STUDY OF THE INFORMATION SYSTEM ABILITY TO ADAPT TO CHANGES OF ORGANIZATIONS BUSINESS STRATEGY

• Main Author: Wibowo (NIM 235 05 020) , Adi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/7037
• Institution: Institut Teknologi Bandung

Abstract: <br /> <br /> <br /> <br /> <br /> Business environment surrounding an organization is always changing. This is the nature of business environment. An organization should always adjust its strategy to adapt to surrounding environment to maintain competitive advantage, or even just to sustain its life. Information system now used as a driver or enabler for organizations business strategy. Consequently if business strategy is changed then information system should also be changed to support business strategy. This fenomena necessitate information system to be adaptive. <br /> <br /> <br /> <br /> <br /> To construct adaptive information system it is not sufficient to consider merely about modular or flexible technology, or about designing a correct application portfolio. There are numerous aspects of organization that possibly will influence the ability of information system to adapt to the demands from business strategy. <br /> <br /> <br /> <br /> <br /> This study has two objectives. First, to discover factors that need to be apprehend that influence the ability of information system to adapt to demands of business strategy. Second objective is to propose information system life cycle to resolve factors that discovered at the first objective. <br /> <br /> <br /> <br /> <br /> First objective will be fulfiled using analysis process that utilize qualitative methodology based on post-positivism and interpretive philosophy. Second objective will be fulfiled using synthesis process that utilize design science research methodology. <br /> <br /> <br /> <br /> <br /> This study discover the key factor that caused the inability of information system to adapt is improper business strategy formulation. Other factors are few staffs involved in the development projects, inadequate system development documents, inadequate development project management, inability of IT staffs to manage development project management, external and internal interruptions to on going project, and problems at bug handling processes. <br /> <br /> <br /> <br /> <br /> To solve these problems a solution concerning information system life cycle is proposed. By using process management principles proposed by Roger T. Burlton and empirical data collected during analysis phase, five principles are proposed to support the ability of information system adaptability. Five principles proposed are: <br /> <br /> <br /> <br /> <br /> 1. All process of business strategy (including information system strategy) formulation, and designing and development of information system should be divided into several level of detail. <br /> <br /> <br /> <br /> <br /> 2. Each level of detail should be performed at different iterations. Previous iteration is a process of analysis or development of higher level of detail (decomposition process). <br /> <br /> <br /> <br /> <br /> 3. Every knowledge gained from previous iterations can be used to achieve current iterations objectives (incremental finding and execution). <br /> <br /> <br /> <br /> <br /> 4. Each iteration should be performed in a short time (time-boxed), and should be evaluated at the end of each iteration (periodic evaluation). <br /> <br /> <br /> <br /> <br /> 5. Every knowledge gained from previous iterations should be stored therefore can be used at next iterations (knowledge management). <br /> <br /> <br /> <br /> <br /> <br /> As part of results of study, an information system life cycle (ISLC) consists of eleven phases, and one specific activity, formulated to use these five principles. ISLC is initiated by collecting information about internal business and information system environment. Second phase has an objective to identify organizations business model. After an understanding about internal business environment attained at phase one and two, third phase attempt to understand external business environment and organization position to the environment. Fourth and fifth phases are carried out to gain knowledge about business opportunities using analysis to business objectives, and flow of information and assets. These phases propose information and applications that should be implemented to gain that opportunities. Sixth and seventh phases have objectives to formulate business and information system strategy by using identification of business scenarios and formulation of business architecture. At the end of seventh phase several architecture building block (data, and application) have been identified and classified. Eighth phase start the process of development of each architecture building block by determining migration map. Each building block is developed at ninth phase according to the order established at migration map. Each time ninth phase completed the development of one building block, migration map revised to accommodate changes that might occur during execution of ninth phase. After several building block completed that allow for implementation, tenth phase is carried out. The last (eleventh) phase is a maintenance process of information system implemented at tenth phase. One specific activity is always executed during each phase execution, that is knowledge management. Knowledge management has an objectives to collect explicit knowledge, and transform tacit knowledge to explicit knowledge, and store them in a knowledge base. These tasks are carried out by a knowledge expert. <br /> <br /> <br /> <br /> <br /> By understanding factors that affect adaptability, five principles to support information system adaptability, and a proposed information system life cycle, there is an expectation that information system will have an ability to adapt to changes of business strategy. <br /> <br />