Strategic planning in Information Technology: Research Design and Methods
Harsh_Harsh
INFORMATION_SYSTEMS_STRATEGIC_.pdf
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INFORMATION SYSTEMS STRATEGIC PLANNING TO INCREASE COMPETITIVE ADVANTAGE OF HIGHER EDUCATION USING
BE VISSTA PLANNING METHODOLOGY (CASE STUDY: SWCU SALATIGA)
Agustinus Fritz Wijaya Faculty of Information Technology
Satya Wacana Christian University, Indonesia [email protected]
Danny Manongga
Faculty of Information Technology Satya Wacana Christian University, Indonesia
Abstract
Information system and information technology (IS/IT) has taken great effect in business process of an organization. The research was conducted at the Satya Wacana Christian University (SWCU). SWCU perceived in running business processes is not optimal in making the application of IS/IT in the organization. Implementation planning process/IT has not been done equally for all business units, yet have SWCU Executive Information Systems (EIS) which can assist in the decision making process. Process of strategic planning of information systems using Vissta Be Planning has compiled some information systems strategic planning methods. Results obtained the study of the needs of the IS/IT in SWCU which obtain an application portfolio that will implemented in the institution. Keywords: Information Systems, Executive Information System, Strategic Planning,
Competitive Advantage, Be Vissta PEST, Value Chain Activity, Strategic Grid, Application Portfolio.Planning, Five Forces
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Introduction
Information system and information technology (IS/IT) has taken great effect in business
process of an organization. IS/IT not only given the efficiently improvement and effectivity of
organization work but also has become the main factor toward organization in order to perform
the business process and to gain the business objective of the organization by: create new ways
in managing organization, improving the productivity and performance, developing new business
and finally give the competitive supremacy (Ward, J., et. al., 2002). Nowadays, IS/IT is expected
to be one kind of aspect from business strategy of an organization so the objective of the
organization will be reached. One of organization objective is reaching competitive superiority in
global market within the way of how the organization able to integrate all the data they owned
which can be help making benefit information that can be used to help organization management
is doing the business process. The use of IS/IT in giving the competitive superiority today still
can not be found. The subject of problem in here is how making the organization able to
harmonize between business strategies with IS/IT strategy in order to create organization
competitive superiority.
To overcome these problems, the organization shall conduct thorough strategic planning
of IS/IT that have been or will be applied. It is important, because it will be used as a basis for
managerial decision-making about application of IS/IT in the future. Managerial decisions
regarding IS/IT is applied in an organization related to how IT Governance that have been
established. IT Governance as a system to direct and control an organization in achieving its goal
by utilizing the IS/IT and processes within it need a strategic plan in order to obtain benefits
(Weill, P., et. al., 2006). To ensure that the strategic planning of IS/IT is one of the pillars of an
IT Governance, it is necessary to answer the following questions: (a) Are we doing the right
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thing; (b) Do we do it the right way; (c) Does we do well; (d) Do we get the benefit. Answers to
four questions will be referred in the process of strategic planning IS/IT in an organization.
Strategic Planning IS/IT is absolutely necessary for every organization that will utilize IS/IT.
Satya Wacana Christian University (SWCU) Salatiga as one of the non-profit
organization is an educational institute, has long been implementing IS/IT in any organization's
business processes. However, each IS/IT is used in this organization have not been able to
provide output that can help the leaders in upper management level (top level management) in
SWCU to determine the business strategy forward. The impact of that is the difficulty for top
level management to take decisions in the process of planning, controlling, monitoring, and
performance improvements in business processes institution. Therefore, it is necessary to do a
strategic planning IS/IT in an environment that is able to align SWCU between business strategy
and strategic IS/IT, so SWCU can achieve business goals effectively and efficiently.
In preparing the strategic plan IS/IT in SWCU, we use the method Be Vissta Planning
(BVP) which is a method to produce a strategic planning IS/IT that combines various methods of
strategic planning IS/IT which has advantages such as being able to analyze the information gap
between business activities and IS/IT is used and can provide a competitive advantage based on
the opportunities that are owned by the SWCU (Pavlou, A. P., et. al. 2006). Then, the results of
strategic planning IS/IT able to answer a variety of business requirements based on the analysis
of business environment and the environment IS/IT environment both internal and external
environment.
