It sourcing and cloud strategy

Please read this information on IT sourcing strategies:

Chapter 12.4 – "IT Sourcing and Cloud Strategy" (Attached chapter 12 PPT)
Report on outsourcing and insourcing by Deloitte Consulting describes the sourcing trends that are important for IT.
Find 2 peer-reviewed articles from academic journals on information technology sourcing. Summarize each article and compare and contrast the sourcing approaches in each article. Identify the factors that were important in each sourcing strategy and whether the sourcing decision was strategic for the long term or tactical for the short term. Which strategy did you think was more effective and why? Your paper should be in APA format and 3-4 pages, not counting the title page and reference pages. Make sure you have in-text citations and a reference page.

3 to 4 pages not counting title page and reference page. Need Introduction and Conclusion, and properly cited.Chapter 12 IT Strategy and Balanced Scorecard Prepared by Dr. Derek Sedlack, South University Learning Objectives IT Strategy and Strategic Planning Process Aligning IT with Business Strategy IT Sourcing and Cloud Strategy Balanced Scorecard Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process • Value Drivers – Enhance the value of a product or service to consumers, creating value for the company (such as advanced IT, reliability, and brand reputation). – Three general types of Business Value Drivers: • Operational Shorter-term factors • Financial Medium-term factors • Sustainability Long-term factors Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process • IT Strategic Planning – A systematic process for determining what a business should become and how it can best achieve that goal. • Reactive Approaches Fail – Fail to align IT to real business needs. and, as a result – Fail to deliver value to the business. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process IT Strategies Support the Business Strategy • Four IT Strategic Plan Objectives: 1. Improve management’s understanding of IT opportunities and limitations 2. Assess current performance 3. Identify capacity and human resource requirements 4. Clarify the level of investment required Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process IT Deployment Strategies • In-house development – Systems are developed or other IT work is done inhouse, possibly with the help of consulting companies or vendors. • Sourcing – Onshore: sourced to consulting companies or vendors that are within the same country. – Offshoring: work sourced to other countries. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process Figure 12.2 IT strategic planning process. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process IT Steering Committee • Set the direction – Links corporate strategy with the IT strategy, • Allocate scarce resources – Approves the allocation of resources for and within the information systems organization including outsourcing policy. • Make staffing decisions – Key IT personnel decisions involve a consultation and approval process made by the committee, including outsourcing decisions. • Communicate and provide feedback – Information regarding IT activities should flow freely. • Set and evaluate performance metrics – Establish performance measures for the IT department and see they are met. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process • Governance – Formally established statements that direct the policies regarding IT alignment with organizational goals and allocation of resources. • Long-range IT plan (Strategic IT plan) – What IT should do to achieve the goals, objectives, and strategic position of the firm and how this will be achieved. – The overall direction, requirements, and sourcing of resources. – Time frames are set for three to five years into the future. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process • Medium-range IT plan – Identifies general project plans in terms of the specific requirements and sourcing of resources as well as the project portfolio. • Tactical Plan (Short-range) – Details budgets and schedules for current-year projects and activities. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process • Project Portfolio – Lists major resource projects that are consistent with the long-range plan. • Applications Portfolio – A list of major, approved information system projects that are also consistent with the long-range plan. Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. Chapter 12 IT Strategy and Strategic Planning Process 1. 2. 3. 4. 5. 6. What are value drivers? What are the three categories of value drivers? Why do reactive approaches to IT investments fail? What is onshore sourcing? What is the goal of IT–business alignment? Why is IT strategic planning revisited on a regular basis? 7.