slide 1 of 26 sisp tools introduction grouping sisp tools selected sisp tools conclusion

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SISP Tools

• Introduction

• Grouping SISP Tools

• Selected SISP Tools

• Conclusion

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Introduction

• Over the years a number of tools have been developed to assist with the IS strategy planning process

• Some organisations use 1 or 2 models only, others use a number of tools to deal with different aspects of IS planning

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SISP Tools (Some Examples)

• Checklists– Business Analysis e.g. Swot,

PLEETS– Sector Analysis

• Business Opportunities– Opportunity Search– Strategic Analysis

• Internal Position– Analysis of the internal position

• Generic IS Strategies• Value Chain Analysis

– Evolutionary Models• E.g. Stages of Growth Model

– Information Requirements Analysis• E.g. CSF Analysis

– Portfolio Management Approach• E.g. Internet Value Matrix

• External Position– Analysis of Competitive

Position e.g.• Five forces model• Generic Strategies• Strategic Thrusts

• Linkage/Future Models– Linkage Models

• E.g Linkage Analysis Planning

– Future Models • E.g. Scenario planning

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SISP TOOLS Analysed Further (10)

– Checklists • SWOT

– Business Opportunities• Strategic Analysis Matrix

– Analysis of the Internal Position• Value Chain Analysis• Stages of Growth Model• CSF Analysis• Internet Value Matrix

– Analysis of Competitive Position• Competitive Five Forces Model • Generic Business Strategies

– Linkage/Future Models• Linkage Analysis Planning• Scenario Planning

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CHECKLISTS

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Opportunity

Threat

Strength Weakness

Attack Beware

Explore Play Safe

Evaluation of IS Capability

SWOT AnalysisS

itua

tion

IS

Fac

es

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BUSINESS OPPORTUNITIES

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Wild cat (Examine)

Turnaround

Star (Invest)

Strategic

Dog (Divest)

Support

Cash Cow (Milk)

Factory

Strategic competitive importance of planned IS

(Market Growth)

Strategic competitive importance of current IS

(Market Share)

Strategic “IS Portfolio” Analysis(1996)

BCG Matrix Robson ch 2 page 53, McFarlan & McKenney (1983) IS Strategic Grid

importanceadvice

Ward and Griffiths (1996)

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ANALYSIS OF THE

INTERNAL POSITION

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Firm Value Chain Analysis ...

Firm’s Value Chain Analysis (1985)

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Initiationcostreduction

Contagionnewfunctions

Control“hold”

LearningCost

STAGES OF GROWTH(Nolan)

Maturitydatabase+

telecomms+end user computing

Stages of Growth Model (Nolan, 1974)

time

Stages of Growth Model ….

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Stages of Growth Model contin..

• Expenditure on IT/ IS followed an S-curve over time

• Organisational learning also followed an S-curve

• Each stage marks a new approach to managing and using IT/IS

• Movement between stage often prompted by an organisational crisis in the life of the IT function

Stages of Growth Model ….

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Critical Success Factors (Rockart,1977)

• Identify Critical Success Factors

• Identify Key Decisions related to the CSFs

• Identify the Information Required to support those decisions

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CSF Analysis

• Successful application requires skilled team• Attractive to top management teams• Managers not experienced in strategic

planning may find it difficult• Incorporated into a number of

methodologies e.g. Andersen Consulting’s Method/1

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Internet Value Matrix( Alexander, 2000)

Criticality to Business Newness of Idea

New fundamentals

Low Low

Operational Excellence

High Low

Rational experimentation

Low High

Breakthrough Strategy

High High

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Internet Value Matrix contin..

• This is a Portfolio planning technique used by Cisco to ensure it develops a well-rounded Portfolio of IT projects

• Today, Cisco’s portfolio revolves around the internet

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ANALYSIS OF COMPETITIVE POSITION

(EXTERNAL)

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Can IS Build barriers to entry?

Can IS Change the balance of power with suppliers?

Can IS build in switching costs?

Can IS change the basis of competition ?

Can IS generate new products or services?

Porter’s five forces

Porter’s Competitive 5 Forces Model (1985)

Porters 5 Forces ...

Robson, ch 5, pg 128

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• Low Cost– Reduce overall costs in production and

operations• At point of sale

• Differentiation– Add features to the product or service directly

• Focus/niche– Identify and create market niches directly

Generic Business Strategies (Porter, 1985)

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• Strategic Thrusts …..

• Extends Porters Generic strategies into five:

– Low Cost

– Differentiation

– Innovation

– Growth

– Alliance

• These are targeted at

– Suppliers

– Customers

– Competitors

Strategic Thrusts (Rackoff, 1985)

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What is the strategic Target?

Supplier Customer Competitor

What is the strategic Thrust?

Differentiation Low Cost Innovation Growth Alliance

What is the Mode?

Offensive Defensive

What is the Direction?Use Provide

Strategic Options Generator

Strategic Options Generator ...

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LINKAGE/FUTURE MODELS

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Linkage Models (Primozic, 1991)

• Examines links organisations have with one another

• Goal – create a strategy utilising electronic channels

Step 1: Define power relationships among the various players and stakeholders

Step 2: Map out the extended enterprise to include suppliers, buyers and strategic partners

Step 3: Plan electronic channels to deliver the information component of products and services

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Scenario Planning (Schwartz, 1991)

• SCENARIOS– stories about the way the world might be in the

future

• The goal is not to predict the future • Explore forces that may cause different

futures to take place• Decide on actions if forces materialise• Case Example – Scenarios on the Future of

IS Management

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Scenario Planning contin..

Step 1: Define a decision problem and timeframe to bound the analysis

Step 2: Identify major known trends that will affect the decision problem

Step 3: Identify just a few driving uncertainties

Step 4: Construct the scenarios

slide 1 of 26 sisp tools introduction grouping sisp tools selected sisp tools conclusion

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