Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 1
-Session 10
Information Systems Management
l ITPM - IT Portfolio Management
l McFarlen matrix
– The strategic impact of information systems
l Business/SI strategic alignment
l The strategic importance of information systems
l SI management model
– matrix of Fs strategic impact
» BCG matrix applied to IS
– Strategic Systems
– Operational Systems
– Support Systems
– Exploratory Systems
l IS planning coordination and control
Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 3
-Uren an Is management strategy is
missing
l Lack of control
» Users compete to obtain Is services
l Investment is not business related
» Incredible increase of investment
l Systems are not integrated
l The motion of priority is lacking
l Management information in missing
l Difficulty in managing resources (prioritization)
l Conflicts between users and IS managers
Business/IS Strategic alignment
l Given some IS portfolio...
l How to regulate IS demand?
– planning
l How to manage IS offer?
– Management model
Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 5
-IS management strategies
l We need a management model …
Board
users IS professionals
Maturity levels
(Nolan)l The maturity of an organization is always relative to a given technology
» An enterprise can have several technologies
l See maturity can also be relative to business units
l The complete matrix has 6 stages of maturity
l The organization acts differently in each stage
Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 7
-Maturity levels
l 1. Initiation
» efficiency
» automatization
» Short run concerns
» Sometimes IS are managed by the CFO
l 2. Expansion
» Unexpected flourishing
» Without planning nor control
» Technological concerns
Maturity levels
l 3. Formalization
» Motivation -> high levels of expenses
» centralization
lLess FTE for IS management
» Formalized Planning and budget
» bureaucratization e functional specialization
» Use of methodologies and formal planning
lIS development delay becomes apparent (seems to be the most common level)
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-Maturity levels
l 4. Plain Maturity
– Integration
» Decrease levels of control to support innovation
– Manage information for business processes
– Manage information for global decision making
– IS planning and strategy are part of business strategy
ITPM Maturity Model
l Stage 0 Ad HOC
l Stage 2 Defined
– Centralization, formalization, standardization
l Stage 3 Managed
– Strategic alignment and prioritization
– financial Metrics
l Stage 4 Synchronized
– Dynamic strategic alignment
– ITPM management model in real time
– Financial metrics with chargeback
Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 11
-IS Management model
l For each group of the portfolio:
1. Who is responsible and who participates in IS demand 2. How to submit IT offer and hour to regulate it
3. How to install coordination and control mechanisms
Board
users IS professionals
Strategic planning of IS
l Find the managed Set of IS
– actual (maintenance)
– And future (projected)
l Resource planning
– human, financial, time
l Management Model
– structure
Information Management Session10 Information Systems Management Prof. Paulo Cardoso do Amaral 13
-IS management model
l Define a Systems’ portfolio
– Following the business strategy
» Information Systems are a tactical resource
l Prepare the use of sub-models
» strategic(++)
» operational (+)
» exploratory (+)
» support (-)
l Manage the portfolio with some policy
» That policy should never rule the strategy
Systems Portfolio
strategic importance of planned systems +-Strategic importance of actual systems
+ -Financial risk Business risk Future risk actual risk operational strategic support exploratory
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-Strategic Systems
l Support business objectives And critical success factors
l Fill market needs in
l Time is crucial
» Opportunity window, continuous innovation
» moving target: sustain competitive advantages
l Business vertical integration
– Understand how to add value in in differentiated manner
» It is normally associated will business units with high information intensity
l Business needs are more important than technological excellence
Exploratory applications
l Ideas, opportunities
» To apply technology to business
l Do not waste time
l Try to prove the strategic potential (meaning €)
» So important in critical success factors as in competitive advantages
l Works like R&D
» Controlled experimentation
l IMP: the outcome of this phase is knowledge
» To know if the future system is strategic or operational
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-Support systems
l Question:
» Its absence represents a substantial business risk?
l If not, then it is a support system
l These are the systems that an enterprise needs
» Than can be shared with competitors
l “do what you do best, outsource the rest”
l They are a cost
» That should be controlled (minimized)
l In the long run
l Objective: efficiency Of business support functions
l Minimal overhead
Operational systems
l Make current business work
» are guardians against competitive disadvantages
l Can increase business effectiveness
» Business results... ($$$)
l Must be integrated
» To avoid duplications and inconsistencies
» Quality assurance (priority to effectiveness)
l Investments must be cautious
» Returns in effectiveness rather than competitive advantages
» With efficient resource use
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-Planning coordination and control of
information systems
Manage the IS portfolio
in a differentiated manner
Give priority to important aspects
Planning coordination and control of
information systems
l Operational IS: the majority of systems
» Create a simple bureaucracy to ensure systems’ quality (medium maturity)
l Strategic IS: ensure the future
» Consider all options: business strategy (high maturity)
l Support systems: minimal investment
» Time and money
l Exploratory systems
» Give autonomy to business experiments
support
operational
strategic
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-Strategic planning of IS
= regulate demand
l Portfolio evaluation to encounter projects
(priorities are defined according to internal rates of potential returns)
» Business impact
l Expected benefits to manage
» plan
l The business change
l IS development, test, and acceptance
l IT infrastructure
Users leader respons. Respons. Respons. IS prof. Particip. Follow inform advise
suporte operacionais
estratégicos exploratórios
Manage IT:
regulate offer
l Manage and regulate
– Technological infrastructure
– Systems integration
– Systems exploitation
Users leader respons. leader respons. IS prof. Respons. Advice respons. advice
suporte operacionais
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-Conclusion
l IS management model must follow strategy
l Coordination and control of IS follows the IS management model
