Business Transformation Overview strategic grid opportunity frameworks index

Business Transformation

Overview strategic grid opportunity frameworks index matrix IS strategy IT strategy transformation graph

n strategic grid identify current IT systems role in organisation n plan future developments to IT systems n n opportunity n frameworks identify ways to use IT/IS in support of business strategy/opportunity

n index n matrix identify & plan medium-scale business benefits from IS/IT n transformation n graph plan major-scale IT/business process reengineering (BPR)

Transformation benefits n MIT 90’s identified 5 transformation levels localised exploitation n internal integration n business process redesign n business network redesign n business scope redefinition n

Localised exploitation(1) n basic level n ‘islands of automation’ n lacking integrated infrastructure n efficiency benefits

Localised exploitation administration stage 1 stage 2 input administration stage 3 stage 4 operations administration stage 5 stage 6 output

Enablers & inhibitors enablers inhibitors technological • favourable cost /performance trends • vendor push – system solutions organisational • localised impact • ease of assessing efficiency benefits • minimal disturbance technological • obsolescence level 1 • cost performance reduction organisational • lack strategic vision • unwillingness to recognise strategic role of IT/IS

Internal integration(2) n IT platform in entire business process integration data sharing/communication n common applications n n integration of task/process/function of both technology & organisation

Internal integration administration stage 1 stage 2 input stage 4 operations administration stage 1 administration stage 5 output administration IT platform for internal integration stage 2 stage 3 stage 4 stage 5 operations stage 6 output

Enablers & inhibitors enablers inhibitors technological • increase connectivity capabilities • favourable cost/ performance trends technological • uncertainty level 2 • integration cost organisational • vendor push – system solutions • lack strategic integration vision organisational • organisational inertia • strategic integration vision via IT platform • centralisation / decentralisation conflict

Business process redesign(3) n fundamental rethink of conducting business effectively n limited/controlled business transformations

Business process redesign administration stage 1 input administration IT platform for internal integration stage 2 stage 3 stage 4 stage 5 operations stage 6 output administration stage. A input IT platform for redesign stage. B stage. C operations stage. D output

Enablers & inhibitors enablers inhibitors technological • favourable cost / performance trends organisational • awareness of IT power • willingness to change to exploit IT marketplace • competitive pressures technological • uncertainty level 3 • redesign cost organisational • lack strategic redesign vision • organisational inertia • cost of organisation transformation

Business network redesign(4) n use of IT by stakeholders n new ‘value webs’/alliances n traditional/formal organisation ‘virtual’/’networked’ organisation n two basic considerations business governance strategies n IT governance strategies n

Strategic options tightly coupled business governance loosely coupled collaborative advantage business network redesign electronic infrastructure common role competitive advantage IT governance unique role

Enablers & inhibitors enablers • ability to specify/ create standards for integration • value added services identification • mutual benefits recognition inhibitors • lack of standards level 4 • lack of vision / understanding • lack of integration commitment • possible market position erosion

Business scope redefinition(5) n new business ventures n new markets n new ways of doing business

Business domain enlargement products traditional business scope products additional IT generated business markets technology traditional operating technology markets new IT infrastructure / IS applications

Shifting the business domain products traditional business scope markets technology traditional operating technology increased role for IT operations

Transformation graph high 5 degree of transfor mation 4 3 2 revolution 1 low range of potential benefits high