering has expanded through the acquisition of bookseller

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Business Framework:

5. Gap & Opportunity Analysis


Gap adalah perbedaan antara current state dan target state Opportunity mendeskripsikan aksi yang dapat dilakukan untuk mengatasi perbedaan antara current dan target state. Contoh (untuk Stress Point)
Current state : Pertembuhan pendapatan mulai menurun seiring dengan meningkatnya kompetisi dari online music Target state : Pendapatan meningkat dengan adanya full-service website. Customer dan Sales Agent dapat mengakses website lengkap dengan sistem pemesanan dan pembayaran Opportunity : Konsolidasi website. Kembangkan website dengan sistem pemesanan dan pembayaran yang nyaman dan terintegrasi
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Sample, putting it all together!

Description
Key Facts

Analysis

Current State

(GaneshaCD Co. )has no mechanized way to integrate publications, special promotions and combined offerings into its web catalog, and cannot accept on-line payments.

Assessment Indicators Result Growth Opportunity Combining book, CD and promotional offers could enhance revenue.

Desired Target State

Reverse Assessment Indicator Customer can order any combination of products and pay on-line.

Target Opportunities Sell Combo Offers that include music, books, gifts and / or new products. Accept on-line and / or automatic bill payment.

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IT Strategy of GaneshaCD

Vision

Objective
The best customer centric and full e/m-commerce support IT in 2010

Strategy
1. Strong Customer and Sales Data Base Integration

Customer oriented IT

2. Focus on e-commerce and m-commerce infrastructure development (people, process and technology)

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October 21, 2005


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Penutup

1.

IT Strategy yang tepat membantu perusahaan dalam mencapai business target.

2.

IT Strategy, IT Master Plan dan IT Security Strategy maupun ISMS (Information Security Management System) sebaiknya dikembangkan technology. dalam satu kerangka people, yang process utuh dan mempertimbangkan aspek maupun

3.

Proses pembuatan IT Strategy dan IT Master Plan dimulai dari Business Objectives penerjemahan kepentingan bisnis ke dalam aspek-aspek IT Strategy yang mendukungnya adalah critical bagi keberhasilan IT Strategy.

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Merci bien Arigatoo Matur Nuwun Hatur Nuhun Matur se Kelangkong Syukron Kheili Mamnun Danke Terima Kasih

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