ICT in Business
ICT StrategyPart 3a: Understanding the present situation
Bas Kruiswijk
Leiden University, April 2010
© Twynstra2
Analyzing the application portfolio
• ICT assessment– Categorize the application portfolio by quality and
importance• Portfolio analysis
– Categorize applications as “Strategic”, “High potential”, “Key operational” and “Service”
• Analysis of project portfolio– Which current or planned projects contribute to
solving issues found in the assessment / portfolio analysis
• ICT opportunityscan– Which technological opportunities contribute to
solving issues found in the assessment / portfolio analysis
© Twynstra3
ICT AssessmentKey questions
• Key questions– Which information systems (applications)
are in place or planned– What is their strategic importance– What is their operational importance– What is the end-user quality– What is the quality in terms of
maintenance– What are the exploitation costs
© Twynstra4
ICT AssessmentImportance
Strategic• What is the contribution
of an application to specific strategic goals?
• Does the application support the organization in realizing the business strategy?
Operational• What is the contribution
of an application in the support of the primary and secondary processes?
• Does the primary process depend on the application?
• How critical is the application to the primary process?
© Twynstra5
ICT AssessmentQuality
End-user• Quality of the information
(accurate, complete, timely, precise, verifiable)
• Quality of the application (reliable, effective, efficient, robust)
Maintenance• Flexibility• Maintainability• Testability• Portability• Connectivity• Reusability• Extendability
• Is the application up-to-standards?
© Twynstra6
ICT Assessment
Invest Healthy
Ignore Service
Importance vs. quality
Importance
Qu
ali
ty
+
+-
-
Quality
Use
Maintenance
+
+-
-
Importance
Strategic
Operational
+
+-
-Exploitation costs
< 1 Million
1 – 2 Million
> 2 Million
Information system
1 = Personnel2 = Sales3 = Finance4 = Salary5 = Project6 = Procurement7 = Production
6
4
6
52
1 5
7
3
2
1
21
4
6
5
37
3
4
7
Source: SoftwareEngineering ResearchCentre (SERC)
© Twynstra7
Portfolio analysis
Strategic High potential
Applications that are critical to sustaining future business strategy
Applications that may be important in achieving future success
Applications on which the organization currently depends for success
Applications that are valuable but not critical to success
Key operational Support
Source: McFarlan
© Twynstra8
Portfolio analysisClassifying the applications (1)
• Questions (for every application (component)); – If the development succeeds will it…
OR– Is the application delivering benefits that…a) Result in a clear competitive advantage for the business?b) Enable the achievement of specific business objectives
and/or critical success factors?c) Overcome known business disadvantages in relation to
competitors?d) Avoid foreseeable business risks becoming major problems
in the near future?e) Improve the productivity of the business and, hence,
reduce long term costs?f) Enable the organization to meet statutory requirements?g) Provide benefits not yet known, but may result in a) or b)?
© Twynstra9
Portfolio analysisClassifying the applications (2)
a) Result in a clear competitive advantage for the business?b) Enable the achievement of specific business objectives and/or critical success factors?c) Overcome known business disadvantages in relation to competitors?d) Avoid foreseeable business risks becoming major problems in the near future?e) Improve the productivity of the business and, hence, reduce long term costs?f) Enable the organization to meet statutory requirements?g) Provide benefits not yet known, but may result in a) or b)?
High potential
Strategic
Key operational
Support
a) Yes
b) Yes
c) Yes
d) Yes
e) Yes
f) Yes Yes
g) Yes
© Twynstra10
Example portfolio classificationexample for manufacturing company
Strategic High potential
* Direct marketing and telesales** Advertising and promotion-campaign man.** Sales forecasting? Customer Relationship management
** E-procurement? On-line customer specification system** Product tracking? Product profitability analysis** Data warehouse / customer analysis
* Product database / Inventory management* Order processing, dispatch, invoicing* Production control* Purchasing materials() Costing systems() Sales analysis* Warehouse management* Wholesaler EDI
* Payroll and personell systems* Ledgers (AR/AP)* General ledger and budgetting* Office systems() Purchasing – General* Samples management
Key operational Support
* Existing system() Existing system needs improvement
** Planned system? Potential system
© Twynstra11
Support of business processesBottlenecks and blind spots
• Bottle-necks– Support of business process– Maintenance costs– Flexibility (future changes)
• Blind spots– Lack of support of business processes
• Possible improvements– Different applications supporting the same
business processes– Achieve efficiency by integration or
improvement of applications
© Twynstra12
Analysis of project portfolioCurrent or planned projects
• Current plans for the future– What are the ongoing or planned projects
(new applications or renewal of existing ones)
• Key questions – will these projects…– Resolve bottlenecks– Fill-in blind spots– Take advantage of technological
opportunities
© Twynstra13
Technological opportunities
• How can ICT contribute to resolve the bottle-necks and fill-in the blind spots?
