sheu1 extended neubauer & solomon environmental analysis information technology management...

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Extended Neubauer & Extended Neubauer & Solomon Environmental Solomon Environmental

AnalysisAnalysis

INFORMATION TECHNOLOGY MANAGEMENTINFORMATION TECHNOLOGY MANAGEMENT

資訊技術應用資訊技術應用 Session 06Session 06

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Business Strategy & PolicyBusiness Strategy & Policy

Discrete Program/ProjectIdentification

Environmental Impacts

Three Levels Of Concerns

Program/Project Execution

Program/

Project

Strategy/

Policy

External

InternalN&S Analysis

Hoshin Plan

Potential Tools

Business plan(HP 10-step)

Program/ProjectPlan

SWOT/5-Force

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Where to look for External ImpactsWhere to look for External Impacts

Consider from 6 categories of environments: Natural Environment

Social/cultural Env.

Technological Env.

Economic Env.

Political Env.

Infra-Structural Env.

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Strategic PosturesStrategic Postures Strategic postures include:

Missions• What needs to satisfy ?

• 滿足什麼產品或服務之需求 ? (providing what products/services)• Whose needs to satisfy ?

• Who are your target customers?/clients? 定義客戶對象 Be specific.• What value provided (by your product/service) ?

• Eg.: • Product: car => Value: transportation (bicycle could also for trans.)• Product: PCs => Value: computing (Notebook, PDA may substitute PC)

Strategies Policies

For simplicity, we will do missions & strategies only. recomm. to include policies in the formal exercise for your firm

Overview of what N&S analysis can help us? (Fig. 1)

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Objectives of Extended N&S AnalysisObjectives of Extended N&S Analysis

(Figure 2) Provide a structured way of environmental analysis

• Identification and analysis of relevant trends, constituent expectations

Provide a forum for discussions on shared missions/ strategies. Provide a framework for assessing the external impacts on the fir

m thus extending to the impacts on the missions/strategies. Providing clues for the needs to change firm's strategy - even missions.

Help firm to identify potential threats and opportunities systematically.

Help firm to assess firms readiness to respond to change and identify strategic actions needed.

Systematic way leading to identification of IT Opportunities for org. competitive adv.

The above objectives are best achieved thru teamwork and apporpriate participants for correctness/completeness.

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0. Co &IndustryProfile

0. Co &IndustryProfile

3. TrendAnalysis

3. TrendAnalysis

2. ReviewStrategies

2. ReviewStrategies

1. ReviewMissions

1. ReviewMissions

4. ConstituentAnalysis

4. ConstituentAnalysis

6. ImpactAnalysis

6. ImpactAnalysis

7. Describenature of key

threats &opport.

7. Describenature of key

threats &opport.

8. Reviewimpacted

missions &strategies

8. Reviewimpacted

missions &strategies

9. Eva. org.responsivness

to change

9. Eva. org.responsivness

to change

Recomm. forchange <R1>

Recomm. forchange <R1>

More rec.<R2>

More rec.<R2>

More rec.<R3>

More rec.<R3>

12. SummarizeRecomm for

changes

12. SummarizeRecomm for

changes

13. Identify IT appl.opportunities to

achieve changes moreeffectively

& efficienctly

13. Identify IT appl.opportunities to

achieve changes moreeffectively

& efficienctly

14. Prepare sys.req. or RFP for

the I.S.

14. Prepare sys.req. or RFP for

the I.S.T&O analysis

T&O analysis

ImpactMatrix

ImpactMatrix

IT system Req.or RFP

IT system Req.or RFP

IntegratedRecomm<R4>

IntegratedRecomm<R4>

10. Reviseexisting Missions/

str.

11. Test newMissions/str.

5. EstablishScoringCriteria

5. EstablishScoringCriteria

Environmental & IT Opportunity AnalysisEnvironmental & IT Opportunity Analysis

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E. Neubauer & Solomon Analysis (1)E. Neubauer & Solomon Analysis (1)

<Figure 3>Step 0: Briefly review Co. profile and industry status. Step 1: Deduct Apparent Missions*

Whose needs satisfied ?What needs satisfied ?What value does the company provide?

Step 2: Identify Perceived Strategies*long-term impactcrucial to survival & developmentbroad in scopedifficult to reverseinvolve significant commitmentsmaybe different from stated strategies.

