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11/19/2008 Integrasi Bisnis & SI/TI - Maswig 1

Integrasi Strategi Bisnis Dan

Strategi Sistem Informasi

Dosen:

Ir. Mas Wigrantoro Roes Setiyadi, SE, MSi, MPP

Program Pasca Sarjana - Magister Ilmu Komputer - Universitas Budi Luhur

Kuliah Sessi – 4:

Internal Assessment, Menentukan

Objective Sistem Informasi dan Applikasi


Outline:

• Analisis Internal

• Strategic Assessment Tools

• Arsitektur SI/TI

• Aplikasi Portofolio


Analisis Internal


Analysis of Existing IS/IT

• In most modern situations organizations generally has existing systems

• Analysis must be done towards existing operational systems to determine integration of new systems with existing systems

• Besides that analysis must also be done on systems under development


Analysis of Existing IS/IT (cont.)

• Analysis of current IS/IT systems must include:– An evaluation of existing application portfolio and ones which are in

development process

– An evaluation of existing database and ones which are being developed

– An evaluation of value of the existing IS/IT portfolio

– An evaluation of existing infrastructure

– An evaluation of technology usage policies

– An evaluation on IS/IT organization

• Having an understanding of the current IS/IT situation, Opportunities, Threats and other needs can analyzed as an integral part of current organization business strategy

• Having an understanding of the current IS/IT will allow an analysis of Strengths and Weaknesses

• The current existing IS/IT is GROUND 0 to all the proposed changes


Data Collection Activities

• Evaluate Existing Application Portfolio– Objective: have a full count of existing IS being used and

currently under development and to understand their contribution to the business

• Evaluate Policies, Organization, Process, Services and current IS/IT capabilities:– Objective: to understand current IS/IT situation and to able

to map requirements to bridge new needs.

• Compile a catalog of all Hardware and Software used in Organization:– Objective: As a base for migration to new system(s)


System Audit Grid• System Audit Grid is a model to understand how to

handle current systems

• Analysis can be done through end-user interviews to obtain their perception of the utilization and usefulness of the system

• Analysis can also be done through a technical analysis of existing systems to understand the sophistication of each system

• By analyzing the current system decision can be made to:– Decommission

– Improvement

– Redefine

– Upgrade

• For system which DO NOT fall under the category of decommission, further in depth analysis is required.


System Audit Grid (cont.)


Analyzing Current Existing

System

• When discussing current IS/IT conditions, at the same time, end-user demands must be obtained.

• To complement the end-user input, existing documentation must be analyzed. From those documentation, policies and current practice can be obtained. This will help in determining the future requirements.


Analyzing Current System

(cont.)

• Some of the questions which needs to be

asked:• What are the business processes covered by IS/IT?

• What information is stored in the IS/IT systems?

• Do our IS/IT systems cover mission critical systems?

• Are there other ways to optimize existing systems?

• Can there be reengineering based on implementation of

IS/IT?


Analyzing IS/IT Management

• Part of the evaluation of IS/IT is the analysis of the following:

– IS/IT organization

– Size of organization

– Structure of IS/IT organization

– Management style of IS/IT

– Existence of Steering Committees or other ad hoc committees


Sensitive Points

• It is generally difficult to unearth what is ‘already’ in-place and differentiate that with what is planned for the future.

• All or if not most department will have some form of IT spending that is not centralized and they will think that this is their area of responsibility.

• Some software available may be ‘pirated’. Need to have guidelines to handle this.


Strategic Assessment Tools


Strategy Development

• SWOT-TOWS method

• Competitive strategies & Cooperative

strategies example

• Balanced Scorecard – CSF example

• Functional Strategies example


SWOT method

• Internal strategic factors:

– Strength

– Weaknesses

• External strategic factors:

– Opportunities

– Threats


TOWS Matrix

WT StrategiesGenerate strategies that

minimize weaknesses

and avoid threats

ST StrategiesUse strengths to avoid

threats

Threats (T)

List of threats

WO StrategiesTake advantage of

opportunities by

overcoming

weaknesses

SO StrategiesUse strengths to take

advantage of

opportunities

Opportunities (O)

List of opportunities

Weaknesses (W)

List of weaknesses

Strengths (S)

List of strengths

Internal Factors

External Factors


Maytag – Hoover Example

WT Strategies• Sell Dixie-Narco to reduce debt

• Emphasize cost reduction to reduce break-even point

ST Strategies• Acquire Raytheon’s appliance

in US to increase market share

• Merge with a major Japanese home appliance

• Sell off all non Maytag brands and strongly defend Maytag’s US niche

Threats (T)

• Increasing gov. regulations

• Strong US competition

• Whirlpool and Electrolux positioned for global economy

• Japanese appliance company

• New product advances

WO Strategies• Further improve quality

• Reduce manufacturing cost and distribution cost

• Emphasis superstore channel

SO Strategies• Use worldwide Hoover

distribution channel to sell Hoover & Maytag appliance

• Find joint venture partners in Eastern Europe and Asia

Opportunities (O)

• Integration of EU

• Demographics favor quality

• Economic dev. in Asia

• Opening of Eastern Europe

• Trend toward superstores

Weaknesses (W)

• Process oriented R&D

• Distribution channels

• Financial position

• Global positioning

• Manufacturing facilities

Strengths (S)

• Maytag’s quality culture

• Experienced top management

• Vertical integration

• Employee relations

• Hoover’s international orientation

Internal Factors

External Factors


Balanced Scorecard

MeasuresObjective

Financial

Perspective

MeasuresObjective

Innovation &

learning Perspective

MeasuresObjective

Customer

Perspective

MeasuresObjective

Internal Business

Perspective

How do we look to shareholders?