• How can ICT contribute to the realization of business goals?
– ICT Opportunity scan– Analysis of ICT Trends
© Twynstra14
ICT opportunityscan
Market potentia
l
Few specialist
s (laborato
ry)Prototype
Proven
Investments
Maturity
Let it grow Use
Be aware Explore
Quantum computing
Virtual reality
Workflow management
Portals
Web enabling
Mobile communication
© Twynstra15
IT Trends
Cash generation
Market growth
Source:IT Trends Institute,Trends in IT 2002Based on BostonConsulting matrix
Mobile internet
Virtual realityPSABluetooth
UMTS Jini.NET / J2EE
HLT
P2PW-LAN
Voice PortalsVoIP
ASPe-CRM
SCM
Web services
XML
ADSL
Business Intelligence
Linuxe-Commerce
e-Business
SAN e-PaymentSmartcards
WAP
Network computer
DNS HTML
Groupware
EDI
OOPDA’s
Mobile telecom
Internet
IntranetWarehouses ERP
DSS/EIS/MISMiddleware
Call CenterDIS
CASE / 4GL
‘Question marks’ ‘Stars’
‘Dogs’ ‘Cash cows’low high
low
high
© Twynstra16
Gartner’s Hype cycle
Source: Gartner Group
© Twynstra17
Example 1
© Twynstra18
OnderzoekenLeren
Hanze portaal
Infrastructuur
kantoorautomatisering
Ket
enpo
rtaa
lM
anagementportaal
bedrijfsvoering
leren kwalificeren
kernregistraties
mail en agendaarchivering
documentmanagement
samenwerken(conferencing, forum
chat)zoeken
identificatieauthenticatieautorisatie
monitoringlogging
Middleware
Ver
antw
oord
ings
rapp
orta
geM
anagementrapportage
primair proces
onderzoeksvraag
haalbaarheidscheck
uitvoeringOpleverings-resultaten
opbouwenportfolio
StudentVolg
Onderzoeksmanagement
studenten
beherenstudent-
gegevens
faciliteiten
beherenfaciliteiten
personeel
beherenpersoneel
onderwijs-aanbod
beherenonderwijs-
aanbod
content
beherenkennis
financiën
beherenfinanciën
relaties
beherenrelaties
beheren
Opdracht-formulering
planning
onde
rste
unen
best
uren
uitv
oere
n
projecten
beherenproject-
gegevens
beschikbaar stellen
instroom planning
uitvoering toetsing uitstroom
Onderwijslogistiek
© Twynstra19
OnderzoekenLeren
Hanze portaal
Infrastructuur
kantoorautomatisering
Ket
enpo
rtaa
lM
anagementportaal
bedrijfsvoering
leren kwalificeren
kernregistraties
mail en agendaarchivering
document management
samenwerken(conferencing, forum
chat)zoeken
identificatieauthenticatieautorisatie
monitoringlogging
Middleware
Ver
antw
oord
ings
rapp
orta
geM
anagementrapportage
primair proces
opbouwenportfolio
StudentVolg
studenten
beherenstudent-
gegevens
faciliteiten
beherenfaciliteiten
personeel
beherenpersoneel
onderwijs-aanbod
beherenonderwijs-
aanbod
content
beherenkennis
financiën
beherenfinanciën
relaties
beherenrelaties
beherenonde
rste
unen
best
uren
uitv
oere
n
projecten
beherenproject-
gegevens
beschikbaar stellen
instroom ontwikkeling planning
uitvoering toetsing uitstroom
Onderwijs logistiek
Video-conf
BB ewo
MSN
BBsearch
O-bestanden
RegistratieMAC adressen
ActiveDir
Maggieprinters Outlook BB CS DECOS
Topdesk
LanDesk
HSA Alumni Multivers Questor
Accra
BB CS
WINIBW
MS-CMS
Urenregistratie OMR
Planon
Chipnet
Caso
HPA Verlof
PMFP&O
Mentor
Dashboard
Mavim
Hanze.nl OWA BB intranet
BB Elo
EFJ
Progress
Edukaat
RPDB
Mavim Web
Dashboard-Web
Moveon
ACTO
Kengetallen-site STAD
Kengetallen-site STAD
Uur 400
Humannet
Fuwasys DVS
Hanzetel
MS office
Googlemini
Trinicom
Multivers
Voorlichting-systeem DOP
Progress
SNAP
Officenet
Multivers
FMS
FAK-E
onderzoeksvraag
haalbaarheidscheck
uitvoeringOpleveringresultaten
OnderzoeksmanagementOpdracht-formulering
planning
MS-Project
ADS-IMPORT
ProgressWWW
WRB
Indato
BB CS DOP
Progressstage BB
