The Evolving Role of

Information Systems and

Technology in Organizations:
A Strategic Perspective
Overview
• Describe the Information Systems (IS), Information Technology (IT) and
Digital
• Explain the Digital Disruption: the impact of IS/IT
• Describe the Three-era Model of Evolving IT Application in Organization
• Describe the Classification of Strategic Information Systems
• Describe the Success Factors in Strategic Information Systems
• Describe the A Portofolio Management Perspective on IS/IT Investment
• Describe the What IS an IS/IT or Digital Strategy?
• Describe the From Strategic Alignment to Strategy Co-evolution
• Briefly explain Digital Strategies for 21 st Century : Building a Dynamic
Capability to Leverage IS/IT
Objectives
• understanding the difference between SI and IT and its relevance
• understanding the impact of SI and IT use on organization and
industry
• knowing the model that can be used for IT application development
• understanding the purpose of applying SI strategy and know the
success factor of the application / IT is seen as an investment
• understanding IS and IT strategy differences as well as how they
relate within the company's business strategy
• understanding the differences in Strategic Alignment and Strategy
Co-evolution
• understanding Dynamic Capability as a 21st century digital
strategy
Contents
Information
A Classification of A Three-era Model
Systems (IS),
Strategic of Evolving IT
Information
Information Application in
Technology (IT) and
Systems Organization
Digital

A Portofolio Success Factors in

What IS an IS/IT or Management Strategic
Digital Strategy? Perspective on IS/IT Information
Investment Systems

Digital Strategies
From Strategic
for 21 st Century :
Digital Disruption: Alignment to
Building a Dynamic
the impact of IS/IT Strategy Co-
Capability to
evolution
Leverage IS/IT
Introduction
Introduction
Forces Affecting the Pace & Effectiveness of Progress in Using IT/IS
& in Delivering Business Benefits
1. The capabilities of the technology
2. The economics of acquiring provisioning, deploying and
maintaining the technology
3. The skills & abilities available – in house or external sources to
design and implement the applications
4. The skills & competences within the organization to use the
applications and information
5. The capability to manage any organizational changes
accompanying technology deployments
6. The pressures on the particular organization or its industry to
improve performance or adapt to changing circumstances
INFORMATION SYSTEMS (IS),
INFORMATION TECHNOLOGY
(IT), and ‘Digital’
IS and IT Definition
• It/ICT refers specifically to technology, essentially hardware,
software, and telecommunication networks, include devices :
• Tangible (eg servers, PC, routers, cables, tablet)
• Intangible (eg. Software, data management )
• IT/ICT facilities the acquisition and collection, processing, storing,
delivery, sharing, presentation information and other digital
content such as video and voice
• IS – means by which people & organizations, increasingly utilizing
technology, gather, process, store, use and disseminate
information
• IS – part of the wider domain of human language, cognition,
behaviour and communication
• Some IS otomated by IT
Digital Disruption : The Impact of
IS/IT
• “Big Data” & analytical is another interaction -> ‘Information
Revolution”
• Digital disruption 2 aspect:
• Organizations :
• reduce transaction cost,
• search information,
• transact with worker, supplier and customers -has been reffered to as a frictionless
economy
• Industries:
• Reduce unplanning downtime
• Create innovative business models and new value for customer
• Making data available to access – open data to public
• etc
The Characteristics of Digital
Disruption
A Three-era Model of Evolving IT
Application in Organizations
• The prime objective of using IS/IT in the eras differs:
• Data Processing to improve operational efficiency
by automating information-based processes
• Management Information Systems to increase
management effectiveness by satisfying their
information requirements for decision making
• 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)
A Three-era Model of Evolving IT
Application in Organizations
A Classification of the Strategic
Uses of IS/IT
• The four main types of strategic system appear to be:
1. Share information via technology-based systems with
customers/consumers and/or suppliers and change the nature
of the relationship
2. Produce more effective integration of the use of information in
the organization’s value-adding processes
3. Enable the organization to develop, produce, market and
deliver new or enhanced products or services based on
information
4. Provide executive, management, professionals with information
to support the development, implementation and evaluation
Three types of ‘revolutionary’ uses
of IT
1. Business process redesign—using IS/IT to realign
business activities and their relationships to achieve
performance breakthroughs;
2. Business network redesign—changing the way
information is used by the organization and its trading
partners, thereby changing how the industry overall
carries out the value-adding processes;
3. 3. business scope redefinition—extending the market or
product set, based on information or changing the role of
the organization in the industry
Main Type of Strategic Systems
• Linking to Customers, Business Partners and Suppliers
• Share information via technology based systems with
customer/consumer/supplier and change the nature of the relationship
• Improved Integration of Internal Processes
• Produce more effective integration of the use of information in the
organization’s value adding processes
• Information-based Products and Services
• Enable the organization to develop, produce, market and deliver new or
enhanced products or services based on information
• Support Strategic Decision Making
• Provide executive management with information to support the
development and implementation strategy
The Information System
Management Environment
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
• cost reductions, 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
• what they do with the product or service
5. Business-driven innovation, not technology-driven
• pressures of the marketplace drove developments in most cases
6. Incremental development
• not the total application vision turned into reality
7. Using the information gained
• the systems to develop the business
8. Monetizing Infomation
• Always known that information has, or should have, a value
A Portofolio Management
Perspective on IS/IT Investment
• Organization can consider the implications of these forces:
• Infusion—the degree to which an organization becomes
dependent on IS/IT to carry out its core operations and manage
the business
• Diffusion—the degree to which IT has become dispersed
throughout the organization and decisions concerning its use are
devolved
A Portofolio Management
Perspective on IS/IT Investment
IS and IT Strategies
• IS/IT - improving effeciency, effectiveness, and or
competitiveness
• Treat IS/IT like other part of business -> develop strategies for IS
and technology that are derived from and integrated with other
components of the strategy of the business
The relationship between business,
IS and IT strategies
From Strategy Alignment to
Strategy Co-evolution
• Strategy alignment – extent to which the organization’s
portofolio of IS/IT investments directly enables and
support its business strategy
• Strategy Alignment Model (SAM) assesses the range of
strategc choices facing managers and explores how they
interrelate
The Strategy Alignment Model
(SAM)
Digital Strategies for 21 st
Century : Building a Dynamic
Capability to Leverage IS/IT
The Context for IS/IT Strategy :
External Context
The Context for IS/IT Strategy :
Internal Context
Summary
• The evolution of information systems and technology in a business and
organizational context has been erratic, but, without doubt, IS/IT has
inexorably increased its importance as the economics and capability have
enabled more to be achieved
• We are now well into the third era, with bigger prizes and, reciprocally,
greater risks, when the business can become critically dependent on its
investment in systems not just for its success but for its very survival—
planning for information systems has become strategic for many companies
• Increasing business pressures and the improving capabilities and
price/performance of IT have led to the consideration of more radical
strategies than previously
• The evolution of strategic planning for IS/IT is that it is now clearly a process
that depends on users and senior management involvement for success. It
has become difficult to separate aspects of IS/IT strategy from business
strategy
Question & Answers