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 paper-based processes |
Effectiveness
Solve problems and create opportunities |
Strategic
Increase And group |
Strategic
Transform |
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/ |
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.