What must we excel at?

How can we continue to improve?

How do customers se

us?


Notes on BSC

• Was developed to ‘balance’ the common but

might be misleading indicator: financial

reports

• The important thing is the measurement!

• Less focused on external factors

• Suggested to be used after business strategy

defined

• BSC can be used to define

activities/programs (not explained today)


Rockmart's Critical Success

Factors (CSF)

• Small number of easily identifiable

operational goals

• Shape by industry, manager &

environment

• Believed to assure firm’s success

• Used to determine organization’s

information requirements


Some Tools to Understand

Business Direction

• Critical Success Factor (CSF)

• Value Chain Analysis

• Porter’s Five Forces


Critical Success Factor (CSF)

Analysis

• The CSF approach originated from Rockart’s work

• CSF is defined : A feature of an organization or its environment which, by its nature, has such an impact on such an impact on success that its tracking, measurement, achievement, or avoidance, becomes critical to success

• CSFs are not to be confused with KPIs. CSFs are things which might might stop you achieving your objective. KPIs are things which you may choose to measure to tell how you are doing, either in achieving the goal, or in managing the CSFs


Critical Success Factor (CSF)

Analysis (cont.)

• Categories valuable in helping to generate candidate CSFs:– Political or environmental

– Customer or supply chain

– People related factor

– Industry/competitive

– Cost drivers

– Product differentiation/development

• Methods of Identification of CSFs – Interviews/analysis

– Group consensus/prioritization

– Sieving out top 6-8 CSFs


Five Competitive Forces

• Porter’s Five Competitive Forces breaks down the

industry to components, and then analyzing the

forces and the interactions involved

• It shows a typical mature industry:

– In which there is an established market structure and a set of

existing participants, who engage in competitive strategy

– There may be a number of potential entrants


Porter’s Five Forces Model


Porter’s Value Chain

• Porter’s Value Chain is based on the notion of breaking down business or business area into natural functions and processes, and the investigating the means by which the process interact

• The customer/supplier chain concept is extended for this purpose to embrace internal inter-process interfaces

• The art of effective use of value chain analysis lies in picking a fairly small but useful set of business functions, and concentrating on those customer/supplier links in accessible ways


Porter’s Value Chain


Sensitive Points

• Business strategy and plan are not always ‘open’ for general

discussion. Must be able to extract the components relevant to

the IT Plan

• Directors are not always comfortable to discuss IT matters.

They often see IT merely as a technical component and need to

be addressed technically.

• Business strategy and plans are not always ‘fixed’, yet it is not

the aim of the IT Planning process to determine the business

strategy and business plan.


Critical Success Factors & GoalsCritical Success Factors & Goals

11.14

EXAMPLEEXAMPLE GOALSGOALS CSFCSF

PROFIT EARNINGS/SHARE AUTOMOTIVE INDUSTRY:

CONCERNS RETURN ON INVESTMENT STYLING

MARKET SHARE QUALITY DEALER SYSTEM

NEW PRODUCT COST CONTROL

ENERGY STANDARDS

NONPROFIT EXCELLENT HEALTH CARE REGIONAL INTEGRATION WITH

OTHER HOSPITALS

MEETING GOVERNMENT REGULATIONS EFFICIENT USE OF RESOURCES

FUTURE HEALTH NEEDS IMPROVED MONITORING OF

REGULATIONS

CSF should also include quantifiable objectives!


CSF Methodology

Manager ACSF

Manager ACSF

Manager BCSF

Manager BCSF

Manager ACSF

Manager ACSF

Manager BCSF

Manager BCSF

Develop agreement on company’s CSF

Develop agreement on company’s CSF

Define company’s

prioritized CSF

Define company’s

prioritized CSF

Develop IS Application Priorities

Develop IS Application Priorities

Define Decision Support Systems

Define Decision Support Systems

What is important for your

organization?

What is important for your

organization?


CSF Levels

Organizational

CSF

Organizational

CSFOrganizational

Objectives

Organizational

Objectives

Business Unit /

Functional CSF

Business Unit /

Functional CSFBusiness Unit /

Functional Obj.

Business Unit /

Functional Obj.

