Business Process and IT Strategy Lecture 5 (31245) PDF

Business Process and IT Strategy (31245) Lecture 5: Data and Digital Strategy Lecturer| Thomas Dolmark [email protected] Subject Coordinator| Dr Faezeh Karimi [email protected]  Why is Strategy Important? Deve...

Business Process and IT Strategy (31245) Lecture 5: Data and Digital Strategy Lecturer| Thomas Dolmark [email protected] Subject Coordinator| Dr Faezeh Karimi [email protected]  Why is Strategy Important? Develop new capabilities. With this approach, strategies are designed to help organizations become more flexible and responsive to changing markets and competition. Create a uniquely competitive position. More traditionally, strategies are designed to perform activities that are different from those of their competitors or to do them in different ways. © 2017 Prospect Press Why develop a Data Strategy now? 1. Data is integral to the work of business and IT 2. Data will significantly affect our capabilities, products, and services 3. Data is both a corporate asset and a corporate vulnerability 4. Data is booming © 2017 Prospect Press  What’s New analytical technologies Driving Data New types of data New risk and compliance concerns Strategy? New competition New value © 2017 Prospect Press A Data Strategy must address: Policy: enable the organization to develop enterprise-wide solutions, better integrate evolving new technologies, implement partnerships, and create innovative solutions. Operations: Specific practices that need to be put in place in order for a strategy to be successful Stewardship: Specifically describes the roles and responsibilities associated with data management and distinguishes between business and technical responsibilities. Standards: Provides the basis for developing the processes, standards, and guidelines needed to manage data assets throughout the organization. © 2017 Prospect Press  Data Strategy and Data Types Enterprise-level data Data subject to any sort of compliance or regulatory need Data needed for competitive purposes Metadata to identify authoritative sources and content owners Foundational data (i.e., data that is central to the business), also known as the book of record External data to improve business functionality or to develop new opportunities. © 2017 Prospect Press  A Data Ecosystem © 2017 Prospect Press The Data Journey Improving data quality Working on data definitions Developing engagement Setting priorities © 2017 Prospect Press  1. Improving data quality Data quality problems “plague every department, every industry, at every level for every type of information,” and employees routinely work around or correct errors in their daily work (Redman 2013). High-quality data enhances trust in what it’s saying and encourages people to rely more fully on it (Ferguson 2014; Bowen and Smith 2014) and is a key factor in improving the information orientation of an organization that has been shown to have a strong relationship with performance (Davenport 2007; Marchand and Kettinger 2000) © 2017 Prospect Press  2. Working on data definitions Common definitions of key data elements, including their attributes, are a fundamental component of data integrity; that is, data that consistently means the same thing everywhere in the organization (Bowen and Smith 2014; Lewis 2012). Appointing data stewards to “own” key data elements and work with stakeholders to define them appears to be the best practice for making headway in this area. © 2017 Prospect Press  3. Developing engagement Many companies are seeking to demonstrate the potential value of a data strategy by engaging people with data. Generating excitement and engagement around small data initiatives is a key way to obtain funding for more significant data initiatives. © 2017 Prospect Press  4. Setting priorities Ensure that the organization has clear data priorities Set technical and business-oriented priorities decoupling data from tools and applications to make it more accessible storing data in its rawest form so that it can be used for a variety of purposes developing metadata to ensure consistency © 2017 Prospect Press  Conclusion: Data Strategy IT’s challenge is to implement an effective data strategy that will not only deliver immediate value to the business, but also put the pieces in place to more fully enable new business strategies in the future © 2017 Prospect Press Creating and Evolving a Digital Strategy  "A digital strategy is a means of embracing new and different technologies in ways that What is a Digital challenge operational and value assumptions and which integrate them with existing Strategy? technologies to deliver new products, services, business models, revenue streams and/or customer/stakeholder experiences." © 2017 Prospect Press  Activity 4 Examples of Successful Digital Strategy Development New York Times Alibaba Adobe Netflix © 2017 Prospect Press  The Unknown – Complexity – “guess” at the new methods future and new models Digital Holistic – Exploration – Strategy is integrated innovation and Different approach experimentation Scope – big data, Internet of Things, and AI © 2017 Prospect Press  What Are the Values of a Digital Strategy? © 2017 Prospect Press  A mechanism for thinking about new directions for business A view of multichannel business Reinforces the physical + digital experience Value of a Digital Metaphor for change Two-way connection (with internal Strategy and external audiences) Holistic integration Improved innovation Improved decision making Improved employee engagement © 2017 Prospect Press  Seek community engagement How to Develop Think backwards and then focus a Digital Nurture new ideas Strategy Consider