manu1381

INDUSTRIAL SYSTEMS

& ENVIRONMENT

MODULE 2

MANAGING INFORMATION TECHNOLOGY

Module 2: Managing Information Technology

Introduction to the Module

This module introduces students to the application of Strategic Planning methodologies for the management of advanced Information Technology, in the context of a Systems approach to defining and solving real world problems, particularly in relation to engineering and technology based organisations.

The basic principles and concepts of managing Information Technology are introduced and discussed. Particularly in relation to the introduction of advanced information and communications technology into industrial organisations, the application of IT, its organisational impacts and its strategic value in relation to continuing industrial development in both developed and developing economic environments.

The teaching strategies used in the module are designed to encourage students to explore existing literature and published case studies relating to the introduction, use and management of Information Technology and to consider the value of developing strategically focused Corporate IT Policies.

Learning Outcomes

Upon successful completion of this topic you will be able to:

Identify and understand the general construct of Information Technology (IT)
Identify the various factors influencing the need for effective IT management in contemporary industrial organisations
Explain the general constructs of strategic planning and strategic management
Describe the potential of IT as a strategic management tool
Describe the role of IT in enhancing competitiveness
Explain the relationship between the business, Strategic Information Systems (SIS), Management Information Systems (MIS) and Data Processing (DP)
Apply the 3 era model of IT systems to contemporary organisations.

Background

A rationale for the introduction and large scale implementation of technology to organise and manage complex data and information banks may be dated back to the invention of the punched card and associated mechanical tabulating equipment, by Herman Hollerith in the late 1880’s. This was successfully developed for and used in the US 1890 census.

By the early 1940’s electromechanical ‘computers’ were in widespread use, whilst in 1945 John Mauchly and J.P. Echert at the Moore School of Electrical Engineering at the University of Pennsylvania developed ENIAC, the world’s first fully electronic computer. Nine years later in 1954, UNISYS installed the first computers for business applications. Today, many tens of millions of electronic computers around the world operate the information backbone of companies and governments alike.

Figure 1. Impact of Information Technology

The rapid and continuing development of Information Technology (IT) in industry also needs to be seen in the context of increasing pressure worldwide for smarter, faster, more powerful and increasingly user-friendly technology. Indeed, current projections by IT corporations show strong continuing developmental growth in the underpinning and enabling technologies that collectively form IT systems.

This module endeavours to assist students to identify practical and effective strategies for determining the role of IT and appropriate implementation practices and approaches. In doing so, it focuses on the core stratagem of using strategic planning methodologies to assist in positioning IT products and services within an organisation. It also develops the construct of a Strategic Information System (SIS) as a significant management tool.

Background Skills and Knowledge

Before commencing Module 2. you should have completed manu1381 Module 1. No other specific knowledge or skills are assumed apart from basic computer literacy. Module 2. is structured as having three core Topics of study as follows. It is recommended that you work through them in numerical sequence.

Please refer to the list of references at the end of each Topic for a selection of recommended readings. Note: All recommended readings are available through the RMIT Library. A number of selected readings are also available through the electronic resources in the RMIT Library.

Module 2. Topic 5. Information Technology: Definition, Scope & Strategic Impetus Module 2. Topic 6. Strategic Planning as a Management Tool in Industry Module 2. Topic 7. Strategic Approaches in Information Technology Management

Topic 5: Information Technology: Definition, Scope and Strategic Impetus

Introduction to the Topic

A critical concern for managers today is how to cope successfully with the rapid changes occurring in IT, its application and management.

In this Topic the basic principles and concepts of managing IT are introduced and discussed. Particularly in relation to the introduction of information and communications technology into commercial and/or industrial organisations.

Specific reference is made to the evolution of key IT service characteristics and the specific role and function that IT plays in modern organisations.

Learning Outcomes

Upon successful completion of this topic you will be able to:

Identify, list and discuss the functions performed by IT in a modern organisation.
Identify and discuss the key benefits that IT can offer organisation
Identify, list and describe the key characteristics of IT applications as identified in the 3-era model.
Identify, analyse and differentiate the various mechanisms that characterise effective IT systems in an organisational context.