* If there are differences between perceived/apparent strategic postures and proclaimed ones, explain them in footnotes and comment on what should be done.

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Step 3: Trend Analysis Industry-related trends (4) General trends (4) Both considered from all 6 categories of environments

Step 4: Constituent Analysis Look for constituent's expectations ref only: 3 demands from 3 major stakeholders.

Step 5: Establish Scoring Criteria (0-5) Consider impacts on:

company financial / survival customer population / satisfaction; market share organizational change co. public image; etc …

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E. Neubauer & Solomon Analysis (3)E. Neubauer & Solomon Analysis (3) Step 6: Determine impacts of trends/expectations on strategies and missions. (-5_0_+5) < fig. 6>

+X / -Y / Z (0 < X, Y, Z < 5)

• +X (Opportunity): The extent of positive impact the org could gain if certain change is made to the subject mission/strategy

• -Y (Threat): The extent of negative impact the org could suffer if the subject mission/strategy is not changed.

• Z (Confirming): The extent of positive impact the current mission/strategy could bring about if it is implemented as intended. Z represents the goodness of the current mission/strategy w.r.t. the trends or expectations.

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E. Neubauer & Solomon Analysis (3a)E. Neubauer & Solomon Analysis (3a)

Keep BOTH + & - numbers. Explain all high-impacting items ( >= 3). Adding numbers separately in vertical & hoz. directio

ns. identify highly impacted strategies & missions

suggesting these strategic postures may deserve closer review. identify high impacting factors.

Suggesting company may need to allocate more resource to gather data to enhance understanding of the factors.

Normally, most points will be 0.

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Neubauer & Solomon Analysis (3b)Neubauer & Solomon Analysis (3b)Ref guidelines for negative impacts (-Y) : <examples of -

impacts>

On missions:reduce/eliminate/change our population of stakeholders in undesirable way.reduce/eliminate the needs we are trying to satisfyreduce/eliminate the value of our product/service (in a grand scale)prevent us from satisfying our stakeholders.reduce/eliminate our ability to satisfy stakeholder's needs.

On Strategies:prevent us from implementing strategyincrease risk associated w/ implementing strategyincrease resources required to implement strategysuggest that some strategies no longer appropriate.

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Neubauer & Solomon Analysis (3c)Neubauer & Solomon Analysis (3c) Ref guidelines for positive impacts (+X) : <examples of + imp

acts> On missions:

suggest opportunity if our population of stakeholders is modified.suggest opportunity if the set of needs we are satisfying is modified.suggest opportunity if the set of values we are providing is modified.(must be consistent w/ firm's long-tem capability/competency)

On strategies:suggest a new opportunity if one or more strategies were changed w/i the framework of existing mission.

Examples of confirming mission/strategy: strongly support/reinforce our existing strategies w/ no need for change of strategies.

increase the likelihood of our being able to implement strategy as planned.

increase the confidence in the chosen strategy.

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Step 7: Describe nature of key threats and opportunities.

– Understand/describe what makes this force a threat or opportunity?

Step 8: Review highly impacted missions & strategi

es. Recommendations for possible changes <R1>

• Identify desirable (changed) strategies & missions, if any.• Identify potential new strategies & missions.• What might/should our missions be?

Whose needs, what needs, what value.When missions are in trouble, company may be in a wrong business.

What might/should our strategies be?Factor in company's competitive edge and core competency.

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E. Neubauer & Solomon Analysis E. Neubauer & Solomon Analysis (5)(5)

Step 9: Evaluate organizational readiness to change What responses are needed/desired? (company viewpoints) What are key factors/pre-conditions needed to enable effective

responses? (functional viewpoints) What additional resources/efforts are needed? magnitude? How ready are the resources? (What's our current status?) "snowflake diagram" - magnitude of additional

efforts/resources. (Example of Figure 7.) How do we address those additional needs?

=> <More recommendations emerge - driven by external factors> <R2>

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Step 10: Revise strategies and/or missions – if needed. Revise existing strategies per previous analysis. Add new strategies if needed. Revise mission if there is a series problem with existing mission.

Step 11: Test appropriateness of new strategies and/or missions – if needed.

Test modified strategies against revised missions. Check potential cascading changes onto strategies.

