Tuesday, December 14, 2010

McFarlan Portfolio Framework

A framework for a strategic information system (SIS) is a descriptive structure that helps understand and classify the relationships among strategic management, competitive strategy, and information technology.

McFarlan in 1984 has developed framework which organization can analyze and review existing, planned, and potential Information System in their company. McFarlan's framework is created in four-cell matrix which classified the application into these four categories:

a. High Potential
Applications that tend to achieve future business success. Those applications are considered important.
b. Key Operational
Applications which organization currently depends for gaining success.
c. Strategic
Critical applications for future business strategy.
d.Support
Currently valuable and desirable applications (but not critical) for business success.

This framework along with other models has proven to be useful to assist organization in developing their strategy. This framework can be applied in many aspects/applications, such as intelligent systems, personnel duties application, enterprise resource planning, and multimedia presentation. Figure below shows the McFarlan framework.

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