The Problem of IS PlanningThe Problem of IS PlanningGenerating Ideas Generating Ideas

Ken PeffersKen PeffersAssociate Professor of MISAssociate Professor of MIS

UNLVUNLVSeptember 2004September 2004

Presentation AgendaPresentation Agenda

Motivation and historyMotivation and history Case studyCase study Research agendaResearch agenda

Setting the SceneSetting the Scene

SIM Interchange 2002—Snowbird Resort UtaSIM Interchange 2002—Snowbird Resort Utahh

400 CIOs from around the country400 CIOs from around the country Two issues dominate meetingTwo issues dominate meeting

SecuritySecurity Managing the IS portfolioManaging the IS portfolio

Where to allocate resources to IT investment in the firmWhere to allocate resources to IT investment in the firm Y2K and EC had hidden this problemY2K and EC had hidden this problem

Managing the IS Project PortfolioManaging the IS Project Portfolio

McFarlan speaker at SIMMcFarlan speaker at SIM Strategic GridStrategic Grid Managing the portfolio 1980Managing the portfolio 1980

CSF (Rockart, 1979)CSF (Rockart, 1979) Top down method to manage IS portfolioTop down method to manage IS portfolio Why CSF? Only executives have strategic view.Why CSF? Only executives have strategic view.

Maintenance Decision-makingOperations Strategic

The IS Portfolio 20 Yrs LaterThe IS Portfolio 20 Yrs Later

Payoff

Strate

gic

3 years

Cost savin

g

1 year

Option B

ets

10 + years

Operations

Tactical

Strategic

Maintenance

Service

Operations

SupplierIntegration

Value Chain

ChannelIntegration

SupportActivities

Knowledge necessary to determine what is important all available in the executive suite?

The IS Portfolio 20 Yrs LaterThe IS Portfolio 20 Yrs Later More dimensions for allocating attention/resourcesMore dimensions for allocating attention/resources

Political & culturalPolitical & cultural Project size--$10 million, $100 K, $5 K projectsProject size--$10 million, $100 K, $5 K projects InfrastructureInfrastructure SourcingSourcing

Seven dimensions—many cellsSeven dimensions—many cells How many ways are there to create How many ways are there to create

dissatisfaction?dissatisfaction?

CIOs Concerned, Unsure HowCIOs Concerned, Unsure How

To identify most important new systemsTo identify most important new systems To determine what innovative IS users will pay forTo determine what innovative IS users will pay for To identify the essential and valuable features for To identify the essential and valuable features for

new systemnew system

Planning FrameworkPlanning FrameworkCSF, CSC, Brainstorm

PortfolioCSF, CSC, BrainstormCost-Benefit, PIR

ProjectCSC, JAD, Brainstorm, FGCost-Benefit, PIR

Application

FG, JAD ER, DFD

Features

IdeaGeneration

Feasibility

Decision

Making

Design

Evaluation

Toward a solutionToward a solution

Use knowledge distributed around in and Use knowledge distributed around in and outside of the firm. outside of the firm. (Execs don’t have all the answers)(Execs don’t have all the answers)

Need for method to use this knowledge Need for method to use this knowledge effectively. effectively. (Bottom up methods produce unusable portfolios of ideas.)(Bottom up methods produce unusable portfolios of ideas.)

Wouldn’t it be nice extend CSF to incorporate Wouldn’t it be nice extend CSF to incorporate knowledge of many around the organization? knowledge of many around the organization? (But keep focus on what’s important)(But keep focus on what’s important)

New method for identifying New method for identifying important innovative applicationsimportant innovative applications

Application of practical applied research Application of practical applied research methods from marketing, called “laddering.”methods from marketing, called “laddering.”

Critical Success Chains (CSC)Critical Success Chains (CSC) Use knowledge of manyUse knowledge of many Create meaningful models of what is important for Create meaningful models of what is important for

the firm (or customers, etc.)the firm (or customers, etc.) Understand reasoningUnderstand reasoning

Setting: Digia, Inc.Setting: Digia, Inc.