Activity 5A Roles played by IT in a modern organisation

First, read and reflect on Ward and Peppard (2002) chapter 1, the module Introduction.
Then work through this Independent learning guide and the power point presentation materials at the end of the topic.
Also work through the recommended readings listed at the end of the topic.
Consider the question: What can IT systems do for an organisation that manual systems cannot, if anything?

Session 5.1 IT in a Modern Organisation

A Definition

The following definition whilst certainly subject to semantic argument about whether or not it is sufficiently precise or explicit enough, provides a useful basis for discussion on the nature, purpose and potential value of Information Technology (IT) in a contemporary technology-based organisation.

Note that it is boldly suggestive of IT as being used to specifically address the strategic planning construct of establishing the necessary conditions for, and being focused on, outcomes that lead towards achieving ‘competitive advantage’.

Figure 5.1 Information Technology: a Definition

Note also that the definition does not refer directly to the individual technology components that must eventually be collected together into a coherent ‘system’ in order to implement an IT environment. Rather, it more closely reflects a ‘management’ related view of the purpose, role and application of IT systems. It should have you thinking along the lines of: Why have IT systems in the first place, if they do not achieve these kinds of outcomes?

On the other hand you may want to challenge this approach with thoughts about the more technical application of IT! Yet, is there really any difference? If IT systems are to be of real commercial value to an organisation then perhaps we should indeed think and specifically plan that they meet these kinds of outcomes? In effect, our selection, acquisition, implementation and management of IT systems in an economically competitive environment, will demand that we address these kinds of issues.

Clearly, computer based technologies and associated applications may play many diverse roles in an engineering or technology based organisation, including facilitating design, improving speed and accuracy of calculations, and implementing real-time equipment control systems. However, this study module concentrates on the use of IT in supporting corporate information management systems, as a particular exemplar for the application of strategic thinking and strategic planning approaches.

Ward & Peppard (2002) give a worthwhile overview of the development of IT systems and their relationship to contemporary management practices and approaches, as businesses endeavour to “anticipate, create and use technology for economic advantage” (Betz, 1993).

Scope & Strategic Impetus

In the context of an increasingly global economy, Information Technology today also incorporates to a large extent the integration of modern communications technology, information processing technology, and multimedia capable technologies, as essential components in the design and implementation of strategically focused corporate information management systems.

While the application of IT and associated systems varies with both the maturity of a given organisation’s needs and the level of complexity of it’s operations, most organisations can be categorised in terms of the scope of their IT operations, against the ‘3-Era Model for Information Systems & Technology’. This model was first proposed by C. Wiseman (Strategy & Computers) in 1985 and is discussed in detail in Ward & Peppard (2002).

Figure 5.2 3-Era Model for IT Systems

Throughout Chapter 1. Ward & Peppard (2002) discuss the shift through the 1980’s from earlier highly structured / departmentally ‘control’ oriented / data processing based approach towards IT systems, to the development of a more ‘open’ information-management systems approach to organisational management in general and the management of IT systems in particular.

Central to this transition are the significant shifts in organisational attitudes and behaviours that become apparent, with an increasing emphasis on improving management effectiveness through providing more relevant, accurate and timely information. The Management Information Systems (MIS) era had arrived.

Yet even this significant era of change and the evolution of sophisticated MIS in both corporate and government organisations, effectively developing through the late 1970’s and 1980’s, was only a further (albeit necessary) step towards the construct of creating Strategic Information Systems (SIS).

Ward & Peppard provide a very worthwhile discussion of Information Management strategies in the context of developing a strategic management approach to MIS.

Presentation Materials for:

‘Information Technology: Definition, Scope and Strategic Impetus’

Summary and Outcome Checklist

This topic has introduced and explored the concepts of using Information Technology as a strategic tool and the 3-era model of IT.

