When the process driven by technology thinking it is termed “bottom up” planning,

 What is strategy?
 Strategy formulation maybe relatively simple but delivering a strategy is not that
simple.
 Strategy can be more formally defined as 'an integrated set of actions aimed at
increasing the long-term well being and strength of the enterprise'.

Problems with the past information system strategy:

 Missed opportunities and inefficient use of resources

 A firm’s success was attributed only to how it deploys its technology without taking
into account the business changes

So, a clear need to align information systems strategies with the business strategy.

This needs a change and a change needs a strategy.

 Consequences of a lack of strategy

 Differences between information systems and information technology

strategies

 Different kinds of organisations will have different strategies…

Like large firms will have formalised strategies, small firms may formulate strategies
informally

Development of information systems strategies

  Strategy + IT+ IS +business environment+ external and internal inputs
 At the heart of the figure is strategy formulation and implementation, driven by
“why”, targeted by “what”, and constrained by “how”.

Explain the following terms in the figure above:

 External business environment

 Internal business environment
 The internal IS/IT environment
 The external IS/IT environment

The strategy process

Implementation of strategy
Common problems

Some of the main reasons why such strategy studies fail are as follows:

• Top management commitment to implementing the plan cannot be obtained.

• The planning exercise takes too long for management to sustain interest - it is also very expensive and takes up too
much of the management's time.

• The process produces an overwhelming volume of detail that is difficult to interpret.

• The resulting plan fails to spell out resourcing and financial implications.
Getting started

For the companies who haven’t made a strategy

There are three main approaches adopted for strategic planning, namely:

• Set up a special IS/IT planning function to carry out the task, located within the IT department, which then owns the
strategy.

• Employ consultants to bring in the necessary skills to facilitate the process.

• Set up a task force or steering group to do the job, preferably led by an experienced and respected business
manager.

Setting priorities is also important…

 What is most important to do

 What is capable of being done

 What is likely to succeed

Information technology infrastructure is the means whereby systems are developed and operated

Every organisation which wants to benefit from IT investments needs a strategy to assure success.
Different organisations will have different approaches to implement the strategy.
Strategies must be driven by business requirements not by technology opportunities, priorities must be recognised

Strategic analysis tools

The next question that arises is: “How shall we undertake the necessary strategic analysis, in terms of the specific tools and
techniques that are available to us?”

Pg 19