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IS/IT STRATEGY FRAMEWORK:

INPUT
Prepared for course of Information System Strategic Planning
Instantiation Aspect
5th Topic

Source:
1. John Ward & Joe Peppard, Strategic Planning for Information System, John
Wiley & Sons, Ltd, 3rd ed, 2003
2. Husni S. Sastramihardja, Course Handout, 2015

IS/IT STRATEGY
FORMULATION AND
PLANNING PROCESS
Initiate Strategy Process

Understand the Current Situation and Interpret Business

Needs
Determine the business IS Strategy
Define Information and Systems Architecture
Formulate IT Supply Proposals
Prepare migration plans and business case

INPUT FOR IS/IT STRATEGY

Internal business environment: current strategy,
objective, resources
External business environment: economic, industrial
and competitive climate
Internal IS/IT environment: current IS/IT perspective in
the business, portfolio
External IS/IT environment: technology
trends and opportunities

INTERNAL BUSINESS
ENVIRONMENT
Elements that need to be identified, analyzed and
understood are:
Business strategy
Current business processes, activities, and main
information entities & how they relate to other entities;
Organizational environment: structure, assets & skills,
knowledge, competencies, values, style, culture, and
relationship

From these the information, systems and technology

needs arise and can be prioritized.

WHAT TO DO?
Identify current strategy and any emergent new elements.
Interpret & analyze the strategy & describe it in a structured
manner.
Compile & confirm the consequent IS requirements.

CONSTITUENTS OF THE
BUSINESS STRATEGY
Mission: an unambiguous statement of what the business
does and its long-term purpose
Vision: an easy identify picture of what the business will be in
the future, and how it will operate
Goals: the set of major achievements that will accomplish
the vision
Objectives: the targets (unambiguous and measurable) for
accomplish the business vision
Strategies: the methods to meet the business objectives
Critical success factors (CSFs): a few areas have to be right
in order for the business to flourish
Business drivers: a set of critical forces for the business to
change
Business area plans: the plan of the various areas of the
business, which document the response or information
needs to the business strategy

TWO TYPES OF ACTIVITIES

DRIVEN BY
THE BUSINESS STRATEGY
Activities that must be
performed in order to
contribute directly to
achievement of business
objectives, and their
supporting information
needs, have to be
identified.

Secondary activities that

have to be performed to
measure performance
toward achieving those
objectives, must be
identified.

BUSINESS PROCESSES,
ACTIVITIES & KEY ENTITIES
Business processes: the sets of interlinked activities to deliver
specific outputs to customers
Activities: the elements of processes
To produce, promote and distribute products or services
To develop, support, and administer the infrastructure
To measure the performance against objectives

Key entities: important data and information associated with

business processes
Models

Process flow models or process dependency charts

Hierarchical activity models or functional decomposition diagrams
Entity relationship models
Data flow diagrams (DFDs)
Activity/entity matrices
Class diagram

Architecture Model
Business Model

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Business data model

Business process model

Process/Entity
matrix

R
C

IS model

Entity life history

IS process model
IS/Entity
matrix

App 1

R
App 2

IS data model

App 2
IS functional
model
App 1

App 1
App 2

EXAMPLE:
ARCHITECTURE
MODEL

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EXAMPLE: SWIMLANE
DIAGRAM

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EXAMPLE:
FLOWCHART

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IS STRATEGIC PLAN CONTENTS:

PART 1 UNDERSTAND
CURRENT SITUATION
Management Overview
The Plan
Purpose
Process
Scope

High-Level Business Direction

Business plan (mission, vision, values, goals, objectives, business
priorities)
Business information (history, description, financial summary,
industry summary, environmental factors, internal strengths and
weakness)
Environmental requirement
External requirement

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CONT..
Detailed Business Direction
Business requirements
Business processes
Information needs

Current Information Systems Situation Internal

Information systems environment

IS Organizational structure
Expenditures
IS Infrastructure & locations

Current Information Systems External

Information systems industry trends
Competitor profiles