Digia small Helsinki R&D firm, specializing in deDigia small Helsinki R&D firm, specializing in developing applications for mobile communications iveloping applications for mobile communications industryndustry

Our mandate: identify “killer cocktails” for mobile Our mandate: identify “killer cocktails” for mobile financial servicesfinancial services

Critical Success Chains at DigiaCritical Success Chains at Digia

Pre-study scopingPre-study scoping Data collection—structured interviewingData collection—structured interviewing AnalysisAnalysis

Content analysisContent analysis ClusteringClustering ModelingModeling

Ideation workshopIdeation workshop Post workshop analysisPost workshop analysis

Prestudy at DigiaPrestudy at Digia

Participant sampleParticipant sample Industry experts and lead end-usersIndustry experts and lead end-users

Experts: most knowledgeable scientists, professionals, and Experts: most knowledgeable scientists, professionals, and managers managers

End users: wealthy, educated, technologically sophisticated, End users: wealthy, educated, technologically sophisticated, mobile, SMS usersmobile, SMS users

Identified 40, contacted 18 experts & 14 lead usersIdentified 40, contacted 18 experts & 14 lead users Collected idea from each for stimuliCollected idea from each for stimuli Converted ideas into four bland application Converted ideas into four bland application

descriptionsdescriptions

Data collection: Structured Data collection: Structured Individual InterviewsIndividual Interviews

Asked participant to rank-order ideasAsked participant to rank-order ideas For higher ranked ideasFor higher ranked ideas

““Why would that application be important to Why would that application be important to you?”you?”

Series of “why is that important to you?” questionsSeries of “why is that important to you?” questions ““What about the application made you think it What about the application made you think it

would do thatwould do that Transcribed responses as chainsTranscribed responses as chains

Example chainExample chain

It is always with you

Pay micropaymentsinstantly

No separate wallet

Less things to lose

No need to signanything

No receipts tostore

Easy to search information

Life is in order

Able to functionproperly

Personal values

Performance impacts

Expected system feature

AnalysisAnalysis

Resulting dataResulting data 147 chains, more than 1000 statements147 chains, more than 1000 statements

Content analysisContent analysis Qualitative clustering to assign similar statements common label Qualitative clustering to assign similar statements common label

(construct)(construct) 114 constructs114 constructs

ClusteringClustering Cluster chains to minimize construct variance within clusterCluster chains to minimize construct variance within cluster

ModelingModeling Transformed clusters into five network modelsTransformed clusters into five network models

Example CSC Network ModelExample CSC Network ModelIN CONTROL OF LIFE

77

55

33

44

33

33

2

22

33

33

66

33

3333

33

44

APPEARANCEOF EXPERTISE

HONESTY

ECONOMICSECURITY

EFFICIENCY ANDECONOMY

EASE OFACTION ANDIMPROVEDFUNCTION

MAKE MONEY

GETTING REAL TIMEINFORMATION

ACCESS TOACCOUNT

INTERFACE EASYTO USE

IT IS ALWAYSWITH YOU

BETTER SERVICE

ALLOCATETIME TOIMPORTANTTHINGS

ABILITY TO CUSTOMIZEAND FILTER

INDEPENDENCEOF TIME & PLACE

ABILITY TO ACTAD HOC

SOCIALEFFECTIVENESS

INFORMATION ANALYSIS –DATA MINING

AUTOMATICINFORMATIONALERTS

INFORMATIONPUSHEDTO YOUR MOBILE

AVOID TROUBLEWITH PAYMENTS

299

33

66

CRITICAL SUCCESSFACTORSAPPLICATION

ATTRIBUTES

PERSONALGOALS

Ideation workshopIdeation workshop

Objective: translate 5 CSC models into feasible Objective: translate 5 CSC models into feasible application projectsapplication projects

Business and R&D peopleBusiness and R&D people Chairman, Nokia Key Account Exec., 2 bus. Mgrs, 2 Chairman, Nokia Key Account Exec., 2 bus. Mgrs, 2

eng. Mgrseng. Mgrs Five hours on one dayFive hours on one day Goals: ‘back of envelop ideas’ Goals: ‘back of envelop ideas’ No outside helpNo outside help

Business modelBusiness model

My Financial AdvisorMy Financial AdvisorDescriptionDescription An easy and intelligent way of receiving real time financial An easy and intelligent way of receiving real time financial

information. An 'aggressive' screensaver that pushes information. An 'aggressive' screensaver that pushes information.information.

