Strategic IT Implementation for Bottom-Line Impact at Universitas Komputer Indonesia
Explore the strategic IT implementation at Universitas Komputer Indonesia focusing on connecting IT strategies to bottom-line results. Discover the challenges, major IT processes, and approaches to ensure progress and success. Learn how aligning IT investments with business goals can enhance overall performance and maximize benefits while reducing risks.
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UNIVERSITAS KOMPUTER INDONESIA IT Strategy which Connect to Bottom Line [Benson] Chap 3 Dr. Ir. Yeffry Handoko Putra, M.T
How to implement the Strategy IT Policy Compliance Standard IT Action (CSF Cobit s Version) Bottom line Target Environment Competitive (Porter) UNIVERSITAS KOMPUTER INDONESIA
Whatre Problems in Strategy implementation Strategy too complex, too detail Not measured There is a goal but no option (no mission) UNIVERSITAS KOMPUTER INDONESIA
Consider Major IT Process UNIVERSITAS KOMPUTER INDONESIA UNIVERSITAS KOMPUTER INDONESIA
UNIVERSITAS KOMPUTER INDONESIA UNIVERSITAS KOMPUTER INDONESIA
Implementing Strategy How do we know we are progressing? Where do we want to be? What are we doing to achieve them? Delivery Performance Service Quality Resource Utilisation Benefits Realisation Risk Reduction Portfolio Objectives Programmes Projects Services Resources Objectives IT Strategy IT Balanced Scorecards IT Business Cases UNIVERSITAS KOMPUTER INDONESIA UNIVERSITAS KOMPUTER INDONESIA
Basic approach for connecting to the bottom line By prioritizing all IT investments in terms of bottom- line impact (including risk), the company improves overall bottom-line performance by choosing the high- impact investments and eliminating or reworking low-impact investments. By aligning the lights-on IT spend (e.g., infrastructure, existing applications) to the business, the company improves overall bottom-line performance by changing or eliminating the low-impact activities. By understanding the cost of elements of the IT spend and by assessing the performance of the lights-on IT spend in terms of technology, architecture, quality, and service level, the company improves overall bottom-line performance by eliminating costly, poorly performing IT activities. UNIVERSITAS KOMPUTER INDONESIA
BOTTOM-LINE IMPACT BASED ON CAUSE AND EFFECT The key to assessing bottom-line impact is determining cause and effect The key to cause and effect on the bottom line is management action. The key to bottom-line impact is future management action. UNIVERSITAS KOMPUTER INDONESIA
Cause-and-Effect to the Bottom Line UNIVERSITAS KOMPUTER INDONESIA
Operational and strategic effectiveness (Michael Porter s) Operational effectiveness means performing similar activities better than rivals perform them. Strategic effectiveness means performing different activities from rivals or performing similar activities in different ways. UNIVERSITAS KOMPUTER INDONESIA
Operational and strategic effectiveness (Michael Porter s) cont d UNIVERSITAS KOMPUTER INDONESIA
Example of Strategic Intentions UNIVERSITAS KOMPUTER INDONESIA
PRINCIPLES OF ITS BOTTOM-LINE IMPACT Bottom-Line Principle 1: IT s bottom-line impact is based on its direct contribution to improved profitability. Bottom-Line Principle 2: IT s direct contribution to improved profitability is based on improving the company s operational and strategic effectiveness. Bottom-Line Principle 3: IT improves strategic and operational effectiveness by carrying out management s strategic intentions. UNIVERSITAS KOMPUTER INDONESIA
Improvements in Effectiveness caused Bottom Line Impact Result, or improvement here Produces Result here Strategic Effectiveness Revenue, Expense (and Mission) Performance Performance Revenue, Expense (and Mission) Bottom Line (and Mission) Impact Impact Bottom Line (and Mission) Cause and Effect Operational Effectiveness Produces Result here Result, or improvement here UNIVERSITAS KOMPUTER INDONESIA UNIVERSITAS KOMPUTER INDONESIA