It provides a basis for considering and determining the appropriate level of IT systems requirements in an organisation. It has also introduced the concept of Strategic Information Systems (SIS) as a powerful tool in contemporary commercial/industrial organisations.

Tick the box for each statement with which you agree:

I can

Identify, list and discuss the functions performed by IT in a modern organisation.
Identify and discuss the key benefits that IT can offer organisation
Identify, list and describe the key characteristics of IT applications as identified in the 3-era model.
Identify, analyse and differentiate the various mechanisms that characterise effective IT systems in an organisational context.

If you can not tick all of the above, you need to revise the relevant sections and/or contact your tutor for clarification.

Topic 6: Strategic Planning as a Management Tool in Industry

Introduction to the Topic

The generalised constructs of strategic planning and strategic management have been progressively developed over the past 40 years, primarily to provide corporate organisations with effective planning and management tools, focused on achieving and maintaining competitive advantage. This topic explores the background to strategic planning and the development of strategic management approaches.

Learning Outcomes

Upon successful completion of this topic you will be able to:

Identify and explain the background to the development of strategic planning concepts and the key driving influences on the continuing evolution of strategic planning and strategic management.
Describe the key characteristics of strategic thinking and strategic decision making.
Define what is meant by “strategy” and “strategic management”.
Identify and explain the key elements of strategic management models and their application in engineering and technology based organisations

Activity 6A Strategic Planning as a Management Tool in Industry

First, read and reflect on Ward and Peppard (2002) chapter 2.
Then work through this Independent learning guide and the power point presentation materials at the end of the topic.
Also work through the recommended readings listed at the end of the topic.

Session 6.1 Development of strategic planning concepts

As a precursor to examining the strategic planning for and management of information technology and its associated systems, products and services, we will first explore the underlying principles of strategic planning and its impact on the way organisations evolve and operate, particularly in relation to engagement in competitive environments.

In developing a view of strategic thinking and the role of strategic decision making, it is necessary to be clear about what constitutes ‘strategy’ and the subsequent concept of what is meant by the term ‘strategic’ and in turn ‘strategic management’.

Hitt, Ireland & Hoskisson (2005) provide the following definition for ‘strategy’ within the context of strategic management:

“Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.” (Hitt et al, 2005)

Hubbard (2004) directs his definition of ‘strategy’ at creating value for customers as well as addressing issues raised by competitors:

“Those decisions which have high medium-term to long-term impact on the activities of the organisation, including the implementation of those decisions, to create value for customers and key stakeholders and to outperform competitors.” (Hubbard, 2004)

Johnson & Scholes (2002) in turn give the following definition for the term ‘strategy’ in the context of business planning processes:

“Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of the markets and to fulfil stakeholder expectations.” (Johnson & Scholes, 2002)

Ward & Peppard (2002) also offer a remarkably similar version:

“Strategy can be defined as: An integrated set of actions aimed at increasing the long-term well-being and strength of the enterprise relative to competitors.” (Ward & Peppard,2002)

Each of such definitions clearly lead towards the joint notions of ‘advantage’ and ‘competition’. Indeed, strategic planning as an outcome of strategic thinking and a precursor to the development and taking of strategic decisions, is most commonly associated with the very powerful construct of setting as a core business objective the task of achieving ‘sustainable competitive advantage’.

Johnson & Scholes (2002) then go on to express the notion that strategy exists at various levels within an organisation, reflecting, addressing, and meeting differing needs and expectations of the various elements of the organisation. In particular they distinguish between three different levels of organisational strategy as follows:

Corporate Strategy	“Concerned with the overall purpose and scope of the organisation to meet the expectations of owners or major stakeholders and add value to the different parts of the enterprise”
Business Unit Strategy	“About how to compete successfully in a particular market”
Operational Strategy	“Concerned with how the component parts of the organisation in terms of resources, processes, people and their skills, effectively deliver the corporate and business-level strategic direction”

Figure 6.1 Three levels of Organisational Strategy

Derived from Johnson & Scholes (2002)

Much unique vocabulary and apparent mysticism commonly surrounds the concept of what is ‘strategic’. For example, central to the development of an appreciation of what is strategic are the ideas of ‘vision’ and ‘strategic intent’.