Review of Literature
Research on information systems strategic planning using BVP methodology to develop a
strategic plan based on the business benefits of information systems that produce a blueprint for
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systems, technology and information management in an industrial company (Haris, W., 2002). In
that study, researchers analyzed the literature related to information systems strategic planning
methods. Various methods of strategic planning is then compiled into a method. There are
several things that can be summed up in these studies, among them the BVP methodology must
be equipped with a list of questionnaires to help sharpen the analysis of the needs of business and
IS/IT organization. Other research is the methodology used to develop the strategic plan BVP/IT-
related increase in revenue (PAD) (Ellensyah, K., 2003). BVP methodology used has been
adapted to the case study object, the service-oriented organization, in this case the provincial
government (province) of Jakarta. Researchers try to develop a strategic plan/IT-based business
benefits for the city government, where the strategic plan/IT can be a reference in the
manufacturing-based governance of information technology (e-Government). In this research,
BVP used to analyze the internal and external IS/IT of the Government of DKI Jakarta. Based on
the analysis, was made a breakdown potential of IS/IT, which is then mapped to each of the
relevant agencies PAD. Having identified the potential of IS/IT from each institution, then later
made proposals IT infrastructure that supports the potential of IS.
Strategic Planning IS/IT is a process of identifying a portfolio of computer-based
application that will support organizations in the implementation of business plans and realizing
its business objectives (Ward, J., et. al., 2002). Strategic Planning IS/IT study the effect of IS/IT
on business performance and contribution to the organization in selecting the strategic steps. In
addition, strategic planning IS/IT also explains various tools, techniques, and frameworks for
management to align IS/IT with business strategy, and even find new opportunities through the
application of innovative technologies. Some characteristics of strategic planning IS/IT, such as,
the primary mission: strategic or competitive advantage and its relation to business strategy; the
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direction of the executive or senior management and users; as well as the main approach in the
form of user innovation and development combined bottom up and top down analysis. Figure 1
shows a schematic model of the strategic planning of IS/IT.
Figure 1. IS/IT Strategic Planning Method
(Ward, J., et. al., 2002)
Research Methods
The research method which will be done in this research is in Figure 2. In the first phase,
researchers will be guided by strategic information systems planning methodology proposed
Ward and Peppard (Ward, J., et. al., 2002) that will analyze the business environment and
environmental analysis of IS/IT organization's internal and external advance. The second stage
until the fourth stage, investigators using methodologies BVP. The first stage is intended to get
an overview about the state of organization and business processes conducted institution. This
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stage is part of phase 1 methodology BVP, which is examining the needs of the organization.
Input required in this phase is obtained from the vision and mission of the organization's business
processes SWCU especially in the areas of academic and information technology.
Figure 2. Research Method
The second phase is intended to find the proposed strategy IS/IT that can meet the needs
of institution. The results obtained from phase 1 will be input at this stage. The expected result of
this second stage is a proposed strategy IS/IT in accordance with the needs of institution. In this
study, the proposed strategy IS/IT will be limited to the potential of IS/IT are available at this
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time SWCU. In the third phase, will be the strategy IS/IT with respect to the existing policy rules
that will be taken against the policy implementation plan IS/ IT in the institution. The next stage
after making the planned implementation of IS/IT is to be applied in the institution.
In strategic planning IS/IT based on the methodology used Value Information Systems
Strategic Planning (Be Vissta Planning) based on the advantages of strategic planning
methodologies of existing information systems (Pavlou, A. P., et. al. 2006). Methodology BVP
collects the advantages of information systems strategic planning method of Ward and Peppard,
Wetherbe, Martin and Tozer, then compiled into a BVP methodology (Raghunarthan, B., et. al.,
1999). The design methodology is based BVP strategic planning activities of IS/IT in some
ways, that is based on the organization's business plan document. Each data set forth in the
organization's business plan interprets as information needs to be met by field IS/IT division.
Field IS/IT division was then conducted an analysis of internal and external conditions in order
to determine the ability of its resources and meeting the needs of the business information. The
analysis of internal and external systems strategy, management, and information technology are
then created for the implementation of priority projects and implementation schedules.
Analysis and Strategic Planning
The first stage of the methodology Be Vissta Planning are reviewing and analyzing the
organization's business environment, the activities carried out at this stage are the analysis of an
organization's external business environment, the organization's internal business environment
analysis, analysis of the condition of IS/IT external conditions and analysis of IS/IT internal
institution. Organization's external environment analysis conducted to determine the
organization's external environmental conditions, this analysis will be based on assessments of
the leaders SWCU to market conditions in the world of education using interview, questionnaire,
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and the study of literature on related research. Organization's external environment analysis
performed with the aim to identify the needs of IS/IT SWCU so as to compete with its rivals,
especially the external conditions. Figure 3 shows the relationship with the organization's
external environment analysis of the needs of IS/IT institution.
