IS/IT Strategic Analysis:

Assessing and Understanding

the Current Situation (Internal
Business Analysis)

Faculty of Industry and Informatics Technology

Telkom Institute of Technology Purwokerto, October
2018
Review From Previous Session
 The development of IS/IT Strategies should be aligned
with business strategies
 The processes of developing IS/IT Strategic Plan
consist of:
◦ Current situation analysis
 Internal business analysis
 Current IS/IT analysis
◦ Future situation analysis
 External business analysis
 IS/IT trend analysis
◦ Gap analysis
 The output of IS/IT Strategic Plan: (1) IS/IT
management strategy, (2) Business IS/IT strategy, (3) IT
strategy
Context of This Session We are here
External Business Environment

Internal Business Environment

Internal IS/IT environment

Current Applications Portfolio

External IS/IT Environment

Strategic IS/IT
Planning Process

Planning Approaches, Tools and Techniques

IS/IT Management Strategy Business IS Strategies IT Strategy

Applications Portfolio Model & Matrices

 Session Objectives
 To understand the current situation in the
business as the baseline of the SPIS
analysis.
 To identify business activities and business
processes (existing condition).
 To obtain Information System logical
requirements based on fact finding,
analysis and interpretation.
 To understand the use of various modeling
and analysis tools (techniques).
 To develop IS/IT Strategy based on the
analysis.
 I. Analysis of Internal Business
Environment
Business Process Re-engineering (BPR)
and IS Strategy
 Most business strategy development needs
re-engineering  to improve performance
 Developing IS strategy needs
understanding of business strategy
 The success of BPR usually supported by
IS strategy. BPR depends on IS/IT?
Which one comes first: Business drives IS/IT or IS/IT drives
Business? BPR drives IS/IT or IS/IT drives BPR?
Contoh BPR. Dilangkah mana saja IS strategy
bisa mendukung BPR?
 Proses Bisnis - Value Chain
Case Study: Perusanaan Pertambangan

Eksplorasi Pengolahan Pemasaran

Produksi Transportasi Pelayanan

Proses bisnis mana yang akan di re-engineered?

Apa tujuan BPR?
Dimana letaknya peran IS/IT?
 The Role Of IS/IT in BPR?
 How can business processes be transformed using
IT?
◦ Based on IT capabilities (What are IT capabilities?)
◦ IT as enabler (explain what do you mean “enabler”)
 How can IT support business processes?
◦ Provide value added (how do you measure value
added?)
 Ultimately, how can IT deliver optimal benefits to
organization?
◦ Interface to IT Governance
◦ Improve performance
How an organization can gain competitive advantages, through BPR that supported by
IS/IT?
 Competitive Advantage Indicators
 Adopted from Porter and Resource Based
Theory (RBT), we used 11 indicators to
measure the organization’s competitive
advantage that caused by ERP
implementation (Molla and Loukis, 2005):
(1) value added, (2) rare product, (3) product
leading, (4) non-substitute, (5) support core
business, (6) reduce product cost, (7) product
differentiation, (8) operational efficiency, (9)
increase entry barrier, (10) bargaining power
again supplier/customer, and (11) support
competitiveness.
What IS/IT strategies that can realized these indicators?
Techniques and Analysis to Determine
The IS Demand
Current & Expected,
SWOT, CSFs, Business & Technical
Value Chain, Environment
Business Model
Current Status of IS/IT
Business Potential Status of IS/IT
Strategy Determine
Opportunities
IS Demand
For IS/IT
Innovation
Proposed
Proposed IS/IT
Business Impact and Role of IS/IT
Initiatives
Initiatives
 Tasks Deliverables
Analysis of the Identified its components and its information
business strategy needs
Analysis of current and Determine how IS/IT can strengthening business
future portfolio of the competitive position
business
Analysis of the internal Understand the relevant organizational
business environment characteristics, SWOT, SLOT, and other factors
Identification of CSF Crystallize the meaning of success in meeting the
of the business objectives stated in the strategy
Information Analysis Model the logical activities and inherent
information elements in the business
Evaluation of the Identify where changes need to occur, how IS/IT
Effectiveness can improve performance

Gathering the Relevant Data in Order to

Determine the Demand of Information Systems
 Where can you find all these

data/information?
How do you collect the data/information?
Use scientific method to collect
data/information: survey, interview,
observation: need scientific instrument

Make sure you go through all the TASKS and

DELIVER the results using scientific methods in
order to gather the data and information
Where to Find Data and Information?
 In all strategic business units (SBU) of the
organizational hierarchical structure.
 Documentations related to business plan,
business report, decree (surat keputusan)
policy and regulation, etc.
 Observation: work flows, information flow,
chain of command, etc.
 Survey and Interview key persons.
◦ Develop survey instrument
◦ Develop interview instrument