The following table identifies a number of key items in the ‘strategic planning’ vocabulary:

TERM	DEFINITION
Mission	Overriding purpose in line with the values or expectations of stakeholders
Vision or Strategic Intent	Desired future state: the aspiration of the organisation
Goal	General statement of aim or purpose
Objective	Quantification (if possible) or more precise statement of the goal
Core competencies	Resources, processes or skills which provide ‘competitive advantage’
Strategies	Long-term direction
Strategic architecture	Combination of resources, processes and competences to put strategy into effect
Control	The monitoring of action steps to: Assess effectiveness of strategies and actions Modify strategies and/or actions as necessary

Figure 6.2 The Vocabulary of Strategy.

Adapted from Johnson & Scholes (2002)

In determining the scope of IT related products and services as a strategic resource within an organisation, it is essential to understand the concept of ‘strategic decision making’ and the impact of ‘strategic thinking’ on the direction that the organisation sees itself going in and the economic and technological nature of the environment that it operates in, or which it intends to operate in.

These concepts are discussed in some detail in Ward & Peppard (2002) and Johnson & Scholes (2002) Betz (1993) and Hitt et al (2005).

In the related area of developing corporate strategic approaches and a ‘strategic attitude’, Betz (1993 and 2001) and Hitt et al (2005) discuss the development of ‘Core Corporate Competencies’ as essential to the success of organisations operating in the economic context of global competition. Certainly, the nature and technical characteristics of contemporary IT and its strategic application in 21st century organisations, is clearly one that can be a catalyst for the development of core corporate competencies, particularly in the area of information services.

“Let us remind ourselves that in a general concept of strategy there is an important distinction between a strategic plan and a strategic attitude. A strategic plan is preparatory to a specific action, but a strategic attitude is preparatory to all action.

A strategic plan identifies specific goals over a specific time horizon for a specific set of actions.
A strategic attitude prepares in general for any action by formulating a perception about the nature of action, by commitment to types of action, and by preparation and training for action.”

(Betz, 1993)

“Core competencies are resources and capabilities that serve as a source of a firm’s competitive advantage over rivals. Core competencies distinguish a company competitively and reflect its personality. Core competencies emerge over time through an organisational process of accumulating and learning how to deploy different resources and capabilities. As the capacity to take action, core competencies are “crown jewels of a company,” the activities the company performs especially well compared to competitors and through which the firm adds unique value to its goods or services over a long period of time.”

(Hitt, Ireland & Hoskisson, 2005)

Just as the evolution of IT systems has been described as going through 3 ‘eras’ or periods of development, each characterised by a specific emphasis, eg. operational efficiency, management effectiveness and competitive advantage, so also has strategic planning developed through a number of stages.

The following diagram adapted from Ward & Peppard (2002) illustrates this:

Figure 6.3 Stages of development in Strategic Planning

Adapted from Ward & Peppard (2002)

The progression implicit in the above model is that of an evolving maturity in planning and strategic thinking approaches, leading eventually to a mature condition of ‘managing strategically’, ie. to achieve some strategically focused purpose or intent.

Typically this may involve a progressive shift from:

planning at the level of annual budgeting;

setting extended time-frame budgeting and planning horizons;

determination and evaluation of more strategically positioned organisational objectives that specifically impact on developing competitive advantage;

through to establishing a strategically focused management framework and organisation-wide development of innovation, creativity and strategic thinking, to develop and sustain market leadership.

Activity 6C SAQ

What key features characterise the move toward strategic planning approaches in corporate style organisations?

Session 6.2 Strategic Management Approaches

Activity 6D Strategic Management Approaches

First, read and reflect on Ward and Peppard (2002) chapters 2, 4, 5, 6, 7, 8.
Then work through this Independent learning guide and the power point presentation materials at the end of the topic.
Also work through the recommended readings listed at the end of the topic.

