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Part 2Information Systems PlanningInformation Systems Planning in an organization2Need for planningImproperly planned projects result in systems that cannot be shared across an organizationAs business processes change, lack of integration will hamper strategy and business process changes2Advantages of IS planning3Allow to construct ISs that support the whole organisationAllow integration of different tools Avoid data redundancyReduce maintenance costs because planned system will require less revisionPlans enable communicationTo enable and support intra-organizational communicationTo create a shared mental image of team members rolePlans enable unity of purposeTo specify the objective of IS deployment Clear responsibilities are agreed upon Plans simplify decision making over timeTo create a context for decision making

Description of three process that play significant role in project selection4Value chain analysisInformation System PlanningCorporate Strategic Planning Information Systems Planning in an organization5Information system planning is different from project planningInformation System Planning (ISP) is the process by which a company (organisation) analyses its information needs and plan its project carefully ISP is an orderly means of assessing the information needs of an organisation and defining the systems, databases, and technologies that will best satisfy those needsInformation Systems Planning in an organization6ISP requires support of top management and its commitment to reach desired objectives.Techniques used to capture information system needs, include Interviewing managers and executivesReviewing corporate documentsAnalysing competitors, markets and productsThree key activities:Describe the Current SituationDescribe the Target (or Future) SituationDevelop a Transition Plan and Strategy5.66Information Systems Planning in an organization7Information Systems PlanningDescribing the Current SituationThere are two approaches to describe current situation needsTop-down PlanningGeneric methodology that attempts to gain a broad understanding of the information system needs of the entire organizationBottom-up PlanningGeneric methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities5.77Information Systems Planning in an organization81. Describing the Current Situation (Continued)Include :Planning team is chartered to model existing situation.Identification of Organizational:LocationsUnitsFunctionsProcessesDataInformation Systems

5.88Information collected about current situation9Locations where the company operatesBusiness unit that operate within a companyFunctions = cross organisational collection of activities used to perform day-to-day business operation. Processes of a company Data underlying processes Information system represent automated and non automated systems used to support business processes. Information Systems Planning in an organization102. Describing the Target SituationDefine situation and update list of organizational locations, functions, etc. to reflect desired locations, functions, etc.Planners focus on differences between current lists and future lists and

10Information Systems Planning in an organization113-Developing a transition strategy and plansPlans reflect both short-term and long-term organisational development needsPlans include organisational mission, information inventory, mission and objectives of IS, constraints, long-term plans and short-term plansSelected projects are those derived from ISP and that fulfil the gap between current and desired situationCorporate Strategy Planning (CSP)12Effective deployment of resources require clearly understanding of organisational missions, objectives & strategyCorporate Strategy Planning is a top-down process of three stepsCSP is an ongoing process that defines the mission, objectives and strategies of an organisationCSP is a process that is frequently subject to changeIt requires constant surveillanceProcess of corporate strategy planning13Analysis of strategic position: what is the current position?Desired strategic position: what are the objectivesDesign of the possible strategies to achieve desired goalsSteps: 13Components of a problem: A1- Know current situation: B2- Know the desired situation3- Know the path to move from A to B4- Know how to evaluate the B-A

ISP and Corporate Strategy Planning14Desired situation for informational needsListing of manual & automated processesListing of manual & automated dataTechnology inventoryHuman resources inventorySchedule of projects to transit from current to desiredProject 1Project 2----

Current enterpriseFuture enterpriseStrategic planCurrent situation for informational needsListing of manual & automated processesListing of manual & automated dataTechnology inventoryHuman resources inventoryStrategic AlignmentA high degree of fit and consonance between the priorities and activities of the IS function and the strategic direction of the firmCareful planning is critical for strategic alignments, especially for firms in highly competitive environments.Six Key IS Decisions How much should we spend on IT?What the role of IS and technology should beWhich business processes should receive the IT dollars? What business processes are most importantWhich IT capabilities need to be companywide? The cost/benefits of standardization and flexibility How good do our IT services really need to be?The degree of service the firm needs and are willing to pay for What security and privacy risks will we accept? Whom do we blame if an IT initiative fails? Allocate resources and assign responsibility for IS projects

Strategic IS Planning A partnership between Those with technical skillsThe information systems groupGeneral and functional managers

Objective:Define how the firm plans to use and manage IS resources to fulfill its strategic objectives