ArchitectureArchitecture Always on connection (GPRS, i-MODE etc.), Multiple user Always on connection (GPRS, i-MODE etc.), Multiple user interfaces / access methods, speak synthesizer, Browser, interfaces / access methods, speak synthesizer, Browser, storing of information, chronological order of information storing of information, chronological order of information (Archiving the information), structuring of the information, (Archiving the information), structuring of the information, Lotus Domino client/server environmentLotus Domino client/server environment

PlayersPlayers Stock Exchange, Customer, Infomediary, Analyst, Network OperatStock Exchange, Customer, Infomediary, Analyst, Network Operatoror

Customers for the Customers for the developerdeveloper

Analysts for developer, For Analysts day tradersAnalysts for developer, For Analysts day traders

Benefits for players and Benefits for players and customer's)customer's)

End-customers - Real time information, better decisions, Stock ExcEnd-customers - Real time information, better decisions, Stock Exchange - more volume for trading, Infomediary - Revenues frohange - more volume for trading, Infomediary - Revenues from Analyst, Network Operator - more network traffic, Analyst - m Analyst, Network Operator - more network traffic, Analyst - increased revenues, better customer relationshipincreased revenues, better customer relationship

Revenues and market Revenues and market sizesize

2x People traveling in business class, Nokia Communicator users2x People traveling in business class, Nokia Communicator users

Profit model for the Profit model for the developerdeveloper

License sales to analyst(s)License sales to analyst(s)

Workshop resultsWorkshop results

3 ideas: My Financial Advisor, Transaction As3 ideas: My Financial Advisor, Transaction Assistant, Mobile Walletsistant, Mobile Wallet

For one model it was apparent that Digia woulFor one model it was apparent that Digia wouldn’t be a part of the value chain. “Let’s move dn’t be a part of the value chain. “Let’s move on.”on.”

For the last two maps, participants decided to tFor the last two maps, participants decided to treat them as one.reat them as one.

Post Workshop AnalysisPost Workshop Analysis

Prepare workshop results for presentationPrepare workshop results for presentation Interaction modelInteraction model Business value modelBusiness value model

Interaction ModelInteraction ModelV{(a),(b)}V{(a),(b)} Interaction(s)Interaction(s) Involved processesInvolved processes

Customer : AnalystCustomer : Analyst 1:1, 1:Many1:1, 1:Many Service fees, information requests, real time analyseService fees, information requests, real time analysed informationd information

Analyst : InfomediaryAnalyst : Infomediary 1:11:1 Information brokering services, feesInformation brokering services, fees

Analyst : Stock Analyst : Stock ExchangeExchange

1:11:1 Financial information, feesFinancial information, fees

Analyst : CompanyAnalyst : Company 1:11:1 Information flowInformation flow

Analyst : CustomerAnalyst : Customer 1:11:1 Information push, service fee revenuesInformation push, service fee revenues

Company : AnalystCompany : Analyst 1:1, 1:Many1:1, 1:Many Information pushInformation push

Stock Exchange : Stock Exchange : AnalystAnalyst

1:1, 1:Many1:1, 1:Many Information flow, fee revenuesInformation flow, fee revenues

Stock Exchange : Stock Exchange : CustomerCustomer

1:Many1:Many Information push (mass push)Information push (mass push)

Infomediary : AnalystInfomediary : Analyst 1:11:1 Information brokering services, service fee revenuesInformation brokering services, service fee revenues

Portfolio manager : Portfolio manager : CustomerCustomer

1:11:1 Customer service, information pushCustomer service, information push

Business ModelBusiness Model

Mobile Networkoperator

Customer

Infomediary Company

= information flow

= logistic flow= revenue flow

My Financial AdvisorMy Financial Advisor

(CSC Map 7-8)

StockExchange

Portfoliomanager

Information brokering

Fees

Mass financialinformation

Analyst

Customer

InfomediaryInfomediary

-- InformationInformationbrokeringbrokering

Shop

Fulfilmentservice

Bank

Government*1

Trusted 3rd party*2

*1 Population Register Centre*2 Owned by Mobile Network Operator

Mobile N

etwork op

erator

= information flow

= negotiation process between agents= logistic flow

Prod

uct req

uest

Information supply

Authenticationprocess

?

Servicefee

Shipping of product

Participation / transactionfees

Mo

bile P

aymen

t

= revenue flow

Pro

file up

da

ting

= benefits/discounts from shops

Re

ceipt

Send!