The constructs of Strategic Planning and Strategic Management are largely artefacts of the evolution of contemporary business enterprise models, developed through the late 20th century. There are many differing approaches to defining Strategic Management, it all depends on where you start and for what purpose you intend to ‘manage strategically’.

“If the practice of strategic management is like a chameleon changing its pattern and colour in response to its environment, then, as with the chameleon, underlying principles are waiting to be discovered if one is prepared to look beneath the surface patterns. Even after its camouflage is stripped away, however, a chameleon remains enigmatic and difficult to describe and understand. So too with strategic management.” (Forster & Brown, 1996)

For all the varying approaches to strategic planning and strategic management, however, there remains one significant area that is clearly common and critical to success:

“One of the most important facets of strategic management is the setting of objectives. To be able to define a problem and the range of possible, sensible solutions, there must be an achievable objective. Solutions to a problem make sense only in so far as they move towards an objective or objectives.” (Forster & Brown, 1996)

However, current thinking with regard to the development of strategic management processes and practices within organisations draws distinctions between the more classical approach to ‘rational’ decision making, based on clearly defined, coherent and mutually consistent objectives and purposes, and the less sharply defined construct of a focused ‘mission’ or goal to which the organisation aspires.

Indeed, an effective strategic management approach must needs address and align both the internal ‘strategic intent’, very often internalised within the company, and its more externally focused sense of ‘strategic mission’.

“Strategic intent is internally focused. It is concerned with identifying the resources, capabilities, and core competencies on which a firm can base its strategic actions. Strategic intent reflects what a firm is capable of doing with its core competencies and the unique ways they can be used to exploit a competitive advantage.

Strategic mission flows from strategic intent. Externally focused, strategic mission is a statement of a firm’s unique purpose and the scope of its operations in product and market terms. A strategic mission provides general descriptions of the products a firm intends to produce and the markets it will serve using its core competencies…… Together, strategic intent and strategic mission yield the insights required to formulate and implement strategies.”

(Hitt, Ireland & Hoskisson, 2005)

The setting of objectives within such a strategic planning and management framework becomes a tool used to achieve measurable advance towards more complex goals within the scope of ‘strategic intent’ but within the overall framework of a sense of ‘strategic mission’. A form of ‘logical incrementalism’ in which strategic decisions and achievement of subsequent enabling objectives leads to substantive changes in existing ‘internalised’ strategies and in turn, change in the external strategic positioning of the organisation.

Such an approach reflects the inevitably turbulent commercial environment that most organisations find themselves operating in. An environment in which continuing technological change can lead to substantive change in market expectations and demands.

Organisations that are in turn impacted on by such changes, typically imposed on them through external pressures often beyond their control, need to have in place enabling strategies or response mechanisms.

Mechanisms that enable them to respond quickly, or indeed to predict such changes, in order not only to be prepared, but to be strategically positioned to take advantage from consequential opportunities.

Indeed, in thinking of the development of forward looking ‘predictive’ strategies, it may be conceded that strategic management has often been associated with the implementation of transformational radical interventions, rather than piecemeal incremental change. For example introducing e-commerce into an organisation.

The actual way in which strategic management is implemented invariably differs with each organisation and often reflects for example the level of maturity and/or level and acceptance of uncertainty and ambiguity that exists within the organisation.

Key aspects within the organisation that may have significant affect on the style and characteristics of local strategic management implementation and practice may include:

technical competence of the organisation,

eg. technologically sophisticated and mature versus – undergoing rapid technological transformation

social conditions

both in terms of social behaviour, social interaction and practice within the organisation and the impact on and image of the organisation in external society

political environment

both in terms of stable or otherwise internal relationships and complexity of relationships with external interest groups and stakeholders

cultural arena

both in terms of the ‘culture’ or ethos of the organisation itself as well as the surrounding cultural environment within which the company operates and competes.