Group-tool
QuestionMark
Perception
Syllabus+
ACTO StageQ ADS-
ORGMEMBER
© Twynstra20
OnderzoekenLeren
Hanze portaal
Infrastructuur
kantoorautomatisering
Ket
enpo
rtaa
lM
anagementportaal
bedrijfsvoering
leren kwalificeren
kernregistraties
mail en agendaarchivering
documentmanagement
samenwerken(conferencing, forum
chat)zoeken
identificatieauthenticatieautorisatie
monitoringlogging
Middleware
Ver
antw
oord
ings
rapp
orta
geM
anagementrapportage
primair proces
opbouwenportfolio
StudentVolg
studenten
beherenstudent-
gegevens
faciliteiten
beherenfaciliteiten
personeel
beherenpersoneel
onderwijs-aanbod
beherenonderwijs-
aanbod
content
beherenkennis
financiën
beherenfinanciën
relaties
beherenrelaties
beherenonde
rste
unen
best
uren
uitv
oere
n
projecten
beherenproject-
gegevens
beschikbaar stellen
instroom ontwikkeling planning
uitvoering toetsing uitstroom
Onderwijs logistiek
Video-conf
BB ewo
MSN
BBsearch
O-bestanden
RegistratieMAC adressen
ActiveDir
Maggieprinters Outlook
BB CS DECOS
Topdesk
LanDesk
HSA
Trinicom
Multivers
Alumni Multivers Questor
Accra
BB CS
WINIBW
MS-CMS
Urenregistratie
ACTO
Planon
Chipnet
Caso
HPA Verlof
PMFP&O
Mentor
Dashboard
Mavim
Hanze.nl OWA BB intranet
BB Elo
EFJ
Progress
Edukaat
RPDB
Mavim Web
Dashboard-Web
Moveon
Kengetallen-site STAD
Kengetallen-site STAD
Uur 400
Humannet
Functionele kwaliteit van de
applicaties
Fuwasys DVS
Hanzetel
MS Office
Voorlichting-systeem
Googlemini
ACTO
SNAP
Officenet
Multivers
FMS
FAK-E
DOP
Progress
onderzoeksvraag
haalbaarheidscheck
uitvoeringOpleveringsresultaten
OnderzoeksmanagementOpdracht-formulering
planning
MS-Project
ADS-IMPORT
ProgressWWW
WRB
Indato
BB CS DOP
Progressstage BB
Group-tool
QuestionMark
Perception
Syllabus+
ACTO StageQ ADS-
ORGMEMBER
© Twynstra21
OnderzoekenLeren
Hanze portaal
Infrastructuur
kantoorautomatisering
Ket
enpo
rtaa
lM
anagementportaal
bedrijfsvoering
leren kwalificeren
kernregistraties
mail en agendaarchivering
document management
samenwerken(conferencing, forum
chat)zoeken
identificatieauthenticatieautorisatie
monitoringlogging
Middleware
Ver
antw
oord
ings
rapp
orta
geM
anagementrapportage
primair proces
StudentVolg
studenten
beherenstudent-
gegevens
faciliteiten
beherenfaciliteiten
personeel
beherenpersoneel
onderwijs-aanbod
beherenonderwijs-
aanbod
content
beherenkennis
financiën
beherenfinanciën
relaties
beherenrelaties
beherenonde
rste
unen
best
uren
uitv
oere
n
projecten
beherenproject-
gegevens
beschikbaar stellen
instroom ontwikkeling planning
uitvoering toetsing uitstroom
Onderwijs logistiek
Video-conf
BB ewo
MSN
BBsearch
O-bestanden
RegistratieMAC adressen
ActiveDir
Maggieprinters Outlook
BB CS DECOS
Topdesk
LanDesk
Alumni Multivers
Questor
Accra Officenet
BB CS
WINIBW
MS-CMS
Multivers
FMS
FAK-E
ACTO
Planon
Chipnet
Caso
HPA Verlof
PMFP&O
Mentor
Fuwasys
Dashboard
Mavim
Hanze.nl OWA BB intranet
BB Elo
ProgressWWW
EFJ
WRB
Indato
BB CS DOP
Progressstage BB
Group-tool
QuestionMark
Perception
Progress
Edukaat
RPDB
Syllabus+
ACTO
Mavim Web
Dashboard-Web
StageQ Kengetallen-site STAD
Kengetallen-site STAD
Uur 400
Humannet
DVS
Hanzetel
MS office
Trinicom
Multivers
Voorlichting-systeem
Googlemini
ACTO
SNAP
DOP
HSA
Moveon
Progress
opbouwenportfolio
Technische kwaliteit van de
applicaties
onderzoeksvraag
haalbaarheidscheck
uitvoeringOpleverings-resultaten
OnderzoeksmanagementOpdracht-formulering
planning
MS-Project
Urenregistratie
ADS-IMPORT
ADS-ORGMEMBER
© Twynstra22
Business processes - Applications