People Innovation Excellence
 

Information Systems Strategy

IS strategy from the 1960s to the 1990s was driven by internal organizational needs

  • Lower existing transaction costs
  • Provide support for managers by collecting and distributing information
  • Redesign business processes

In the 2010 era IS strategy was driven by social IT platforms and new capabilities , a new evolution of applications, processes, and strategic opportunities

  Era I 1960s Era II1 970s Era III 1980s Era IV 1990s Era V 2000+ Era VI2100+
Primary

role of IT

 

Efficiency

 

Automate
existing

paper-based processes

Effectiveness

Solve problems

and create

opportunities

Strategic

 

Increase
individual

And group
effectiveness

Strategic

 

Transform
industry/
organization

 

Value creation

Create collaborative partnerships

 

Value creation

Community

and social

business

 

Justify IT
expenditures
ROI

 

Increasing

productivity

and better

decision quality

Competitive

position

 

Competitive

position

 

Adding value

 

Creating

relationships

 

Target of

systems

Organization Organization/

group

Individual

manager/
group

Business

processes

ecosystem

Customer/

supplier

ecosystem

Customer/

employee

supplier

ecosystem

Information

models

Application

specific

Data driven User driven Business driven Knowledge driven People driven

(or

relationship

driven)

Dominate

technology

Mainframe,

“centralized

Intelligence”

Minicomputer,

mostly

“centralized

intelligence”

Microcomputer,

“decentralized

intelligence”

Client Server,

“distributed

intelligence”

Internet,

global

“ubiquitous

intelligence”

Social

platforms,

social

networks,

mobile, cloud

Basis of

value

Scarcity Scarcity Scarcity Plentitude Plentitude Plentitude
Underlying

economics

Economics

of

information

bundled with

economics of

things

Economics

of

information

bundled with

economics of

things

Economics

of

information

bundled with

economics of

things

Economics of

information

separated

from

economics of

things

Economics of

information

separated

from

economics of

things

Economics of

relationships

bundled with

economics of

information

The Strategic Role for IS – Value Creation

IS help firms address their internal and external circumstances, Firms draw on modern and innovative applications

IS enable firms to gain advantage over the competition.

Information resources is defined as the available data, technology, people, and processes available to perform business processes and tasks

  • Internal resources: Financial, production, human, and information resources,
  • External resources:The Internet and various global opportunities

Information resources can be either assets or capabilities.

  • IT asset is anything, tangible or intangible, that can be used by a firm in its processes for creating, producing and/or offering its products, goods or services. (i.e. IT infrastructure).
  • IT capability is something that is learned or developed over time for the firm to create, produce or offer it products.

IS infrastructure (IT Asset) Includes data, technology, people, and processes. And the infrastructure provides the foundation for the delivery of a firm’s products or services.

Categories of IT Capabilities:

  • Technical skills – applied to designing, developing and implementing information systems.
  • IT management skills – critical for managing the IT function and IT projects.
  • Relationship skills – can either be externally-focused or spanning across departments.
  • Committing and developing information resources require substantial financial resources.

References

Keri E. Pearlson& Carol S. Saunders. (-). Strategic Management of Information Systems. 05. John Wiley & Sons Singapore. . ISBN: 978-1-118-32254-3.


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