Lecture 1
MGMT 6180 - © 2012 Houman Younessi
MGMT 6180 – Strategic Information Systems Management
Course Convenor:
Houman Younessi
Tel: 860-548-7880
Email: [email protected]
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
Course objectives:
The major objective of this course is to construct a solid foundation for understanding the role of information systems in formulating and executing business strategy and application of information systems principles, techniques and technologies used by progressive organizations in the development of effective business strategy.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
Key textbook:
Applegate, Austin, and Soule; “Corporate Information Strategy and Management; 8th Edition; McGraw Hill
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
Teaching Method:The principal teaching is through lectures and discussions. There will be 11 lectures during the semester. While formal attendance is not taken, attending all lectures is expected of students and is deemed a critical success factor.
Assessment:Semester assignment and presentation 50 percentCase presentations 40 percentClass participation 10 percent
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
Syllabus:
Introduction, strategic management and planning What are Information Systems? Crafting strategy based business models Strategic planning for IS and the IS strategy toolkit Frameworks for cogenerating IS strategy within business strategy Managing and IS organization The IS profession
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
A rule for making decision under conditions of partial ignorance. (Ansoff, 1965, Corporate Strategy)
Formulation of basic organizational missions, purposes and objectives…..(Steiner and Miner, 1977, Management Policy and Strategy)
Interpretation of the environment and the development of consistent patterns in streams of organizational decisions. (Mintzberg, 1979, The structuring of Organizations)
A Broad-based formula for how business is going to compete. (Porter, 1980, Competitive Startegy)
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
Strategy comes from the Greek Stratos (camp), and Ago (to lead). In short it means “leading the camp”. It is a military term and in “leading the camp” is latent leading it to victory.
Business is often compared to war. But, perhaps similarly to war, it is not very clear when victory is attained.
The first thing we have to do is to define victory
In other words
Where do we want to get from here?
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
So, great strategists first identify their specific and measurable overall goals.
Only when the overall goal is identified, can we then decide how we are going to get there.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
Great leaders are prepared for the challenges they have to face in order to get to their objectives.
We need to know what resources we need for victory and how much of those resources are available to us.
We then create the means of acquiring the additional resources we need but lack
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
So, very simply, strategy is: The Way to a Victorious Future.
Make sure you have a great future, you will be spending the rest of your life there!
Make sure your business has a great future, you will be responsible for where it
is in the market forever.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategy:
So in terms of business and business leadership, strategy is:
The overall plan of how we will attain our overall business objectives given the reality of our present resource set.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
The project management of developing the strategy
We need to:
Set our overall goal
Make our goal measurable
Determine the best process available to achieve our
goalDetermine the resources needed for achieving our
goal
Determine what resources are
currently available
Clearly formulate and communicate the
strategy
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
Observations:
Strategic planning is:
1.Complex2.Cyclical (evolving)3.Itself just a phase (still must be implemented)
Do not confuse strategy with: Strategic planning (strategizing), The business model (process methodology), or The implementation plan
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
Determine the best process available to achieve our
goal
Business Model
The best process available to achieve our goal.
A business model defines how and organization (should) interact with its environment to
(execute) a unique (approach/set of tactics), attract the resources and build the capabilities
required to execute the (model and therefore the overall) strategy, and create value for all
stakeholders(page 43 of Applegate et al)
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
A business model defines how and organization (should) interact with its environment to
(execute) a unique (approach/set of tactics), attract the resources and build the capabilities
required to execute the (model and therefore the overall) strategy, and create value for all
stakeholders(page 43 of Applegate et al)
STRATEGIC Information Systems Management
Strategic Planning:
Do you buy it?
Does it have to be unique?
Sometimes established ways are as good if not better
Do we/should we create value for ALL stakeholders?
Sometimes we intentionally do not create value or actually create dis-value for some stakeholders (think of war strategy)
Overall, not a bad definition and the one we more or less use (with the provisos here) for the rest of the
course
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
We must first analyze where we are. We must analyze our:
Current goal Current environment Current resources
These each have several dimensions
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning: GOAL
Market Positioning (Determine whom to serve) Product Positioning (Determine what to offer) Boundary Positioning (Determine what not to offer, whom not to serve) Value Positioning (Determine what “added” value
to deliver to what “internal” stakeholder)Each “positioning” implies doing some
“analysis” to determine the correct positioning
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning: ENVIRONMENT
Socio-cultural Positioning Economic Positioning Technological Positioning Political and legal Positioning Competitive Positioning
with respect to forces that impact our goal from these perspectives
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
Socio-cultural Positioning:
Life-style changesCareer expectationsRate of family formationPopulation growth ratesRegional shifts in population and tasteLife expectanciesRaceParty and organizational affiliationEtc.
Economic Positioning:
GNP trendsInterest ratesMoney supplyInflation ratesWealth profileUnemployment levelsWage/price controlsDevaluation/revaluationsEnergy availabilityEtc.
Technological Positioning:
Total organization R&D spendingTotal Industry R&D spendingPatent protectionNew product innovation programsTechnology transfer programsProductivity improvement programsIndustry technology base (how sophisticated)
Organization technology baseLevel of technology and likely changeCost structure, economies of scaleDependence on particular raw materialsEtc.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning:
Political and Legal Positioning:
Antitrust regulationsEnvironmental protection lawsTax lawsTechnology specific special incentivesForeign trade regulationsFDI special incentivesAttitude towards global/foreign/your company(ies)HR laws and regulationsGovernment stabilityStability of special incentivesEtc.
Competitive Positioning:
Number of competitorsSize of competitorsDistribution of competitorsBarriers to entryBarriers to exit (cost of exit)Your product’s unique characteristicsMarketing incentives possibleSegmenting and sealing potentialSize and growth of existing marketProduct demand elasticitiesNumber, potential and distribution of customersMarket structure (monopolistic/perfect competition)Etc.
Lecture 1
MGMT 6180 - © 2012 Houman Younessi
STRATEGIC Information Systems Management
Strategic Planning: RESOURCES
Marketing and Sales Capability Positioning Production Capability Positioning Financial Capability Positioning Technological Capability Positioning (our technology) Organizational and Human Resource Capability Positioning Leadership Capability Positioning
NOW:
Marketing and Sales Capability Positioning Production Capability Positioning Financial Capability Positioning Technological Capability Positioning (our technology) Organizational and Human Resource Capability Positioning Leadership Capability Positioning
NEEDED TO ATTAIN GOAL
And then we need a GAP ANALYSIS