Insan Akademika Publications
INTERNATIONAL JOURNAL
OF BASIC AND APPLIED SCIENCE
P-ISSN: 2301-4458 E-ISSN: 2301-8038
Vol. 01, No. 01 July 2012 www.insikapub.com
The Implementation of Strategic Planning for Information System in
Educational Foundation
Cepy Slamet
Faculty of Science and Technology,
State Islamic University of Sunan Gunung Djati Bandung, Indonesia Jl. A.H. Nasution No. 105, Bandung
cepy_lucky@yahoo.co.id
Key Words Abstract
Strategic policy, Strategic planning, PEST,
BCG,
Five Forces Porter, SWOT analysis, Value Chain, Recommendation
In a competitive business environment, The Educational Foundation may decides two strategic business policies related to information system (IS) and information technology (IT) implementation. These are, optimalization of IS/ IT implementation for increasing services quality and its utilization as a core business competitiveness as a whole. However, a strategic planning for information system (SPIS) is required to implement these business policies. SPIS is a process for determining required IS to support business strategy, so that the strategy concentrates to identify required information and ensuring IS is aligned to business strategy. According to the Ward and Peppard’s approach, some activities of SPIS are conducted by using four main phases such as initiation, assessing and understanding the current situation and interpreting business requirement, setting priorities for IS/ IT, and determining IS/ IT strategy. Some analysis, Politic-Economic-Social-Technology (PEST), Boston Consulting Groups (BCG), and Five Forces Porter are used to identify external business environment, SWOT analysis and Value Chain to identify internal business environment.The research resulting a recomendation for organizational development priorities which devided into two related matters, IT Unit establishment and computer based system development for financial, human resource, and infrastructure management.
© 2012 Insan Akademika All Rights Reserved
1
Introduction
One of set mission by the educational foundation is provinding education services. It is implied with the excellence in creating, communicating, maintaining and applying science, and develop human resources who are ready to ride into the realm of better future.
In an effort to accelerate achievement of the vision, mission and goals, management has to consider their internal readiness to deal with competitive business environment. Since information technology (IT) and information systems (IS) can be considered as a strategic competitive resources, however, they should have a specific formulation in strategic policy through the IS/ IT implementation in a context of strengthening quality of service. The formulation of strategic policy can be:
To Implement the formulation of strategic policy, it requires a comprehensive planning supported by strategic reasoning in effectiveness and efficiency achievement of existing business process to gain value creation which manivested in a form of competitive advantages. Strategic planning for information systems is a process to define information systems required in supporting business strategy, so that the strategy concentrates for identifying a number of informations and confirming that information systems are relevant with business strategy (Earl, 1996).
Strategic planning of information system (SPSI) is an interesting topic to be discussed in both research or practice. The role of SPSI in organizations can bring some advantages as one of the main factors which can accelerate the achievement vision, mission, and corporate level strategic policy. There are several frameworks which can be used in SPSI. Ward and Peppard (2003) introduced a concept of SPSI which started concerning to the conditions of previous IS/ IT investment which contributed a low impact to business, captured some potentials of business, and the presence of large increases competitive advantages phenomenon of organizations as an implication of their ability to implement IS/ IT. However, the most important in this theory is they made a business requirement based framework.
2
Methodology
The study design was conducted with the sistematics in the figure 1.
Figure 1. Research Methodology
a) SPIS Initiation
b) Analyzing the Existing System and Business Requirements interpretation
The analysis is required to gain some critical informations which configure the context of business and IS/ IT, some further business requirements and the opportunities of IS/ IT implementations. The analysis starts from identifying major data of the organization in order to define some critical success factors (CSF). The further major step are analysis of internal and external business environment, and analysis of internal and external IS/ IT environment.
c) Target setting
The aim of the target determination is to identify a number of obstacles as well as subsequent analysis of potential IS/ IT utilizations in relation of providing more valuable business strategy, gap anaysis of information requirements, formulating policy platform of IS/ IT strategy to the organization as a whole.
d) Setting IS/ IT Strategy
The aim of this phase is to define the applications target that supposed to be a strategic solution in IS/ IT. The selections are conducted by giving rank or rank of the target application. The availabled rating is based on the criteria of business value, technical, and risk. Applications target with high ratings will be used as a strategic solution IS/ IT. The resulting strategies are Management strategies of IS/ IT, business strategies of IS/ IT, and IS/ IT strategies
3
Result and Discussion
The further main step are to define set of goals and scopes documented in a strategic planning of information systems that will direct to a complicated process of more progressive documentation. There will be some requirements to identify the corporate information, to analyze internal and external business environment, and to analyze internal and external IS/ IT. These analysis are conducted in order to figure out the existing contition of the corporate and it leads to an interpretation about business requirements.
