making the business case achieving strategic alignment
TRANSCRIPT
Making the Business Case
Achieving Strategic Alignment
Why
Establish team credibility Sell the project
New project Pilot project
Support design trade-off decisions Define evaluation metrics
What is the business case?
Alignment: How does the project fit into organization goals?
Impact: Where does the project impact organization processes?
Contribution: What contribution does the project make?
Metrics: How will we define success?
Strategic View:Who is the organization? Vision Mission Objective Tactic
Tactical Alignment
Business Objective
Business Tactic
IT Objective
IT Tactic
Firm Infrastructure(general management, accounting, finance, strategic planning)
Human Resource Management(recruiting, training, development)
Technology Development(R&D< product and process improvement)
Procurement(purchasing of raw materials, machines, supplies)
Su
pp
ort
Act
ivit
ies
Pri
mar
y A
ctiv
itie
s
InboundLogistics(rawmaterialshandlingandwarehous-ing)
Operations
(machineassembling,testing)
OutboundLogistics(warehous-ing anddistributionof finishedproduct)
Service
(installation,repair,parts)
Marketingand Sales(advertising,promotion,pricing,channelrelations)
Value Chain Model Chain of basic activities that add to
firm’s products or services Products can be services or goals
(particularly for public organizations) Each product has its own value chain
Primary activities Secondary activities
Value Chain Primary Activities Inbound Outbound Operations Marketing and Sales After-Sale Services
Value Chain Support Activities Technology development Procurement Human Resources Management Management Control
accounting/finance coordination general management central planning
Generic System Contributions
Automate* Informate*
Up Down
Transform* Discover
* Scott Morton (1991); and S. Zuboff, In the Age of the Smart Machine (New York: Basic Books, 1988).
Automation Information Systems
Replace human effort with machine effort Reduce the number of workers Expand the amount of work that can be done by
the current work force Expandable and non-expandable tasks
Move the automation boundary Improved accuracy Customer empowerment
Improve organization response time Increase focus on core competencies
Informating Information Systems
Provide information to upper management Reduce the layers of management Improve the span of control Improve decision making ability
Provide information to operational personnel Empower workforce
Transformational Information Systems Radical changes in an organization’s
business processes (Business Process Reengineering)
Radical changes in an organization’s structure
Radical changes in an industry’s value streams
Business Process Reengineering (BPR)
Completely changes manner in which business is done
Fewer steps, shorter cycle times Complete, more expert handling of events Not incremental improvement Typically uses IT as an enabler Involves discontinuous thinking
Characteristics of BPR
Combining jobs Empowering employees Jobs done simultaneously Customizing product/service Work performed where most logical Single point of customer contact
Transformational Information Systems
Radical changes in an organization’s structure reduce layers of management empower front-line workers loosely couple work units
Radical changes in an industry’s value streams disintermediation create new markets