Au

then

ticatio

n a

nd

credit sta

nd

ing

check

up

Personal Transaction AssistantPersonal Transaction Assistant

Sa

les revenu

es

(CSC Map 6)

Results for DigiaResults for Digia

According to Digia executives, results of the aAccording to Digia executives, results of the analysis exceeded their expectationsnalysis exceeded their expectations Rich information about what lead users might valuRich information about what lead users might valu

ee Modeling with reasoning to help turn preference inModeling with reasoning to help turn preference in

to applicationsto applications Solid information to support developmentSolid information to support development

Plan to develop some of the application ideasPlan to develop some of the application ideas

CSC benefits to decision making CSC benefits to decision making and developmentand development

Potentially uses knowledge of many about Potentially uses knowledge of many about what applications may be importantwhat applications may be important Suppliers, customers, employeesSuppliers, customers, employees

Models reasons why applications importantModels reasons why applications important Promotes system ‘buy-in’Promotes system ‘buy-in’

Agenda—Current ResearchAgenda—Current Research

Peffers, K. and C. Gengler, “How to Identify High-Payoff Peffers, K. and C. Gengler, “How to Identify High-Payoff Information Systems for the Organization,” Information Systems for the Organization,” Communications Communications of the ACMof the ACM, 46:1, January 2003. , 46:1, January 2003.

Peffers, K., C. Gengler, and T. Tuunanen, "Extending Critical Peffers, K., C. Gengler, and T. Tuunanen, "Extending Critical Success Factors Methodology to Facilitate Broadly Success Factors Methodology to Facilitate Broadly Participative Information Systems Planning," Participative Information Systems Planning," Journal of Journal of Management Information SystemsManagement Information Systems, 20:1, 2003, 51-86., 20:1, 2003, 51-86.

Peffers, K. and Tuunanen, T., “Using Rich Information to Plan Peffers, K. and Tuunanen, T., “Using Rich Information to Plan Mobile Financial Services Applications with Maximum Mobile Financial Services Applications with Maximum Positive Impact: A Case Study,” in press, Positive Impact: A Case Study,” in press, Information & Information & ManagementManagement..

Research in Progress—Data Research in Progress—Data Collection StageCollection Stage

CSC applied to requirements engineeringCSC applied to requirements engineering Helsingin Sanomat Helsingin Sanomat Develop Multi-channel access to sell advertisingDevelop Multi-channel access to sell advertising

Data collection similar to CSCData collection similar to CSC Follow up survey to participantsFollow up survey to participants

Article ready October 2004 for submission to Article ready October 2004 for submission to JMISJMIS

Research in Progress—Presence Research in Progress—Presence StudyStudy

Problem: how do you design the features for new system when Problem: how do you design the features for new system when the users are:the users are: Outside the organization with little connection to the organizationOutside the organization with little connection to the organization Widely dispersed and largely unavailable for interactive data collectionWidely dispersed and largely unavailable for interactive data collection Unfamiliar with the innovative technology of the applicationsUnfamiliar with the innovative technology of the applications

Importance: inadequate requirements engineering a leading Importance: inadequate requirements engineering a leading cause of system failurecause of system failure If the system doesn’t meet the functional needs of users they won’t use If the system doesn’t meet the functional needs of users they won’t use

itit If the system is difficult to use, users will be very dissatisfied and lose If the system is difficult to use, users will be very dissatisfied and lose

effectivenesseffectiveness

Presence StudyPresence Study

Setting: Design the features for services in mobile coSetting: Design the features for services in mobile communications that make use of presence and locationmmunications that make use of presence and location

Lead user interviews in Hong Kong, Las Vegas, and Lead user interviews in Hong Kong, Las Vegas, and HelsinkiHelsinki

Use laddering interviewsUse laddering interviews Participants imagine services that would be valuable tParticipants imagine services that would be valuable t

o them and how they work worko them and how they work work Build prototype applications Build prototype applications

Research in Design stageResearch in Design stage

Requirements engineering. Survey of methods Requirements engineering. Survey of methods and synthesis—in design stageand synthesis—in design stage

Requirements engineering—integrating CSC Requirements engineering—integrating CSC RE method with UMLRE method with UML

Other Idea Generation methodsOther Idea Generation methods

Focus GroupsFocus Groups Good for exploring customer preferences for Good for exploring customer preferences for

featuresfeatures Weak on modeling aggregated ideasWeak on modeling aggregated ideas

SurveysSurveys Must have ideas in advanceMust have ideas in advance Good for determining importance of ideasGood for determining importance of ideas

Research that’s neededResearch that’s needed

Idea generation for IS planningIdea generation for IS planning Demonstration projects: “action research” Demonstration projects: “action research”

Applicable Research InstituteApplicable Research Institute

Practical research for firmsPractical research for firms Tackle research in IS and related areasTackle research in IS and related areas Solution for the firmSolution for the firm New knowledge about how to plan for and New knowledge about how to plan for and

build systemsbuild systems Several of the largest firms in Nevada will be Several of the largest firms in Nevada will be

partners partners