ICAB Professional Stage - Application Level - IT Application Class Slides

1. IT APPLICATIONS
Professional Stage Application Level, ICAB
Teacher: Mohammad Abdul Matin
Chapter 1
Information Technology Strategy

2. Chapter Outline
 Importance of IT Strategy
 Process of Developing IT Strategy
 Electronic Commerce
 Risks, Limitations & Advantages of E-commerce
 Electronic Data Interchange (EDI)
 Information Technology in Enterprises in Bangladesh

3. Syllabus
 In the examination, candidates may be required to
a. explain why it is important for the IT strategy of an
organization to be developed in tandem with the overall
strategy of the organization
b. describe and explain the processes undertaken by
organizations in order to develop an IT strategy, including
consideration of the overall strategy of the organization
current IT capabilities and environment, future IT
environment and the needs of the organizational strategy
c. IT risks and opportunities
d. methods of measuring the success of strategy alignment

4. Structure of a IT Strategy
• Summarize the benefits, scope, method, budget, etc.Executive Summary
• Options for increasing ROI, availability of technologyOpportunities
• Threats from competition, being outdatedThreats
• Roles, structure, governance, etc.IT Organization
• Trends, needs that create demand in the organizationExternal Forces
• Current portfolio status, application inventories, etc.Internal Capabilities
• Planned milestones, dates and measuresMilestones

5. ACHIEVE OPERATIONAL
EXCELLENCE
EFFECTIVE BUSINESS
ENGAGEMENT
STRATEGIC SUPPORT
TO THE BUSINESS
INTERNALPROCESSLEARNINGFINANCIALCUSTOMER
P3A: Maintain a Secure and Reliable
Infrastructure that Ensures Business
Operation
F2A: Speed and Integrity of Information
P3B: Manage Service Quality: Delivery on
Schedule
L2: Provide ICT Tools and Techniques that Enhance ICT Function
P3C: Optimize ICT Process; Lower Unit CostP2C: Enhance Utilization of Existing ICT
Systems
P2B: Improve Business Unit Productivity
and Profitability through New Initiatives
P2A: Establish Effective Value Creation
Framework
L3: Foster a Business and Customer Focused Culture
L1: Attract, Develop and Retain Employees with Key Competencies
P1: Propose, Agree and Deliver Business
Transformational Applications for the
Company:
- Enterprise Resource Planning (ERP)
- Customer Relationship Management (CRM)
- Supplier Relationship Management (SRM)
- Decision Support System (DSS)
- Knowledge Management System (KMS)
C2: Support Business Unit Needs with ICT
Based Analytics
“TURNING ICT AS A COMPETITIVE ADVANTAGE
IN ACHIEVING VISION 2015”
ANUAMTSSI
ANUAMTSSI
ANUAMT
ANU
SSI
KRL
AMT
C3: Deliver Basic Service with High Quality at
Competitive Cost
C1: Drive Business Unit Success with
Innovative ICT Solution
F3: Lower Cost of ICT ServicesF1: Strategic Alignment of Business and ICT
RAQRAQ
KRL KRL
ANU
ANU
KRL
F2B: Enhance Return on InvestmentKRL
KRL
BSC

6. IT Strategic Planning Process
Architectures
• Application Architecture
• Data Architecture
• Network Architecture
Transition
Plan
• Prioritized Initiatives
• Project and Resource Plans
• Funding Scenarios
Ongoing
Planning
• Opportunity Prioritization
• Quarterly & Annual Reviews
• Budgeting and Planning
4
5
6
Business
Strategy
• Competition
• Balanced Score Card
• Change Readiness
IT SWOT
• The Application Portfolio
• Skills & Infrastructure
• Governance & Control
Vision &
Strategy
• Preferred Future State
• Strategic Intents
• Principles & Strategies
1
2
3

7. Strategy Development
 Critical Success Factors
– Revisiting the Business Model
– Adopting Strategic Themes
– Getting the Right People Involved
– Working in Partnership with Business
– Balancing IT Investment Opportunities
• Business Improvement
• Business Enabling
• Business Opportunities
• Opportunity Leverage
• Infrastructure

8. Business IT Planning Process
Customer
and Business
Value
Visioning
Business
Strengths and
Models
Business IT
Strategies
and
Architecture
Business
Application
Development
and
Deployment
Key Insight
FeedbackMore Questions
Key Objectives Priorities
Feedback

9. IT Investment Opportunities
Business
Improvement
Business
Enabling
Business
Opportunities
Opportunity
Leverage
Infrastructure
Reengineering initiatives help
organizations achieve process efficiency
Enabling initiatives
transform how a
company does business
Small scale experimental initiatives to
test emerging technology / IT strategy
Scaling up or leverage successful
prototype / pilot initiatives
New capabilities in regard
to hardware, software,
middleware,
communication, data.

10. Risks in Developing IT Strategy
1. Lacking Governance Structure
2. Lacking of Enterprise wide Funding Models
3. Traditional Planning and Budgetary Practices
4. Developing Better Skills in Strategizing
5. Getting the Right Balance between Tactical and
Operational Initiatives
6. Others:
– Physical Threats, Data Threats, Errors by People, Technical
Failures, Infrastructure Failures, Fraudulences, Malicious
Attacks, Hacker Threats, etc.

11. Opportunities in Developing IT Strategy
1. Improvement of operational efficiency and functional
effectiveness
2. Exploitation of inter-organizational synergies
3. Product innovation with IT
4. Acquisition of bargaining advantage over
customers/suppliers

12. Methods of Measuring IT Strategy
1. Business value metrics – which IT initiatives and
products add value to the business
2. Validation – tech centric Vs customer centric
3. Indicators – success indicators translated into business
results, e.g. increase in sales
4. Baseline – baseline metric and financial impact
forecasts
5. ROI – based on the baseline metrics, ROI NPV
6. ITBV – comparison among the positive ROI projects
7. ROI Analysis – post implementation change impacts

13. Questions
 Explain the typical structure of a IT strategy
 Define the five investment opportunities to future IT
strategy

14. Thank You
Next Class
Topics: Chapter 1 – e-Commerce