If needed, repeat steps 6, 8, & 9. (=> more higher Zs, less -Ys) <recommendations emerge - driven by internal reviews> <R3>

Step 12: Summarize recommendations linking from Steps 8, 9, 10 & 11. (=> R4)

Including strategic and possibly operational level.

(Next stage would be a business plan on how to implement recommendations toward revised strategic postures: missions/strategies/policies)

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E. Neubauer & Solomon Analysis (7)E. Neubauer & Solomon Analysis (7) Step 13: Identify opportunity of using IT to more effectively achieve:

The integrated recommendations in STEP 12 (R4), incl: strategic changes (mission/stratgies/organizational changes) Operational changes.

Step 14: Write down the detail system requirements of the Information system identified.

Extent: You can give the doc to outsource the ITS impl. What functional requirements (user view) are to be achieved?What are the system external/interface constraints?

• H/W configuration / S/W configuration /• Database (high level) plan / Telecommunication / Internet architecture / Budget / deadline

Normally leave out the design specs.

Review examples in class packet.

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Implementation Notes (1)Implementation Notes (1)

Law of "Garbage in garbage out" holds. Do faithful and serious discussions for evaluations. Recommend using Delphi brainstorm for assessments.

All 5 categories of ext. env. are to be examined. Other aspects could impact tech. strategy. tech. strategy should support business => good to have a broader

perspective. Results from multiple persons' discussions.

Avoid only single person's opinion => whole team's discussions. Involve stakeholders in the discussion/ review helpful. (Ask compa

ny people's opinions if possible.) Model to resolve conflicting viewpoints

Consensus / voting (averaging) / compromise

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Implementation Notes (2)Implementation Notes (2)

Get industry/company reviews whenever possible: ID of strategic postures / trends / constituents' expectations. assessment of impact matrix determining of organizational responsiveness.

Use abbreviated sentences for strategic postures & trends/expectations (see Impact Matrix Example) instead of M1, S1, T1, E1, etc.

Items explained sufficiently and in proper order in the report. (ref. MOT example)

Summary of N & S analysis: Figure 3 & 7. Impact matrix example

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Some techniques for considerationSome techniques for consideration

On giving points: (Delphi approach)– 1) Each one grades individually.– 2) Every one presents grade to the group and the ones with extreme points

explains the reason for the grade.– 3) Allow everyone to re-grade after listening to other's opinions.– 4) Average out the grade as final score.

(Alternative: could repeat 2)-4) until the spread of the grades is acceptable.)

On getting recommendations: Nominal group technique– Leader explain problem/issue & ask for ideas– Allow some quiet time for members to think and write down ideas.– One by one, members report their ideas to the group. List ideas in front of the

group.– Members continue to add ideas possibly stimulated by the reported ideas. – It is OK to skip a turn if no idea to report.– Continue to report and list ideas in rounds until all ideas are reported. – Go to next stage of evaluating/discussing the ideas. Eventually identify some

feasible solutions.

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HW & Common PitfallsHW & Common PitfallsHomework 2: Homework 2: (up to step 8) (up to step 8)

Do an extended N&S analysis.Do an extended N&S analysis.– Due in 3 weeks. (combine groups into super group: 5 persons)Due in 3 weeks. (combine groups into super group: 5 persons)– 20 min. oral report of your HW. Mission/Strategy/Key impacts.20 min. oral report of your HW. Mission/Strategy/Key impacts.

Final report: complete all steps of ENS.Final report: complete all steps of ENS.Common Pitfalls for N&S ReportsCommon Pitfalls for N&S Reports Missing Co. profileMissing Co. profile Unclear missions. Unclear missions.

– Must be specific to define who your customers are; what product/service; What valMust be specific to define who your customers are; what product/service; What value, etc.ue, etc.

– Confuse mission w/ strategyConfuse mission w/ strategy Did not explain the missions/strategiesDid not explain the missions/strategies Did not explain the impacted cells (score +- 3-5).Did not explain the impacted cells (score +- 3-5). Unclear linkage:Unclear linkage:

• High impact items => recomm. Changes => Org. responsiveness => IT opportuHigh impact items => recomm. Changes => Org. responsiveness => IT opportunitynity

sheu1 extended neubauer & solomon environmental analysis information technology management...

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