ch 11-13

• Strategic Planning


  A process that helps managers identify desired outcomes and formulate feasible plans to achieve their objectives by using available resources and capabilities

  
• Strategic Planning


  • Takes into account that the organization and everything around it is changing
  • Consumers' likes and dislikes
  • Competitors
  • Costs and availability of raw materials and labor
  • Fundamental economic environment
  • Industry and government regulation
• Benefits of strategic planning


  • Provides a framework and direction to guide decision making
  • Ensures the most effective use of the organization's resources
  • Enables the organization to be proactive and take advantage of opportunities and trends
  • Enables all organizational units to participate toward accomplishing a common set of goals
  • Provides a set of measures for judging organizational and personnel performance
  • Improves communication among all interested parties

  
• Organizations with immature planning processes

  • Treat strategic planning as an annual process
  • Prepare the annual expense budget and capital forecast
  • Concentrating on the individual needs of various departments
• Organizations that are more advanced in planning processes

  • Develop multiple-year plans
  • Based on a situational analysis, competitive assessments, consideration of factors external to the organization, and an evaluation of strategic options

  
• Role of the CEO


  • Make long-term decisions about where the organization is headed and how it will operate
  • Involved in setting high-level business objectives and defining strategies
  • As a champion and supporter of the chosen strategies
• Three strategic planning approaches

  • Issues-based strategic planning
  • Organic strategic planning
  • Goals-based strategic planning

  
• Issues-Based Strategic Planning


  1. Identifying and analyzing key issues facing the organization

  2. Setting strategies to address those issues

  3. Identifying projects and initiatives that are consistent with those strategies

  
• Organic Strategic Planning


  1. Defining the organization's vision and values

  2. Identifying projects and initiatives to achieve the vision while adhering to the values
• Goals-Based Strategic Planning


  1. Analyze situation

  2. Set direction

  3. Define strategies

  4. Deploy plan

  
• Step 1: Analyze Situation

  1. Identify the strengths and weaknesses of the organization

  2. Study the external environment surrounding the organization
• Michael Porter's Five Forces Model

  Used to determine the level of competition and long-term profitability of an industry

  
• SWOT analysis


  A simple way to illustrate what a company is doing well, where it can improve, what opportunities are available, and what environmental factors threaten the future of the organization
• Step 2: Set Direction


  Defining the mission, vision, values, objectives, and goals of the organization

  
• Vision/mission statement


  Communicates an organization's overarching aspirations to guide it through changing objectives, goals, and strategies
• Mission statement


  Concisely defines the organization's fundamental purpose for existing
• Vision


  A concise statement of what the organization intends to achieve in the future
• Core value


  A widely accepted principle that guides how people behave and make decisions in the organization
• Objectives


  A statement of a compelling business need that an organization must meet to achieve its vision and mission
• Goals


  A specific result that must be achieved to reach an objective
• SMART Goals


  Specific, Measurable, Achievable, Relevant, Time constrained
• Strategies


  A plan that describes how an organization will achieve its vision, mission, objectives, and goals

  
• Initiatives, Programs, and Projects


  The firm must execute specific initiatives, programs, or projects to make changes
• Step 3: Define Strategies

  Managers should consider the long-term impact of each strategy on revenue and profit, the degree of risk involved, the amount and types of resources that will be required, and the potential competitive reaction
• Step 4: Deploy Plan


  1. Communicate the objectives, goals, and strategies to the organization's business units and functional units

  2. The managers of the various organizational units develop more detailed plans that align with the firm's objectives, goals, and strategies

  
• Setting the IS Organizational Strategy

  • IS organizational strategy must support the corporate and business unit objectives, goals, and strategies
  • Investment in technologies, vendors, competencies, people, systems, and projects must be identified
  • The IS strategic plan is strongly influenced by new technology innovations and innovative thinking

  
• IS organization can be viewed as

  A cost center/service provider, a business partner/business peer, or as a game changer
• Various potential projects can be classified as

  • Organizational goal
  • Tangible and intangible benefits
  • Cost
  • Rate of return
  • Risk
  • Sequencing of projects
  • Organization capability (skills, expertise, change management)
• Project Management


  The application of knowledge, skills, and techniques to project activities to meet project requirements
• Project Variables


  • Scope
  • Cost
  • Time
  • Quality
  • User Expectations
• Project Stakeholders


  The people involved in the project or those affected by its outcome
• Project Management Knowledge Areas


  • Scope Management
  • Schedule Management
  • Cost Management
  • Quality Management
  • Project Resource Management
  • Communication Management
  • Risk Management
  • Procurement Management
  • Project Integration Management
  • Stakeholder Management

  
• Innovation


  The application of new ideas to the products, processes, and activities of a firm, leading to increased value
• Types of Innovation


  • Sustaining -- results in enhancements to existing products, services, and ways of operating
  • Disruptive -- displaces the former product or way of doing things
• Reengineering


  Involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results
• Continuous Improvement


  A form of innovation that involves constantly seeking ways to improve business processes and add value to products and services
• Popular Continuous Improvement Methods

  • Lean
  • Six Sigma
  • Total Quality Management (TQM)
• Business Process Reengineering (BPR)

  Involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results
• Continuous Improvement


  Involves constantly seeking ways to improve business processes and add value to products and services
• The organizational appetite for innovation drives the changes within the firm's selected projects and processes