In this study, the analysis of an organization's external environment is done using two
tools which are the analysis of Five Forces and PEST. Five forces analysis using the five forces
of external organizations. By using this analysis, it can be identified external things what they are
Figure 3. Relationship between Organization’s External Environment
And IS/IT Instituion Needs
positive or negative that may impact/influence on business processes in the institution. This
analysis also aims to provide an overview of solutions IS/IT for the institution. In the analysis of
five forces in SWCU very interesting to see who is the customer and suppliers, the customers
here are students because they are the users of education services within the institution. While
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the supplier is also a student because they are sent to be educate in the university environment to
produce output as alumni. For product/service substitutes (subtitute products/services) are
different types of services/education services outside the colleges that offer the same learning
methods with lower prices and shorter time to produce graduates that can be used by users of
raduates. Based on the five forces analysis, it can be mapped to the needs of IS/IT in SWCU, as
shown in Table 1.
Table 1. The Need for IS/IT Based on the Five Forces Analysis
Five Forces Factors IS/IT Needs
A formidable competitor that has a complete information system, interesting programs, and the uniqueness of graduates.
- Build a complete information system that integrates all business processes.
- Building information systems promotion with attractive multimedia systems.
Threat of New Entrans with various advantages such as business strategies and educational programs webomatrix interesting.
Increase SWCU webomatrix thus becoming one of the world class university that can compete with other universities.
Bargaining Powers of Suppliers and
Buyers are able to influence supply, reception, and service to the institution.
Building information systems that can connect between SWCU with stakeholders such as the application of Customer Relationship Management (CRM) and Supply Chain Management (SCM) that can accommodate the demands of stakeholders.
Threat of Subtitute Products/ Services that provide an alternative education program that is relatively cheaper and faster in terms of the study period.
Building information systems that can provide education to stakeholders about the benefits of study at institutions of formal education are much better.
The next external environmental analysis organizations PEST analysis is performed on
the four factors that may affect the business processes at the institution. These factors are
political, economic, social, and technology. Political factors that some government policies and
laws on education. As the university is located in the jurisdiction of the Republic of Indonesia,
the SWCU also noticed some laws and administrative regulations governing the implementation
of education. Economic factors, among others, economic growth in Indonesia tend to be less
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stable that directly affect how the attitude of the parents who would send their children to
college. Social factors closely associated with religious and cultural factors. SWCU as one of the
university run by a Christian foundation has the feel of a high religious in any activity on
campus. However, beside known as a Christian university, the SWCU is also the option for non-
Christian students whereas it could be seen from some students who are Muslim, Buddhist, or
Hindu. In terms of culture, SWCU known as "Mini Indonesia" which can be viewed from
various ethnic diversity of the indigenous or ethnic culture from Sabang to Merauke, barely
contained in the institution. This suggests that the lost password can be accepted by all societies
and ethnic cultures as a college that has good quality. Technology factors, namely, the use of
technology is used ranging from administration to teaching and learning, even when it lost
password using technology in terms of promotions and new admissions as a test online and
announcement of test results. Development web 2.0 technologies such as network infrastructure
and influence how business processes are performed in the institution. If the first, each business
unit using technology separately with each information system, currently all business units in lost
password associated with the integrated information system. Based on PEST analysis, it can be
mapped to the needs of IS/IT in SWCU, as shown in Table 2.
While the environmental analysis IS/IT external organization aims to see the development
of the condition of IS/IT today that will affect the implementation of IS/IT in the institution. In
conducting this analysis, the researchers conducted a study of literature from various sources
which will see the various developments of IS/IT such as: development IS/IT for higher
education, software development, hardware development, development of database systems,
development of communication network and data security, and the development of social
networking media (social network) that will be able to see the benefits of the implementation of
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Table 2. The Need for IS/IT Based on the PEST Analysis
PEST Factors IS/IT Needs
Politics: Government policies, laws, and laws and regulations on education through the Higher Education and Kopertis region VI of academic quality control and program evaluation studies.
- Building information systems that can carry out supervision of academic quality.
- Build a system which can provide reporting information related to the process of accreditation of courses and extension of the operational program of study based on self- evaluation program of study.
Economics: Purchasing power of prospective students to the study plan is relatively low due to the economic conditions are less stable and thus require colleges to study low cost, easily accessible location, and has a scholarship.