Based on the results of prior analysis, an identifying of business opportunities in the same prespective (internal and external), internal problems and the proposed solutions, gap analysis in required information and proposed IS/ IT policy platform are all conducted. The first proposed result in the form of aplication portfolio is figured as table 1.
Table 1. Aplications Portfolio 1
Corporate Level
No. Service Domain IS Candidates
1
Financial Management Systems1.1 Planning and budgeting 1.2 Financial Management 1.3 Accounting Management 1.4 Reporting Management
2
Resource Management Systems2.1
HRD Procurement2.2
HRD Management2.3
HRD Development Center2.4
Reward and allowances2.5 HRD report and evaluation
3
Infrastructure Management Systems3.1 Requirement Management 3.2 Planning
Corporate Level
No. Service Domain IS Candidates
4
Strategic Business Unit Management System4.1 Integrated Admission Management 4.2 Integrated Registration Management 4.3 Academic Management
4.4 Scholarship Management
5
Publication Management Systems 5.1 Web based Integrated Information ServicesStrategic Business Unit Level
No Service Domain IS Candidates
6
Financial Management Systems Transaction ManagementReporting Management
7
Resource Management Systems HRD ManagementReward and allowances
8
AdmissionFront based services admission Back based services admission Alumni-carrier
The four final phases of this reseach are setting some categories of IS/ IT strategies.
IS/ IT Policy Platform
IS/ IT potential competitive advantages deliberation.
IS/ IT development requires some competencies of the organization in managing business and technology. Either best practices and methodologies are required in a whole of activities. As well as relevant development methodology and project management to corporation typology. The combination among the values of aplications are:
• Substitution, how large is the investment can influence and change the human resource to improve efficiency?
• Complementary, how optimal are IS/ IT investments in improving productivity
• Innovative, changing process and creating market opportunities to achieve competitive advantages
Policy and instruments in selecting IS/ IT strategy
• Efficiency level assessment in corporate business process produced by otomation;
• Business performance estimation obtained by the relation between retrenchment and changes in business process;
• Efective time reviewing of the arisen value reached by all strategic business units through IS/ IT investment;
• Productivity level assessment produced by changes of process, organization structure and its role of every function.
• Value assessment of IS/ IT investment for organization implicated by new strategy implementation of IS/ IT utilization.
Reasoning of Investment policy in IS/ IT
• The requirement of policy making mechanism in IS/ IT investment based on priority formulated in aplication systems prortfolio;
Managing strategy of IS/ IT
Considering the existing systems, the avaibility of IT infrastructures, and IS/ IT development planning in the organization, it shows a huge of facts that they require a specific division responsible for IS/ IT management. In a single prespective, basically refers to financial perspective that the role of IS/ IT management can be devided to be four basic classes, cost center; profit center; service center; and investment center. Each class has its own characteristics that differ responds from the corporate. The identical classification can be imposed to every aplication modules or technology portfolio in order to facilitate to assess which better technology to implement, long term investment, supports qulity of services to the stakeholder, or being a part of routine overhead. These theoretical approaches confirm that IS/ IT administrator should be defined as a service center which having ‘coordination-line’ to all section of organization in aligning the IS/ IT strategy to business strategy.
Portfolio 2
There are some applications mapped to four categories as the result of the analysis to business environment and IS/ IT in both internal and external perspectives, figured as table 2.
Table 2. Aplications Portfolio 2
Strategic
1 Planning and budgeting management systems 2 Financials reporting management systems (Top) 3 Human resource management systems
4 Students registration reporting management systems 5 Graduation reporting management systems
6 Financials reporting management systems (Mid) 7 Functional data management system
Key Operational
8 Admissions data management systems 9 Graduation data management systems
10 Financial administration management systems 11 Accounting administration management systems 12 Labour management Systems
13 Integrated scheduling management systems 14 Integrated infrastructure management systems
15 Business to business Integrated transaction management systems
Support
16 Procurement management systems
17 Quality development management systems 18 Infrastructure development management systems
19 Infrastructure Mantenance schedule Management systems 20 Integrated data management systems
High Potential
4.
Conclusion
The research contributes a technical framework which can be used by an educational organization based on strategic allignments. The framework guides to identify some important and strategic factors in aligning bussiness strategy with IS/ IT strategy to gain coherent, consistent, dan directional outputs.
The analysis results a recomendation of organizational development priorities which deivided into two groups, the IS/ IT unit establishment and computer based systems development in financing management systems, resource management systems, and Infrastructure management systems.
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