At its simplest level, strategic management is differentiated from tactical or operational management by its inevitable focus on the future of the organisation and through grappling with often ambiguous levels of uncertainty and a capacity to proactively manage exposure to risk and change.

STRATEGIC MANAGEMENT	OPERATIONAL MANAGEMENT
Ambiguous	Routinised
Complex	Simplified
Uncertainty	Continuity
Risk taking	Security conscious
Organisation-wide	Operationally specific
Common strategic focus	Individual task orientation
Predictive	Responsive
Fundamental	Established practice
Long-term implications	Short-term implications

Fig. 6.4 Differentiating characteristics of a Strategic Management Environment

Given that the focus of strategic management is on the organisation as a whole (a classically holistic approach in the language of systems thinking) it is hardly surprising that strategic management theorists should repeatedly emphasise the importance of considering all aspects of an organisation including its structure, internal relationships, processes, products, services and external influences.

A consequential effect of the holistic nature of corporate strategy and related strategic management approaches, is that of providing corporate management with an integrative perspective of the enterprise as a whole. A perspective that takes into account and attempts to integrate, the various discrete and at times widely differing realms of organisational theory and practice impinging on organisational performance.

Understanding the interplay between such realms of theory and practice and their input to overall enterprise performance, provides a backdrop to the development of effective strategic management approaches and the introduction of strategic information technology based systems. (Forster & Brown, 1996)

Fig. 6.5 Integrative Role of Strategic Management Processes

Presentation Materials for:

‘Strategic Planning as a Management Tool in Industry’

Summary and Outcome Checklist

This topic has explored the development of strategic planning and strategic management approaches, particularly in corporate organisations. It leads towards understanding how strategic planning and strategic management approaches may be used in the effective introduction and management of IT systems and service delivery

Tick the box for each statement with which you agree:

I can

Identify and explain the background to the development of strategic planning concepts and the key driving influences on the continuing evolution of strategic planning and strategic management.
Describe the key characteristics of strategic thinking and strategic decision making.
Define what is meant by “strategy” and “strategic management”.
Identify and explain the key elements of strategic management models and their application in engineering and technology based organisations

If you can not tick all of the above, you need to revise the relevant sections and/or contact your tutor for clarification.

Topic 7: Strategic Approaches in Information Technology Management

Introduction to the Topic

The effective application of Information Technology (IT) within organisations requires the use of a range of Strategic Planning and Strategic Management approaches. These cover IT organisation and performance, requirements specification, and the selection and development of IT systems, products and services.

In this Topic a number of these approaches are identified and discussed. Significant organisational features impacting on IT systems are also discussed.

Learning Outcomes

Upon successful completion of this topic you will be able to:

Identify and list relevant strategic planning techniques suitable for use in the effective application and management of IT systems in an organisation
Identify the integrative mechanisms that are likely to apply in the use of strategic management approaches to the development of strategic information systems
Identify, list and discuss the discrete stages involved in developing and undertaking a detailed IT needs assessment and specification statement.

Activity 7A Strategic Approaches in Information technology Management

First, read and reflect on Ward and Peppard (2002) chapter1 – 10.
Then work through this Independent learning guide and the power point presentation materials at the end of the topic.
Also work through the recommended readings listed at the end of the topic.

Session 7.1 Strategic Information Systems

Activity 7B Strategic Information Systems

Read Ward and Peppard (2002) chapters 3 – 6.
Consider: Where would you start in the process of identifying relevant strategic planning techniques for use in developing specifications for IT systems in an organisation?
Who would you involve in the discussion/investigation?

A typical indicator for the effective strategic use of IT systems is the use of information technology and the whole array of consequential applications that become possible, as a catalyst for change in the nature of the way an organisation operates and engages in business.

In turn this invokes the development of new processes, procedures, work practices and facilitating technologies that focus on the development and conversion of ‘opportunity’ into Sustainable Competitive Advantage. IT products and services, in an Strategic Information System (SIS) context, are now to be seen as integral components in business strategy, a means of achieving business goals rather than as an ‘end’ in themselves.