Building information systems that can provide information about tuition fees, college location, and complete scholarship information.
Social: Religious diversity and ethnic cultures throughout Indonesia that make the campus lost password "Mini Indonesia" provides its own characteristics compared to other colleges.
Building information systems that can provide information about the diversity of socio-cultural that can be accessed by the general public so as to attract potential students from diverse backgrounds in the area of Indonesia.
Technology:
Development technology and integrated information systems have an impact on the entire organization's business processes.
Provision of adequate technology infrastructure so as to support the implementation of information systems at the institution.
IS/IT in the institution. Based on the analysis of external conditions IS/IT, it can be identified
several benefits of the implementation of IS/IT in SWCU as shown in Table 3.
The next stage of analysis is the organization's internal business environment analysis
was made to have a clear business processes that occur in the SWCU in order to obtain a clear
picture of the strategic plan IS/IT to meet the needs of the organization. Analysis process is to
conduct interviews and questionnaires to the various business units of organizations including
the heads of institution. Analysis tool is the organization's internal business environment using
the Value Chain Activity. Value chain analysis of activity undertaken to describe the activity of
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Table 3. Benefits from Applying IS/IT Based on the IS/IT External Conditions
IS/IT External Condition Benefits from applying IS/IT
- The use of information systems for business processes at the college began to demand.
- The continued development of open source software.
- The development of technology based on Service Oriented Architecture (SOA) for web applications.
- Internet broadband mobile technology is increasingly used in computer networks.
- Data security system start being applied in various information systems.
- The development of social networking media along with the increasing use of smartphones.
- Facilitate the organization's activities and business processes for integration of all business units within an information system.
- Reduce operating costs and maintenance of information systems.
- Facilitate the distribution of data and information from each business unit are related and interconnected with information systems.
- Facilitate the communication of data and information remotely and improve the efficiency of time and place.
- Provides data integrity and security hardware used.
- Facilitate the promotion and management of the academic community.
key business processes and supporting business processes of an organization. This analysis also
aims to identify and classify the activities that occur in SWCU into two major parts which are the
major activities and support activities. The results of this analysis will then be used to identify
the needs of IS/IT. Value chain activity that occurs in SWCU can be described as in Figure 4.
In identifying the application of IS/IT in SWCU, they conduct the environmental analysis IS/IT
internally in SWCU to all available resources IS/IT. Resource in question is information systems,
information technology, and human resources or management IS/IT contained in the institution.
The next stage after an analysis of business and IS/IT organization's external and internal,
that is the proposed solution strategy IS/IT which can meet the needs of IS/IT in the institution.
The results obtained from previous stages of environmental analysis and business IS/IT
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Figure 4. SWCU Value Chain Activity
organizations will be input at this stage of the solution strategy proposed IS/IT. Then,
applications will be mapped according to their respective functions using the matrix Mc Farlan
Strategic Grid (Raghunarthan, B., et. al., 1999) to determine the priority application to be applied
in future SWCU. Future applications of mapping matrix can be seen in Figure 5.
Figure 5. SWCU Future Applications Portfolio Strategic Grid
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Based on the applications that have been proposed and mapped in Figure 5, then made a
plan implementation IS/IT to create a roadmap of priorities that takes into account factors of
resources, functions, and complexity of applications that will be implemented in the future.
Priority implementation will be based on the quadrant of Mc Farlan Strategic Grid:
1. Priority #1: Applications that are in key operational quadrant.
2. Priority #2: Applications residing in quadrant support.
3. Priority #3: Applications in the strategic quadrant.
4. Priority #4: Applications that are in the quadrant of high potential.
Summary
Analytical results obtained in this study illustrate that the application of IS/IT which done
in SWCU is unable to support the overall business process. The analysis was done to the
environment and environmental business IS/IT external and internal in order to identify the
needs of IS/IT to support business processes at the institution. Solution strategy IS/IT focused
arranged to support the main activity in SWCU, such as promotions and new admissions,
education and teaching, research and community service, as well as graduation and alumni.
Another strategy is to give the proposed solutions of IS/IT supports to sustain the various
activities that support the main activity, such as: managing human resources, facilities and
information technology, academic administration, finance and accounting, laboratories and
libraries, and public polyclinics in order organizations gain a competitive advantage. BVP
application of the methodology in the preparation of strategic planning IS/IT in SWCU provide
alignment between IS/IT with the vision, mission and goals of the organization as a portfolio of
solutions IS/IT based on the results of the study and analysis of the primary activities and support
activities that are identified using a value chain activity.
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