Make sure you collect all these sources of data, scientifically

Scientific Method to Collect Data
and Information
 Develop questioner for survey
 Develop list of questions for interview
◦ Record the interview
 Develop check list for observation
◦ Business process
◦ Human resources
◦ ICT facilities, etc.
 Note taking for reading the documents
of business report, strategic plan, etc.
 Internal Business Environment
(Interpreting The Business Strategy)
 Business strategy
◦ Purpose: to ensure that IS strategy supports rather contradicts
business strategy
◦ Identify and analyze the current strategy
◦ Compile and confirm the IS requirements, and document in the IS
demand
◦ Tools: critical success factors analysis and business drivers analysis
 Business processes, activities, and key entities
◦ Purpose: to understand important business tasks and processes, and
the flow of information. Make up the business model with supporting
IS model
◦ Tools: processes effectiveness analysis, process flow diagrams, DFD,
ER, and activity entity matrices (tabular representation of the
business…)
 Organizational environment
◦ Purpose: to understand organizational arrangements, value system,
and key people and their relationships. Understand the environment,
its skills, resources, values, culture, social interactions, its
management style…
◦ Tool: organizational modeling
 Constituents of Business Strategy
(Usually included in “Renstra”)
 Mission: Statement of overall purpose for the
organization
 Vision: Brief description of the future that is
consistent with the mission
 Business drivers: A set of critical forces for change
that the business must respond to
 Goals: Major achievements necessary to accomplish
the vision
 Objectives:Measurable targets that take the
organization towards the goals
 Strategies: Concrete ways to achieve the objectives
(inputs from IS planning process)
 Critical success factors: Areas where things must go
right for the organization to flourish
 Business area plans: the plans of various areas of the
business
Notify the components of Business Strategy
 Business processes: the sets of interlinked
activities or roles that deliver specific outputs to
identified customers inside or outside the
organization
 Activities: the elements of the business processes
that organization undertakes to produce, promote
and distribute its products or services, to develop,
support and administer its infrastructure and to
measure performance against objectives.
 Key entities: within an activity that are of
fundamental importance to business processes.

Components of Business Model

 Rich picture
 Process flow models
 Functional decomposition model
 ERD
 DFD
 Activity/Entity Matrices
 Other Diagramming Techniques using UML
– OO
 Other diagrams
Components of Information
Systems (IS) Model
 IIA. Analysis of Internal IS/IT
Environment
 Current IS management strategy
(applications portfolio)
◦ Content and coverage of applications
◦ Contribution of applications
 Current IS/IT regulation and policies
 Value of IS organization
◦ IS profile in organization: structure, function,
etc.
◦ IS perception in organization
 Current IT management strategy (IT
infrastructure)
◦ IS/IT organization and processes
◦ IS/IT assets, resources, and skills
◦ IS methodologies and training provisions
 Identify drivers of IS/IT trend
 To gain perspective on IT trend and
opportunities
 Looking at what competitors are doing
with IS/IT
 Identify elements of IS/IT that need
further investigation

IIB. Analysis of External IS/IT

Environment
Gartner’s Top 10 Strategic Technologies for 2011
1. Cloud Computing
2. Mobile Applications and Media
Tablets
3. Social Communications and
Collaboration
4. Video
5. Next Generation Analytics
6. Social Analytics
7. Context-Aware Computing
8. Storage Class Memory
9. Ubiquitous Computing
10.Fabric-Based Infrastructure and
Computers

Sumber: Gartner, Inc. (www.gartner.com)

Gartner’s Top 10 Strategic Technologies for 2013

1. MOBILE DEVICES BATTLES

2. MOBILE APPS AND HTML5
3. PERSONAL CLOUD
4. THE INTERNET OF THINGS
5. HYBRID IT AND CLOUD COMPUTING
6. STRATEGIC BIG DATA
7. ACTIONABLE ANALYTICS
8. MAINSTREAM IN-MEMORY COMPUTING
(IMC)
9. INTEGRATED ECOSYSTEMS
10. ENTERPRISE APP STORES
How your IT strategies keep up with the technology trends?
III. Measurements, Techniques, Methods, etc to
Determine Information System Needs
 “The limited number of areas, in which
results, if they are satisfactory, will ensure
competitive performance of the
organization
 Hierarchy of CSF (industry, organizational,
business unit, and manager)
 Identified from objectives and strategies
 For prioritizing and determining
Information System applications

Critical Success Factors (CSF)

Analysis
 Example: Business objective is to achieve 1% growth in market
share. In order to achieve that objective, Strategy, CSF
and Measurement needed are as follow:

Strategy CSF Measure to be

developed
Improve sales in all Competitive pricing Company price versus
sites at rates higher Salary of site manager industry average
than industry average Distribution of sites Manager salary versus
industry average
Proportion of high turnover
sites
Improve sales of Level of advertising Amount spent versus
underperfoming sites industry average

Other examples of CSFs: access to raw material, timely delivery, etc

 Objectives must be well
defined and measurable

CSF helps Define and set objectives.

Give Examples
 CSF Analysis
Executive IS IS applications

Define

Critical Success
Factors Prioritize Define

Identify

Objectives and Business tasks

Strategies and processes

CSFs help manager to control the business performance

CSFs help define and prioritize the IS needs
 Technique to analyze degree of Information System:
High IS Profile in Organizations

Support routine, Strategic to entire

Distributed organization
Computing

Support routine, Crucial to some

Centralized business areas
computing

Low
Diffusion High
(deployment Infusion (impact on business)
in business)
Evaluating the Gap Between Current
and Required IS/IT
 Identify business processes in need of
recognition, simplification, streamlining,
or redesign
 Identify new or upgraded information
provisions
◦ New uses of existing sources of information
◦ New sources of information
 Identify changes in the IT management
strategy (supply provisions) to support
the new role of IS in the organization
 Fact finding processes to obtained
relevant information to develop IS/IT
strategy
 There are techniques to analyze and
interpret the development of IS/IT
Strategy
 No trivial attempt to develop IS/IT
strategy
 More techniques to come….

Tips and Bits for this Session