Bottom Up

(Evaluation) Approaches
 IS Planning

Top-Down Planning
Approaches Inside-Out Innovation

CSF Approach Value Chain

Bottom-Up Evaluation
Approaches

System Audit
Gap Analysis
Matrix
IS Plan critical for Business

Information

Business Systems Plan

Plan

Business
Goals
and

Objectives
Strategic Alignment

Business
Strategy

IS
Strategy

Technology People Processes

Metrics

Business Value and Alignment

 Bottom Up
(Evaluation) Approaches
IS Planning Components

Situation Analysis:
Where are we Gap Analysis
now?

Strategy Formulation:
Where do we want to be?
What is possible?
What are the best practices?

Strategy
Implementation:
How we want to
get there?
Evolutionary Planning

Need for IS (and their requirements) evolves as

the business evolves
projects proposed as their needs are apparent
reviewed by IS Steering committee
prioritised
projects underway
projects scheduled to start
Evolutionary Planning - Advantages

Projects started with minimal study time and

expense
Intuitive judgement replaces lengthy analyses
Adaptive
priorities for projects change as business needs
change
Evolutionary Planning Dis Advantages

Hodgepodge of systems
clumsy and ill-fitting interfaces
number of separate systems, in search of a theme
Burden on judgement
Consensus oriented group decision making
can be dominated by a few individuals
info needs of certain groups do not find attention
Development proceeds in fits and starts
There exists a plan, but on discovered needs
Traditional approaches to IT Solutions

11
Objectives of Bottom-up Evaluation

Understand and evaluate the current IS

environment
coverage
current IS position

do we need to build on the current applications

portfolio?
Methodology of Bottom-up Evaluation

An audit or survey of current systems

map activities, processes and decisions against
functions
Evaluation of each current application
business value
technical value
systems audit grid
Gap Analysis

Gaps by Type

Gaps by Function/Processes

Gaps of Integration
Gap Analysis - Gap by Type

Type of IS
TPS, MIS, DSS
DSS most common gap
Important and repetitive decisions impact
maximum
Gap Analysis - Gap in the Application Portfolio

Portfolio of IS
Mandatory Applications
Industry Standards, Inter-Organizational interfaces
Strategic Systems
Infrastructure Investments
Maintenance & Enhancements
System Renewals
Traditional Developments
Niche/Innovative Applications
Gap Analysis Gap By Function/Process

Functions:
Individual business Functions
Prioritize Functions which are more important
(How?)
Processes:
Core Processes
Value-addition
Gap Analysis - Gaps of Integration

Links between activities not being reflected

in the IT application

SILOs

Information linkages are not exploited

Gap Analysis - Gaps of Integration

Important Linkages
Integration possibilities

High level Process Modelling

Dependent processes
System Audit Matrix

Technological Soundness
(providers)
L H
L

Business
Value of IT
(users)

H
Questions to ask

Tech Condition of a Business Value

system Impact on Business
Reliability of the Ease of Use
system Scale of Use
Response time Sophistication of
Cost Efficiency Use
Ease of maintenance
Evaluated by Users
Evaluated by
specialists/providers
System Audit Matrix System never
necessary
Technological Soundness Advocated, driven,
(providers) designed by IT
L H professionals
L
Business have
Discard/
Divest changed
system outdated,
no longer required
Business
Value of IT

Superseded by a
(users)

replacement
H
application on
new technology
System Audit Matrix Technicians
solution looking
for an application
Technological Soundness
(providers)
Users did not use
L H
the system
L System ahead of
Discard/ Review/ time/business
need
Divest Reexamine

Can it be
Business
Value of IT
(users) enhanced to add
business value
H
user
commitment
+ functionality
System Audit Matrix

Technological Soundness
(providers) System kept
L H running beyond
L
their life
Discard/ Review/
Divest Reexamine Maintenance /
Business Renewal not
Value of IT
(users) Renew / prioritized
Business
Upgrade

H exposure
System Audit Matrix

Technological Soundness
(providers)
Accord priority
L
L H
for maintenance
Discard/ Review/
and
Divest Reexamine enhancement
Business
Value of IT
(users) Renew / Enhance &
Upgrade Maintain