In effect, taking a strategic planning approach focussed on the positioning of IT systems and technologies as being potentially ‘Strategic Technology’ can in turn position the organisation for enhanced competitive advantage.

Figure 7.1 Information Technology as Catalyst

“Strategic technologies are the rapidly changing core technical competencies that provide competitive edges to the businesses of the corporation.” (Betz, 1993)

Overall it can be seen that the purpose and key roles for IT within the organisation must match and support the achievement of the core business objectives. However, it is also clear that IT systems and approaches may themselves also offer new opportunities and strategies for management in the pursuit of sustainable competitive advantage.

Determining and establishing effective connections between the role of IT systems, associated technologies and related engineering practices and the core business plan of the organisation, may well involve identifying and addressing many core problems and key characteristics of the organisation.

Figure 7.2(a) Typical Key Organisational Issues Impacting on Information Technology Decisions

Figure 7.2 (b) More Organisational Issues Impacting on Information Technology Decisions

Figure 7.2 (c) Yet More Organisational Issues Impacting on Information Technology Decisions

Similarly, it will be necessary to identify Key areas impacting on the organisation.

Fig. 7.3. Typical External Influences

Fig. 7.4. Typical Internal Influences

Given the complexity of bringing together so many influences and issues, it is clear that effective IT and SIS implementations require close association between management, strategists and technologists. Overall, an effective IT strategy in turn forms an important part of the strategic management integration process, bringing together users and stakeholders from throughout the organisation.

Ward & Peppard (2002) provide a wide ranging and useful discussion of the many issues and approaches that impact on the conceptualisation and development of an SIS. In particular they discuss the array of techniques available, including for example the use of Critical Success Factor Analysis as a particularly useful approach to establishing the necessary conditions for introduction of an effective SIS.

Figure 7.5 Information Technology as Integrator

Figure 7.6 Information Technology as Challenge

Activity 7C Strategic Information Systems

Read Ward and Peppard (2002) chapters 8 – 12
Discuss how best to undertake the initial specification of an Strategic Information System (SIS).

Session 7.2 IT Needs Assessment and Solution development

Activity 7D Assessment and Solutions

Review Ward and Peppard (2002) chapters 3 – 10.

The rapid and continuing development of computing and information technology and related communications technologies is impacting directly on both the corporate and industrial private sectors as well as government/public sectors. These impacts need to be seen in the context of continuing pressure world-wide for smarter, faster, cheaper, more powerful and increasingly more user-friendly technology.

Finding viable approaches to the introduction and application of such new and advanced information and communications technologies is a serious challenge facing technology managers.

The processes of selecting appropriate information technology and systems and related communications technologies and services, needs to be seen in the overall strategic planning and management context of an organisation. The challenge being primarily to match the available technology, products, services and required skills, to the needs of the organisation, its resourcing capabilities and strategic directions.

At the strategic level: The purpose is primarily about determining the potential of IT and CT systems to support the strategic intent of management and the achievement of core organisational objectives. This will very likely involve an assessment of a range of related issues impacting on the selection and choice of technology and systems, including:

Related Opportunity Horizons
Potential to Enhance Competitiveness
Efficacy of Decision Support Tools
Extent of Accessibility
Required User Skills base
Breadth of Diversity in application

At the Tactical Level: The exercise is largely about:

Identifying potential core areas for productivity growth/enhancement
Setting achievable Objectives
Identifying and allocating resources
Integration with existing processes and services
Clearly communicating the intent and purpose

At the Operational Level: The task is focused on ensuring the selection and implementation of :

Appropriate IT technology and systems
Effective and accessible communications technology and systems
Coherence and interconnectivity between required systems and technologies
Integration with existing products, systems and services.

It should thus be clear that in setting up and managing the selection and implementation of new IT and CT systems and services, all stages of the process need to be connected into the organisation’s strategic planning and strategic management contexts.