Strategic IS Planning ProcessGathering information about the current availability and performance of IS resourcesProviding a roadmap for decision-making about information systems

Strategic IS Planning ProcessStrategic business planningIS assessment IS vision IS Guidelines Strategic Initiatives

An Iterative Process

Strategic Business Planning Know Who You AreAn organization's mission and future direction, performance targets, and strategy.Effective IS planning can only occur when there is a clear understanding of the firm:What makes it successfulThe business strategyIts future goals and objectives Information Systems Assessment Know Where You Start The process of Taking stock of the firms current IS resources Evaluating how well they are fulfilling the needs of the organizationIS resourcesTechnical resources: hardware, software and networking components of the IT infrastructure Data and information resources: databases and other information repositories Human resources: skills, attitudes, preconceptions, reporting structures and incentive systems of IS professionals and the user communityOutput: a snapshot of the current state of IS resources in the organization.Information Systems Vision Know Where You Want To Go Based on the role that information systems should play in the organization Defines the ideal state the firm should strive for, in its use and management of its resourcesMore IT-intensive firms: IS may play a strategic role Less IT-intensive firms: IS may be a necessary evilInformation Systems VisionThe Information Systems Vision The Firms Business Strategy

The IS vision is unique and highly specific to a given firm.Two analytical tools:Critical Success Factors (CSF) methodology Strategic impact grid aligned and reflectCritical Success FactorsThe limited number of areas which managers must effectively control to ensure that the firm will survive and thriveIt ensures that the planning team is able to prioritizeIt focuses on business objectives, not on information systems

The Strategic Impact GridIt enables simultaneous evaluation of the firms current and future information systems needs.

The Strategic Impact GridCurrent need for reliable information systemsFocuses on current day-to-day operations and the functionalities of the existing systemsFuture needs for new information system functionalitiesFocuses on the strategic role that new IT capabilities play for the organizationThe strategic impact grid defines what the use of information systems resources should be going forward.

Support Quadrant IS are not mission critical for current operationsNew systems promise little strategic differentiationThe firm:Views IS as a tool to support and enable operationsConsiders IS to offer little potential to significantly benefit the organizationIs generally conservative in IS investments

Factory Quadrant Even a small disruptions to IS infrastructure can endanger the firms well-being and future viability.A limited potential for new systems and functionalities to make a substantial contribution.The firm:Closely monitors its current systemsNeeds to be willing to fund their maintenance and upgrade. But takes a conservative stance toward future investments.

Turnaround Quadrant IS are not mission critical for current operations New IS or new functionalities of existing systems will be critical for the business future viability and success.The firm:Is readying to change its information systems postureNeeds to engage in some reorganization

Strategic Quadrant IS are critical to the firms current operationsNew IS or new functionalities of existing systems is critical for the future viability and prosperity of the business.The firm:should be extremely proactive with respect to information systems and IT investments.

Information Systems Guidelines Know How You Are Going To Get There Information systems architectureA set of statements specifying how the firm should use its technical and organizational IS resources to achieve the IS visionPurposesEnable communicationEstablish responsibilityGuide future decision making

Purposes of IS GuidelinesCommunicationTo simplify tactical and operational decision-makingTo ensure that future decisions are aligned with the information systems visionIdentify responsibilitiesTo set expectations for behavior Long range decision supportMust be general enough to provide direction over a number of yearsMust be actionable Technical IS GuidelinesAddress future decisions pertaining to The hardware and software infrastructureNetworking servicesThe storage and protection of organizational data and informationDo not specify vendor, particular platforms or applicationsThey are relatively general

Organizational IS GuidelinesAddress those decisions that pertain toHuman resourcesThe organization of the IS functionReporting and hierarchical structuresFocus on IT governance issueOutsourcing and vendors relationshipsHuman resource decisions

Information Systems SWOT Know How Well Equipped You Are To Get There SWOT analysis focused on the firms current IS resources and capabilitiesRemember IS planning is iterative The IS vision may need to be revised according to the result of the SWOT analysis.The firm should be clear about what to do during the current planning cycle afterHaving read the SWOT analysis Given the proposed vision and the guidelines

Proposed Strategic Initiatives From Planning To Action Long-term (three to five year) proposals that identify new systems and new projects or new directions for the IS organization.These initiatives need to Identify a set of future avenues for exploitation of the IS resourcesBe tightly aligned with the IS vision and the proposed role of IS in the organization Any Questions?