Professional Documents
Culture Documents
Developing a view of the future that guides decision making today Strategy Stating the direction you want to go and how you intend to get there The result of strategy making is a plan
Planning
(3-5 years)
Tactical
Operational
to align Technologies are rapidly changing Companies need portfolios rather than projects Infrastructure development is difficult to fund Responsibility needs to be Joint Other planning issues
Business strategy
Direction for IS
IT Impact
Systems strategy
Needs and priorities
IT strategy
Assumptions:
1.
2.
3. 4.
5.
The future can be predicted. Time is available to progress through this three-part sequence. IS supports and follows business. Top management knows best, because they have the broadest view of the firm. The company can be viewed as an army
Reality today:
1.
2.
3.
4. 5.
The future canNOT be predicted. Time is NOT available to for the sequence. IS does NOT just support the business anymore Top management may NOT know best The organization is NOT like an Army
Sense-and-Respond Approach
Let
Case: Microsoft
Bill
Gates announced that theyll focus on the Internet, security and web-services. Sense-and-respond approach in creating their Internet strategy.
Case: Microsoft
Microsoft
Case: Microsoft
Microsoft
has been sensing and responding to the moves in several industries. The strategies have not always come from the top management.
Sense-and-Respond Approach
Old-era strategy: One big choice; long commitment
Time
New-era strategy: Many small choices, short commitments
Time
Sense-and-Respond Approach
Formulate
strategy closest to the action Stay in close contact with the marketplace Employees closest to the future should become prime strategizers
They take all the Internet, cellphones, etc for granted wear them like clothing
3G teams:
25+,
35+, 45+, cross functional, chosen by peers or nominated by company Mandate was to focus on questions, rather than answers Five initial teams developed strategic questions on five subjects: Insurance industry in Europe, technology, world economics, demographics, leadership
3G teams:
arrived
at a number of interesting contexts for the questions such as the evolution of financial world and IT These contexts were presented to 150 Skandia senior managers, through scenarios of these five future environments, not through documents
Knowledge caf:
Created
by one of the 3G teams and a few executives 150 senior execs gathered for 1 hour around stand-up tables at different Skandia sites. Each table had a coffee and a laptop loaded with groupware software which were interconnected to form a virtual community
Knowledge caf:
Execs
exchanged ideas Was videotaped and sent to larger community (along with the questions and video of the play) Showed the power of collective intelligence accelerated innovation
Nurturing the Project Portfolio Center = garden Some projects are growing and some are not Created groups (50+, 40+, 30+, 20+) Different groups have different relationship with IT Learned that 35 to 45 year-olds have the lowest risk propensity Innovative behavior occurs amongst young people and seniors
Sense-and-Respond Approach
Guide
Corporate strategies being tested in parallel could lead to anarchy without a central mechanism (see previous diagram) This mechanism is a strategic envelope Job of the top management
Sense-and-Respond Approach
Guide
Rather than devise strategies, they define its context by setting parameters for the experiments (the strategic envelope) and then continually manage that context May perform management work by defining territories
Sense-and-Respond Approach
Be
at the table
Realities: IS executives have not always been involved in business strategizing IS function needs to be strategy oriented, not tactical and operational To become strategy-oriented, CIO must :
1.
2.
Make their departments credible Outsource most operational work to release remaining staff to help business partners strategize
Sense-and-Respond Approach
Test
the future
To get a running start, IS department need to test potential futures before the business is ready for them Mechanisms for tests
provide funding for experiments work with research organizations Have an emerging technology group
Sense-and-Respond Approach
Put
Most critical IT decision infrastructure decisions Recommended that IT experiments include those that test painful infrastructure issues
Comparison
Traditional
strategy making: one big choice, long commitment Sense-and-respond approach: many small choices, short commitments