Whilst there are many variations of how to develop and action an IT plan, the following ‘simplified’ 5 stage management model provides an example of how such integration with strategic purpose and intent can be achieved.

Figure 7.7 5-Stage Management Model

Figure 7.8 Problem Definition

Figure 7.9 Functional Description

Figure 7.10 Request for Information

Figure 7.11 Criterion Based Evaluation

Figure 7.12 Solution Selection

Presentation Materials for:

‘Strategic Approaches in Information Technology Management’

Summary and Outcome Checklist

This topic has introduced the application of strategic management approaches to the development/selection of IT systems, products and services in an organisation. It identifies specific strategies for the development of specifications for an effective strategic information system.

Tick the box for each statement with which you agree:

I can

Identify and list relevant strategic planning techniques suitable for use in the effective application and management of IT systems in an organisation
·Identify the integrative mechanisms that are likely to apply in the use of strategic management approaches to the development of strategic information systems
Identify, list and discuss the discrete stages involved in developing and undertaking a detailed IT needs assessment and specification statement.

If you can not tick all of the above, you need to revise the relevant sections and/or contact your tutor for clarification.

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manu1381 Managing Information Technology

Module 2: Managing Information Technology

Introduction to the Module

Learning Outcomes

Background

Background Skills and Knowledge

Module 2. Topic 5. Information Technology: Definition, Scope & Strategic Impetus Module 2. Topic 6. Strategic Planning as a Management Tool in Industry Module 2. Topic 7. Strategic Approaches in Information Technology Management

Topic 5: Information Technology: Definition, Scope and Strategic Impetus

Introduction to the Topic

Learning Outcomes

Session 5.1 IT in a Modern Organisation

A Definition

Scope & Strategic Impetus

Recommended Readings (Topic 5)

Presentation Materials for:

‘Information Technology: Definition, Scope and Strategic Impetus’

Topic 6: Strategic Planning as a Management Tool in Industry

Introduction to the Topic

Learning Outcomes

Session 6.1 Development of strategic planning concepts

Session 6.2 Strategic Management Approaches

Recommended Readings (Topic 6)

Presentation Materials for:

‘Strategic Planning as a Management Tool in Industry’

Topic 7: Strategic Approaches in Information Technology Management

Introduction to the Topic

Learning Outcomes

Session 7.1 Strategic Information Systems

Session 7.2 IT Needs Assessment and Solution development

Recommended Readings (Topic 7)

Presentation Materials for:

‘Strategic Approaches in Information Technology Management’

Expert Help With This Assignment — On Your Terms

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Module 2: Managing Information Technology

Introduction to the Module

Learning Outcomes

Background

Background Skills and Knowledge

Module 2. Topic 5. Information Technology: Definition, Scope & Strategic Impetus Module 2. Topic 6. Strategic Planning as a Management Tool in Industry Module 2. Topic 7. Strategic Approaches in Information Technology Management

Topic 5: Information Technology: Definition, Scope and Strategic Impetus

Introduction to the Topic

Learning Outcomes

Session 5.1 IT in a Modern Organisation

A Definition

Scope & Strategic Impetus

Recommended Readings (Topic 5)

Presentation Materials for:

‘Information Technology: Definition, Scope and Strategic Impetus’

Topic 6: Strategic Planning as a Management Tool in Industry

Introduction to the Topic

Learning Outcomes

Session 6.1 Development of strategic planning concepts

Session 6.2 Strategic Management Approaches

Recommended Readings (Topic 6)

Presentation Materials for:

‘Strategic Planning as a Management Tool in Industry’

Topic 7: Strategic Approaches in Information Technology Management

Introduction to the Topic

Learning Outcomes

Session 7.1 Strategic Information Systems

Session 7.2 IT Needs Assessment and Solution development

Recommended Readings (Topic 7)

Presentation Materials for:

‘Strategic Approaches in Information Technology Management’

Expert Help With This Assignment — On Your Terms

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