Manager’s

CSF

Manager’s

CSFManager’s

Objectives

Manager’s

Objectives

Industry CSFIndustry CSF


BSC-CSF Example:Manufacturing Company of Electrical

Product

• Imported components

• Orders tend to be unique for specific

customer, now using stock strategy

• Problems:

– Cost for components acquisition

– Cost of finished goods

– Long delivery time




Required IS

Applications


Fill the Application Portfolio

Matrix For BI…!

STRATEGIC HIGH POTENTIAL

KEY OPERATIONAL SUPPORT

16. Supervision

17. Examination

18. Rural Banking

7. RiskManagement

8. PerformanceManagement

24. Real TimeGross

Settlement

25. Clearing

20. MonetaryManagement

21. Fiscal Indicators

22.External Indicators

23.Real SectorIndicators

9. EconomyAnalysis

1. Collaborative

Portal

2.Staff Portal

3. Public Portal

14. Finance

15. HumanResources

19. Financial System

26. Security Settlement (SSSS)

4. Research Portal

5. Helpdesk13. Logistics

27. Money Circulation (SIPU)


Understanding the

Boston Consulting Group (BCG) Matrix

STAR WILDCAT

CASH COW DOG

Funds $$


Arsitektur SI/TI


Laudon’s Organization Level &

Functions

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL STRATEGIC LEVEL SENIOR SENIOR

MANAGERSMANAGERS

MANAGEMENT / TACTICAL MANAGEMENT / TACTICAL MIDDLE MIDDLE

LEVELLEVEL MANAGERSMANAGERS

OPERATIONAL OPERATIONAL OPERATIONAL OPERATIONAL

LEVEL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE LEVEL KNOWLEDGE & KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING SALES & MANUFACTURING FINANCE ACCOUNTING HUMANHUMAN

RESOURCESRESOURCESMARKETINGMARKETING


Types of Information Systems

Strategic Level Systems

Management / Tactical Level Systems

Knowledge Level Systems

Operational Level Systems

5 yr budget forecast

Profit planning

5 yr sales forecast

Sales analysis

Production scheduling

Cost analysis

Annual budgeting

Pricing analysis

Word processing

Documents imaging

Workflow app

Spread-sheets

Analyst workstations

Order tracking

Machine control Payroll AR/AP

Employee records

SecuritiesTrading

Executive

Information

Systems

MIS / DSS

Knowledge

Work System &

Office Systems

Transaction

Processing

Systems


Alter’s Work System Principles

Customers

Products

Business Process

Participants Information Technology

Context Infrastructure

Please the customers

Perform work efficiently

Serve the participants

Minimize effort consumed by technology

Create value from information

Deploy infrastructure as genuine resource

Minimize unintended

conflicts and risk

Our next discussion!


Model Arsitektur


IS/IT Architecture of A Central Bank

Business Application and Supporting Technology

IT Blueprint - Modular Architecture

Applications

Technology

Note: * As this is a high-level architecture, not all Directorates are represented (eg. Legal, Internal Audit, Archiving, Planning etc.)

Information Center

Executive Dashboard Core Systems

Internal Services

6. Common

Delivery

Services

16. Supervision

17. Examination

18. Rural Banking

7. Risk

Management

8. Performance

Management

24. Real Time

Gross Settlement

25. Clearing

20. Monetary

Management

21. Fiscal

Indicators

22.External

Indicators

23.Real Sector

Indicators

10. Information Analysis

11. Data Catalogue &

Repository

12. Staging Databases

9. Economy

Analysis1. Collaborative

Portal

2.Staff Portal

3. Public

Portal

14. Finance15. Human

Resources

19. Financial System

26. Security

Settlement

4. Research

Portal

5. Helpdesk13. Logistics

Supporting Technology

Access Channels

*

Information Flow

Information Flow

Information Flow

Information Flow

27. Money

Circulation

F. Workflow,

Document

Management

and Imaging

A. Hardware &

Operating

System

C. Network &

System ManagementD. Security

E. Middleware

(EAI) Tools

B.

Telecommunications

Monetary Sector

Payment Sector

Banking/FSS


IS Strategies of Maytag-Hoover

Common financial reporting systemAcquire Raytheon’s appliance in US to increase market share

Merge with a major Japanese home appliance

SCM with on-line EDI links to

superstore’s inventory system

Emphasis superstore channel

Accurate cost accounting information

system

Efficient & effective SCM

Reduce manufacturing cost and distribution cost

Emphasize cost reduction to reduce break-even point

Quality monitoring system, decision

support system

Further improve quality

An efficient global supply chain

management (SCM) system – may

cooperate with global carriers.

Use worldwide Hoover distribution channel to sell Hoover & Maytag appliance

IS ApplicationStrategy


Aplikasi portofolio


The IS Application Portfolio

STRATEGIC

Applications that

critical to sus-

taining future

business strategy

HIGH POTENTIAL

Applications that

may be important

in achieving

future success

KEY OPERATIONAL

Applications on

which the orga-

nization currently

depends for success

SUPPORT

Applications that

are valuable but

not critical to

success

Closely

related and

derived from

“McFarlan

Matrix”

Future

Present

Important Less critical