the role of the CIO Communicate constantly Establish a digital business structure © 2017 Prospect Press  Mature Digital Strategy includes: A Digital Experience Design A Digital Operating Model A Digital Platform Assessment Delivery Plans Digital operating Delivery plans for Long-term vision for the model Timing, effort, and costs specific solutions customer experience Options, criteria, and path Creative concepts and that will assist selection of designs, developer-ready the technology required requirements, prototypes for testing, deployed mobile apps, etc. Digital experience Digital platform design assessment © 2017 Prospect Press  1. Data and analytics strategy 2. Pervasive relationship management Platform ecosystems Innovation ecosystems Interest ecosystems Commercial ecosystems Device ecosystems 3. Supportive culture Supporting 4. New capabilities Digital Strategy 5. 6. Support for experimentation Flexible architecture 7. Rapid development and implementation 8. Improved measurement © 2017 Prospect Press 1. Data and analytics strategy Informed decision-making, improved customer experience, and process improvement Enable new opportunities that will guide the evolution of a digital strategy Data manipulation capability at all levels of the organization has long been shown to contribute to organization performance (Marchand et al. 2000) © 2017 Prospect Press 2. Pervasive relationship management Platform ecosystems that provide a foundational platform for other ecosystem members to develop complementary products and services. Innovation ecosystems that access capabilities and talents from outside the organization, often from unexpected fields. Interest ecosystems that create interest around a company’s products and services and that can also serve as a source of new ideas. Commercial ecosystems that are formed by complementary organizations to deliver products and services. Device ecosystems that connect consumers and organizations. LinkedIn Developer ( 1 , 2 ) © 2017 Prospect Press  3. Supportive culture Digital strategy involves significant business transformation and that means supporting new ways of thinking, working, and leading. Typically, digital strategies require high levels of collaboration across organizational silos and especially between business and IT. Cultural change is notoriously difficult to achieve in traditional organizational structures and therefore requires significant and focused efforts to incent desired behaviors (Kane et al. 2015a). © 2017 Prospect Press 4. New capabilities Digital capabilities will increasingly determine which companies create value and which ones lose value (Hirt and Willmott 2014)​ companies need people who can understand and conceptualize how digital technologies can affect current business models​ organizations need to upgrade their HR practices to identify and acquire the new capabilities they will need both internally and externally.​ organizations must increase efforts to cross-pollinate staff skills in order to expand their awareness of context and broaden their skill set © 2017 Prospect Press 5. Support for experimentation Since there is considerable uncertainty about the potential of digital technology to drive all sorts of business transformation, organizations are being urged to develop practices that would enable them to quickly absorb, test, and adopt emerging technologies (Press 2016a) One of the best ways of accomplishing this is through the design, development, and implementation of experiments or prototypes. © 2017 Prospect Press  6. Flexible architecture Architecture is usually the function in IT that is charged with assessing emerging technologies and providing the infrastructure that will support experiments (Smith and Watson 2015). Increased flexibility is required for enterprise architects to anticipate and plan for the larger architectural implications of new technologies (Kiron et al. 2013b) as well as for finding ways to ensure that integration and stability are still a focus (Kane et al. 2015b). © 2017 Prospect Press  7.Rapid development & implementation Many IT organizations are now using agile development methodologies, which involve developing deliverable pieces of functionality in short intervals and require active business participation. DevOps, a new set of practices, incorporates operations staff into a development team to ensure the speedy transition of new development output into implementation © 2017 Prospect Press  8.Improved measurement Measurement of the impact of the different components of a digital strategy is a challenge Identify a small number of metrics and then evaluating and evolving them over time. A key starting point for focusing initial efforts is to ask the key “value questions”: What value will be delivered? Where will value be delivered? Who will deliver value? When will value be delivered? How will value be delivered? © 2017 Prospect Press  Conclusion Today, there is a huge opportunity for IT to demonstrate its value to the organization and to become a true business partner in leading and catalyzing the business. But IT leaders and staff must step rise to the challenge with vision, education, business awareness, and significant internal change. © 2017 Prospect Press Copyright Notice concerning teaching materials Please remember that teaching materials and resources provided to you at UTS are protected by copyright. You are not permitted to re-use those for commercial purposes (including in kind benefit or gain) without permission of the copyright owner. Improper or illegal use of teaching materials may lead to prosecution for copyright infringement. 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